Automotive Equipment Leasing Market Definition And Segments
Automotive equipment leasing refers to obtaining automotive equipment by businesses for temporary use on a rental or lease basis against periodic contractual payments. Automotive equipment leasing help with the risk of obsolescence, easy source of finance, is preferable to a term loan, has tax benefits, and has low maintenance costs.
The main types of automotive equipment leasing are passenger car rental, passenger car leasing, truck, utility trailer, and RV (recreational vehicle) rental and leasing. The passenger automobile rental sector consists of businesses that rent or lease passenger cars without drivers. The different modes include online, and offline and involve various lease types such as closed-ended lease, option to buy the lease, sub-vented lease, and others.
The automotive equipment leasing market covered in this report is segmented –
1) By Type: Passenger Car Rental, Passenger Car Leasing, Truck, Utility Trailer, And RV (Recreational Vehicle) Rental And Leasing
2) By Mode: Online, Offline
3) By Lease Type: Closed Ended Lease, Option to Buy Lease, Sub-Vented Lease, Other Lease Types
The automotive equipment leasing market size has grown rapidly in recent years. It will grow from
$491.72 billion in 2023 to $551.77 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to economic conditions, business expansion, technological advancements, fleet management, tax benefits.
The automotive equipment leasing market size is expected to see rapid growth in the next few years. It will grow to
$870.13 billion in 2028 at a compound annual growth rate (CAGR) of 12.1%. The growth in the forecast period can be attributed to urbanization and last-mile delivery, flexible financing options, technology-enabled fleet management, rising costs of ownership. Major trends in the forecast period include electric vehicle leasing, autonomous and connected vehicles, sustainability and green initiatives, remote work and telecommuting, digitalization of leasing processes.
Iot Connections Fueling Growth In The Automotive Equipment Leasing Market
The increasing IoT (Internet of Things) connections is expected to propel the growth of the automotive equipment leasing market going forward. IoT, or the Internet of Things, refers to the network of physical objects or ‘things’ embedded with sensors, software, and other technologies that enable them to collect and exchange data with other devices and systems over the internet. Automotive equipment leasing companies often manage fleets of vehicles and equipment. IoT sensors installed in vehicles provide real-time data on location, condition, and usage. For instance, in August 2022, according to Akamai Technologies Inc., a US-based internet company, IoT connections are expected to increase from 15.1 billion in 2021 to 23.3 billion IoT connections in 2025. Therefore, the increasing IoT (Internet of Things) connections is driving the growth of the automotive equipment leasing market.
The Automotive Sector's Surging Demand Fuels Growth In The Automotive Equipment Leasing Market
The increasing demand for automotive sector is expected to propel the growth of the automotive equipment leasing market going forward. The automotive sector, also known as the automotive industry or automobile industry, encompasses a wide range of businesses and activities related to the design, production, marketing, sale, and maintenance of motor vehicles. The automotive sector is closely intertwined with the growth of the automotive equipment leasing market by providing businesses with a cost-effective means of acquiring and maintaining the vehicles and equipment they need to operate and expand their operations efficiently. For instance, in March 2022, according to a report published by the European Automobile Manufacturers' Association (ACEA), the main lobbying and standards group for the automobile industry in the European Union, sales of passenger cars in the US increased by 5.5% from 2020 to 11.9 million units in 2021. Over 6.3 million passenger cars were produced in US auto facilities in 2021, an increase of 3.1% from 2020. Therefore, the increasing demand for automotive sector is driving the growth of the automotive equipment leasing market.
Major companies operating in the automotive equipment leasing market include
Enterprise Holdings Inc., Daimler AG, LeasePlan Corporation NV, Ford Motor Co, Berkshire Hathaway Inc., Avis Budget Group Inc., Hertz Global Holdings Inc., ALD Automotive, Penske Truck Leasing, Ryder System Inc., Toyota Financial Services Corporation, Blueline Rental LLC, The Home Depot Inc., Europcar Mobility Group, Sixt SE, Budget Rent A Car System Inc., National Car Rental, Thrifty Car Rental, Dollar Rent A Car Inc., Advantage Rent A Car, Zipcar Inc., Car2Go Logistics Private Limited, Turo Inc., Getaround Inc., Silvercar Inc., Maven, Car Next Door, GoGet Carshare.
The Impact Of COVID-19 On The Automotive Equipment Leasing Market
The outbreak of COVID-19 disease (COVID-19) has acted as a massive restraint on the automotive equipment 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 'lockdown' and the outbreak had a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the automotive equipment 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.
Revolutionizing Automotive Equipment Leasing With Big Data
Automotive equipment leasing companies are using technologies such as big data to improve customer service and increase vehicle life. Big data involves large amounts of data that can be analyzed to gain insights and drive decision-making. Big data would allow the leasing company to remind the driver to book a car for the service or replace engine oil. This technology could also help leasing companies in minimizing driver risk and prevent the number of accidents, by giving the companies insights into the driving habits and whereabouts of their fleet. Companies such as Lex Auto lease have been increasingly using big data to drive cost reduction and risk mitigation.
Strategic Partnerships Driving Profitability And Sustainability In The Automotive Equipment Leasing Market
Major companies operating in the automotive equipment leasing market are having partnerships to increase their profitability in the market. For instance, in April 2023, Volta Trucks a Sweden-based automotive truck manufacturing company partnered with DLL Group to support the truck as a service offering with lease finance. The partnership with DLL offers consumers flexible and individualized financing alternatives for the testing as a service (TaaS). The collaboration also enables Volta Trucks to offer electrification at volume and speed, accelerating the transition to a more sustainable future. DLL Group is a Netherlands-based finance company.
Western Europe was the largest region in the automotive equipment leasing market in 2023. Asia-Pacific was the second-largest region in the automotive equipment leasing market. The regions covered in the automotive equipment leasing market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the automotive equipment leasing market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa
The automotive equipment leasing market consists of revenues earned by entities that provide passenger cars and trucks/vans, utility trailers, and recreational vehicles (RVs) without drivers. These establishments generally operate a retail store-like facility for automotive equipment renting and leasing. Some automotive equipment rental and leasing companies offer short-term rental or long-term leases, while others provide both types of services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The automotive equipment leasing market research report is one of a series of new reports from The Business Research Company that provides automotive equipment leasing market statistics, including automotive equipment leasing industry global market size, regional shares, competitors with an automotive equipment leasing market share, detailed automotive equipment leasing market segments, market trends and opportunities, and any further data you may need to thrive in the automotive equipment leasing industry. This automotive equipment leasing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.