Vehicle Leasing Market Size, Share, Growth, and Industry Growth by Type (Business Leasing and Leisure Leasing) By Application (Airport and Off-Airport) Regional Forecast From 2024 To 2031

Updated On: 20 November 2023

VEHICLE LEASING MARKET REPORT OVERVIEW 

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The global vehicle leasing market size was USD 94170 million in 2021 and is projected to touch USD 232944.42 million by 2031 at CAGR 9.4% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with vehicle leasing experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Vehicle leasing is the process of leasing motor vehicle for a fixed period of time. The process offers advantages to both sellers and buyers. In lease process, the car has to be either return to the purchased for the residual value or the leasing company.

Growing demand for vehicles on lease is expected to surge market growth. Increase in sale of hybrid electric vehicles and electric vehicles is projected to drive market growth. Rapid urbanization and industrialization globally are expected to bode well for the market expansion. Government initiatives and increasing number of smart cities are estimated to fuel market growth. Rising awareness about increasing cost of car ownership and high initial costs of new vehicles. These factors are anticipated to surge market growth in the upcoming years. Increase in disposable income among consumers are estimated to drive market expansion. High demand for efficient transportation systems and demand to avoid traffic congestion is predicted to surge market growth. However, gap insurance and long-term leasing are considered a loss-making deals. Such factors are anticipated to hamper market growth.

COVID-19 Impact: Lockdown Restrictions during the Pandemic to Hamper Car Leasing Services 

An outbreak of COVID-19 pandemic affected market progress across the world. In the starting of 2020, automotive industry faced difficulties owing to complete lockdown and travel restrictions. Strict social distance protocols and working from culture to hamper market growth. Demand for lease cars reduced during the pandemic. Shutdown of automotive industry reduced market growth.

On the contrary, post pandemic the market is expected to witness a positive growth due to growing demand for automotive sector. Increasing awareness about vehicle leasing is projected to drive market growth. 

LATEST TRENDS

"Rapid Urbanization and Increase in Smart Cities Initiatives to Foster Market Expansion"

Increasing government initiatives for smart cities and urbanization across the world is estimated to surge market growth. Smart cities must have an efficient transportation system in order to avoid traffic congestion. Also, growing number of a busy lifestyles and high demand reduce traveling time. Increasing number of population demand for more cars. Such factors are projected to drive market growth. Further, presence of premium and expensive vehicles without buying them and low maintenance. These factors are predicted to expand market growth. In addition, today's, car leasing industry trends such as without driver facilities and on-demand vehicles are estimated to benefit the vehicle leasing market growth.

VEHICLE LEASING MARKET SEGMENTATION

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• By Type

Based on type, the market is divided into business leasing and leisure leasing.

Business leasing is expected to be the leading part of the segmentation type.

• By Application

Based on the application, the market is divided into airport and off-airport.

Airport is expected to be the leading part of application segmentation.

DRIVING FACTORS

"Growing Sales for Electric and Hybrid Electric Vehicles to Surge Market Growth"

Increasing sales of electric and hybrid electric vehicles are expected to expand market growth. Rapid demand for conventional vehicles and growing awareness about eco-friendly cars are predicted to surge market progress. High order to reduce air pollution is anticipated to accelerate market growth. Stringent emission norms and increasing awareness about the benefits of electric cars are expected to fuel market growth. Growing development in the electric vehicles and rapid adoption of hybrid vehicles are anticipated to accelerate market growth. Growth in the automotive sector and high demand for smart cars globally are projected to drive vehicle leasing market growth in the upcoming years.

"Adoption of loT and Big Data to Expand Market Growth"

Growing adoption of the internet of things (loT) in leasing companies to manage and maintain fleets. The legal agreement requires verified data’s in between buyers and sellers. These data require to avoid further confusion or misunderstandings. With the help of internet big companies access real-time data to easy diagnostic of vehicles during the break-down of cars. Growing awareness about the benefits of leasing cars and increase in disposable income of consumers. These factors are anticipated to accelerate vehicle leasing market growth in the upcoming years.

RESTRAINING FACTORS   

"High Cost of the Agreement to Hamper Market Growth"

High cost or expenses such as gap insurance are expected to hamper the market growth. Long-term leasing is considered a loss-making deal, which is projected to restrain market growth in the forthcoming years.

VEHICLE LEASING MARKET REGIONAL INSIGHTS

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"Low Rate of Interest Provided by the Leasing Companies to Drive Market Share "

North America is expected to dominate vehicle leasing market share due to low rate of interest provided by the leasing companies. Growing demand for the vehicle adoption and several option such as premium and moderate cars. Rapid urbanization and industrialization globally is expected to bode well for the market expansion. Government initiatives and increasing number of smart cities is estimated to fuel market growth. Rising awareness about increasing cost of car ownership and high initial costs of new vehicles. Such factors are anticipated to fuel vehicle leasing market growth.

Asia Pacific region is projected to drive market growth due to increase in disposable income of consumers. Developing countries such as China and India are anticipated to witness a favorable market growth in the upcoming years.

KEY INDUSTRY PLAYERS

"Leading Players Adopt New Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Enterprise (U.S.)
• Hertz (U.S.)
• Avis Budget (U.S.)
• ALD Automotive (France)
• Arval (France)
• Sixt (Germany)
• Europcar (France)
• Localiza (Brazil) 
• Unidas (U.S.) 
• CAR Inc. (China)
• Shouqi Zuche (China)
• Goldcar (Spain)
• Movida (U.S.) 
• Fox Rent A Car (U.S.) 
• Ehi Car Services (China)
• U-Save (U.S.)
• Yestock Car Rental (China)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.