Car Leasing Market: Current Analysis and Forecast (2022-2028)
Emphasis on Application Type (Business Use and Personal Use); Lease Type (Open Ended and Close Ended); Vehicle Type (Passenger Cars and Commercial Vehicle)); and Region/Country
Global Car Leasing Market is expected to grow at a significant rate of around 7% during the forecast period. A lease is a type of contract in which the customer agrees to use the vehicle for a predetermined amount of time in return for regular payments. Users of car leasing can take advantage of several benefits, such as making monthly payments and receiving new vehicles every few years. In addition, the vehicle leasing market is expanding because of IoT adoption, smart city initiatives, rapid urbanization, and company adoption of car leasing. Additionally, businesses are collaborating to improve global mobility coverage and working on the best solutions for the ease of customers. For instance, in August 2020, Avis India launched AVIS Flexi 12, an alternative solution to car subscription mobility services. The advantage of this product is that customers can choose their favorite new car and register it on the private license plate in the name of Avis.
ORIX Corporation, Sixt Rent A Car LLC, ALD Automotive, Hertz Global Holdings Inc, Arval, LeasePlan, Alphabet, Lex Autolease, Deutsche Leasing AG, Wilmar Inc are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst application type, business use category to witness robust CAGR during the forecast period”
Based on application type, the market is segmented into business use and personal use. The business use category is expected to hold a significant share in the market during the forecast period. As most of the company prefers to lease cars for employees in upper management. Moreover, each team member receives an upgraded leased car every three to five years and after the end of the service, they give them the option to keep the vehicle. In addition, the growing adoption of IoT is one of the reasons driving the growth of the market.
“Amongst lease type, the open-ended to hold a significant share in the market in 2020”
Based on lease type, the market is categorized into open-ended and close-ended. Among these, the open-end is anticipated to hold a significant share of the market during the forecast period. In the open end, a lease is required to make a single payment at the end of this lease, which is a type of rental agreement. This type of lease is primarily preferred for business purposes. Moreover, the open end allows the user to get full authorization of the vehicle in terms of unlimited mileage under the lease terms.
“Amongst vehicle type, the passenger vehicle to hold a significant share in the market in 2020”
Based on vehicle type, the car Leasing market has been classified into passenger cars and commercial vehicles. The passenger vehicle category is to witness higher growth during the forecast period. This is mainly due to the increase in the production of passenger vehicles and the rising per capita income of the populace. Moreover, the growing number of manufacturers in new emerging markets are the main driver of the high demand for passenger vehicle.
“North America to hold a significant share in the market”
For a better understanding of the market adoption of the Car Leasing industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is anticipated to grow at a substantial CAGR during the forecast period. This is mainly due to the rising awareness of the users and the rising cost of car ownership, and the low rate of interest provided by the leasing companies are the factors driving the growth of the market.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global car leasing market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Car Leasing Market Analysis (2022-2028)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global car leasing market were the three major steps undertaken to create and analyze the adoption of car leasing in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global car leasing market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the car leasing market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the car leasing market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as application type, lease type, and vehicle type. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the car leasing market. Further, we conducted factor analysis using dependent and independent variables such as application type, lease type, and vehicle type of car leasing. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the car leasing market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global car leasing market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the car leasing market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global car leasing market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global car leasing market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of application type, lease type, and vehicle type in the global car leasing market.
The main objective of the Global Car Leasing Market Study
The current & future market trends of the global car leasing market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the car leasing market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of application type, lease type, and vehicle type.
- Define and analysis of the regulatory framework for the car leasing
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the car leasing market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
- Company profiles of the car leasing market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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