Car Leasing Market size to grow by USD 41.82 billion from 2022 to 2027 | The effective means of personal transportation for businesses to drive the market growth - Technavio
Technavio
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Technavio
Technavio has segmented the market based on 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).
New York, Jan. 11, 2024 (GLOBE NEWSWIRE) -- The Car Leasing Market size is estimated to increase by USD 41.82 billion, accelerating at a CAGR of 7.73% between 2022 and 2027. One of the significant drivers boosting growth in the car leasing market is its role as an efficient mode of personal transportation for businesses. Lease agreements and their terms, including lease contract clauses, lease-to-own options, and end-of-lease options, have enabled businesses to access luxury car leasing opportunities. Moreover, lease extensions, lease specials, and lease negotiations offer flexibility. Lease buyout options and lease transfers further contribute to the market's expansion by providing diversified choices for businesses seeking effective and adaptable transportation solutions. Discover some insights on market size historic period (2017 to 2021) and Forecast (2023 to 2027) before buying the full report -Request a sample report
Global Car Leasing Market – Company Analysis Company Landscape - The global car leasing market is fragmented, with the presence of several global as well as regional Companies. A few prominent Companies that offer car leasing in the market are 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.
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Company Offerings -
Autoflex Leasing: The company offers car leasing services such as new vehicle leasing and pre-owned leasing.
Global Car Leasing Market - Segmentation Assessment
Segment Overview Technavio has segmented the market based on 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 commercial segment is expected to experience notable growth during the forecast period. The rising requirement for employee transportation drives the demand for cars in this segment, with car leasing emerging as a more economical choice compared to car ownership. Numerous SMEs opt for lease agreements with car leasing firms, granting their employees access to leased vehicles. An advantage offered by these leasing companies is the opportunity for employees to buy vehicles at their residual value when the lease period ends.
Geography Overview By geography, the global car leasing market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global car leasing market.
North America is expected to contribute 33% to the global market growth, with significant expansion in car leasing alongside dominant car purchases and financing. Factors like infrastructure quality, high purchasing power, and lifestyle preferences favor the automotive market in the region. The rising adoption of car leasing is driven by its cost-effectiveness, allowing users to pay for vehicle usage instead of ownership, while frequent launches of new vehicles encourage lease-based upgrades, driving market growth.
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Global Car Leasing Market – Market Dynamics Key Trends
An influential trend in the car leasing market's growth is the impact of off-lease cars, which significantly boost the used car market. Depreciation rates and residual value play significant roles in this scenario, affecting vehicle selection and influencing vehicle return conditions. Credit scores influence personal and business contract hire options like personal contract hire (PCH) and business contract hire (BCH), particularly in fleet leasing and commercial leasing. Additionally, tax benefits serve as incentives, shaping the dynamics of off-lease vehicles and boosting market growth.
Major challenges
A significant hurdle impeding the car leasing market's expansion is the mounting competition set by on-demand taxi operators. Market trends indicate a shift in consumer preference toward the convenience of on-demand services, impacting the industry's growth. Mileage limits, early termination fees, and maintenance costs influence leasing decisions. Warranty coverage, GAP insurance, and manufacturer incentives shape the lease terms, affecting monthly payments and down payments. Furthermore, the rise of electric vehicle leasing adds complexity to market dynamics amidst evolving consumer preferences.
Driver, Trend and challenges are the factor of market dynamics that states about consequences & sustainability of the businesses, find some insights from a free sample report
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Railcar Leasing Market: The Railcar Leasing Market size is estimated to grow at a CAGR of 7.12% between 2022 and 2027 and the size of the market is forecast to increase by USD 18,365.83 million.
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