Market Research Report
Light Vehicle Leasing Market in Israel, Forecast to 2023
|Published by||Frost & Sullivan||Product code||926018|
|Published||Content info||46 Pages
Delivery time: 1-2 business days
|Light Vehicle Leasing Market in Israel, Forecast to 2023|
|Published: February 3, 2020||Content info: 46 Pages||
Improved Corporate Demand and Increased Consumer Opportunities to Drive Revival of Israel's Vehicle Leasing Market
Company car registrations continue to be an important part of total vehicle sales in Israel. Following continuous growth from 2013 to 2017, new registrations experienced a small drop due to the overall market slowdown. In 2018, total leasing penetration dipped due to higher lease rates and the preference for used cars among small business consumers. However, interest in consumer leasing solutions (private lease) has developed robustly since 2013.
Vehicle leasing is seen as a solution to the growing number of mobility challenges that companies face, such as vehicle funding, fleet maintenance, and, more importantly, residual risk handling. Under the current market conditions, businesses are focused on their core products/services and seek to outsource all other support activities.
Mobility is a significant department-starting from fleet purchase to remarketing at a competitive price-and for each of the segments in the value chain, unless an expert team is on the job, issues such as cost spikes, utilization mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up.
Leasing the fleet ensures hassle-free mobility, on-demand mobility, and fleet after-service facilities, amongst other benefits. This has driven the growth of the leasing market, given it a structure, and regulated the ecosystem.
This study sheds light on the market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the total market and fleet and company car (true fleet) segments. The company car segment is discussed in detail, with a focus on the actual development and the growth potential of financial lease, operational lease, and outright purchase. The analysis takes into account historical data and current market conditions and insights and opinions from market participants to provide a five-year outlook on growth opportunities (over the 2018-2023 period).
In addition to market data (PV and LCV) for both new registrations and portfolio, the study provides actual competitor data (portfolio) for the leading leasing service providers in the country. Competitor data is available for both the leasing segments (operational and financial) for the base year 2018.
The evolution of any industry depends on factors such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative powertrain. The study covers these evolutionary trends that are expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the region's leasing space and offers a detailed account of the key trends, market overview, and outlook.