Closed-end leases as a funding option in the global fleet market are expected to grow by 3.9% in 2020, following a projected growth rate of 2.1% to round out 2019, according to a new report.

The global company car leasing market has seen stable growth this year and is expected to conclude its year-on-year growth rate with unit sales of 7.8 million, according to Frost & Sullivan. Closed-end leases, also known as full-service operational leasing in Europe, continues to be the preferred leasing solution among company car fleets, representing 59.1% of the total fleet leasing contracts sold.

Strong sales growth will come from central, eastern and southern Europe, reinforced by stable growth in the BRICS countries and North America, according to the study.

In 2020, the global company car leasing market is projected to surpass 8.1 million units sold, primarily due to a push from operational leasing. That would equate to 200,000 new contracts.

Meanwhile, alternative mobility leasing models are set to transform the global fleet leasing market, creating tremendous growth opportunities in the process. Mobility models such as electric vehicle leasing, private leasing, and used vehicle leasing are actively being pursued by vehicle manufacturers.