The global fleet vehicle leasing market was valued at almost USD 120 billion in 2016 and is expected to reach almost USD 155 billion by 2021
Procurement market intelligence analysts have announced their latest market research report on fleet vehicle leasing for the period 2017-2021. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global fleet vehicle leasing market during the forecast period. Some of the top vendors listed in this industry analysis include LeasePlan, Arval, Wheels, ALD Automotive, and ARI.
During 2016, the Americas accounted for around 38% of the overall market share to become the key revenue contributing geographical segment of the global market.
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According to Angad Singh, a procurement specialist at Technavio for research on category spend intelligence, “Driven by the need to adhere to environmental regulations, fleet vehicle companies are currently focusing increasingly on the use of alternate fuels. The use of alternative fuels can effectively reduce CO2 emissions as well as optimize fuel utilization. The government in Germany, for instance, encourages sustainability and has extended tax breaks for electric cars from five years to 10 years for vehicles that were registered in 2015.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Need for cost reduction
SMEs are increasingly recognizing the cash flow benefits of fleet vehicle leasing such as reduced depreciation costs and predictable leasing monthly rates. As a result, the demand for fleet vehicle leasing from SMEs is currently on the rise. The industry analysts at Technavio anticipate the demand for fleet vehicle leasing from SMEs to be at par with that from large organizations by the end of the forecast period.
Increase in business activities
Increasing business activities, especially in developing economies such as India and China, is propelling the demand for corporate vehicles such as passenger buses and cars. This demand for corporate vehicles and lack of availability of vehicles for purchase in a short period is likely to translate to an increase in the overall demand for the fleet vehicle leasing.
High demand from SMEs for specialist advice
Suppliers have a high degree of knowledge about the type of vehicles they are leasing, including an understanding of the value of the asset along with their residual value. Buyers can benefit highly from such advice as it will help them in taking strategic decisions with respect to funding. As a result, there is high demand for suppliers that help SMEs to make better funding decisions for their fleet requirements as majority of the SMEs lack expertise in making such decisions.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global Fleet Vehicle Leasing – Procurement Market Intelligence 2017’.
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