Rapid Shift from Ownership to Usage Steers European Fleet Leasing Market towards Strong Growth

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Small to medium enterprises and private leasing segments will be most lucrative, finds Frost & Sullivan

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May 10, 2016, 04:48 ET

LONDON, May 10, 2016 /PRNewswire/ -- The perspective for the fleet vehicle leasing market in Europe is vibrant as the shift from ownership to usage gathers pace and all parts of the region contribute to overall market growth. Fleet accounts for 13.9 percent of Europe's vehicles in operation, with 90 percent recognised as company car or true fleet vehicles. About 25 percent of this true fleet volume is leased, which indicates huge potential as usage rises. Since Europe has over 30 million small and medium enterprises (SMEs), large and small participants will seek to capitalise on the prospects in share leasing for company car market.

New analysis from Frost & Sullivan, 2016 Outlook of Fleet Vehicle Leasing Market in Europe (http://www.frost.com/sublib/display-report.do?id=MBD2-01-00-00-00&src=IN), finds that growth in fleet sales is outperforming retail registrations for new passenger vehicles and light commercial vehicles across Europe. The study covers the company car and rental car as well as financing and leasing (outright purchase, operational leasing, and financial leasing) segments. The insights are further divided to focus on the Nordics, DACH, Benelux, Central and Eastern Europe, Southern Europe, United Kingdom, and Ireland markets as well as the newer markets in Russia, Ukraine and Turkey.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/EU_PR_JSchoneborn_MBD2.

"Targeting SMEs and consumers seeking usage over ownership requires sizeable investment in digital assets in order to connect with the target audience," noted Frost & Sullivan Mobility Director of Consulting Graeme Banister. "It also entails focus which, given the competitiveness of the corporate fleet sector in Europe, is difficult to maintain since large clients are demanding technology-based solutions to bring greater transparency to fleet performance and efficiency."

The expected growth in SME and private leasing will see indirect business become increasingly important with leasing providers looking to further exploit partnership arrangements with banks and financial divisions of vehicle manufacturers which do not have the appetite to take on residual value risk themselves. Brokers too are helping to bring new customers into leasing; the role of intermediaries and the indirect broker sector will grow across Europe. Consolidation through acquisition is also expected, especially as larger players look to bolster core operations with businesses operating in high-growth markets and companies focused on selling lease solutions to SMEs and consumers.

"While leasing participants are focusing on growth areas such as SMEs and private leasing, operational efficiencies will be the top-of-mind issue for fleet operators," added Banister. "Fleet has become a procurement category and companies want seeking independent experts to deliver a fully outsourced solution that enables continual real-time performance monitoring."

2016 Outlook of Fleet Vehicle Leasing Market in Europe is part of Frost & Sullivan's Global Fleet and Leasing (https://store.frost.com/industries/automotive/leasing-and-finance.html) Growth Partnership Service program. The Frost & Sullivan research team is dedicated to tracking and analysing the key trends underpinning the shift from vehicle ownership to vehicle usage with a focus on the fleet sector. Where vehicle leasing is concerned the research also stretches into the retail sector where private lease is developing quickly. The research team provides company car market and competitor data for 35 countries globally. Additionally, data on private leasing, will be added in 2016. By integrating secondary research with in-depth interviews of leading providers of fleet vehicle funding Frost & Sullivan additionally delivers forecast data and supporting insights to highlight market growth potential and business opportunities.

Frost & Sullivan has developed individual, in-depth Country Market Insights that outline fleet and leasing growth prospects for over 20 countries in Europe including Denmark, Finland, Norway, Sweden, Germany, Austria, Switzerland, Belgium, the Netherlands, Luxembourg, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, France, Portugal, Italy, Greece, Spain, The United Kingdom, Ireland, Russia, Ukraine and Turkey. To get a better sense of all the publications now available within the fleet and leasing sector, go to http://www.frost.com/sublib/subscription-index.do?subscriptionId=9B02-A6.

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2016 Outlook of Fleet Vehicle Leasing Market in Europe
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