Strategic Imperative
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Will YOUR Organization Survive the Transformation in Mobility Leasing & Rentals?

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    Imperatives
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Strategic Imperatives for Leasing & Rentals

01

Evolving customer needs and the rise of new mobility solutions is pushing industry incumbents to leverage innovative business models to build recurring revenue pipelines.

02

The rapid pace of technological advancements is pressurizing companies to invest in new digital tools and telematics to outpace competitors and improve end-to-end customer experience.

03

Growing environmental concerns and industry convergence is creating an urgency to forge strategic partnerships for developing sustainable solutions amid rising competitive intensity.

GROWTH GAP

How do you shift from where you are to what you want to become? How do you fill the gap?

Based on those strategic imperatives the gap between where you are now and where you need to be to achieve transformational growth is daunting.

GROWTH CONTENT

Growth Opportunities for Leasing & Rentals

Fleet Connectivity

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

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

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

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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BEST PRACTICES RECOGNITION

Recognizing Excellence and Leadership in Leasing & Rentals for 20 years

Our best practices analysis provides in-depth examination of successful strategies and tactics used by leading companies across all industries, and offers recommendations for implementation to drive performance and success

1
Targa Telematics

2023 Company of the Year AwardTelematics Connectivity for Leasing, Rental, and UBI, Europe

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2
Nauto

2022 Customer Value Leadership Award—Fleet Safety in Vehicle Leasing, North America

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Growth Council Think Tank Series

market consolidation
Mergers & Acquisitions in Global Vehicle Leasing & Rental

How to open doors for cross-industry collaboration in automotive leasing?

vehicle subscription
Competitive Strategy in the Global Vehicle Subscription Industry

Strategies to charge ahead and maximize the penetration of vehicle subscriptions

Growth Opportunities in Vehicle Leasing & Rental in Europe

Strategies to imbibe connectivity in leasing and rental fleets for higher efficiency

New Product Development in Global Vehicle Leasing

What business opportunities and customer segments will used-car leasing unlock?

leasing ventures propel growth
Growth Opportunities in Global Vehicle Leasing

Unveiling new business models that can reshape commercial vehicle leasing

Companies2Action in Vehicle Leasing & Rental in Europe

Which start-ups are disrupting leasing and rentals for mobility and how?

Companies2Action in Global Vehicle Leasing & Rental

How will the changing vehicle financing landscape shape the industry's future?

Technology Strategies in Vehicle Leasing & Rental in Europe

Connected data ecosystems: A catalyst for the rise of usage-based vehicle insurance?

Vertical Market Expansion in Vehicle Leasing in Asia

How can expansion into the leasing segment help automotive OEMs drive synergies?

mobility fleets
Strategic Partnering in Vehicle Leasing in Europe

How can car sharing enhance tomorrow's automotive leasing ecosystem?

revenue streams
Companies2Action in Global Vehicle Leasing & Rental

Revealing innovative strategies for vehicle leasing from global market leaders

fleets disruptive technologies
Growth Opportunities in Global Vehicle Leasing

What business models & technologies streamline leasing for off-highway vehicles?

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Leasing & Rentals Experts

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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.

Act now to thrive in the face of industry transformation!

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.

Act now to thrive in the face of industry transformation!

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.

Click here to learn more

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?

Click here to learn more

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?

Click here to learn more

 

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.

Click here to learn more

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.

Click here to learn more

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?

What megatrends is your company capitalizing on to ensure sustained success in the EV leasing ecosystem?

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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?

Click here to learn more

 

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.

 

Act now to thrive in the face of industry transformation!