Car Leasing Market: Global Industry Analysis and Forecast (2023-2029) Trends, Statistics

Car Leasing Market Definition:

The leasing service is viewed as a worldwide answer to the expanding issues businesses have with their mobility demands, including vehicle funding upkeep and, more significantly, residual risk management. Car-owning companies lease their fleets to other manufacturing companies so that they can transport their goods and products; these companies choose to lease their fleets from car-leasing companies. Corporates often choose to lease the car as a hassle-free mobility solution that includes on-demand mobility and after-service amenities.

 

Further, the Car Leasing market is segmented by Application Type, Lease Type and geography. On the basis of Application, the Car Leasing market is segmented under Business Use and Personal Use. Based on the Lease Type Open-End and Close-End. By geography, the market covers the following Regions: North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Billion).

 

 

Car Leasing Market COVID-19 Insights:

There has been a significant decline in commuter and non-essential travel as a result of the COVID-19 epidemic, which has caused businesses to require staff to work from home more frequently. Temporary lockdowns to stop the spread of the COVID-19 epidemic are distressing car leasing firms. For drivers who drive vehicles owned by the ride-hailing platform's subsidiary, certain auto leasing businesses have begun waiving lease rentals. 

 

Following the lockdown, businesses must adhere to safety procedures including body temperature scanning, social seclusion, and guaranteeing high levels of sanitization, all of which add to the expense.

 

Car Leasing Market Dynamics:

In the vehicle industry, mobility-as-a-service is becoming more and more popular. The worldwide automobile leasing business is growing as a result of the rise in young customers and the desire for mobility among consumers with limited purchasing power. 

 

To entice and keep talent, businesses and organisations all over the world provide enticing advantages to their employees, such as automobile leasing. The majority of automobile leasing customers are businesses. The market for automobile leasing is also being driven by an increasing corporate tendency to be recognised as the "best-working place."  Consumers are leasing and renting automobiles as a result of rising maintenance, tax, and gasoline costs associated with car ownership, which is anticipated to grow the market for car leasing.

 

A global recession with significant effects on the car industry is predicted to be brought on by the coronavirus pandemic. The roll-out of newer lease contracts is anticipated to be significantly impacted by banks' and financial institutions' reduced capacity to carry lending, which would constrain the market for automobile leasing.

 

Car Leasing Market Segment Analysis:

By Application Type: The business use segment is expected to account for the largest share of the car rental market during the forecast period. In recent years, most organisations have tended to rent cars for their senior executives. This helps employees commute on their own instead of company transportation. Every 3 to 5 years, the organisation offers upgraded car rentals to team members. It provides an option to keep the vehicle as the team member completes their service with their organization. This saves team members large sums of money when the organisation delivers a brand new car. According to the car rental market analysis, the personal use segment is expected to have significant growth in the market during the forecast period. More and more consumers tend to rent a car instead of buying one. Leasing helps consumers avoid paying a large upfront payment, which is not feasible for most users.

 

 

By Lease Type: The open sale segment is expected to be the fastest growing segment during the forecast period. An open contract is also known as a finance lease. This lease is a type of lease that requires the tenant to make a one-time payment at the end of the lease. An amount equal to the difference between excess assets and fair market value. This form of lease is mainly preferred for business purposes.

 

Closed leases are expected to show decent growth in the market. This rental agreement is mainly used for personal use as the only requirement of the user in this type of rental is to drive the vehicle from point A to destination B, i.e., from the travel agency, home, and also at a predictable distance with minimal maintenance cost.

 

Car Leasing Market Regional Insights:

The market for leasing automobiles is dominated by North America and then by Europe. A large portion of the market is collectively accounted for by North America and Europe. Despite the low rates of interest offered by the leasing firms in this area, they are anticipated to continue to dominate. As a result, many customers chose to lease an automobile rather than purchase one.

 

Due to the decreased penetration of automobile rentals in overall registrations, the Asia-Pacific area has experienced consistent development. The market is growing steadily because of factors like user awareness growing and automobile ownership costs rising. Due to their customers' rising disposable income, developing nations like China and India are anticipated to benefit the industry.

 

Car Leasing Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Global Car Leasing market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Car Leasing market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Car Leasing Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Car Leasing market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Car Leasing market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Car Leasing market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Global Car Leasing market. The report also analyses if the Global Car Leasing market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Car Leasing market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Car Leasing market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Car Leasing market is aided by legal factors.

 

Car Leasing Market Scope:

Car Leasing Market Scope
Market Size in 2022	USD 85.54 Bn.
Market Size in 2029	USD 135.58 Bn.
CAGR (2023-2029)	6.8%
Historic Data	2017-2021
Base Year	2022
Forecast Period	2023-2029
Segment Scope	By Application Business Use Personal Use
	By Lease Type Open-End Close-End
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Car Leasing Market Key Players: 

• Avis Budget Group (New Jersey, U.S.)
• Orix (Tokyo, Japan)
• ALD Automotive (Rueil-Malmaison, France)
• Sixt (Pullach, Germany)
• Hertz (Florida, United States)
• Arval (Paris, France)
• LeasePlan (Amsterdam, Netherlands)
• Europcar (Paris, France)
• Daimler Financial Services (Stuttgart, Germany)