Automotive Fleet Leasing Market

Increase in concerns about the safety of the fleet to boost market growth

Safety is one of the top work challenges faced by fleet operators. Thus, due to the disastrous impact of accidents and other emergencies, the demand for technologically innovative applications such as alarm systems, real-time notification devices, driver behavior monitoring systems, and other Al- based software has increased the demand of automotive fleet leasing. Furthermore, integrating lot & telematics in the automotive industry fetched key innovations for vehicle & driver's safety creates wider scope for the growth of the market.

Moreover, it includes connected automotive fleet leasing technology such as collision avoidance system to improve fleet safety, remote diagnostics to access real-time vehicle services, in-cab video cameras to protect fleets against false claims, and other sensor-based applications to transform the automotive fleet leasing services hub by integrating more technology & robust virtual solutions. Hence, such advancements in technology concerning fleet & driver's safety foster fleet tracking products in the automotive fleet leasing market revenue.

Additionally, the increase in concerns about the safety of the automotive fleet leasing and the regulations imposed by the government for the tracking as well as the maintenance of the vehicles. The government of various regions has adopted policies for the maintenance of the vehicles in order to prevent any accidents. There has also been an increase in the demand for competency in the operations of the vehicles. Increased use of the wireless technology has also helped in ensuring the growth of the market.

Therefore, such advancement has enhanced the automotive fleet leasing market CAGR across the globe in the recent years.

The Global Automotive Fleet Leasing Market Industry experiences a notable increase in demand for flexible mobility solutions. Businesses are increasingly seeking to optimize their transportation costs while ensuring access to modern vehicles. This trend is particularly evident in urban areas where ride-sharing and short-term leasing options are preferred. The market is projected to reach 26.4 USD Billion in 2024, reflecting a shift towards more adaptable transportation models. Companies are recognizing the benefits of leasing over purchasing, as it allows for better cash flow management and access to the latest vehicle technologies without the burden of ownership.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America automotive fleet leasing market accounted for USD 10.08 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed the presence of leading global manufacturing industries which signifies that the region will continue to dominate the market over the forecast period. Further, the US automotive fleet leasing market held the largest market share, and the Canada automotive fleet leasing market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3 Automotive Fleet Leasing MARKET SHARE BY REGION 2021 (%)

Source Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe automotive fleet leasing market accounts for the second-largest market share due to the rising adoption of electric vehicle charging infrastructure is helping to maintain second-largest position in the market for automotive fleet leasing. Presence of major key players in this region and rising adoption of advanced technologies is boosting the market in this region. Further, the Germany automotive fleet leasing market held the largest market share, and the UK automotive fleet leasing market was the fastest growing market in the European region.

The Asia-Pacific automotive fleet leasing Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the growing focus on improved fuel economy and reduced exhaust emissions, the demand for and sales of electric vehicles. Moreover, China automotive fleet leasing market held the largest market share, and the India automotive fleet leasing market was the fastest growing market in the Asia-Pacific region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the automotive fleet leasing market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the automotive fleet leasing industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the Automotive Fleet Leasing industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The automotive fleet leasing market major player ARI (New Jersey), Glesby Marks (Texas), LeasePlan Corporation N.V. (Netherlands), and others are working to expand the market demand by investing in research and development activities.

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer, based in New Delhi. It was founded in 1981 and owned by the Government of India until 2003, when it was sold to the Japanese automaker Suzuki Motor Corporation. As of September 2022 Maruti Suzuki has a market share of 42 percent in the Indian passenger car market.

In July 2021, Maruti Suzuki expanded the country’s largest single-location automobile investment as it plans to invest up to INR 18,000 crore for new factory premises in Haryana, which may have a peak annual capacity of 10 lakh units.

Also, BrightDrop is a subsidiary business created by the American manufacturer General Motors in 2021. The business offers a system of connected products targeting first- and last-mile delivery customers, including light commercial electric vehicles, ePallets, and cloud-based software In June 2022, BrightDrop Inc., the electric delivery van brand from General Motors Company, acquired Martin, a technology startup based in California. BrightDrop hopes to leverage Martin's AI capabilities to analyze, forecast, and identify multi-modal solutions for automotive fleet leasing customers as it plans its journey to full-fleet electrification.