Fleeting interest: The low cash rate has prompted fleet purchases rather than leases

The Fleet Vehicle Leasing industry has faced mixed demand over the past five years. The rising popularity of novated leasing has underpinned industry growth. However, the falling cash rate and uncertain economic conditions have reduced demand for vehicle fleet leasing and management over the period. Businesses have found it cheaper to buy fleets rather than lease them from industry firms. This has constrained industry growth over the past five years. Industry revenue is expected to increase at an annualised 2.8% over the five years through 2017-18, to $2.7 billion.The past five years have been characterised by low interest rates and uncertain economic conditions, which have prompted many industry clients to exit long-term contracts when they expire...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The rising popularity of novated leasing has underpinned industry growth over the past five years
  • Proposed changes to novated leasing, announced in July 2013, negatively affected the industry
  • Profitability is anticipated to continue declining due to strong internal competition
  • Industry Report - Industry Key Buyers Chapter

    The Fleet Vehicle Leasing industry exhibits moderate market share concentration. The four largest industry players are expected to account for more than 50% of industry revenue in 2017-18. While industry operators are able to derive significant benefits from economies of scale, strong competition throughout the industry prevents any one company from controlling the industry and capturing excessive market share. Larger players like LeasePlan, Eclipx, Toyota Finance and SG Fleet still have to compete with several medium-size players like Fleetcare, among others. Mar...purchase to read more.

    Additional Insights for the Fleet Vehicle Leasing Industry

    IBISWorld has determined the most important Key Success Factors for the Fleet Vehicle Leasing are:

  • Ability to quickly adopt new technology
  • Ability to control stock on hand
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Cash rate in the Fleet Vehicle Leasing industry impact industry performance..

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    What's in this report

    What is the Fleet Vehicle Leasing Industry?

    Participants in the industry lease vehicles to corporations, small businesses and government institutions. Fleet vehicle leasing companies also offer fleet management services and novated leases.

    Industry Products
  • Small and light cars
  • Medium and large cars
  • SUVs
  • Light commercial vehicles
  • Heavy commercial vehicles
  • Industry Activities
  • Leasing fleet vehicles
  • Providing fleet management services
  • Leasing vehicles under novated leases
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Cash rate
  • World price of crude oil
  • Demand from road freight transport
  • Government consumption expenditure

  • Current Performance
  • Participation

    and profit

  • Two-speed economy
  • Novated leases
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation

    and profit

  • Returning clients
  • Competition

    and regulation

  • Table: Fleet Vehicle Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fleet Vehicle Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Road Freight Transport
  • Professional Services

  • Key Selling Industries
  • Motor Vehicle Body, Paint and Interior Repair
  • Motor Vehicle Manufacturing
  • Motor Vehicle Wholesaling

  • Products & Services
  • SUVs
  • Small and light cars
  • Medium and large cars
  • Light commercial vehicles
  • Heavy commercial vehicles
  • Chart: Fleet Vehicle Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Small and medium enterprises
  • Large enterprises
  • Freight transport operators
  • Government customers
  • Chart: Major Market Segmentation for the Fleet Vehicle Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Fleet Vehicle Leasing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fleet Vehicle Leasing Industry

  • Industry Globalization
    LeasePlan Australia Limited, Eclipx Group Limited, Toyota Finance Australia Limited, EFN (Australia) Pty Limited, SG Fleet Group Limited, ORIX Australia Corporation Limited,
  • Table: LeasePlan Australia Limited - financial performance
  • Table: Eclipx Group Limited - financial performance
  • Table: Toyota Finance Australia Limited - financial performance
  • Table: EFN (Australia) Pty Limited - financial performance
  • Table: SG Fleet Group Limited - financial performance
  • Table: ORIX Australia Corporation Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fleet Vehicle Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fleet Vehicle Leasing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fleet Telematics
  • Tracking, mileage and speed monitoring of fleet vehicles via the installation of electronics and GPS.
  • Lessor
  • A company that leases products to customers.
  • Sport Utility Vehicle (Suv)
  • Motor vehicle with a wagon-style body, high ground clearance and a light truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fleet Vehicle Leasing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fleet Vehicle Leasing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fleet Vehicle Leasing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fleet Vehicle Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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