The vehicle leasing industry has been undergoing a significant transformation since the pandemic. During that time, many companies found it challenging to maintain their owned fleets, turning vehicle repair and maintenance into an expensive headache. As a result, vehicle leasing has gained prominence, with organizations of all sizes harnessing it to meet their mobility needs, including funding, fleet maintenance, and handling residual risk.

Amid this shift, a diverse ecosystem encompassing companies offering a variety of flexible leasing, rental, and subscription solutions has emerged. These players utilize disruptive technologies like telematics and innovative business models such as personalized subscription plans to offer sustainable and customer-centric solutions.

Here’s a glimpse into the evolving vehicle leasing ecosystem:

Corporate Vehicle Leasing: Companies leasing out vehicles globally are offering both financial leasing (where the vehicle is transferred to the lessee) and operational leasing (where the vehicle remains with the lessor) to maximize options for corporates. Numerous new startups and industry incumbents are pioneering diverse plans, providing digital platforms for effective fleet management, and seeking partnerships with large corporations to enhance their growth trajectories.

Private Vehicle Leasing: This sector, which leases vehicles directly to consumers, is highly fragmented, with the top 10 industry players holding only a 19.3% share globally. The USA is a key region for private vehicle leasing, encouraging industry participants to target areas with steady demand and explore strategic partnerships to tackle fragmentation.

EV Leasing: Companies in this domain are capitalizing on government subsidies and tax cuts to ensure seamless electric vehicle (EV) adoption for end users. This approach is proving effective given the rapid shift in customer preferences towards sustainable mobility solutions. Industry leaders are also building charging infrastructure to ensure affordability and scalability, enhancing the value chain for EV leasing.

Technology Integration: The role of technology players is becoming increasingly prominent. Telematics solutions providers (TSPs) are leveraging connectivity features in leased fleets to develop unique fleet management solutions. These solutions not only help monitor and optimize fleets but also enable usage-based insurance, personalized driving experiences based on intuitive data, and new revenue streams such as fleet consulting and decision-support solutions.

With this vast and dynamic ecosystem at your disposal, which collaborative partnerships is your team pursuing to bolster your company’s growth pipeline?

Strategic Imperatives Ecosystem Players Are Leveraging to Solidify Their Growth Strategies


Innovative Business Models

Leasing companies are bolstering their expertise in packaging used vehicle leasing while building comprehensive sales and service networks specializing in used fleet management.

Disruptive Technologies

Leading ecosystem players are investing in digital infrastructure, implementing streamlined processes, prioritizing customer experiences, leveraging data for informed decision-making, adapting to meet customer demands, and driving operational efficiencies for sustainable growth.

Competitive Intensity

To thrive in a competitive landscape, industry participants are shifting from traditional vehicle leasing to more dynamic, shared, and subscription-based solutions. These often include a hybrid of used vehicle leasing with short-term contracts or subscription plans, providing immense flexibility.


Are You Harnessing Best Practices from Leading Ecosystem Companies in the Leasing Industry?

Despite its fragmentation, the rapidly evolving vehicle leasing industry is on the brink of a transformative era, brimming with growth opportunities. Trailblazers in the domain are already leveraging the latest fleet management technologies, disruptive digital solutions, and innovations like vehicle subscription apps to establish a strong presence. Here are a few key ecosystem players and their core competencies:

CAR: This Chinese car rental company stands out as a key player in one of the most prolific regions for automotive innovation and growth. CAR maintains its leading position by forming strategic alliances with automakers and continuously upscaling its fleets.

Arval: The French leasing and rental company excels in fleet management and leasing services. Arval is also committed to sustainable mobility solutions, offering advisory services to help companies transition to electric fleets.

Autocorp: This Argentinian corporate renting and fleet management company bases its business model on three key pillars: global service standards, driver satisfaction, and consulting services. This approach maximizes customer centricity and enables solutions tailored to customer preferences.

Element Fleet Management: The Canadian leasing company offers a diverse solutions portfolio that includes light vehicles, lift trucks, and tractor trucks. This strategy reflects its ambition to reach a broad spectrum of clients across various industries.

Are your strategy teams leveraging best practices from top ecosystem players in the leasing industry to ensure your competitive success?

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.
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