A key driver for the global car leasing market is its cost-effectiveness. The option to lease a car is a more economically viable solution than buying a car. Car leasing also helps users avoid the additional cost of regular maintenance as the car lease plan would cover general expenses. Hence, the attractive value proposition of leasing a car rather than purchasing it is a significant driver for the global car leasing market.
As per Technavio, the use of telematics by car leasing companies will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global car leasing market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
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Global car leasing market: Use of telematics in leased cars
Car leasing companies have been investing heavily in advanced tracking technologies that effectively track the location of the vehicle. Telematics offers considerable onboard data regarding the distance and locations traveled. Also, telematics solutions enable operators to track the vehicle in the event of theft or an accident and send roadside assistance. Telematics data is also used by car leasing companies to send advisory information to the lessee to improve the vehicle's fuel efficiency and reduce vehicle emissions. Therefore, the use of telematics in leased cars will be one of the key trends that will drive the car leasing market during the forecast period.
“Cars have become a necessity for small and medium-sized enterprises (SME) to meet the personal transportation requirements of employees. As significant capital outflow is required for effectively transporting employees, car leasing acts as an alternative and offers various advantages to businesses. Some of these advantages include no maintenance cost, regular upgrading of the fleet, and no road tax. These factors are expected to boost market growth over the forecast period,” says a senior research analyst at Technavio.
Global car leasing market: Segmentation analysis
This research report on the car leasing market segments the market by end-user (commercial customers and non-commercial customers) and geography (APAC, Europe, MEA, North America, and South America).
The commercial customers segment held the largest car leasing market share in 2018. As car leasing is more cost-effective than buying a car, a large number of SMEs are entering into a lease agreement with car leasing companies, which allows employees to use leased cars.
Europe accounted for the highest share of the market in 2018. However, the APAC region is expected to surpass Europe in terms of market share during the forecast period as the car leasing market is gaining ground in APAC owing to its cost-effectiveness. China, India, Indonesia, and Japan will be the major car leasing markets during the forecast period.
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