Car Leasing Market Size Hits USD 0.82 Bn in 2025 at 6.71% CAGR

Car Leasing Market Intelligence Report and Key Trends 2025

Market insights predict the global car leasing industry will increase from USD 0.77 billion in 2024 to USD 1.48 billion by 2034, achieving a CAGR of 6.71%. The car leasing market is growing as consumers and businesses seek flexible, cost-effective alternatives to ownership. Rising vehicle costs and the shift to EVs make leasing appealing, while digital advancements and fleet management solutions enhance convenience, fueling further expansion.

Car Leasing Market Research, Consumer Behavior, Demand and Forecast

The car leasing market is predicted to expand from USD 0.82 billion in 2025 to USD 1.48 billion by 2034, growing at a CAGR of 6.71% during the forecast period from 2025 to 2034.

Car Leasing Market Size 2024 - 2034

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The growing interest of consumers to use variety of cars for short time period coupled with rise in number car leasing platforms has boosted the market growth. Additionally, rapid investment by automotive brands for providing subscription-based car leasing services along with rising demand for luxury vehicles in western nations is playing a vital role in shaping the industry in a positive direction. The integration of AI in car leasing platforms is expected to create ample growth opportunities for the market players in the upcoming days.

Introduction

The car leasing market is a prominent branch of the automotive industry. This industry deals in providing car leasing services across the world. There are numerous types of leasing services available in the market comprising of open-end-leases and closed-end-leases. It deals in numerous types of vehicles consisting of passenger cars, commercial vehicles, SUVs and luxury vehicles. The consumers of this sector comprise of individuals, businesses, government agencies and some others. This market is expected to rise significantly with the growth of the EV sector around the globe.

Highlights of the Car Leasing Market

  • North America generated highest revenue of the car leasing market and the region is observed to sustain the position during the forecast period.
  • Asia Pacific is expected to grow with a considerable CAGR during the forecast period.
  • By vehicle type, the sedan segment held the largest share of the market.
  • By vehicle type, the hatchback segment is expected to grow with a significant CAGR during the forecast period.
  • By propulsion type, the ICE segment led the industry.
  • By propulsion type, the electric segment is expected to rise with the highest CAGR during the forecast period.

The major trends in this market consists of partnerships, subscription-based services and business expansions.

  • Partnerships

Numerous automotive brands are partnering with leasing companies to launch numerous car leasing services around the world.

  • Subscription-Based Services

The rising interest of consumers to use different cars has increased the demand for subscription-based car leasing services.

  • Business Expansions

Various market players are expanding their car leasing services in different parts of the world to gain maximum consumer attraction.

Vehicle Type Insights

How did the Sedan Segment Led the Car Leasing Market in 2025?

The sedan segment dominated the market. The increasing demand for luxury sedans in several countries such as UK, the U.S., Germany, UAE and some others has boosted the market growth. Additionally, the rising preference of business professionals to use sedans for official meetings and other activities is expected to propel the growth of the car leasing market.

The hatchback segment is expected to rise with a significant CAGR during the forecast period. The growing demand for affordable hatchbacks in numerous countries such as India, Vietnam, Thailand and some others to cater the needs of the mid-income people has boosted the market expansion. Also, numerous leasing services provided by automakers to adopt hatchbacks is further expected to boost the growth of the car leasing market.

Propulsion Insights

What Made ICE to be the Most Dominant Segment of Car Leasing Market in 2025?

The ICE segment held the largest share of the industry. The growing demand for performance-oriented SUVs in the U.S. and Mexico has boosted the market expansion. Additionally, rapid investment by automotive brands for launching ICE-based car leasing services to cater the needs of the fleet operators is expected to foster the growth of the car leasing market.

The electric segment is expected to expand with the highest CAGR during the forecast period. The rising adoption of electric cars in several countries for reducing vehicular emission has driven the market expansion. Additionally, partnerships among automotive brands and leasing providers to deliver EV leasing services is expected to propel the growth of the car leasing market.

Geographical Insights

Car Leasing Market NA, EU, APAC, LA, MEA Share

Why North America Dominated the Car Leasing Market in 2025?

North America led the car leasing market and the region is observed to hold the position during the forecast period. The growing demand for EVs in the U.S. and Canada for reducing emission in the environment coupled with rise in number of fleet operators has boosted the market expansion. Additionally, rising consumer preference to drive different types of cars along with rapid adoption of leased cars by government agencies is contributing to the industrial growth. Moreover, the presence of several market players such as The Caldwell Company, Flexcar, Enterprise Holdings and some others is expected to foster the growth of the car leasing market in this region.

  • In May 2025, Flexcar opened a new retail store in the U.S. This new store is inaugurated to provide superior car leasing services in different parts of this nation. (Source: Flexcar)

Asia Pacific is expected to rise with a considerable CAGR during the forecast period. The growing demand for affordable hatchbacks in India, Thailand, Indonesia and some others has boosted the market expansion. Also, rapid investment by automotive manufacturers to launch new car leasing services related to commercial vehicles coupled with rising adoption of leased cars by fleet operators is playing a vital role in shaping the industry in a positive direction. Moreover, the presence of numerous market players such as Orix Corporation, Zoomcar, Alt Mobility and some others is expected to propel the growth of the car leasing market in this region.

  • In March 2025, Orix announced to invest around Rs 300 crore. This investment is done for enhancing the car leasing services across India. (Source: Autocar Professional)

Industry Leader Announcement

  • In March 2025, Mohsin Rawani, the CEO of Rilox E-Mobility made an announcement stating that,” Rilox E-Mobility has a deep understanding of mobility pain points and rider needs, which is why we have strategically partnered with top Battery Swapping Station providers to offer a seamless, end-to-end solution. Additionally, our proprietary fleet management technology goes beyond basic geofencing and real-time updates, leveraging deep data-driven insights to ensure operational efficiency.”

Competitive Landscape

The car leasing market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Element Fleet Management Corp., Caldwell Leasing, Wilmar Inc., Enterprise Holdings, Inc., United Leasing, Inc., Ewald Automotive Group, ALD Automotive and some others. These companies are constantly engaged in providing car leasing services and adopting numerous strategies such as business expansions, acquisitions, joint ventures, partnerships, collaborations, launches and some others to maintain their dominance in this industry.

Element Fleet Net Revenue in USD 000 (2023-24)

  • According to the annual report of Element Fleet, the revenue of the company in 2023 was around US$ 841626000 that increased to US$ 1002454 in 2024.

Recent Developments

  • In March 2025, Reliance Global Group, Inc. launched ELI Auto Leasing. This leasing service is designed for the consumers of the U.S.(Source: Reliance Global Group)
  • In March 2025, Rilox launched Rilox E-Mobility. This e-mobility leasing service is designed for the consumers of India. (Source: Auto Economic Times)
  • In May 2024, Kia partnered with Orix. This new partnership is done for launching a vehicle leasing program in India. (Source: Car and Bike)

Car Leasing Market Key Players

 Car Leasing Market Companies

Segments Covered in the Report

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles
  • SUVs
  • Luxury Vehicles

By Lease Term

  • Short-term (less than 12 months)
  • Medium-term (12-36 months)
  • Long-term (36 months or more)

By Lease Type

  • Open-end leases
  • Closed-end leases

By Customer Type

  • Individuals
  • Businesses
  • Government Agencies

By Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific
  • The Middle East and Africa
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  • Insight Code: 1293
  • No. of Pages: 150+
  • Format: PDF/PPT/Excel
  • Last Updated: 10 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Laxmi Narayan is a seasoned Research Analyst at Towards Automotive, with 5 years of specialized experience in market research, analysis, and consulting within the automotive technology domain.

Learn more about Laxmi Narayan

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar
FAQ's

The car leasing market was valued at USD 0.82 billion in 2025.

North America dominated car leasing industry.

The rising demand for hassle-free mobility solutions coupled with numerous benefits related to car leasing has driven the market growth.

Some of the prominent players of this industry consists of Wilmar Inc., Enterprise Holdings, Inc., United Leasing, Inc., Element Fleet Management Corp., Caldwell Leasing, Ewald Automotive Group, ALD Automotive and some others.

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