Just idling: The popularity of novated leases has offset declining demand from fleet leasing

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 limited industry expansion over the past five years. As a result, industry revenue is expected to rise slowly at an annualised 0.9% over the five years through 2016-17, to $2.5 billion.The past five years have been characterised by low interest rates and uncertain economic conditions, which has caused many industry clients to exit long-term contracts as they expired...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand for industry services has only partially rebounded after the global financial crisis
  • Industry
  • Industry Report - Industry Locations Chapter

    The distribution of industry establishments largely follows the distribution of businesses and the population. Most industry establishments are located in New South Wales, Victoria and Queensland, which are Australia's three most populous states and house the majority of businesses that require fleet vehicles. Despite their high populations, capital cities in these states tend to have more extensive public transport networks in addition to high-density traffic, making fleet vehicles less necessary and desirable.While states like New South Wales are under-represented in establishment distribution when compared with their population share, Western Australia and the Australian Capital Territory are over-represented. Wes...purchase to read more.

    Additional Insights for the Fleet Vehicle Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fleet Vehicle Leasing Industry 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 cars
  • Medium cars
  • 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
  • Client returns
  • 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
  • Small cars
  • Light commercial vehicles
  • Heavy commercial vehicles
  • Large cars
  • SUVs
  • Medium cars
  • Other
  • 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
  • Profit
  • Depreciation
  • Interest
  • Purchases
  • Wages
  • Other costs
  • 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, ORIX Australia Corporation Limited, Fleetcare Pty Ltd, Toyota Finance Australia Limited,
  • Table: LeasePlan Australia Limited - financial performance
  • Table: Eclipx Group Limited - financial performance
  • Table: ORIX Australia Corporation Limited - financial performance
  • Table: Fleetcare Pty Ltd - financial performance
  • Table: Toyota Finance Australia 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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