About Light Vehicle Leasing
Light vehicle leasing is the usage of vehicle for fixed time period at fixed amount of money. These vehicles are offered by dealers and used by businesses. After the time period is over, the vehicle is either returned or purchased at residual value. It allows the customers to return and select a new model after the lease is expired. Hence, it helps the customers to drive new vehicle after every few years. For sellers major advantage is that it generates income and able to lease it again. This type of business generates repeated customers which supports business model.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 9.4% |
The companies are exploring the market by adopting expansions, investments, new service launches and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions across the globe to gain competitive advantage through combined collaborations. Analyst at AMA Research estimates that Global Vendors will contribute the maximum growth to Global Light Vehicle Leasing market throughout the forecasted period. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Evans Halshaw (United Kingdom), ALD Automotive (France), Arval (France), BT Fleet (United Kingdom), Daimler Fleet Management (United Kingdom), ExpatRide (United States), Free2Move Lease (United Kingdom), Hitachi Capital Vehicle Solutions (United Kingdom), Inchcape Fleet Solutions (United Kingdom) and LeasePlan (Netherlands) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Masterlease (Poland) and Sixt (Germany).
Segmentation Overview
AMA Research has segmented the market of Global Light Vehicle Leasing market by Type (Close ended, Open ended and Sub vented lease) and Region.
On the basis of geography, the market of Light Vehicle Leasing has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Services, the sub-segment i.e. Pre lease will boost the Light Vehicle Leasing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Tenure, the sub-segment i.e. Short term will boost the Light Vehicle Leasing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Vehicle type, the sub-segment i.e. Cars will boost the Light Vehicle Leasing market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Increasing Adoption of Car Lease in Corporate and Increasing Usage of Telematics to Monitor the Usage of Vehicle
Market Growth Drivers:
Minimal Lease Amount as Compared to Purchase Amount and Increasing Number of Small and Medium Size Businesses are fueling the Market Growth
Challenges:
Reduced Mileage and no Customization can be done
Restraints:
Expensive For Long Run and High Costs of Insurance
Opportunities:
Increasing Vehicle Preference among the Consumers and Government Subsidies to Include Electric Vehicles is Boosting the Market
Market Leaders and their expansionary development strategies
In February 2024, Arval signed an MoU with BYD their collaboration seeks to explore a variety of topics, including assisting individual customers’ transition to electric vehicles (EVs) through educational programs and incentives. Furthermore, they want to deliver comprehensive solutions by combining battery electric vehicles, energy storage technologies, and solar systems into integrated packages, thereby encouraging sustainable mobility and renewable energy adoption.
In September 2023, ALD Automotive I LeasePlan today unveils Ayvens, its new global mobility brand in India, which unites the two companies together under a single common identity. This new brand represents another strategic milestone in the company’s development following the launch of its 3-year strategic development.
Key Target Audience
Manufacturers, Light vehicle lease provider, Government associations, Research organizations, Enterprise software vendors and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.