Lease of life: The industry has recorded strong growth in recent years, though this is set to slow

The Financial Leasing industry provides businesses, government bodies and households with the ability to lease assets, such as vehicles and various other equipment. Industry revenue is estimated to increase at a compound annual rate of 5.5% over the five years through 2017-18. Revenue expansion was sluggish in the base year of the period as relatively weak consumer and business confidence levels restricted demand for financial leasing. Strict lending criteria also made it harder to obtain a financial lease. Nevertheless, historically low interest rates made leases more cost effective, which supported demand...read more.

Industry Statistics & Market Size
Revenue
£11.9bn
Annual Growth 13-18
5.5%
Forecast Growth 18-23
Profit
Employment
18,161
Businesses
346

Industry Threats & Opportunities

  • The industry’s strong growth has been pegged back by prevailing uncertainty in 2017-18
  • Measures introduced to control costs, such as mobile banking apps, have supported margin growth
  • Regulatory pressures, aimed at ensuring stability and transparency, are likely to limit activity
  • Industry Report - Starting a New Business Chapter

    Financial leasing companies are an important part of the UK financial system. As participants in the finance sector, they are subject to certain legislation relating to consumer protection, discrimination in extending credit, use of credit reports, privacy matters, disclosure of credit terms, and correction of billing errors. The requirement to comply with such regulation imposes a burden for participants and creates a barrier for those companies looking to move into the industry. These requirements are expected to rise during the coming period.To be involved in leasing activities, finance companies must have a large capital base to be able to hold vehicles, furniture, equipment and machinery on their balance sheets. The...purchase to read more.

    Additional Insights for the Financial Leasing Industry

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

  • Output is sold under contract - incorporate long-term sales contracts
  • Well developed internal processes
  • Financial position of the company (as against financial structure)
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Business confidence index in the Financial Leasing industry impact industry performance..

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    What's in this report

    What is the Financial Leasing Industry?

    This industry covers leasing activities where the term of the lease approximately covers the expected life of an asset, so the lessee acquires all the substantial benefits of its use while assuming all the risks associated with its ownership. Ownership of the asset may or may not eventually be transferred.

    Industry Products
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Industry Activities
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Business confidence index
  • Official bank rate
  • Consumer confidence index
  • Government capital expenditure

  • Current Performance
  • Slow start
  • A good asset
  • On the brakes
  • Regulatory pressures
  • Market structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth
  • Constrained demand
  • Market structure and profit
  • Table: Financial Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Financial Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Stone Quarrying
  • Commercial Building Construction
  • New Car & Light Motor Vehicle Dealers
  • Used Car & Light Motor Vehicle Dealers
  • Consumers

  • Key Selling Industries
  • Banks
  • Financial and Insurance Activities

  • Products & Services
  • Vehicle leasing
  • Plant and equipment leasing
  • Other asset leasing
  • Chart: Financial Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Government
  • Households
  • Other
  • Chart: Major Market Segmentation for the Financial Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitInventory depreciationInterest expensesLoan losses and provisionsWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Financial Leasing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Financial Leasing Industry

  • Industry Globalization
    Lombard North Central plc, Barclays plc, Lloyds Banking Group plc,
  • Table: Lombard North Central plc - financial performance
  • Table: Barclays plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Financial Leasing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Financial Leasing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Finance Lease
  • An arrangement where a finance company purchases an asset on behalf of a lessee, who makes lease payments to the finance company and is given the option to purchase the asset when the lease ends.
  • It Equipment
  • Information and communication technologies refer to an array of equipment, including servers, laptops, PCs, telephone systems, data communications equipment and audiovisual equipment.
  • Operating Lease
  • A lease that is short in relation to the useful life of the asset being leased. The lessee does not have the option to purchase the asset when the lease ends.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Financial Leasing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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 Financial 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 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 Financial 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 Financial Leasing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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