The global automotive fleet leasing market is projected to grow to more than USD $53bn by 2035, according to figures published in a company press release by market intelligence firm Market Research Future.

Market Research Future said the sector was valued at an estimated $27.9bn in 2024 and is expected to increase to $29.58bn in 2025. The company forecasts compound annual growth of 6.0% between 2025 and 2035, driven by continued demand from corporate customers for asset-light vehicle funding structures.

Market Research Future (MRFR) is a privately held market research firm and operates as part of WantStats Research and Media Pvt Ltd, an India-based research company founded in 2017 and headquartered in Pune, Maharashtra.

The firm said leasing models are increasingly being used by businesses as an alternative to vehicle ownership, allowing organisations to “manage mobility requirements without significant upfront capital expenditure”. Fixed monthly payments and bundled services were cited as key factors supporting adoption across small and large fleets.

According to the release, cost control remains a central factor in fleet leasing decisions. By transferring depreciation risk and residual value exposure to leasing providers, businesses can stabilise transport budgets and reduce balance sheet impact. Maintenance, insurance and compliance costs are often included within lease contracts, reducing administrative complexity.

Operational flexibility was also identified as a driver of demand. Fleet leasing arrangements allow companies to adjust vehicle volumes and specifications in response to changing operational needs, including short-term projects, seasonal peaks or geographic expansion. This has increased the use of contract hire and operating lease structures in logistics, construction and service industries.

Environmental regulation and emissions compliance are also influencing fleet finance strategies. Market Research Future said leasing providers are increasingly responsible for ensuring vehicles meet local regulatory standards, including emissions thresholds. Access to electric and low-emission vehicles through leasing programmes has lowered barriers for businesses seeking to update fleets without committing capital to new technologies.

The report notes that competition in the sector includes both global leasing companies with multinational coverage and regional providers offering sector-specific solutions. Larger operators typically focus on long-term corporate contracts supported by digital fleet management platforms, while smaller firms compete on customisation and local service delivery.

Technology adoption continues to shape the market, with telematics, predictive maintenance tools and data analytics increasingly embedded within leasing contracts. These systems allow fleet operators to monitor usage, manage servicing schedules and control fuel costs. Market Research Future said digital dashboards and mobile platforms are now standard features across many leasing portfolios.

Regionally, North America accounted for a significant share of the market in 2024, supported by established corporate leasing practices and widespread use of fleet management technology. Europe remains a mature market, with growth linked to environmental regulation and demand for low-emission vehicles. Asia-Pacific is forecast to record higher growth rates as vehicle ownership costs rise and corporate leasing models gain wider acceptance.

The company concluded that fleet leasing is expected to remain a core component of corporate motor finance strategies over the next decade, as businesses continue to prioritise cost predictability, regulatory compliance and operational flexibility.