Facts to know about the vehicle leasing industry
Industry research figures have revealed an insight into the vehicle leasing industry in the UK, including a range of facts about changes in the market in 2023 and predictions for the years up until 2028.
The data from industry research specialists IBISWorld, entitled Car Rental & Leasing in the UK – Market Size, Industry Analysis, Trends and Forecasts (2023-2028), reveals that revenue is expected to have fallen by 1.7 percent between 2019 and 2024, reaching a total of £17.1 billion.
The number of employees has grown by 2.9 per cent, however, with a total of around 51,329 people, and the number of businesses has increased by 1.4 percent to 3,855. This means that people looking for van rental Bristol from specialists such as https://www.autolynecarvanrental.co.uk/van-hire-bristol have more choice than in previous years.
Covid Effect
IBISWorld states in its research that car leasing revenue in the UK looks set to contract in the five years to 2023-24 at the 1.7 per cent rate mentioned previously. It blames disruptions from the pandemic for the detrimental effect on industry finances, claiming that this was the ‘main driver’ for recent declines.
Industry experts do predict a brighter future, however, as revenue steadies out and expansion within the rental segment diversified revenue streams.
Back Story
The size of the UK’s car rental and leasing industry declined by an average of 0.4 per cent each year from 2017 to 2022 but 2022 saw an increase of 5.4 per cent.
The market size of this section of British industry declined at a faster rate than the UK’s overall economy, but this decline was slower than the average in the administrative and support service sectors as a whole. You can read more about the current state of British industry on the Office for National Statistics website here.ndproductivity/output/articles/ukeconomylatest/2021-01-25).
The Future of the Car Rental Sector
Plans are afoot to help the vehicle rental industry grow. International tourists are being cited as offering the potential for market growth as the number of visitors to the UK from overseas is expected to expand during 2023 and 2024.
