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Mature Fleet Leasing Market is Re-inventing Itself, Finds Frost & Sullivan
Corporate car sharing and multi-modality solutions offer new avenues for growth

LONDON, Nov. 13, 2012 /PRNewswire/ -- The mature European fleet leasing market is exploring new avenues of growth. Leasing companies are becoming multi-mobility solution providers, rather then just providing vehicles to lease. Companies are concentrating on improving operations and growing their product and service portfolio to gain incremental business. Most fleet leasing companies are expected to venture into corporate car sharing programmes.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the European Fleet Leasing Market, finds that the automotive fleet leasing market is expected to grow at a compound annual growth rate of 6.2 per cent during the period 2011-2018. Operational leasing is expected to account for 62 per cent of fleet leasing sales by 2018, which is 55 per cent up from 2011 levels.

Fleet leasing will move from Total Cost of Optimisation to Total Cost of Mobility, with leasing companies offering mobility solutions over base-level vehicle leasing.

"The mature fleet leasing market is re-inventing itself, offering multi-modality solutions and entering into new business models like car sharing," notes Frost & Sullivan Automotive & Transportation Consulting Manager, Mohamed Mubarak. "In future, fleet leasing is expected to become a one-stop shop for all mobility solutions."

The fleet leasing companies will integrate both short-term and long-term travel options along with the integration with public transport modes. For example, they will tie up with travel portals such as Expedia and Travelocity to enhance customer's mobility experience. Fleet leasing companies will also help in managing and providing parking solutions and car sharing for corporates.

However, the current economic crisis in Europe has slowed fleet renewals and new purchases. In some countries, companies have surrendered or extended their contracts to 41-45 months. To address this situation, leasing companies have started offering 'Flexi Leasing' solutions which allow client companies to opt for short-term vehicle leases for between 12-18 months.

"Flexi-leasing will evolve as an attractive option for end-customers facing financial volatility," concludes Mubarak. "It will also be offered as a base level service, with other multi-modal solutions, as an option and this is expected to evolve as a scalable business model."

If you are interested in more information on Frost & Sullivan's study Strategic Analysis of the European Fleet Leasing Market (M747-18), please send an e-mail with your full contact details to Katja Feick, Corporate Communications, at katja.feick@frost.com.

Strategic Analysis of the European Fleet Leasing Market (M747-18)  is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: Global OEMs Micro Mobility Solutions, European Traditional and Peer-to-Peer Carsharing Market and, Future of Mobility—New Business Models, Opportunities, and Market Entrants in Mobility Integration. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion
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Contact:
Katja Feick
Corporate Communications – Europe
P: +49 (0) 69 7703343
E: katja.feick@frost.com
http://www.frost.com
www.twitter.com/frost_sullivan

SOURCE Frost & Sullivan

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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