The car fleet management market - France

For companies, fleet management means freeing themselves from the direct management of their employees' vehicles by entrusting this task to professionals. This task, which covers vehicle acquisition (purchase or rental), maintenance, insurance and driver management, can also be carried out in-house, but is usually outsourced. This task is generally performed by leasing or long-term rental companies. The car fleet management market is closely linked to the car leasing market (vehicle financing, usually with a purchase option at the end of the contract) and to the long-term rental market (LLD), which includes financing, maintenance and repairs.e) market, which includes financing, vehicle maintenance under a "full service" contract, and generally a purchase option at the end of the contract, usually for 5 years with a mileage cap. The global fleet management market is in great shape: it has been valued at $28.6 billion in 2023 and is expected to reach $55.6 billion by 2028, with a CAGR (compound annual growth rate) of 14.2% up to that date. However, the fleet management market in France, historically a single-supplier market, has been fragmenting in recent years. Faced with severe economic constraints, companies no longer hesitate to entrust vehicle management to several service providers, in order to obtain the best guarantees and pricing conditions. We are also witnessing a struggle between financial institutions and carmakers, both of whom are trying to control the fleet management market in France, the former with the advantage of financial resources, the latter with automotive expertise. Environmental taxes are encouraging companies to adopt innovative solutions, such as car-sharing. To meet their CSR (Corporate Social Responsibility) commitments, some major groups have already taken the electric fleet plunge, while many SMEs and SMIs no longer hesitate to opt for a second-hand fleet. All these structural trends point to a French vehicle fleet management market that will undergo a major transformation over the next few years - a transformation that has already begun in part.