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The increasing recognition of the advantages associated with fleet leasing has drawn the attention of customers, making it an attractive option for many. The appeal of vehicle fleet leasing lies in its various benefits, ranging from cost-effectiveness to enhanced operational efficiency in fleet management.
One of the primary reasons customers are inclined towards vehicle fleet leasing is the lower cost incurred in comparison to outright purchase. The financial commitment involved in leasing is relatively modest, making it a financially prudent choice for individuals and businesses alike. This affordability factor allows lessees to access a fleet of vehicles without the substantial upfront expenses associated with outright ownership.
Beyond the financial considerations, fleet leasing offers superior operational management for those in need of a fleet of vehicles. The benefits extend beyond mere cost savings, encompassing features that streamline operational aspects. Fleet leasing provides a comprehensive solution that includes access to detailed fuel expenditure records. This transparency enables lessees to monitor and manage fuel costs effectively, contributing to better financial planning.
Additionally, the ability to track mileage and location is a valuable feature of fleet leasing. This tracking functionality enhances operational control by providing real-time insights into the usage patterns of each vehicle in the fleet. Such data can be instrumental in optimizing routes, scheduling maintenance, and improving overall fleet efficiency.
Fleet leasing arrangements also extend support in insurance claims and repairs, streamlining these processes for lessees. This assistance ensures a smoother experience in handling insurance matters, reducing administrative burdens for individuals and businesses relying on fleet leasing services. The ease of managing insurance claims is a practical advantage that contributes to the overall convenience of the leasing arrangement.
Moreover, the maintenance cost associated with fleet leasing tends to be lower than other alternatives. This is attributed to the fixed and predictable cost structure for maintenance. Lessees benefit from knowing the exact maintenance expenses they are responsible for, allowing for more accurate budgeting. Furthermore, since leased vehicles are typically newer models, they are less prone to frequent breakdowns, resulting in lower maintenance costs over the lease period.
In essence, the growing awareness among customers about the benefits of fleet leasing is driven by the combination of financial advantages, operational efficiency, and the convenience it offers. As individuals and businesses seek cost-effective and streamlined solutions for their vehicular needs, fleet leasing emerges as a compelling option, providing a holistic approach to vehicle usage and management.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Increasing investments on automotive fleet leasing major companies in the country |
| Market Dynamics | Rising adoption of electric vehiclesIncrease in automotive fleet leasing manufacture and production across the world |
Automotive Fleet Leasing Market Highlights:
Automotive Fleet Leasing Market Overview
Automotive Fleet Leasing market size was valued at USD 23.4 billion in 2021. The automotive fleet leasing industry is projected to grow from USD 24.81 Billion in 2022 to USD 37.41 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.04% during the forecast period (2022 - 2030). Growth in the production and automobile manufacturing all over the world mainly in developing countries or in emerging economies is the key market drivers enhancing the market growth.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Fleet Leasing Market Trends
Increase in concerns about the safety of the fleet to boost market growth
Safety is one of the top work challenges faced by fleet operators. Thus, due to the disastrous impact of accidents and other emergencies, the demand for technologically innovative applications such as alarm systems, real-time notification devices, driver behavior monitoring systems, and other Al- based software has increased the demand of automotive fleet leasing. Furthermore, integrating lot & telematics in the automotive industry fetched key innovations for vehicle & driver's safety creates wider scope for the growth of the market.
Moreover, it includes connected automotive fleet leasing technology such as collision avoidance system to improve fleet safety, remote diagnostics to access real-time vehicle services, in-cab video cameras to protect fleets against false claims, and other sensor-based applications to transform the automotive fleet leasing services hub by integrating more technology & robust virtual solutions. Hence, such advancements in technology concerning fleet & driver's safety foster fleet tracking products in the automotive fleet leasing market revenue.
Additionally, the increase in concerns about the safety of the automotive fleet leasing and the regulations imposed by the government for the tracking as well as the maintenance of the vehicles. The government of various regions has adopted policies for the maintenance of the vehicles in order to prevent any accidents. There has also been an increase in the demand for competency in the operations of the vehicles. Increased use of the wireless technology has also helped in ensuring the growth of the market. Therefore, such advancement has enhanced the automotive fleet leasing market CAGR across the globe in the recent years.
Automotive Fleet Leasing Market Segment Insights
Automotive Fleet Leasing Lease Type Insights
The Automotive Fleet Leasing market segmentation, based on lease type, includes open ended, and close ended. The open ended segment held the majority share in 2021 to the Automotive Fleet Leasing market revenue. This is primarily due to the primary use of the open end leases for commercial business automotive fleet leasing and it provides good control over asset utilization and disposal. However, close ended is the fastest-growing category over the forecast period as it allow companies to build large automotive fleet leasing and spread their costs over multiple years.
Automotive Fleet Leasing Vehicle Type Insights
The Automotive Fleet Leasing market segmentation, based on vehicle type, includes passenger cars, LCV, and HCV. The passenger cars segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the increase in per capita income, the number of passenger cars in developing countries is also increasing. However, LCV is the fastest-growing category over the forecast period owing to the faster adoption of electric vehicles by major companies. Hence, rising adoption of LCV automotive fleet leasing positively impacts the market growth.
September 2022 Iveco and Petit Forestier signed a supply agreement for 2,000 units of Iveco eDaily van chassis. The chassis would be fitted with refrigerated bodies by bodybuilder Lecapitaine. The delivery of the vans will commence in 2023.
November 2022 British online electrical retailer AO acquired 130 Mercedes Benz Sprinter vans for its home delivery operations. The vans have custom-built bodies supplied by Bevan Group.
Automotive Fleet Leasing Passenger Cars Type Insights
The Automotive Fleet Leasing market data has been bifurcated by passenger cars type into SUV’s, hatchback, and sedan. The SUV’s segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. High ground clearance, sturdy vehicle and powerful engine are the factors that is dominating the SUV segment. However, sedan is the fastest-growing category due to growing adoption of EV and hybrid technology.
Figure 2 Automotive Fleet Leasing Market by Passenger Cars Type 2021 & 2030 (USD Million)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Fleet Leasing Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America automotive fleet leasing market accounted for USD 10.08 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed the presence of leading global manufacturing industries which signifies that the region will continue to dominate the market over the forecast period. Further, the US automotive fleet leasing market held the largest market share, and the Canada automotive fleet leasing market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3 Automotive Fleet Leasing MARKET SHARE BY REGION 2021 (%)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe automotive fleet leasing market accounts for the second-largest market share due to the rising adoption of electric vehicle charging infrastructure is helping to maintain second-largest position in the market for automotive fleet leasing. Presence of major key players in this region and rising adoption of advanced technologies is boosting the market in this region. Further, the Germany automotive fleet leasing market held the largest market share, and the UK automotive fleet leasing market was the fastest growing market in the European region.
The Asia-Pacific automotive fleet leasing Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the growing focus on improved fuel economy and reduced exhaust emissions, the demand for and sales of electric vehicles. Moreover, China automotive fleet leasing market held the largest market share, and the India automotive fleet leasing market was the fastest growing market in the Asia-Pacific region
Automotive Fleet Leasing Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive fleet leasing market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive fleet leasing industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Automotive Fleet Leasing industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The automotive fleet leasing market major player ARI (New Jersey), Glesby Marks (Texas), LeasePlan Corporation N.V. (Netherlands), and others are working to expand the market demand by investing in research and development activities.
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer, based in New Delhi. It was founded in 1981 and owned by the Government of India until 2003, when it was sold to the Japanese automaker Suzuki Motor Corporation. As of September 2022 Maruti Suzuki has a market share of 42 percent in the Indian passenger car market. In July 2021, Maruti Suzuki expanded the country’s largest single-location automobile investment as it plans to invest up to INR 18,000 crore for new factory premises in Haryana, which may have a peak annual capacity of 10 lakh units.
Also, BrightDrop is a subsidiary business created by the American manufacturer General Motors in 2021. The business offers a system of connected products targeting first- and last-mile delivery customers, including light commercial electric vehicles, ePallets, and cloud-based software In June 2022, BrightDrop Inc., the electric delivery van brand from General Motors Company, acquired Martin, a technology startup based in California. BrightDrop hopes to leverage Martin's AI capabilities to analyze, forecast, and identify multi-modal solutions for automotive fleet leasing customers as it plans its journey to full-fleet electrification.
Key Companies in the Automotive Fleet Leasing market includes
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ARI (New Jersey)
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Glesby Marks (Texas)
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LeasePlan Corporation N.V. (Netherlands)
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AutoFlex AFV (U.S.)
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Velcor Leasing Corporation (U.S.)
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Caldwell fleet leasing (U.S.)
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Wheel, Inc. (U.S.)
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PRO Leasing Services (U.S.)
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Jim Pattison Lease (Canada)
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Sixt Leasing SE(Germany)., among others
Automotive Fleet Leasing Industry Developments
September 2023: Flex Fleet Rental is overjoyed to announce a significant advancement that has the potential to revolutionize the commercial vehicle rental industry in North America. The firm has been acquired by Kaizen Automotive Group, an industry leader in innovative solutions for automobiles. The acquisition reached its definitive form on September 1, 2023, signifying a critical juncture in our trajectory. By combining forces, Flex Fleet Rental and Summit Fleet, a subsidiary of Kaizen Automotive Group, establish one of the most sizable and dynamic commercial truck fleet organizations on the continent. This strategic move introduces a new era of opportunities. The collaborative effort is anticipated to generate synergies that will elevate the standard for outstanding service and groundbreaking solutions.
"We are thrilled to expand our product and service offerings throughout North America by partnering with Summit Fleet," said Brian Goldhardt, president and CEO of Flex Fleet Rental. "We couldn't be more excited about this acquisition with it positioning ourselves into our next chapter of growth." Regarding this significant event, Nate Clarke, the Chief Executive Officer of Kaizen Automotive Group, conveyed his elation: "Our outlook on the acquisition is extremely positive. Our customers throughout North America will be able to benefit from our ability to continue providing technologically advanced commercial fleet management services that are at the forefront of our industry, thanks to the merger between Summit Fleet and Flex Fleet Rental.
Gene Weil, Managing Director of Waterfall Asset Management, stated, "We acquired Flex Fleet Rental in early 2019, anchored to a shared vision with management to institutionalize Flex Fleet Rental into the leading medium-term truck rental and logistics business with the ultimate customer experience." "The sale to Kaizen Automotive is an exciting advancement in Flex Fleet's growth story, both as an acknowledgment of the industry-leading status Flex Fleet Rental has achieved, as well as an opportunity for our customers, vendors and employees to take advantage of the scale, operational sophistication, and product depth of the combined enterprise in Canada and the U.S."
January 2021 Altrad Services UK announced a strategic partnership with Trakm8, a recognized leader in telematics data, to improve safety across fleet using Trakm8 technology and made significant improvements to combat poor driving & blowout best practices throughout the fleet drivers.
September 2022 Ford Motor Company broke ground on BlueOval, a USD 5.6 billion EV manufacturing facility in association with a battery company SK On, a wholly owned subsidiary of SK Innovation, a South Korean battery manufacturer to manufacture a new future electric truck and batteries in West Tennessee, United States. The facility will provide 6,000 jobs when it becomes fully operational.
Automotive Fleet Leasing Market Segmentation
Automotive Fleet Leasing Lease Type Outlook
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Open Ended
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Close Ended
Automotive Fleet Leasing Vehicle Type Outlook
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Passenger Cars
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LCV
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HCV
Automotive Fleet Leasing Passenger Cars Type Outlook
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SUV’s
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Hatchback
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Sedan
Automotive Fleet Leasing Regional Outlook
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North America- US
- Canada
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Europe- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World- Middle East
- Africa
- Latin America
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