Car Leasing Market Trends

Growth Drivers

Growing Demand for Electric Vehicles (EVs) – As consumer interest in electric vehicles (EVs) and hybrid vehicles surges, the demand for the EV leasing market is increasing, driving the overall car leasing market to grow during the forecast period. For example, 18% of new passenger cars in the (European Union) EU are EVs.
Rise in Car Leasing – Companies in many countries around the world are now open to revenue from car leasing. As it is flexible in terms of vehicle choice and lease terms, people can get their desired vehicles without spending high tons of money which is expanding the trend of car leasing all across the globe. Moreover, a lease eliminates the hassle of selling or purchasing a car when it comes to a new one.
Increasing Number of Vehicles Connected to the Internet of Things (loT) – Vehicles will be connected using the Internet of Things, helping them share information, which is expected to drive the growth of the car market. According to estimated data, more than 90% of new cars sold in the US in 2020 were connected cars.
Constantly Evolving Consumer Preferences – There has been a shift in consumer attitudes toward ownership. Many individuals especially the younger generation are getting attracted to flexible and subscription-based models rather than owning vehicles for the long term. Car leasing aligns with this trend by providing the ability to drive a new vehicle for a fixed period before returning or upgrading it.

Challenges

Issues Associated with Subscription Renewal – Car leasing needs frequent subscriptions along with updating personal information and others. This factor is expected to slow the adoption of car leasing and thus hamper the car leasing market expansion in the upcoming times.
Possibility of Continuing Gap Insurance and Challenges Associated with Long-Term Leasing
Lack of Consumer Awareness and Support in Rural Areas

Car Leasing Market: Key Insights

Base Year	2022
Forecast Year	2023-2033
CAGR	~7%
Base Year Market Size (2022)	~ USD 82 Billion
Forecast Year Market Size (2033)	~ USD 150 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Base Year	2024
Forecast Year	2025-2037
CAGR	6.8%
Base Year Market Size (2024)	USD 116.89 billion
Forecast Year Market Size (2037)	USD 271.47 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of car leasing is assessed at USD 123.16 billion.

The car leasing market size was over USD 116.89 billion in 2024 and is projected to reach USD 271.47 billion by the end of 2037, witnessing around 6.8% CAGR during the forecast period i.e., between 2025-2037. The growing demand for electric vehicles and the increasing trend of car leasing will propel the market growth.

North America region is predicted to dominate 30% revenue share by 2037, impelled by the presence of a strong vehicle network along with increasing trend of leasing vehicles among individuals and businesses in the region.

The major players in the market include Volkswagen AG, Orix Auto Infrastructure Service Ltd., Volvo Car Corporation, Sixt SE, General Motors LLC, Hertz Corporation, Europcar International Sasu, ALD International SA, Mercedes-Benz Group AG, Enterprise Holdings, Inc.

Car Leasing Market Trends