What Has Been the Growth Trajectory for the Leasing Market in Recent Years?
The leasing market has seen considerable growth due to a variety of factors.
• The significant growth of the leasing market in recent years can be tracked and is set to continue. From a market size of $1895.83 billion in 2024, it's predicted to rise to $2084.78 billion in 2025, with a compound annual growth rate (CAGR) of 10.0%.
Various factors contribute to this substantial growth observed in the past; growth in emerging markets, increased demand in the aerospace and defense industry, heightened consumer awareness, expansion in the used cars market, a spike in residential construction, and more widespread internet use.
What Is The Expected Growth In The Leasing Market Size?
The leasing market is expected to maintain its strong growth trajectory in upcoming years.
• The prediction for the leasing market size suggests a robust expansion in the coming years, with expectations to reach $3011.88 billion in 2029, indicating a compound annual growth rate (CAGR) of 9.6%.
The anticipated growth during this forecast period could be a result of several factors including, worldwide population increment and urbanisation, rising preference for electric vehicles, the emergence of various start-ups, development in the healthcare sector, peaking infrastructure expenses and construction of large-scale infrastructure projects. Major trends for this projection period comprise delivering products and services via online portals and mobile apps, capitalization in the unexplored segment of medical equipment, adopting IoT technology for more sophisticated fleet management, investing in eco-friendly equipment and machines, providing car subscription services to the millennial demographics, focusing on integrating electric vehicles into the offering list, investing in augmented or virtual reality, applying predictive analytics, and capitalizing on big data technology.
What Factors Are Driving Growth In The Leasing Market?
The proliferation of startups as significant patrons of leasing services is forecast to propel the market forward. The need for financial efficiency and acquiring high-end, frequently expensive equipment has led startups to lease or rent their equipment. Additionally, the accelerating quantity of startups is projected to favorably influence the market. As an illustration, the US news magazine Fortunly stated that in 2022, the US had 33.2 million startups, a surge of 700,000 from the previous year. Consequently, the growth of startups stimulates the leasing market.
What Are The Primary Segments In The Global Leasing Market?
The leasing market covered in this report is segmented –
1) By Type: Automotive Equipment Leasing, Consumer Goods And General Rental Centers, Machinery Leasing, Lessors Of Nonfinancial Intangible Assets
2) By Mode: Online, Offline
3) By Lease Type: Closed Ended Lease, Option to Buy Lease, Sub-Vented Lease, Other Lease Types
Subsegments:
1) By Automotive Equipment Leasing: Passenger Vehicle Leasing, Commercial Vehicle Leasing, Fleet Leasing Services
2) By Consumer Goods And General Rental Centers: Rental Of Household Items, Rental of Recreational Equipment, General Rental Services For Events
3) By Machinery Leasing: Construction Equipment Leasing, Agricultural Machinery Leasing, Industrial Equipment Leasing
4) By Lessors Of Nonfinancial Intangible Assets: Intellectual Property Leasing, Software Leasing, Brand Leasing
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Which Key Trends Are Driving Changes In The Leasing Market?
The utilization of internet of things (IoT) technology has become a widespread practice amongst car hire and leasing businesses for fleet maintenance and management. This refers to a network of inter-connected devices or objects that can gather and share data through built-in sensors. As projected by the World Economic Forum, a non-profit entity based in Switzerland, in January 2023, the number of connected IoT devices is expected to hit 30 billion by 2025. Car rental firms are using this technology to verify fuel quantities at the return point of vehicles, making manual checks by staff unnecessary. Furthermore, the use of electronic key systems for locking and unlocking cars eliminates the need for managing numerous physical keys. In fact, car rental company, Hertz, has been rolling out IoT technology to offer keyless car hire services and better manage its fleet in a bid to decrease expenses.
Who Are the Key Players in the Leasing Market?
Major companies operating in the leasing market include:
• Volkswagen leasing GmbH
• Enterprise Holdings Inc.
• Daimler
• United Rentals Inc.
• 7 - Eleven
• LeasePlan Corporation N.V.
• Ashtead Group
• Deutsche Leasing AG
• Tokyo Century
• Quippo Infrastructure Limited
• GMMCO
• Hami Ximeng Trade Co Ltd
• Toyota Rentacar
• Orix Rentacar
• Anji Leasing
• China Auto Rental Holdings Inc
• EHi Auto Services Co. Ltd
• Shenzhen City Extreme Car Rental Co. Ltd
• Shouqi Car Rental Co. Ltd
• Europcar
• Hertz
• Avis Budget
• Van Anda Aviation
• BNP Paribas Leasing Solutions
• Oak Leasing
• Renault Eurodrive
• Sixt
• Business Lease Group
• KAMAZ Leasing Company
• Volvo Finance Service Vostok
• VTB Leasing
• ALD Automotive
• Interleasing Ltd.
• VEB-leasing
• Trust Capital
• Wells Fargo Financial Equipment Leasing
• Hitachi Capital America Corp
• TCF Equipment Finance
• Advantage Rent a Car
• Aercap Holdings N.V.
• McDonald's Corporation
• Ryder
• National Leasing
• Canadian Leasing Company
• Localiza
• Locamerica-Unidas
• Best Fleet (Unidas)
• Ouro Verde
• Movida
• Safra Leasing S.A.
• BB Leasing
• Leasing Bolívar S.A
• HALA Equipment Trading LLC
• Perfect Machinery & Equipment Trading & Hire LLC
• Arabian Machinery and Heavy Equipment Company
• Al Badie Group (ABG)
• Paramount Leasing & Car Rental LLC
• Budget
• Barloworld South Africa (PTY) Ltd
• Bidvest Car Rental (PTY) Ltd
• Car Hire Brokers (PTY) Ltd
• CMH Car Hire (PTY) Ltd
• Gage Car Rental (PTY) Ltd
• Imperial Vehicles
• Unitrans Automotive (Pty) Ltd
What Is The Most Dominant Region In The Leasing Market?
Asia-Pacific was the largest region in the leasing market in 2024. North America was the second-largest region in leasing market. The regions covered in the leasing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
