Car Leasing Market Size, Share, Analysis, Trends, Growth, Forecasts, 2032

Car Leasing Industry Prospective:

The global car leasing market size was evaluated at $87 billion in 2023 and is slated to hit $150 billion by the end of 2032 with a CAGR of nearly 10% between 2024 and 2032.

Request Free Sample

Car Leasing Market: Overview

Car leasing is gaining high popularity as people are focused on driving vehicles without a long-term ownership commitment. This service is available on a mobile app and allows users to pay the service provider via this app. Such facilities assist customers in easily paying for car usage for a particular period.                                    

Key Insights

• As per the analysis shared by our research analyst, the global car leasing market is projected to expand annually at the annual growth rate of around 10% over the forecast timespan (2024-2032)
• In terms of revenue, the global car leasing market size was evaluated at nearly $87 billion in 2023 and is expected to reach $150 billion by 2032.
• The global car leasing market is anticipated to grow rapidly over the forecast timeline owing to the escalating popularity of flexible mobility services and an increase in the demand for ride-sharing services.
• In terms of vehicle type, the passenger cars segment is slated to register the highest CAGR over the forecast period.
• Based on lease type, the finance lease segment is predicted to contribute majorly towards segmental space in the upcoming years.
• On the basis of end-user, the corporate segment is predicted to steer the global market expansion in the forecasting years.
• Region-wise, the Asia-Pacific car leasing industry is projected to register the fastest CAGR during the assessment timespan.

Car Leasing Market: Growth Factors

Humungous adoption of car leasing solutions by corporates to boost the global market trends

Escalating popularity of flexible mobility services and an increase in the demand for ride-sharing services are expected to boost the expansion of the global car leasing market. Moreover, technological breakthroughs and an increase in the acceptance of car leasing services in the corporate sector will proliferate the growth of the market globally.

An increase in the per capita income of customers and rapid economic development is projected to steer the expansion of the global market. An increase in digitization and a prominent rise in online leasing services in emerging economies, such as India and China, will promulgate the scope of the regional market surge in the ensuing years.

Car Leasing Market: Restraints

Huge costs of vehicle ownership can retard the global industry expansion over the forecast period

Mileage restrictions and lesser availability of customized services can deter the expansion of the global car leasing industry. Moreover, a rise in wear & tear costs and a lack of vehicle ownership can retard the expansion of the industry globally.

Car Leasing Market: Opportunities

A growing trend of providing cars on a rental basis will open new opportunities for the global market

An increase in the leasing of electric vehicles and flexibility in lease terms, such as offering short-term leases, is likely to open new growth avenues for the global car leasing market. Furthermore, car subscription-based models provide inclusive packages such as roadside assistance, insurance, and maintenance.

Car Leasing Market: Challenges

Complicated legislation controlling car leasing activities can challenge the global industry expansion by 2032

A huge challenge in determining the depreciation and residual values of vehicles, along with early termination fees, is expected to cause huge ripples in the growth of the global car leasing industry. Complex laws regulating car leasing operations and easy access to modes of public transport at reasonable charges can challenge the global industry expansion.

Car Leasing Market: Segmentation

The global car leasing market is divided into vehicle type, lease type, end-user, and region.                                             

In terms of vehicle type, the car leasing market across the globe is segmented into luxury cars, passenger cars, and commercial cars segments. Apparently, the passenger cars segment, which gathered nearly 60% of the global market earnings in 2023, is set to register fastest CAGR in the ensuing eight years due to its affordability, fuel efficacy, and shared mobility. 

Based on the lease type, the global car leasing industry is segmented into finance lease and operating lease segments. Apparently, the finance lease segment, which dominated the global industry size in 2023, is anticipated to account majorly toward the segmental expansion in the forecasting years as finance lease can offer the alternative for the user to purchase the car after the lease period has ended, thereby providing the user with benefits of potential ownership. Apart from this, financial leases provide tax benefits such as tax deductions on payments of car leases. For the record, finance leases include long-term commitments for leasing firms.

On the basis of end-user, the car leasing market across the globe is divided into corporates and individuals segments. Moreover, the corporate segment, which led the global market growth in 2023, is expected to continue global market domination in the upcoming years, subject to declining overhead charges along with maintenance & insurance coverage.

Car Leasing Market: Report Scope

Car Leasing Market: Regional Insights

Europe is likely to maintain lead

ing status in the global market over the analysis period

Europe, which accounted for about 62% of the global car leasing market size in 2023, is predicted to establish a leading position in the global market in the forecasting timespan. Moreover, the regional market surge in the coming decade can be credited to the presence of strong infrastructure facilities in European countries and the rise in ride-sharing services in the UK, France, and Germany.

Moreover, big corporate firms in Europe lease cars for their staff, which will further add to the market growth in the continent. Supportive government legislation, such as tax incentives for various firms in Europe, has promoted the car leasing business. 

The Asia-Pacific car leasing industry is expected to register the fastest compounded growth annually in the forecasting timespan. The elevation of the industry in APAC can be a result of swift urbanization along with a rise in the per capita income of the people in the emerging economies such as China and India.

Moreover, supportive government policies and an increase in the middle-income group population preferring car-sharing services will steer the industry growth in the region.

Car Leasing Market: Competitive Space

The global car leasing market profiles key players such as:

• Volkswagen Financial Services
• Volkswagen Financial Services Deutsche Leasing AG
• Toyota Financial Services
• Europcar Mobility Group
• Mercedes-Benz Financial Services
• LeasePlan Corporation N.V.
• Avis Budget Group Inc.
• Sixt SE
• Enterprise Holdings Inc.
• Hertz Global Holdings Inc.
• ALD Automotive
• Arval BNP Paribas Group
• Element Fleet Management Corp.
• ORIX Corporation
• Lex Autolease
• United Rentals Inc.

The global car leasing market is segmented as follows:

By Vehicle Type

• Luxury Cars
• Passenger Cars
• Commercial Cars

By Lease Type

• Finance Lease
• Operating Lease

By End-User

• Corporates
• Individuals

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa