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The automotive fleet leasing market size is forecast to increase by USD 9.20 billion, at a CAGR of 5.98% between 2023 and 2028. The growth of the market depends on several factors such as the rise in focus on cost-effective solutions in the logistics and transportation sector, the rise in adoption of car subscription models in the automotive fleet leasing industry and the rise in the shift from vehicle purchase to vehicle leasing.
The research report on the Automotive Fleet Leasing Market offers industry forecasts and segmentation based on Vehicle Type which includes passenger cars and commercial vehicles. It also segments the market by Type which comprises open ended and close ended. Geographically, the report covers APAC, Europe, North America, Middle East and Africa, and South America. The market size, historical data for 2018 - 2022, and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the market growth analysis, market trends and analysis, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in focus on cost-effective solutions in the logistics and transportation sector is notably driving market growth. The global automotive fleet leasing market is experiencing a significant rise in focus on cost-effective solutions. Businesses across various industries are increasingly turning to fleet leasing as a strategic approach to managing their vehicle requirements while reaping the benefits of cost efficiency. One of the primary drivers behind the surge in focus on cost-effective solutions in the global automotive fleet leasing market is the financial advantage it offers to businesses.
Moreover, the cost efficiency of fleet leasing extends beyond the initial acquisition phase. Leasing agreements often encompass maintenance, servicing, and, in some cases, insurance, providing businesses with predictable and manageable monthly expenses. By outsourcing these operational aspects to the leasing provider, companies can streamline their budgeting processes, reduce unexpected maintenance costs, and enhance financial predictability. Thus, such factors are expected to increase the adoption of automotive fleet leasing, which will propel the market growth and trends during the forecast period.
The rise in the adoption of electric and autonomous vehicles in the automotive fleet leasing industry is an emerging trend shaping market growth. The global automotive fleet leasing market is experiencing a notable surge in the adoption of electric and autonomous vehicles, signalling a significant shift in the composition and functionality of corporate vehicle fleets. This rise in adoption is propelled by a confluence of factors, including technological advancements, environmental imperatives, and the pursuit of operational efficiencies, which collectively contribute to the transformation of the automotive fleet leasing landscape. Further, the emergence of autonomous vehicle technology is ushering in a new era of innovation and efficiency in the global automotive fleet leasing market.
Moreover, autonomous vehicles will hold the promise of enhancing safety, optimizing route planning, and minimizing operating costs, presenting compelling value propositions for businesses seeking to augment their fleet operations with cutting-edge automation. Thus, the above-mentioned advantages are expected to increase the adoption of automotive fleet leasing, which will propel the growth of the global automotive fleet leasing market during the forecast period.t
Limited customer awareness and acceptance in semi-urban and rural areas is a significant challenge hindering the market growth. Automotive fleet leasing is still an urban concept despite its prevalence for over a decade. The acceptance of the automotive fleet leasing model of business is low in semi-urban and rural areas, where it would have been an effective choice over purchasing a car. Automotive fleet leasing has not penetrated a large portion of the potential market. In emerging countries, including India, China, and Indonesia, a car is considered a status symbol. Hence, leasing a vehicle would be disapproved.
However, automotive fleet leasing companies levy additional charges for extra miles travelled, excessive wear and tear, etc. These concepts would be complex for customers in semi-urban and rural areas to comprehend. In particular, charges based on miles travelled beyond permissible miles would be unfavourable for customers in semi-urban and rural areas as locations are situated significantly farther than locations in urban areas. Hence, the lack of awareness and acceptance among customers in semi-urban and rural areas will hamper the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market research and growth strategies.
Global Automotive Fleet Leasing Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALD SA - The company offers automotive fleet leasing including maintenance, roadside assistance, relief cars, scheduling services and repairs through an approved network of franchised dealers.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. The passenger cars segment in the global automotive fleet leasing market holds pivotal significance, catering to diverse business needs and reflecting the evolving preferences of corporate vehicle users. This segment encompasses a wide array of passenger vehicles, including sedans, sports utility vehicles (SUVs), and compact cars, and represents a cornerstone of the fleet leasing industry's offerings.
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The passenger car segment was the largest and was valued at USD 14.22 billion in 2018. Furthermore, the passenger cars segment serves as a conduit for the integration of advanced safety and connectivity features, reflecting the increasing emphasis on employee comfort, productivity, and well-being. Leasing providers are responding to this trend by offering passenger car fleets equipped with state-of-the-art safety systems, infotainment technologies, and connectivity solutions. Businesses are increasingly seeking leasing agreements that offer tailored solutions, such as short-term rentals, on-demand access, and mileage-based contracts, aligning the cost of fleet utilization with actual operational needs. Thus, the above-mentioned advantages are expected to increase the adoption of automotive fleet leasing in passenger cars, which will propel the growth of the passenger cars segment in the global automotive fleet leasing market during the forecast period.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Automotive fleet leasing is gaining ground in APAC, led by its cost-effective nature. However, the adoption of automotive fleet leasing is limited compared with the dominant choice of fleet purchases. In 2023, China, India, Australia, South Korea, Japan, and Indonesia were the major automotive fleet leasing markets in APAC. In terms of leasing volume, APAC constitutes nearly one-fourth of the global volume. Due to the large volume of automotive production, rising population, and growing spending power, the potential of automotive leasing in APAC remains high. The preference for owning a fleet by a large population in APAC has led to increased fleet manufacturing, which is either purchased using savings or through fleet loans.
Additionally, in Japan, India, and Australia, small and medium-sized enterprises (SMEs) are the main users of leased fleets. SMEs prefer to lease fleets for the transportation of their employees. Automotive fleet leasing has lower acceptance in India, Australia, and Japan. SMEs are responsible for the majority of the growth of the automotive fleet leasing markets in these countries, which will further fuel the growth of the automotive fleet leasing market in APAC during the market forecast period.
The automotive fleet leasing market report forecasts market growth by revenue at global, regional & country levels and provides a market analysis and report of the latest trends and market growth and forecasting opportunities from 2018 to 2028.
Automotive Fleet Leasing Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.98% |
Market Growth 2024-2028 |
USD 9.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.71 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, UK, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALD SA, Avis Leasing, Donlen Corp., Element Fleet Management Corp., Emkay Inc., Enterprise Holdings Inc., Flex Fleet Rental, Hertz Global Holdings Inc., Holman Inc., Inchcape Plc, Mercedes Benz Group AG, Merchants Fleet, Milestone Equipment Holdings LLC, Nissan Motor Co. Ltd., Ryder System Inc., SG fleet Group, SIXT SE, Solera Holdings LLC, TomTom NV, Union Leasing Inc., and Wheels Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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