PUBLISHER: The Business Research Company | PRODUCT CODE: 1712310
PUBLISHER: The Business Research Company | PRODUCT CODE: 1712310
Automotive equipment leasing involves businesses acquiring automotive equipment for temporary use through rental or leasing arrangements, with periodic contractual payments. This approach offers advantages such as mitigating the risk of equipment obsolescence, providing a convenient source of financing, offering tax benefits, and incurring lower maintenance costs.
The primary categories of automotive equipment leasing encompass passenger car rental, passenger car leasing, as well as truck, utility trailer, and RV (recreational vehicle) rental and leasing. The passenger car rental segment includes businesses that rent or lease passenger vehicles to customers, either with or without drivers. These services can be accessed through various channels, such as online or offline, and involve different types of leases, including closed-ended leases, option to buy leases, sub-vented leases, and others.
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.
The automotive equipment leasing market size has grown rapidly in recent years. It will grow from $521.2 billion in 2024 to $583.71 billion in 2025 at a compound annual growth rate (CAGR) of 12.0%. 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 $897.42 billion in 2029 at a compound annual growth rate (CAGR) of 11.4%. 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.
The growth of IoT (Internet of Things) connections is anticipated to be a driving force behind the expansion of the automotive equipment leasing market in the future. IoT, or the Internet of Things, pertains to a network of physical objects or 'things' that are equipped with sensors, software, and other technologies, enabling them to collect and share data with other devices and systems through the internet. Many automotive equipment leasing companies manage fleets of vehicles and equipment. The installation of IoT sensors in these vehicles provides real-time data on their location, condition, and usage. For instance, data from Akamai Technologies Inc., a US-based internet company, indicates that IoT connections are projected to increase from 15.1 billion in 2021 to 23.3 billion IoT connections by 2025. Consequently, the growing prevalence of IoT connections is a driving force for the automotive equipment leasing market.
The growing demand in the automotive sector is expected to be a driving force behind the expansion of the automotive equipment leasing market in the future. The automotive sector, encompassing various businesses and activities related to motor vehicle design, production, marketing, sales, and maintenance, plays a pivotal role in fostering the growth of the automotive equipment leasing market. This is achieved by providing businesses with a cost-effective approach to acquiring and maintaining the vehicles and equipment necessary for efficient operation and expansion. For example, in February 2024, a report from the Society of Motor Manufacturers and Traders, a UK-based trade association, revealed that UK used car transactions grew by 5.1% in 2023, with 7,242,692 vehicles changing hands. Additionally, sales of battery electric cars nearly doubled, increasing by 90.9% to 118,973 units, though they still represented only 1.6% of the overall market. This growth was driven by improved supply from the new car market. As a result, the rising demand in the automotive sector is fueling the expansion of the automotive equipment leasing market.
Major companies in the automotive equipment leasing market are focusing on developing technological advancements, such as financing and lease programs, to improve efficiency and address evolving customer needs. Financing programs offer loans or credit to purchase goods or services, with specific repayment terms, while lease programs provide the use of assets for a set period in exchange for regular payments, without ownership until the lease concludes. For example, in January 2024, Morrico Equipment, a US-based sales and rental company, launched a heavy equipment financing and lease program. These programs enable businesses to acquire essential machinery while preserving cash reserves for other operational needs. With flexible payment options and potential tax benefits, they enhance cash flow management and mitigate financial risks. Ultimately, they provide access to modern equipment, fostering growth and improving operational efficiency across various industries.
Prominent firms within the automotive equipment leasing market are forming strategic partnerships to boost their market profitability. As an example, in April 2023, Volta Trucks, a Swedish truck manufacturing company, entered into a partnership with DLL Group to provide lease financing support for its truck-as-a-service (TaaS) offerings. This collaboration with DLL Group facilitates flexible and tailored financing options for TaaS customers. It also empowers Volta Trucks to expedite the electrification of its offerings, thereby accelerating the transition towards a more sustainable future. DLL Group, headquartered in the Netherlands, specializes in providing financial solutions.
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.
Western Europe was the largest region in the automotive equipment leasing market in 2024. 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.
Automotive Equipment Leasing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive equipment leasing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive equipment leasing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive equipment leasing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.