Fleet Car Leasing in Australia Industry Market Research Report Now Available from IBISWorld

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Fleet car leasing companies hit a speed bump during the financial crisis, but are slowly returning to growth as improving business confidence drives increased demand. For this reason, industry research firm IBISWorld has added a report on the Fleet Car Leasing industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The industry is returning to growth as economic conditions improve

Over the past five years, the Australian Fleet Car Leasing industry has had its highs and lows in line with volatile business and government activity. The resources boom was not enough to hold back the economic pressures from a global downturn. According to IBISWorld industry analyst Ryan Lin, “businesses contributed less to demand for the industry as most worked to cut back expenses, with business activity faltering”. On the other hand, large cashed-up mining and resources companies are inclined to directly purchase and alter entire fleets of vehicles rather than commence leases. As a result, industry revenue is expected to decline at an annualised 2.1% over the five years through 2012-13 to total $1.14 billion.

There has been a recovery over the second half of the five-year period as the global economy recovers from the blow of the global financial crisis. With business confidence and activity returning and abating resource commodity prices, the industry has recovered as private sector businesses along both the eastern and western seaboards take up fleet car leases. As a result of continual government expenditure, the Fleet Car Leasing industry has recovered in 2011-12 and 2012-13. Adding further impetus to growth and recovery are additional value added services offered by industry players, such as fleet management and servicing options. “These are providing new markets for industry players and a source of differentiation from external forms of competition”, says Lin. The industry has a high level of market share concentration, with the top four players – LeasePlan Australia Limited, ORIX Australia Corporation Limited, Fleet Partners Pty Limited and Fleetcare Pty Ltd – accounting for a large share of industry revenue. Market share concentration is high due to the benefits of economies of scale, as larger players can spread overhead costs like administration and marketing over a larger fleet of vehicles.

Over the five years through 2017-18, a continued recovery from the previous downturn is expected to drive the industry. As the economy recovers, the threat of downstream customers becoming cash rich and opting to purchase instead of lease vehicles will weigh against the industry's growth potential. With many traditional value added services expected to become industry standards, industry players will struggle to provide non-substitutable points of differentiation for customers.

For more information, visit IBISWorld’s Fleet Car Leasing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Participants in this industry lease cars to corporations, small businesses and government institutions, including novated leases. Fleet car leasing companies lease all forms of automotive vehicles including cars, trucks, SUVs, vans and buses.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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