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Based on those strategic imperatives the gap between where you are now and where you need to be to achieve transformational growth is daunting.
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The Three Components Required for Transformational Growth
Growth Opportunities for Leasing & Rentals
Fleet Connectivity
Connectivity in fleet telematics presents opportunities for companies to optimize fleet management, enhance operational efficiency, and improve customer experience by leveraging real-time data.
Vehicle Subscription
Subscription service offerings in cars are making a comeback with improved product features, which maximize customer flexibility and convenience. Industry incumbents that build an ecosystem of partnerships for product development, residual management, and dealer remarketing will realize long-term gains.
Technology Adoption
The adoption of innovative technologies such as digital platforms, mobile applications, and artificial intelligence, presents significant potential as companies seek to enhance customer experience, streamline operations, and establish long-term competitive differentiation.
Electric and Hybrid Vehicles
The growing demand for electric and hybrid vehicles presents new opportunities as customers prioritize new ownership models that favour more sustainable and fuel-efficient mobility.
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Growth for Leaders & Companies
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Continuous flow of Growth Opportunities
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Optimised Customer Experience
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Industry Leadership
LEASING & RENTAL IN THE 21ST CENTURY: A TALE OF INNOVATION, CUSTOMER-CENTRICITY, AND ACCELERATED GROWTH
BRIDGING THE GROWTH GAP: A BLUEPRINT FOR SUCCESS IN THE LEASING AND RENTAL INDUSTRY
COMPANIES TO ACTION: INDUSTRY LEADERS RESHAPING THE LEASING & RENTAL LANDSCAPE
IS YOUR ORGANIZATION HARNESSING THE POWER OF A GLOBAL, AI-DRIVEN, DATA VISUALIZATION PLATFORM TO DRIVE SUCCESS IN FLEET LEASING AND RENTAL?
LEASING & RENTAL IN THE 21ST CENTURY: A TALE OF INNOVATION, CUSTOMER-CENTRICITY, AND ACCELERATED GROWTH
Is your team leveraging recurring revenue pipelines, or losing out on valuable opportunities?
The world of mobility is experiencing an electrifying resurgence across public and commercial spaces in the post-pandemic era. At the forefront of this transformative shift is the leasing and rental industry, which is projected to surpass $200 billion globally by the end of 2023. But this industry’s journey goes beyond mere revenue growth — it is a thrilling saga of technological sophistication and industrial convergence.
On the technological front, the emergence of software-driven vehicles (SDVs) is heralding improved and optimized methods for managing leased fleets. As a result, the industrial convergence between traditional leasing companies and cutting-edge technology providers across telematics, artificial intelligence (AI), in-vehicle operating system (OS), and rental apps, is becoming a defining shift.
Questions to ask yourselves
How are your strategic teams positioned to extract the most from this transformation?
Is your leadership responding quickly enough to competitive intensity in this thriving space?
Is your team working diligently to bridge the leasing and rental growth gap?
What is igniting this transformation in the first place? A shift in consumer preferences towards the pursuit of cost-effectiveness. Companies with automotive needs are increasingly turning to the outsourcing of non-core support activities, thus fueling the evolution of the leasing and rental space. Long-term success in this field hinges on companies that are redefining their customer strategies to align with consumer preferences, rather than adopting short-sighted approaches.
Questions to ask yourselves
How has your team fortified its customer strategy to address consumer preferences?
Are your teams exploring a robust cost strategy to maximize profitability?
Amidst this transformative journey, industry incumbents — large enterprises as well as traditional leasing companies — are claiming their slice of the pie. On the other hand, those failing to leverage partnerships with innovative startups and technological players are risking obsolescence. After all, such collaboration has become necessary to build affordable and optimized solutions to streamline leased fleets and enhance efficiency. Europe emerges as a standout region in the overall spacewhile high-growth countries like India and China are swiftly narrowing the gap.
Questions to ask yourselves
Are your leaders devising a robust M&A strategy to support your growth pipeline?
In the face of competitive intensity, how is your C-suite responding to stay ahead of the game?
ON THE ROAD TO TRANSFORMATION: DRIVING GROWTH WITH NEW LEASING SOLUTIONS
As the digital mobility revolution reshapes the leasing and rental industry, it becomes paramount to closely examine the emerging solutions and their revenue potential. These solutions have been inspiring incumbents to embrace innovative business models and construct recurring revenue pipelines. While plenty of growth opportunities have originated consequently, so have challenges and pertinent questions that most companies do not ponder upon. Here are three highlighted solutions:
Players who do not revamp their go-to-market strategy in response to the challenges posed by these transformative solutions are likely to risk obsoletion. Hence, a series of flexible subscription offerings has emerged, luring customers with enticing options. However, not all business models will guarantee recurring revenue or withstand competitive intensity.
Plenty of questions remain: Could a hybrid approach that combines different leasing plans turn out to be more viable? While app-driven car subscription platforms offer flexibility and convenience, can they consistently deliver profits? Moreover, do these innovative models align with sustainability best practices and regulatory frameworks? Regardless of your company size, seeking effective answers to these pivotal questions will lay the foundation for concrete revenue pipelines that will drive the leasing and rental industry forward.
Questions to ask yourselves
Have you assembled the finest strategic minds within your teams to tackle the subscription challenge?
Have your strategic teams consolidated a growth strategy that considers crucial megatrends?
CAN FROST & SULLIVAN BE YOUR PARTNER OF CHOICE FOR GROWTH?
Frost & Sullivan has six decades of experience analysing industry transformation and identifying innovative growth opportunities. Allow us to guide you through your transformation journey by working collaboratively with the ecosystem community of companies in your industry. Our transformation journey is fuelled by four powerful components, ensuring your success in navigating the ever-changing landscape of your industry.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and gain access to think tanks focused on the transformational growth strategies of the healthcare & life sciences industry.
- Designate your company as a Company to Action to increase exposure to investors, new M&A opportunities, and other growth prospects for your business.
BRIDGING THE GROWTH GAP: A BLUEPRINT FOR SUCCESS IN THE LEASING AND RENTAL INDUSTRY
While leasing and rental have long been favorable alternatives to fleet ownership, their evolution continues with the emergence of new business models tailored to address shifting customer preferences. For instance, although longleasing has been an industry standard, are a recent addition. Customers now enjoy the convenience of accessing leasing options through user-friendly apps, allowing them to subscribe to services that align with their specific needs and desired duration at a competitive price. These advancements primarily stem from technological disruptions in the industry, including the rise of digitally connected fleets and the overarching trend of connected mobility.
- Has your business intelligence team determined a business model that will help you succeed?
- Are you capitalizing on technological disruptions faster than your competitors?
- Is your competitive strategy more robust than your competitors?
- Have your analysts explored evolving customer preferences to identify emerging growth opportunities?
HOWEVER, IT’S NOT ALL SMOOTH SAILING IN THE LEASING AND RENTAL SPACE
While the leasing and rental industry presents ample growth opportunities and enhances the value chain for players of all sizes across regions, it’s not without its challenges. Competition from new mobility solutions, e remain significant hurdles. To fully capitalize on growth prospects, respond to increased competitive intensity, and create long-term value for stakeholders, it is imperative to invest in digital transformation, prioritize customer-centricity, and adopt sustainable practices.
In essence, there’s a ‘growth gap’ in the leasing and rental space that must be bridged to thrive in this competitive landscape. Here are some challenges that need addressing:
- The leasing transformation must support the electric vehicle (EV) transformation: Original equipment manufacturers (OEMs) are transitioning to EVs across the globe, but many leasing companies continue to provide traditional fleets. Have you outlined a growth strategy to successfully transform into an EV fleet provider?
- The perfect leasing platform is yet to be conceived: Despite the technological disruptions giving the leasing space a new lease of life, new technologies such as vehicle connectivity, telematics, and digital platforms pose data management and integration challenges; they must also deliver a smooth customer experience. Have you devised a strategy to build or collaborate towards the ideal leasing platform?
- The right talent is limited: Attracting and retaining skilled professionals with leasing, financial, technology, and customer service expertise is a challenge, particularly in a competitive job arena. Are you strategically leveraging a mix of internal and external personnel to outperform your competitors?
IS THERE A STRATEGIC ROUTE TO BRIDGING THE GROWTH GAP?
To bridge the growth gap effectively, it’s essential to have a well-structured ‘growth pipeline’ in place, systematically identifying and executing various stages of a success-driven growth strategy. This entails moving from ‘gaps’ to ‘opportunities to bridge the gap.’ Players also consider go-to-market strategies, implementation steps, and monitoring strategies to eliminate the growth gap and establish their dominance.
Five stages of the strategic growth pipeline emerge:
Opportunity universe: What growth opportunities lie ahead?
Opportunity evaluation: Which opportunity aligns best with your objectives and capabilities?
Go-to-market strategies: How can you effectively position yourself amid growing competitive intensity?
Planning & implementation: Are you fully prepared to execute your strategy?
Monitoring & optimization: Are you willing to adapt your strategy based on solid data points?
JOIN US, AND TOGETHER, LET US EMBARK ON THIS TRANSFORMATIONAL JOURNEY!
Let’s explore and collaborate to co-create strategies that will shape the future of the leasing and rental industry.
As we embark on this journey into the future, we must address critical questions:
- How is your organization strategically preparing for industry transformations?
- Which partnerships is your organization considering to leverage emerging growth opportunities?
- In what ways are you incorporating best practices as a leasing and rental service provider?
Our transformation journey is powered by four potent components, assuring your success in navigating the ever-changing mobility industry landscape:
Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and gain access to think tanks focused on the transformational growth strategies of the mobility industry.
- Designate your company as a Companies2Action to increase exposure to investors, new M&A opportunities, and other growth prospects for your business.
COMPANIES TO ACTION: INDUSTRY LEADERS RESHAPING THE LEASING & RENTAL LANDSCAPE
The leasing and rental industry is swiftly becoming a cornerstone of automotive mobility, with leasing providers, rental companies, car subscription services, and fleet management solutions playing pivotal roles within the ecosystem. These entities are adeptly responding to a growing desire among today’s consumers for alternatives to fleet ownership, which is expensive and burdened with operational complexities. This perspective is making the leasing and rental domain an increasingly attractive option for new-age consumers. Is your team adapting to evolving customer preferences to capitalize on growth opportunities in the era of leased vehicles?
The current landscape is revealing unprecedented growth avenues, particularly in electric vehicle (EV) leasing and used car leasing. Technological disruptions across vehicle connectivity, telematics, and the integration of data analytics and artificial intelligence (AI), are playing a transformative role. Furthermore, rebounding vehicle sales and the reopening of workspaces are fueling corporate and private leasing. Attention is now turning to regional macroeconomic factors, with many organizations eyeing regional alliances. Innovative business models, like app-based vehicle subscriptions, are gaining traction, benefiting both established players and newcomers alike. How is your organization harnessing technological disruptions to drive innovation within the leasing and rental ecosystem?
TELEMATICS AND FLEET MANAGEMENT: COMPANIES SETTING THE STAGE FOR AUTOMOTIVE LEASING EVOLUTION
The leasing and rental industry’s momentum would not have been possible without telematics service providers (TSPs) and fleet management solutions. TSPs are enhancing vehicle connectivity, which is enabling lucrative use-cases such as video telematics and advanced driving assistance systems (ADAS). Similarly, fleet management solutions are simplifying remote fleet diagnostics and bringing unified platforms for automobile management. Here’s a glimpse of companies leading this transformative shift:
| Telematics | Fleet Management |
| Revv: The India-based car rental company has partnered with a technology firm, Mobileye, to implement ADAS across its fleets. This collaboration has resulted in a remarkable 74% decrease in accident rates across Revv’s vehicles.
Calamp: A leading telematics and IoT service provider, connecting 20 million devices and serving 730,000 subscribers globally, Calamp has pioneered intelligent solutions to enhance fleet visibility and traceability. How are you engaging in strategic partnerships with TSPs to enhance your leasing fleet solutions? |
IMS: This company has established itself as an industry leader in fleet management by harnessing advanced algorithms and Big Data analytics to redefine in-vehicle safety and the overall driving experience.
Element Fleet Management: With a strong focus on lift trucks and tractors, Element serves a diverse range of clients from many industries, demonstrating the viability of fleet management across mobility segments. Have your teams integrated fleet management into your growth strategy, with a focus on long-term success? |
LEADERS OF TODAY: COMPANIES AT THE FOREFRONT OF AUTOMOTIVE LEASING INNOVATION
While fleet management and telematics lead the charge in revolutionizing leasing and rental solutions, corporate light vehicle leasing emerges as a notable beneficiary. Given that light vehicles make up a significant portion of leased fleets and corporate leasing is gaining momentum among businesses, it’s valuable to acknowledge the companies driving progress in this domain and draw inspiration from their achievements.
| Corporate Light Vehicle Leasing |
| ALD Automotive: ALD Automotive offers full-service leasing to small and medium enterprises (SMEs) and has built partnerships with 16 Original Equipment Manufacturers (OEMs), showcasing its ability to optimize large-scale vehicle leasing and drive growth.
Localiza&Co: The ecosystem leader has built its reputation on product diversity. Through successful mergers and acquisitions, it offers a wide range of services appealing to corporate players. Which industry best practices are you implementing to excel in the corporate light-vehicle leasing arena? |
THE ROAD AHEAD: TRANSFORMATIVE COMPANIES SHAPING TOMORROW’S LEASING ENVIRONMENT
With nearly 20% year-on-year growth for both used car and EV leasing, the future of the leasing lies in these promising domains. EVs are already on a transformative trajectory, while used car leasing has become increasingly prominent in the post-pandemic era. Mapping this evolving landscape is paramount for identifying industry best practices and strategic entry points:
| Electric Vehicle Leasing | Used Car Leasing |
| Tesla is transforming the EV rental space by offering various leasing options and an attractive user experience. Its mobile application allows customers to easily manage leases and make payments.
Zevvy’s large variety of leasing options are reshaping customer expectations and prompting competitors to adapt or risk failure. What megatrends is your company capitalizing on to ensure sustained success in the EV leasing ecosystem? |
Lookers, one of the UK’s largest car dealer groups, is strategically enhancing its leasing business by leveraging its extensive portfolio of services, including repair, financing, and insurance.
AutoScout24, an online automotive marketplace, recently acquired two leasing portals. This strategic move showcases a compelling vertical market expansion strategy that many used car dealers are eyeing. Is your growth strategy leveraging used car leasing to tackle competitive intensity in the leasing industry? |
ARE YOU POSITIONING YOURSELF AS A ‘COMPANY TO ACTION’ SLATED FOR EXPONENTIAL GROWTH?
To stand out in the competitive leasing and rental landscape, proactive companies are focusing on new technologies, strategic planning, competitive analysis, product differentiation, and adaptation to regional and regulatory dynamics. Only they are emerging as a ‘company to action’, positioned for exponential growth. Is your company equipped with a robust growth pipeline to emerge as a ‘company to action’ in the fleet ecosystem?
ABOUT FROST & SULLIVAN
Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class industry positioning in terms of innovation and leadership. The company’s ‘Growth Pipeline-as-a-Service’ provides corporate management teams with transformational strategies and best practice models that catalyze growth opportunity generation, evaluation, and implementation. Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within the global leasing & rental ecosystem. This journey is fueled by four powerful components, ensuring your success in navigating dynamic business and industry landscapes.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
- Designate your company as a Companies to Action to maximize your exposure to investors, new M&A opportunities, and other growth prospects.
IS YOUR ORGANIZATION HARNESSING THE POWER OF A GLOBAL, AI-DRIVEN, DATA VISUALIZATION PLATFORM TO DRIVE SUCCESS IN FLEET LEASING AND RENTAL?
Amid the automotive industry’s pandemic-induced slowdown, coupled with supply chain constraints and semiconductor shortages, a silver lining is emerging. With numerous owned vehicles idling and new vehicle prices soaring, leasing, rental, subscriptions, and other innovative business models are gaining prominence. This transformation is helping fuel a diverse ecosystem across leasing for passenger cars, light commercial vehicles (LCVs), and even medium and heavy commercial vehicles (MHCVs). Various forms of leasing, such as operating leasing and finance leasing, as well as electric vehicle (EV) leasing and used-vehicle leasing, are emerging as viable options. Technology providers offering fleet telematics solutions are also finding success by enhancing monitoring and leasing-based functionalities for providers.
Are you aware of the growth opportunities that could help you stay ahead of the competition in the leasing and rental industry?
In such a dynamic environment, achieving competitive success and fostering innovation necessitate a data-driven growth and innovation strategy, derived from the right actionable intelligence.
However, is your organization addressing the below growth challenges that can hinder you from collecting, visualizing, and leveraging intuitive data?
Limited Access to Data-Driven Visual Platforms
Many industry players lack access to intuitive data intelligence and analysis platforms, particularly those integrating smart visualizations and dashboards. Even the top ecosystem players struggle to leverage perspectives from diverse sources, conduct precise regional analysis, evaluate different business approaches, and monitor top solution providers – to build a robust growth pipeline.
Lack of Customization
Despite access to extensive actionable intelligence, navigating through vast information can be overwhelming. Hence, a customized visual data platform can help cater to specific needs. Users should be able to tailor reports according to targeted regions, industry comparisons, vehicle models, providers, and other relevant aspects.
Absence of Adequate Support
Understanding and navigating the fleet leasing and rental value chain can be complex, rendering a data-driven platform insufficient on its own. The right expert support and curation are essential for strategic planning and decision-making, scouting perspectives and shifts, building technological roadmaps, and providing detail-oriented analysis to extract growth opportunities from such platforms.
Limited Innovation Approaches
While deriving and analyzing information is crucial, leveraging it to identify growth opportunities across the leasing domain demands innovation. This involves utilizing information from the data to identify suitable partnerships, potential mergers or acquisitions, determining optimal leasing business models, and devising effective commercialization strategies.
What if we told you that Frost & Sullivan’s Fleet Leasing & Rental Growth Generator can adeptly overcome these hurdles and steer you toward optimal growth opportunities?
- Access a comprehensive repository spanning over 50 European countries and covering all vehicle types, including passenger vehicles, LCVs, and MHCVs. The data encompasses various powertrains, from petrol and diesel to battery EVs and hybrids, with historical data from 2015 to 2023 and projections from 2024 to 2027. Additionally, the platform includes perspectives into all types of leasing and fleet telematics.
- Utilize advanced data visualization tools for in-depth analysis, including visual comparative analysis and interactive graphics. These tools provide a deeper understanding of the data compared to traditional statistics-driven platforms commonly found in the leasing and rental industry.
- Leverage personalized growth opportunities tailored to your needs, empowering you to identify industry gaps, suitable partners, acquisition targets, optimal business models, and lucrative use cases for monetization. The platform offers diverse perspectives and actionable strategies essential for developing a robust growth pipeline.
- Customize the Fleet Leasing & Rental Growth Generator to align with your company vision, regional priorities, and strategic shifts. Pair the Growth Generator with dedicated analyst support for unlimited access to Frost & Sullivan’s team of Growth Experts, ensuring you remain ahead of the curve in your industry.
- Rest assured of the highest standards of data privacy with this intuitive data platform, ensuring all interactions are encrypted and compliant with international data privacy laws, safeguarding your sensitive information.
A Glimpse of the Fleet Leasing & Rental Growth Generator
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Curious about accessing the Fleet Leasing & Rental Growth Generator to uncover tailored growth prospects for guaranteed success? Connect with our experts for more details
About Frost & Sullivan
Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class industry positioning in terms of innovation and leadership. The company’s ‘Growth Pipeline-as-a-Service’ provides corporate management teams with transformational strategies and best-practice models that catalyze growth opportunity generation, evaluation, and implementation. Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within the global fleet leasing & rental ecosystem. This journey is fueled by four powerful components, ensuring your success in navigating dynamic business and industry landscapes.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
- Designate your company as a Companies to Action to maximize your exposure to investors, new M&A opportunities, and other growth prospects.
