A new study from Juniper Research has forecasted subscription economy revenue to reach $996 billion by 2028, a growth of 68% from $593 billion in 2024.

This growth is anticipated to be driven by the expansion of subscriptions into a wider range of segments, including Mobility-as-a-Service, physical goods boxes, and delivery services. Subscription management platforms like Recurly and Zuora are contributing to the overall growth, offering ways to reduce churn and support diverse payment options.

However, the sector faces a threat from regulatory changes in several prominent subscription markets, with the US implementing regulations for easy cancellation with its 'click to cancel' bill. This regulatory change is expected to increase churn, leading subscription merchants to increase their investment in customer retention, creating opportunities for subscription management businesses.

The research suggests that subscription management platforms need to focus more on churn reduction technologies, including intelligent card retries, and use machine learning to understand consumer reasons for cancellation. Hyper-personalisation, especially via algorithm-powered product tailoring, can significantly improve retention.

The digital music and digital video industries, which have moved further into hyper-personalisation, are forecast to reach a combined revenue of $370 billion by 2028.

The research recommends that subscription management platforms invest in AI for consumer tracking to sustain customer relationships and enable optimised marketing strategies.