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Car Rental & Leasing in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Car Rental & Leasing Market Research Report | SIC N77.110 | Feb 2017

Driving forward: Rising tourism and high consumer confidence have supported growth

IBISWorld’s Car Rental & 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.

Report Snapshot
Market Share of Companies
LeasePlan Corporation N.V. LeasePlan Corporation N.V. market share
Lex Autolease Limited Lex Autolease Limited market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Purchase to read more
Industry Threats & Opportunities
  • Rising international and domestic tourism has supported the industry’s revenue growth
  • Car hire companies are also facing increased competition from web-based firms
  • Firms face increasing pressure to update fleets to include environmentally friendly vehicles
  • ... purchase to read more

Industry Analysis & Industry Trends

The Car Rental and Leasing industry has accelerated in recent years, as a result of several factors. Since 2013-14 improving economic conditions have prompted rising demand from businesses for vehicle leasing and from tourists for car rentals. This has driven strong revenue growth, although the industry did struggle in 2012-13 due to the faltering economy. Revenue is estimated to grow at a relatively low rate of 3.6% in 2016-17, as stagnant global economic conditions and economic uncertainty stemming from the EU referendum are anticipated to weaken consumer and business confidence.

Industry revenue is estimated to rise at a compound annual rate of 3.4% over the five years through 2016-17 to reach £13.8 billion... purchase to read more

Industry Report - Industry Products Chapter

Car leasing

Car leasing is the largest industry segment and is estimated to account for 48.5% of industry revenue. Operational leasing agreements provide firms with long-term vehicle hire, typically for a period of two to four years. Payments are usually made on a monthly basis. Leasing agreements typically have an agreed annual mileage limit. Leasing is popular for businesses that operate a sizeable fleet of vehicles as it allows the company to acquire vehicles without significant capital outlay and regularly update them in line with emissions standards. The lessee does not need to worry about the depreciating value of their fleet and, when the contract is up, can just return the car and select a new model. Man.. purchase to read more

Additional Insights for the Car Rental & Leasing Industry

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

  • Ability to accommodate environmental requirements
  • Prompt delivery to market
  • Being part of a group buying, promotion and marketing scheme
  • IBISWorld analysts also discuss how external factors such as Business confidence index and International tourist numbers in the Car Rental & Leasing industry impact industry performance... purchase to read more


    Industry ProductsRelated Reports

    What is the Car Rental & Leasing Industry?

    Firms in this industry rent cars and small commercial vehicles to private users and businesses on a short-term basis. Customers can also lease cars and other vehicles from the industry on a long-term basis, usually from one to seven years, with the option to purchase the vehicle at the end of the leasing period. The industry does not include renting or leasing a vehicle with a driver.

    Industry Products
    Car rentalCar leasingOther light vehicle rentingOther light vehicle leasing
    Industry Activities
    Renting carsLeasing carsRenting small commercial vehiclesLeasing small commercial vehicles

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Business confidence index
  • International tourist numbers
  • Fuel prices
  • Government capital expenditure
  • Current Performance
  • Driving growth
  • Competition and innovation
  • Seasonal shift up
  • Regulatory environment
  • Chart: Revenue Growth
  • Industry Outlook
  • Green growth
  • Driving demand
  • Regulatory roadblocks
  • Table: Car Rental & Leasing Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Rental & Leasing Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Catering Services
  • Consumers
  • Key Selling Industries
  • Motor Vehicle Maintenance & Repair
  • Motor Vehicle Manufacturing
  • Motor Vehicle Parts Wholesaling
  • New Car & Light Motor Vehicle Dealers
  • Used Car & Light Motor Vehicle Dealers
  • Products & Services
  • Car leasing
  • Car rental
  • Other light vehicle leasing
  • Other light vehicle renting
  • Chart: Car Rental & Leasing Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Commercial clients
  • International tourists
  • Non-travelling consumers
  • The government
  • Domestic tourists
  • Chart: Major Market Segmentation for the Car Rental & Leasing Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Car Rental & Leasing
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Rental & Leasing Industry
  • Industry Globalization
    Major Companies
    Lex Autolease Limited
    LeasePlan UK Limited
  • Table: Lex Autolease Limited - financial performance
  • Table: LeasePlan UK Limited - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental & Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Car Rental & Leasing Industry
  • Includes:
  • 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
  • Jargon & Glossary
    Car Sharing
  • A short-term system of rental that usually operates in large cities. Cars can generally be rented from anywhere between one hour and 24 hours.
  • Light Motor Vehicles
  • Vans, small trucks and lorries that weigh less than 3.5 tonnes. Drivers do not need a special driving licence to use them.
  • Ultra Low Emission Vehicles
  • Vehicles that emit less than 75 grams of CO2 per kilometre driven.
  • Vehicle Renting
  • Vehicle renting involves a short-term agreement (usually fewer than 30 days) to hire a car or van for private or commercial use, with the rental company retaining ownership of the vehicle.

  • Why Buy this Report?
    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 Car Rental & 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 Car Rental & 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 Car Rental & Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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