Automotive Leasing Market By Service Type (Passenger Car Rental, Passenger Car Leasing, Truck, Utility Trailer and Recreational Vehicle Rental and Leasing) , By Mode (Online, Offline) By End User (Industrial Divisions, Corporate Divisions) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Automotive Leasing Market
The automotive leasing market was valued at $501.7 billion in 2023 and is projected to reach $952.5 billion by 2033, growing at a CAGR of 6.8% from 2024 to 2033.
Automotive leasing is a system of paying rent to drive a vehicle without owing it. Leasing allows individuals to rent a vehicle from businesses for a certain amount of time. The businesses offering rental vehicles are of various categories, including sole proprietors; partnerships; and organizations operating retail outlets with diverse categories of cars, recreational vehicles, and trucks/vans.
The cost efficiency of renting vehicles is a significant driver of the automotive leasing market. The reduced monthly payments and low maintenance charges incline several individuals toward automotive leasing. Moreover, automotive leasing observes a high demand as it offers individuals access to the latest models more frequently compared to purchasing. With growing popularity of leasing, the trend of subscription models is acquiring traction among users. Subscription models increase the advantages for recipients, including low commitments and insurance & maintenance services. Furthermore, the leasing strategies are being revolutionized by the assimilation of advanced technologies such as AI and ML. AI algorithms help in predicting consumer choices and offering personalized leasing offers to them.
However, automotive leasing does not attract consumers for longer durations due to the continuous payment requirements and lack of ownership, thereby restraining the market growth. In addition, most of the rental companies impose mileage restrictions on vehicles and incur heavy charges in the case of wear & tear. These limitations hamper the widespread development of the automotive leasing market. Statistica, a data and business intelligence platform, released a report on December 2023, stating that only one-fifth of the new vehicles were leased in 2023, the rest being sold out. Contrarily, rapid boost in urbanization is projected to present lucrative opportunities for the expansion of the automotive leasing market owing to limited parking spaces in populous areas.
Segment ReviewThe automotive leasing market is segmented into service type, mode, end user, and region. On the basis of service type, the market is divided into passenger car rental, passenger car leasing, truck, utility trailer, and recreational vehicle rental & leasing. Depending on mode, it is bifurcated into online and offline. As per end user, it is classified into industrial divisions and corporate divisions. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Key FindingsOn the basis of service type, the passenger car leasing segment accounted for the highest market share in 2023.
Depending on mode, the offline segment was the highest shareholder in 2023.
As per end user, the corporate divisions segment dominated the market in 2023.
Region wise, Europe was the highest revenue generator in 2023.
Competition AnalysisThe major players of the global automotive leasing market include Enterprise Holdings, The Hertz Corporation, Avis Budget, Europcar Mobility Group, Arval, LeasePlan Corporation N.V., ALD Automotive, Volkswagen Financial Services AG, BMW Group Financial Services, and Mercedes-Benz Financial Services. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy Service TypePassenger Car Rental
Passenger Car Leasing
Truck, Utility Trailer and Recreational Vehicle Rental and Leasing
By ModeOnline
Offline
By End UserIndustrial Divisions
Corporate Divisions
By RegionNorth America
U.S.
Canada
Mexico
Europe
France
Germany
Italy
UK
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East and Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East and Africa
Key Market Players
Enterprise Holdings
The Hertz Corporation
Avis Budget
Europcar Mobility Group
Arval
LeasePlan Corporation N.V.
ALD Automotive
Volkswagen Financial Services AG
BMW Group Financial Services
Mercedes-Benz Financial Services