Tighten the lease: Regulatory changes caused operators' costs to rise over the past five years

The Financial Leasing industry covers leasing activities where the term of the lease approximately covers the expected life of an asset, so the lessee acquires all the substantial benefits of its use while assuming all the risks associated with its ownership. Ownership of the asset may or may not eventually be transferred. Leasing is mainly provided to businesses, consumers and the public sector. Leased goods tend to include vehicles and equipment for businesses, but can also be for ships, aircraft, property or other physical assets.Industry revenue is expected to grow at a compound annual rate of 4.4% over the five years through 2018-19...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Regulatory changes have increased costs but have also benefited the industry’s reputation
  • The fall in the value of the pound has increased the cost of importing assets
  • Rising disposable income is projected to benefit demand for leasing related to consumer finance
  • Industry Report - Industry Investment Chapter

    The level of capital intensity is determined by comparing the human and capital equipment factors of production using wages and depreciation as proxies. High depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, implying high capital intensity. Conversely, high wage costs indicate high labour intensity. The Financial Leasing industry has a high level of capital intensity, with an estimated capital-to-labour ratio of 1:2.37. This indicates that for every £1.00 spent on capital, only £2.37 is spent on labour.Since it is a service-focused industry, the Financial Leasing industry has relatively high labour costs. A h...purchase to read more.

    Additional Insights for the Financial Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Financial Leasing Industry are

  • Output is sold under contract - incorporate long-term sales contracts
  • Well developed internal processes
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Government capital expenditure in the Financial Leasing industry impact industry performance..

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    What's in this report

    What is the Financial Leasing Industry?

    This industry covers leasing activities where the term of the lease approximately covers the expected life of an asset, so the lessee acquires all the substantial benefits of its use while assuming all the risks associated with its ownership. Ownership of the asset may or may not eventually be transferred.

    Industry Products
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Industry Activities
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Government capital expenditure
  • Official bank rate
  • Business confidence index
  • Consumer confidence index

  • Current Performance
  • Revenue slowdown
  • Falling profit margins
  • Regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer demand
  • Regulation and compliance
  • Cash costs
  • Tech time
  • Table: Financial Leasing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Stone Quarrying
  • Commercial Building Construction
  • New Car & Light Motor Vehicle Dealers
  • Used Car & Light Motor Vehicle Dealers
  • Consumers

  • Key Selling Industries
  • Banks
  • Financial and Insurance Activities

  • Products & Services
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Chart: Financial Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Government
  • Households
  • Other
  • Chart: Major Market Segmentation for the Financial Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitInventory depreciationInterest expensesLoan losses and provisionsWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Financial Leasing

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Lombard North Central plc, Barclays plc, Lloyds Banking Group plc,
  • Table: Lombard North Central plc - financial performance
  • Table: Barclays plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial 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 Financial Leasing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Duel Listed Firm
  • Two companies acting as one corporation through legal equalization agreements but retaining separate legal identities on stock exchange listings, usually in two countries, often for tax purposes.
  • Finance Lease
  • An arrangement where a finance company purchases an asset on behalf of a lessee, who makes lease payments to the finance company and is given the option to purchase the asset when the lease ends.
  • Fintech
  • Financial Technology
  • It Equipment
  • Information and communication technologies refer to an array of equipment, including servers, laptops, PCs, telephone systems, data communications equipment and audiovisual equipment.
  • Lien
  • A formal document for any official claim or charge against property, funds or otherwise of a debt or amount owed.
  • Operating Lease
  • A lease that is short in relation to the useful life of the asset being leased. The lessee does not have the option to purchase the asset when the lease ends.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial 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
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    This report on Financial 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 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 Financial 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 Financial Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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