The car leasing sector is set to expand by $41.82 billion between 2022 and 2027, driven by businesses favoring efficient personal transportation – Technavio
Industry: Transportation & Logistics
Business Perspectives: Car Leasing as an Effective Transportation Solution
New York, NY (PRUnderground) December 12th, 2023
The car leasing market is anticipated to witness a robust growth of USD 41.82 billion, with a compounded annual growth rate (CAGR) of 7.73% during the forecast period, as per Technavio’s market analysis. A significant driver behind this surge is the market’s effectiveness in addressing the personal transportation needs of businesses. Small and medium-sized enterprises (SMEs) heavily depend on cars as a crucial mode of transportation for their employees. However, this often entails a substantial capital investment. In this context, car leasing emerges as a practical alternative, presenting numerous advantages to businesses. The market is categorized by end-user (commercial and non-commercial), type (open-ended and close-ended), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The facilitation of effective personal transportation for businesses remains a pivotal factor propelling market growth.
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Car Leasing Market 2023 – 2027: Key Insights: • Autoflex Leasing, Avis Budget Group Inc., Bayerische Motoren Werke AG, BNP Paribas SA, Caldwell Leasing, Deutsche Leasing AG, Enterprise Holdings Inc., Executive Car Leasing Co., ExpatRide International Inc., Hertz Global Holdings Inc., International Car Lease Holding, LeasePlan Corp. NV, Masterlease Group, Mazda Motor Corp., Mercedes Benz Group AG, Orix Corp., Porsche Automobil Holding SE, SIXT SE, Societe Generale SA, and Zoomcar India Pvt. Ltd. are identified as key players in the car leasing market. • The Car Leasing Market displays a fragmented nature. • Anticipated 7.25% Year-over-Year (YOY) growth in 2023.
Car Leasing Market 2023 – 2027: Market Dynamics: Trend • The market observes a significant trend of off-lease cars contributing to the used car market. • The global trend of annual transitions from on-lease to off-lease vehicles influences the market. • Car leasing companies strategically sell old off-lease cars as used vehicles, impacting their revenue. • Providing lessees with the option to purchase after the lease period concludes supports market growth. • Profitability is sustained by the increased sale of off-lease cars as used vehicles.
Challenges • On-demand taxi services pose a notable challenge to the car leasing market, particularly in urban areas. • People increasingly prefer on-demand taxis due to convenience, avoidance of parking hassles, and cost-effectiveness. • Urban space constraints and escalating traffic congestion further diminish the demand for car leasing. • These factors collectively impede the car leasing market’s growth in urban settings.
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Car Leasing Market 2023 – 2027: Key Segments: • The commercial segment is poised to contribute substantially to growth during the forecast period, driven by the rising demand for employee transportation. Car leasing offers a cost-effective alternative to car ownership, making it increasingly attractive to businesses. Many SMEs enter into lease agreements with car leasing firms, enabling their employees to utilize leased vehicles. Notably, these leasing companies provide employees with the opportunity to purchase the vehicles at their residual value when the lease term concludes. Get a glimpse of the market contribution of the segments, Request a Free Sample Report Here.
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TOC:
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Sizes
- Five Forces Analysis
- Market Segmentation by End-User
- Market Segmentation by Type
- Market Segmentation by Geography
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, & Trends
- Company Landscape
- Company Analysis
- Appendix
About Technavio Research
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
