Car Leasing Market Size To Grow At 6.1% CAGR Till 2031

Mobility Outlook Bureau
25 Oct 2022
10:00 AM
2 Min Read

Over the past few years, rising vehicle ownership costs in several countries have fueled the market prospects of car leasing services.

Car Leasing

Driven by the inclination of consumers toward affordable and smart mobility solutions that include shared mobility services and also electric mobility, fuel the growth of the Car Leasing Market to grow at 6.1% CAGR till 2031.

According to a recent report by Transparency Market Research, these factors will help the Car Leasing Marked to reach $960.38 million by 2031. In addition, the rapid pace of organised urbanisation in numerous emerging economies is a major underpinning for the need for smart city transportation. This is a key driver for smart and sustainable transport modes, including shared electric mobility, and is thus is a key pivot for the car leasing market.

Over the past few years, rising vehicle ownership costs in several countries have fueled the market prospects of car leasing services. Adopting smart monitoring technologies, opine the market analysts, will pave the way for car leasing to become profitable for service providers and customers.

Electric mobility, concurs the market analysts, will shape the future of car leasing, and several companies in the car leasing market are leaning toward adopting electric vehicles in their fleets. 

A detailed assessment of the recent trends in the car leasing market reiterates the growing popularity of car leasing services among corporates. The study asserts that companies in the car leasing market are tapping into the demand by expanding the offering through the financial leasing model. In addition, key car leasing vendors are increasingly emphasising the low-interest rate vis-à-vis high cost of ownership for cars and other vehicles to galvanise demand.

Some prominent names in the market are Deutsche Leasing, Lex Autolease, Arval, The Hertz Corporation, AVIS Budget Group, ALD Automotive, SIXT SE, ORIX Corporation, and American Electric Power.


According to the report, the popularity of leasing among corporates underpins massive revenue growth in business leases. The authors of the TMR study have estimated massive opportunities in the business leasing segment. Indeed, the statistics were supported by the projection that the segment will advance at a CAGR of over 6.91% during the forecast period. This is partly propelled by the rising use of car leasing among business executives and senior management.

Smart Urban Transportation

The report noted that the rising demand for smart urban transportation reinforces car leasing services. Urban transportation that aligns with smart city initiatives has attracted sizable investments by Governments and private players. This supports vast revenue potential in the car leasing market, as the services have led to affordable and smart commuting or transportation mode, especially for the urban population. Emphasis on lowering the transportation sector's carbon footprint also adds a robust impetus toward shared mobility options, which generates growth momentum for the car leasing market also. 

Value from IoT

The report observed that the car leasing companies grab incredible value from IoT. It added that the use of IoT for fleet maintenance has enabled car leasing companies make optimal use of their fleets. Additionally, such technologies also play a key role in improving their services to consumers in the car leasing market.

Growth Dynamics

North America held a major global car leasing market revenue share in 2021. The rapid adoption of car leasing services hinged on low-interest rates offered for such services. Moreover, several initiatives undertaken by Governments in collaboration with prominent electric mobility companies toward promoting affordable electric mobility have kept the demand buoyant in the North American car leasing market.

The study found that technology advancements form a key marketing strategy that various car leasing companies implement to expand shares. The competition landscape is fairly fragmented, as several players are vying for sizable stakes in the car leasing market, the report noted. 

Courtesy: Transparency Market Research . NB: Photo is representational; courtesy: Revv

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