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The vehicle leasing market in europe is estimated to grow at a CAGR of 4.51% between 2022 and 2027. The size of the market is forecast to increase by USD 90.87 billion. The growth of the market depends on several factors, including the cost-effective ways of obtaining a vehicle, the growing demand for vehicle leasing from SMEs, and the rising technological obsolescence of older vehicles.
This report extensively covers type (passenger cars and commercial vehicles), mode of booking (online and offline), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The cost-effectiveness of leasing as a way of obtaining a vehicle is notably driving the growth of the vehicle leasing market in Europe, although factors such as the challenge posed by on-demand taxi operators may impede the market growth. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a decrease in demand for the market during the COVID-19 pandemic, a holistic analysis of drivers will help companies refine marketing strategies to gain a competitive advantage.
Key Vehicle Leasing Market in Europe Driver
The cost-effectiveness of leasing as a way of obtaining a vehicle is notably driving the growth of the vehicle leasing market in Europe. A vehicle is an asset whose value depreciates over time. The most popular method of acquiring a vehicle is by paying for the vehicle or through financing options (i.e., owning it). Most vehicle dealership centers have dedicated personnel to assist buyers with purchasing vehicles through loans. Buying a vehicle permanently may not be cost-effective for small and medium-sized enterprises (SMEs), which can increase their fixed costs. However, leasing a vehicle is a more viable solution than buying a vehicle. In leasing, the lessee only needs to pay a monthly fee, along with certain additional charges and taxes, during the period of use. Hence, the attractive value proposition offered in leasing a vehicle rather than purchasing and owning it is a major driver that will drive growth in the growth of the vehicle leasing market in Europe during the forecast period.
Key Vehicle Leasing Market in Europe Trend
The rise in demand for leasing EVs to optimize vehicle performance and reduce emissions will fuel the vehicle leasing market growth in Europe. Electric vehicles (EVs) use an electric motor to power the vehicle. The electric motor has only one moving part when compared to multiple moving parts in an IC engine vehicle, leading to lower maintenance costs. The compact size of the electric motor also helps in reducing the weight of the vehicle and offers ample space to add more features to the vehicle. The absence of multiple moving parts not only makes the engine highly efficient but also delivers instant torque on demand. The use of regenerative braking in EVs also helps increase the range of the vehicle. Air pollution has become a major topic of discussion in major political as well as global economic forums because of its adverse impact on the environment and human life. The year-over-year increase in the air quality index (AQI) is also a major reason for the increasing number of respiratory diseases and premature deaths worldwide.
Key Vehicle Leasing Market in Europe Challenge
The challenge posed by on-demand taxi operators is a major challenge to the vehicle leasing market growth in Europe. Taxi services are widely used in urban areas for personal transportation. On-demand taxis are a convenient option in terms of the time spent on finding a parking spot and the amount spent on travel. Space is highly constrained in congested urban areas, and finding a parking space is a difficult task. Moreover, traffic congestion in cities renders driving in cities a tedious and difficult task. Hence, the rise in the use of on-demand taxis for personal commutes is diluting the demand for car leasing, particularly as on-demand taxis are mainly used in urban areas where car leasing services are widely available. In addition to the benefits to users, on-demand taxis have fewer operator restrictions. The low capital expenditure involved in on-demand taxi services intensifies the challenge posed by on-demand taxi companies to car leasing companies, which can become a major challenge for the growth of the vehicle leasing market in Europe during the forecast period.
Key Vehicle Leasing Market Customer Landscape in Europe
Our analysis of the Life Cycle of the market indicates a movement from the innovator’s stage to the laggard’s stage. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Vehicle Leasing Market in Europe Customer Landscape
Technavio categorizes the vehicle leasing market in Europe as a part of the global trucking market within the global transportation market. The parent global trucking market covers companies engaged in goods and passenger land transportation, including vehicle rental and taxi companies. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product / service launches, to enhance their presence in the market
aldautomotive.com - The company offers vehicle leasing services such as maintenance, assistance and tire management.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including :
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the online segment will be significant during the forecast period. The convenience offered by online platforms propels the shift in consumer preference for booking leasing vehicles through the online mode, subsequently driving the sales generated through this segment. This shift is also led by the wide penetration and geographical reach of online booking service providers. The sales in the online booking services segment are expected to grow at a rapid pace during the forecast period.
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The online segment showed a gradual increase in market share with USD 259.06 billion in 2017 and continued to grow by 2021. Currently, most consumers make their purchase decisions based on online research on websites, blogs, and social media and through the information provided by some vehicle leasing service providers. The increasing Internet penetration and the number of smartphone users help vendors in the vehicle leasing market in Europe provide online booking services to expand their customer reach and service portfolio. Additionally, the availability of proper infrastructure and many agents and third-party online platforms ensure streamlined business activities for providers of online booking services with regard to vehicle leasing in Europe. Therefore, consumers in Europe can access online booking platforms and avail of faster bookings and safe and secure e-transactions 24/7. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of Vehicle Leasing services in Europe, which is driven by an increase in the regional demand for the Vehicle Leasing Market in Europe.
The high customer awareness regarding vehicle leasing is the crucial driver for adopting vehicle leasing services in the UK, compared to other European countries. Additionally, higher demand for passenger cars in the UK is also a crucial driver for the market in focus. The rising use of cars will trigger the growth of the vehicle leasing market in the UK. The major car usage in the UK is done through car finance or car leasing. The percentage share of car leasing is expected to show an upward trend during the forecast period. The e-commerce market in the UK is proliferating. For instance, in 2021, 82% of the UK population bought at least one product online. The growing e-commerce market in Europe is attracting many logistics players.
The outbreak of COVID-19 adversely affected the growth of the vehicle leasing market in Europe in 2020. The governments in the Netherlands, Denmark, Spain, and others closed their borders and imposed nationwide lockdowns to curb the spread of the disease. As governments imposed a ban on the movement of individuals and logistics services, the demand for vehicle leasing slowly decreased in 2020. Industry players in the market had to deal with changing consumer preferences for hygiene and stringent regulations regarding the pandemic. All these factors negatively impacted the growth of the vehicle leasing market in Europe in 2020. However, lockdowns were lifted in the second half of 2020 with the initiation of large-scale vaccination drives across Europe. This led to the resumption of manufacturing and logistics activities in the first half of 2021. Moreover, increasing growth in e-commerce will drive growth in the demand for leased vehicles for the delivery of goods during the forecast period. Hence the leasing vehicle market in Europe is expected to grow positively during the forecast period.
Our report forecasts revenue growth at regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by mode of booking and type.
Vehicle Leasing Market Scope in Europe |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2022 |
Historical year |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.51% |
Market growth 2023-2027 |
USD 90.87 billion |
Market structure |
Fragmented |
YoY growth (%) |
4.35 |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
ALD SA, Allane SE, Arval Service Lease, Bayerische Motoren Werke AG, Central Contract S.O.T Ltd., Central UK Vehicle Leasing Ltd., Citroen Leasing of LMC, Deutsche Leasing AG, Europcar Mobility Group SA, ExpatRide International Inc., Groupe BPCE, King and Mayr GmbH & Co. KG, LeasePlan Corp. NV, Mercedes Benz Group AG, Millennium Leasing sp z-o.o., Peugeot Motor Co. Plc, PKO Bank Polski, Stellantis NV, and Volkswagen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Booking
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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