"Market Intelligence for High-Geared Performance"

Car Leasing Market Size, Share & COVID-19 Impact Analysis, By Application Type (Business Use and Personal Use), By Lease Type (Open-End, and Close-End) and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI105417



Play Audio Listen to Audio Version

The global car leasing market size was USD 75 billion in 2021. The market is projected to grow from USD 82.01 billion in 2022 to USD 131.10 billion in 2029 at a CAGR of 6.9% during the 2022-2029 period. The global impact of COVID-19 has been unprecedented and staggering, with car leasing services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a fall of 20.6% in 2020 as compared to 2019.  

A lease is a type of contract in which the owner transfers the right to use the vehicle hassle-free to the user within a specified period in exchange for regular payments. In recent years, there has been tremendous adoption of leased vehicles in developing and developed countries. It offers the user various advantages such as new vehicles after every few years. Monthly payments for a leased car are lower than purchased vehicles amid lease payments based on the car's depreciation during the lease term, not the vehicle's full value. Therefore, the user can lease premium & expensive vehicles without buying them. In recent times latest car leasing industry trends such as on-demand vehicles with or without driver facilities are expected to benefit the leasing industry. Low maintenance cost is one of the major factors fueling the market growth over the forecast period.

COVID-19 Impact

Lockdowns and Restrictions Hampered Demand for Car Leasing Services

The COVID-19 pandemic has impacted the car leasing industry worldwide. In late March, the auto industry began to face the impact of the coronavirus on their products and services owing to complete lockdown and travel restrictions globally. In developing countries such as India and South Korea, more than 90% of people have started working from home. Stringent social distance regulations imposed by governments have completely changed the market scenario for leasing companies. The North American and European region has been hit hard by the coronavirus pandemic, and the demand for car leasing has been drastically reduced. The pandemic has also primarily affected the economy in many developing and developed nations, resulting in employee layoffs, reduced monthly income, and employment uncertainty.


Request a Free sample to learn more about this report.

Adoption Of Big Data And IoT to Aid Growth

In recent years, leasing companies have largely used the internet of things (IoT) to maintain and manage fleets. The IoT helps to transfer and collect data with the help of the embedded sensors. This, in turn, helps the companies access real-time data that helps in easy diagnostics of vehicles in case of break-down. Implementation of the virtual key solution to unlock and lock the door helps avoid several keys. For example, Hertz, one of the largest players in the market, is looking forward to implementing IoT to ease the operation of the virtual key. Therefore, this is expected to bode well for the global market growth during the forecast period.


Growing Smart Cities Initiatives and Urbanization to Drive Market

Factors such as the rising urbanization and the increasing smart city initiatives globally are anticipated to drive the growth of this market. Smart cities need an efficient transportation system that helps avoid traffic congestion and reduce traveling time. As the World Health Organization (WHO) reports, around 50% of the world’s population lives in urban areas, and this share is expected to rise to 60% by 2025. A large part of the population uses more and more cars, which exacerbates road traffic congestion and parking problems in urban areas. This has led to the rapid development of the public transportation system.

Increasing Sale of Electric and Hybrid Electric Vehicles to Boost Market Growth

Conventional vehicles account for one of the major shares of air pollution globally. The increasing fuel cost and high maintenance are some of the major reasons that have attracted consumers to lease a car that is environment friendly. Besides, the rising awareness regarding the growing air pollution and stringent emission norms has fueled the demand for battery and hybrid EV leasing in recent years.


High Expenses of Car Leasing to Restrain Market Growth

Car leasing consists of expenses such as gap insurance. This gap insurance is one of the major burdens to the user as this still gets continued even if the leasing term gets over. Renewal of a new subscription gets added to the expense as the user pays for the new car as a down payment and its insurance.  Long-term leasing is a loss-making deal to the user as the dealer who owns the vehicle bears the depreciation cost of the car and can sell the vehicle at his will.


By Application Type Analysis

To know how our report can help streamline your business, Speak to Analyst

Business Use Segment to Dominate Market during Forecast Duration

Based on application type, the global market is segmented into personal use and business use.

The business use segment is expected to hold largest car leasing market share during the forecast period. In recent years most of the organization are inclined towards leasing a car to their upper management employees. This helps the employees to travel at their will instead of company transport. After every 3-5 years, the organization offers an upgraded leased car to the team member. It gives an option to keep the vehicle when the team member completes his service in his organization. This helps the team member save a huge amount of money as a brand new car is offered by the organization.

As per the car leasing market analysis, the personal use segment is expected to showcase considerable growth in the market during the forecast period. More and more consumers are inclined towards leasing a car instead of buying it. Leasing helps the consumers avoid paying heavy down-payment, which is not feasible by most users.

By Lease Type Analysis

Open-End Segment to Lead Market Share

Based on lease type, the market is segmented into open-end and closed-end types.

The open-end segment is expected to be the fastest-growing segment during the forecast period. The open lease is also known as a finance lease. This lease is a type of rental agreement which obliges the lessee to make a payment in one go at the end of the lease agreement. The amount equal to the difference between the surplus of the asset and the fair market value. This type of lease is primarily preferred for business purposes. For example, when transport companies purchase many cars, vans, and trucks, open leases prove to be beneficial amid unlimited mileage provided under the lease terms.

The closed-end lease is expected to show decent growth in the market. This lease is majorly used for personal use, as the user’s only requirement in this type of lease is to run the vehicle only from destination A to destination B, i.e., from work to home, and that too at a predictable mileage with a minimum maintenance cost.


Europe Car Leasing Market Size, 2021 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Based on region, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

North America dominates the car leasing market, followed by Europe. North America and Europe jointly account for a major share in the market. They are expected to maintain their dominance amid the low rate of interest provided by the leasing companies in this region. This, in turn, attracted various consumers to opt for leasing a car rather than buying it.

The Asia-Pacific region has shown steady growth due to the reduced penetration of car rentals in total registrations. Rising awareness among users and the increasing cost of car ownership are major reasons to show steady growth in the market. Developing countries such as India and China are expected to be favorable for the market amid the increasing disposable income of consumers in these countries.

The market in Rest of the World is growing at a moderate rate as there is lack of awareness among buyers regarding car leasing services and are often considered expensive compared to buying a car.


Avis Budget Group is a Key Player in the Market

Avis Budget Group is one of the major players in car lease companies. It is a global provider of mobility solutions, and its leasing business segments offer trucks and cars to consumers. Avis's budget group consists of 165000 connected vehicles and 5000 mobility lab connected cars under its connected cars business segment. The global footprint of the organization strengthens its market position in the market.


  • Avis Budget Group (New Jersey, U.S.)

  • Orix (Tokyo, Japan)

  • ALD Automotive (Rueil-Malmaison, France)

  • Sixt (Pullach, Germany)

  • Hertz (Florida, United States)

  • Arval (Paris, France)

  • LeasePlan (Amsterdam, Netherlands)

  • Europcar (Paris, France)

  • Daimler Financial Services (Stuttgart, Germany)


  • January 2022- Coca-Cola Philippines (CCBPI) partnered with ORIX Rental Corporation Coca-Cola Philippines (CCBPI) established a partnership with ORIX Rental Corporation to supply fleet solutions. Orix under the new partnership, delivered 300 new vehicles for Coca Cola’s salesforce. With this delivery, CCBPI will have a fleet of 800 vehicles leased from Orix.

  • January 2022- Arval partnered with Ridecell In January 2022, Arval and Ridecell form a strategic alliance to develop next-generation shared mobility solutions that provide customers with Integrated and International Mobility Connectivity.

  • September 2021- Avis Car Rental partnered with Hotels.com Avis Car Rental and Hotels.com announced a new global partnership that will see members of the Avis Preferred loyalty program worldwide and members of Hotels.com Rewards loyalty program offered upgraded loyalty status.

  • August 2020 – Avis India Launched AVIS Flexi 12.

  • Avis India launched AVIS Flexi 12, an alternative solution to car subscription mobility services. The advantage of this product is that customers can choose their favorite new car and register it on the private license plate in the name of Avis.


An Infographic Representation of Car Leasing Market

To get information on various segments, share your queries with us

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth opportunities of the market over recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)


Application Type; Lease Type; and Geography


By Application Type

  • Business Use

  • Personal Use

By Lease Type

  • Open-End

  • Close-End

By Geography

    • North America (By Application Type, By Lease Type, By Country)

      • U.S. (By Application Type)

      • Canada (By Application Type)

      • Mexico (By Application Type)

  • Europe (By Application Type, By Lease Type, By Country)

      • U.K. (By Application Type)

      • Germany (By Application Type)

      • France (By Application Type)

      • Rest of Europe (By Application Type)

  • Asia Pacific (By Application Type, By Lease Type, By Country)

      • Japan (By Application Type)

      • China (By Application Type)

      • India (By Application Type)

      • South Korea (By Application Type)

      • Rest of Asia Pacific (By Application Type)

  • Rest of the World (By Application Type, By Lease Type, By Country)

Frequently Asked Questions

Fortune Business Insights says that the global car leasing market size was USD 75 billion in 2021 and is projected to reach USD 131.10 billion by 2029.

In 2021, Europe car leasing market stood at USD 26.26 billion.

The car leasing market is projected to grow at a CAGR of 6.9% during the forecast period (2022-2029).

The business type segment is expected to be the leading segment in this market during the forecast period.

The increasing adoption of electric and hybrid electric vehicles is driving the global market.

Avis Budget Group is the leading player in the global market.

Europe dominated the market share in 2021.

The rising inclination towards emission-free and fuel-efficient vehicles is expected to drive the adoption of leasing a car.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Apr, 2022
  • 2021
  • 2018-2020
  • 200


  • $4850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Automotive & Transportation Clients


Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.