Major companies in the leasing market include Enterprise Holdings Inc; Hertz Global Holdings Inc; LeasePlan Corporation N V; Avis Budget Group Inc and United Rentals Inc.
The global leasing market is expected to grow from $1185.17 billion in 2020 to $1355.63 billion in 2021 at a compound annual growth rate (CAGR) of 14.4%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $1836.74 billion in 2025 at a CAGR of 8%.
The leasing market consists of sales of leasing services by entities (organizations, sole traders and partnerships) that use a wide variety of tangible goods such as consumer goods, industrial machinery and equipment, automobiles and others and assign intangible assets such as trademarks to customers in return for a periodic rental or lease payment. The leasing market is segmented into automotive equipment leasing; consumer goods and general rental centers; machinery leasing and lessors of nonfinancial intangible assets.
Asia Pacific was the largest region in the global leasing market, accounting for 36% of the market in 2020. North America was the second largest region accounting for 32% of the global leasing market. Africa was the smallest region in the global leasing market.
Internet of things technology is widely being used by car rental and leasing companies to maintain and manage fleets. Internet of things is a network of internet connected objects or devices able to collect and exchange data using embedded sensors. According to Business Insider, number of IoT connected cars on the road are expected to increase from 36 million in 2015 to around 381 million by 2020. Furthermore, approximately 94 million IoT connected cars are expected to be shipped in 2021, which is likely to be 82% of all cars shipped. Using IoT technology, car leasing companies are able to access odometer and diagnostic trouble codes (DTCs) in real time that facilitates fleet maintenance. This technology is also being used by car rental companies to check fuel level information at the point of car return, eliminating the need for staff to check fuel levels manually. Further, virtual key solutions for locking and unlocking of door help avoid management of large number of physical keys. For example, car rental firm Hertz is implementing IoT technology to provide keyless car rental services and manage its fleet to reduce costs.
Coronavirus Pandemic - The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the leasing market in 2020 as the need for services offered by these establishments declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Steps by national governments to contain the transmission have resulted in a decline in economic activity with countries entering a state of ’lock down’ and the outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the leasing market will recover from the shock across the forecast period as it is a ’black swan’ event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Emergence Of Start-Ups - The emergence of startups as major clients of leasing service providers is expected to drive the market. Driven by cost efficiency and the necessity to acquire advanced equipment which are often highly priced, startups have started renting or leasing their equipment. The increasing number of startups is also expected to positively impact the market. The number of startups in India is expected to increase to 10,500 by 2020, a 4000 increase from the current number, depicting new opportunities for the leasing market in the client expansion and revenue generation.
Our reports have been used by over 10K customers, including:
454 pages •
By Global Industry Analysts
• Apr 2021
- The increasingly tougher business environment in the travel and tourism sector is sending ripples of disruption, fear and anxiety across the entire value chain including car rentals. Rapid spread of COVID-19 across the globe is having an enormous impact on the travel and tourism industry. From cruise ship quarantines...
179 pages •
By Global Industry Analysts
• Apr 2021
- Global Cab Services Market to Reach $235.9 Billion by 2027
- Amid the COVID-19 crisis, the global market for Cab Services estimated at US$150.2 Billion in the year 2020, is projected to reach a revised size of US$235.9 Billion by 2027, growing at a CAGR of 6.7% over the analysis period 2020-2027. E-Hailing,...
120 pages •
By Infiniti Research Limited
• Mar 2021
Global Car Rental Market 2021-2025 The analyst has been monitoring the car rental market and it is poised to grow by $ 66.62 bn during 2021-2025 progressing at a CAGR of 18% during the forecast period. Our reports on car rental market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges,...
The?Saudi Arabia Car Rental and Leasing Market?is projected to grow with a CAGR of more than?5?% during the forecast period. - The market is primarily driven by the factors such as?growing tourism industry in the country including religious visits (Hajj and Umrah) and the growing businesses, which is propelling the demand for rental...
Passenger cars and light trucks are the main modes of transportation in most industrialised countries. The vast majority of car trips in metropolitan areas are drive-alone trips with only one person in the car and vehicles are used for only about one hour per day on average. Carsharing is one of many car-based mobility services that have become...
Abstract Limousine & Town Car Services Procurement in the US This report is intended to assist buyers of limousine and town car services. Limousine and town car services are a luxury form of travel that involves a chauffeur picking a person up in a limousine or town car at a predetermined location and driving...
Car Rental (Self Drive) Global Industry Almanac 2015-2024
Global Car Rental industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2015-19, and forecast to 2024). The profile also contains descriptions of the leading...
Truck on: An increase in demand across the industry’s major downstream markets will likely boost industry revenue Abstract Truck Rental in Canada The Truck Rental industry in Canada performed well over the five years to 2018 as demand for industry services has grown steadily from both businesses and...
Abstract Vehicle Rental Procurement in the US This report is intended to assist buyers of vehicle rental services. Vehicle rental service providers offer passenger cars, trucks and SUVs temporarily in exchange for a fee. Vehicle rental periods can range from a few hours to several months. Buyers include consumers...
In reverse: Industry revenue is forecast to plummet in 2020-21, largely due to restrictions on movement Abstract Car Rental & Leasing in the UK Firms in this industry rent cars and small commercial vehicles to private users and businesses on a short-term basis. Customers can also lease cars and other...
Business Confidence Index
You can change your Cookie Settings at any time but parts of our site will not function correctly without them.