Leasing Market Report 2025

The leasing market size has grown strongly in recent years. It will grow from $1.89 trillion in 2024 to $2.08 trillion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to strong emerging markets growth, demand from the aerospace and defense industry, rise in consumer awareness, growth in the used cars market, growth in residential construction activity and increased internet penetration.

The leasing market size is expected to see strong growth in the next few years. It will grow to $3.01 trillion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to global population growth and urbanization, growing popularity of electric vehicles, emergence of start-ups, growing healthcare industry, increasing infrastructure spending and development of mega infrastructure projects. Major trends in the forecast period include offering products and services through online portals and mobile applications, investing in the untapped medical equipment segment, implement IoT technology to efficient fleet management, invest in environmental friendly equipment and machinery, offer car subscription services millennial population, focus on offering electric vehicles in the portfolio, offering subscription services, invest in virtual or augmented reality, employ predictive analytics, invest in big data technology.

The leasing market is expected to experience a significant boost due to the increasing prominence of startups as major clients of leasing service providers. Driven by a focus on cost efficiency and the need to access advanced but often expensive equipment, startups are increasingly opting for equipment rental or leasing. The market is further positively influenced by the growing number of startups, with 33.2 million startups recorded in the US in 2022, marking a substantial increase of 700,000 compared to the previous year.

Economic uncertainty is hindering the growth of the leasing market. Economic fluctuations have a significant impact on this sector, as the uncertainty arising from geopolitical tensions, inflation, and fluctuating interest rates can discourage businesses from entering into lease agreements. For example, in June 2023, CBRE (Coldwell Banker Richard Ellis), a US-based non-profit organization, reported that in 2022, various industries encountered challenges due to rising costs and supply chain disruptions, leading to a more cautious approach toward leasing assets.

Car rental and leasing companies are increasingly utilizing Internet of Things (IoT) technology to manage and maintain their fleets. The Internet of Things refers to a network of internet-connected devices or objects that can collect and exchange data using embedded sensors. For instance, in January 2023, the World Economic Forum, a Switzerland-based non-profit organization, projected that the number of connected IoT devices will reach 30 billion by 2025. Car rental companies are leveraging this technology to monitor fuel levels at the point of car return, thus eliminating the need for staff to check fuel manually. Additionally, virtual key solutions allow for locking and unlocking doors, reducing the complexity of managing numerous physical keys. For example, the car rental company Hertz is implementing IoT technology to offer keyless car rental services and optimize fleet management to cut costs.

Leading companies in the leasing market are focusing on technologies such as e-commerce platforms to improve customer experience, streamline operations, and promote sustainable mobility solutions. E-commerce platforms are online software solutions that facilitate the buying and selling of goods or services over the Internet, allowing businesses to establish and manage their online stores. For instance, in October 2024, Leasys Italia S.p.A., an Italy-based mobility and leasing company, launched the Leasys e-Store. This e-store is designed to simplify the sign-up process for customers interested in personal contract hire (PCH) and other leasing options, streamlining the selection and management of vehicle leases online.

Major companies operating in the leasing market include Volkswagen leasing GmbH, Enterprise Holdings Inc., Daimler, United Rentals Inc., 7 - Eleven, LeasePlan Corporation N.V., Ashtead Group, Deutsche Leasing AG, Tokyo Century, Quippo Infrastructure Limited, GMMCO, Hami Ximeng Trade Co Ltd, Toyota Rentacar, Orix Rentacar, Anji Leasing, China Auto Rental Holdings Inc, EHi Auto Services Co. Ltd, Shenzhen City Extreme Car Rental Co. Ltd, Shouqi Car Rental Co. Ltd, Europcar, Hertz, Avis Budget, Van Anda Aviation, BNP Paribas Leasing Solutions, Oak Leasing, Renault Eurodrive, Sixt, Business Lease Group, KAMAZ Leasing Company, Volvo Finance Service Vostok, VTB Leasing, ALD Automotive, Interleasing Ltd., VEB-leasing, Trust Capital, Wells Fargo Financial Equipment Leasing, Hitachi Capital America Corp, TCF Equipment Finance, Advantage Rent a Car, Aercap Holdings N.V., McDonald's Corporation, Ryder, National Leasing, Canadian Leasing Company, Localiza, Locamerica-Unidas, Best Fleet (Unidas), Ouro Verde, Movida, Safra Leasing S.A., BB Leasing, Leasing Bolívar S.A, HALA Equipment Trading LLC, Perfect Machinery & Equipment Trading & Hire LLC, Arabian Machinery and Heavy Equipment Company, Al Badie Group (ABG), Paramount Leasing & Car Rental LLC, Budget, Barloworld South Africa (PTY) Ltd, Bidvest Car Rental (PTY) Ltd, Car Hire Brokers (PTY) Ltd, CMH Car Hire (PTY) Ltd, Gage Car Rental (PTY) Ltd, Imperial Vehicles, Unitrans Automotive (Pty) Ltd.

Asia-Pacific was the largest region in the leasing market in 2024. North America was the second-largest region in leasing market. The regions covered in the leasing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the leasing market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The leasing market consists of revenues earned by entities that are engaged in providing variety of tangible goods leasing services such as passenger car rental, consumer goods rental, general rental, heavy construction machinery rental. This market does not include house leasing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

Leasing is a financial arrangement wherein an individual, company, or another entity makes payments to utilize land, a vehicle, or other property for a defined period. The financial commitment and associated payments in leasing are distributed over several years, alleviating the burden of a one-time substantial cash outlay. This approach aids businesses in maintaining a steady cash-flow profile.

The primary categories of leasing encompass automotive equipment leasing, consumer goods, general rental centers, machinery leasing, and lessors of nonfinancial intangible assets. Within the automotive equipment leasing industry, businesses engage in renting or leasing vehicles without drivers, including passenger cars, truck tractors, utility trailers, buses, semi-trailers, trucks, recreational vehicles (RVs), and passenger vans. Various modes of leasing, such as online and offline, are employed, and different lease types include closed-ended lease, option-to-buy lease, sub-vented lease, and others.

The leasing market research report is one of a series of new reports that provides leasing market statistics, including leasing industry global market size, regional shares, competitors with a leasing market share, detailed leasing market segments, market trends, and opportunities, and any further data you may need to thrive in the leasing industry. This leasing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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