Adoption of digitisation, blockchain and telematics to drive new growth opportunities, finds Frost & Sullivan
LONDON, April 16, 2018 /PRNewswire/ -- In 2018, new mobility models such as electronic vehicle (EV) leasing, private vehicle leasing and used car leasing are set to transform the global fleet leasing market and create tremendous growth opportunities. Frost & Sullivan expects demand to be driven by operational leasing, which is predicted to account for 30.3% of company cars sold in 2018. Emerging countries such as Ukraine (33.6%), Russia (19.6%), Croatia (15.3%), and Hungary (12.6%) will top year-on-year growth rates in fleet leasing sales.
"Fleet accounts for 12.8% of global vehicles in operation with 91.2% recognised as true fleet volume. Only 19.5% of this true fleet volume is leased - this represents a huge growth opportunity as usage rises," said Abishek Narayanan, Mobility Industry Analyst at Frost & Sullivan. "Europe has the largest company car market globally with 33.8% of total company cars on roads. Out of the company cars in Europe, 40.4% are leased, which is the highest across regions."
Frost & Sullivan's recent analysis, Global Fleet Vehicle Leasing Market Outlook, 2018, identifies the prevalent factors contributing to market growth; challenges serving as barriers to success; top 10 trends; new mobility solutions; technology advancements and legislations; leasing providers in Europe, Africa, Americas and APAC; and distribution strategies of key providers in the market.
For further information on this analysis, please click here.
To be successful in a consolidating market, Narayanan recommends providers focus on offering customers full-service operational leases with added features like flexibility in duration, vehicle swapping, etc. "Additionally, they can place emphasis on expansion into emerging markets and introduction of new product line such as EV leasing and private leasing which are the next growth segments in the leasing industry," he added.
Seven trends driving transformational change in the global fleet vehicle leasing market include:
"With current used car leasing options limited, players should focus on building trust among customers with regards to the reliability of used cars and stress their ability to better predict/service maintenance issues," noted Narayanan. "They should also develop strategies for customer segments looking for leases with affordable monthly payments, such as SMEs, retirees, and first car buyers."
Global Automotive Aftermarket Outlook, 2018 is part of Frost & Sullivan's Automotive & Transportation Growth Partnership Service programme.
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Global Fleet Vehicle Leasing Market Outlook, 2018
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Kristina Menzefricke
Corporate Communications – Frost & Sullivan, Europe
P: +44 (0)208 996 8589
E: kristina.menzefricke@frost.com
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