Financial leasing means the leasing of items for an agreed rent for a definite period, usually paid in regular installments, with the objective of transferring the ownership of these items to the lessee. The lessor charges a reward for hiring the particular asset to the lessee for the lease that is undertaken. A finance lease substantially transfers the risks and rewards that are associated with the ownership of the lessee to the lessor.
One of the key drivers of the financial leasing services market is the capital efficiency offered by financial leasing services. Businesses today face the imperative of optimizing their use of capital to remain competitive and agile. Companies gain access to valuable assets without the burden of a substantial upfront capital outlay when they opt for financial leasing. Furthermore, the flexibility and customization offered by financial leasing are significant drivers behind the rapid growth of the financial leasing services market. In the present dynamic business landscape, companies increasingly demand tailored financial solutions that adapt to their unique needs. Financial leasing offers the ability to craft lease agreements to suit specific requirements. In addition, tax benefits and favorable accounting treatment promote the growth of the financial leasing services market. Many regions offer tax advantages to businesses that opt for financial leasing over outright asset purchase. This can manifest as deductions on lease payments, effectively reducing the overall tax liability. However, the various web of regulations and standards governing financial leasing, and economic uncertainty hamper the growth of the financial leasing services market. On the contrary, the increase in demand for digital transformation is expected to provide lucrative growth opportunities to the financial leasing services market in the upcoming years. The integration of innovative technologies such as the Internet of Things (IoT), AI, and blockchain has reshaped the landscape of financial leasing.
The financial leasing services market is segmented into type, provider, application, and region. On the basis of type, the market is categorized into capital lease, operating lease, and others. On the basis of provider, it is bifurcated into banks and non-banks. On the basis of application, the market is divided into transportation, aviation, IT and telecom, manufacturing, healthcare, construction, and others. On the basis of region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the financial leasing services market include Bank of America Corporation, General Motors Financial Company, Inc., Fifth Third Bank, Crest Capital, Minsheng Financial Leasing, BNP Paribas Leasing Solutions, Wells Fargo, CMB Financial Leasing Co., Ltd., BOC Aviation, and Sumitomo Mitsui Finance and Leasing Co., Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the financial leasing services industry.
One of the key drivers of the financial leasing services market is the capital efficiency offered by financial leasing services. Businesses today face the imperative of optimizing their use of capital to remain competitive and agile. Companies gain access to valuable assets without the burden of a substantial upfront capital outlay when they opt for financial leasing. Furthermore, the flexibility and customization offered by financial leasing are significant drivers behind the rapid growth of the financial leasing services market. In the present dynamic business landscape, companies increasingly demand tailored financial solutions that adapt to their unique needs. Financial leasing offers the ability to craft lease agreements to suit specific requirements. In addition, tax benefits and favorable accounting treatment promote the growth of the financial leasing services market. Many regions offer tax advantages to businesses that opt for financial leasing over outright asset purchase. This can manifest as deductions on lease payments, effectively reducing the overall tax liability. However, the various web of regulations and standards governing financial leasing, and economic uncertainty hamper the growth of the financial leasing services market. On the contrary, the increase in demand for digital transformation is expected to provide lucrative growth opportunities to the financial leasing services market in the upcoming years. The integration of innovative technologies such as the Internet of Things (IoT), AI, and blockchain has reshaped the landscape of financial leasing.
The financial leasing services market is segmented into type, provider, application, and region. On the basis of type, the market is categorized into capital lease, operating lease, and others. On the basis of provider, it is bifurcated into banks and non-banks. On the basis of application, the market is divided into transportation, aviation, IT and telecom, manufacturing, healthcare, construction, and others. On the basis of region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the financial leasing services market include Bank of America Corporation, General Motors Financial Company, Inc., Fifth Third Bank, Crest Capital, Minsheng Financial Leasing, BNP Paribas Leasing Solutions, Wells Fargo, CMB Financial Leasing Co., Ltd., BOC Aviation, and Sumitomo Mitsui Finance and Leasing Co., Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the financial leasing services industry.
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Key Market Segments
By Type
- Capital Lease
- Operating Lease
- Others
By Provider
- Banks
- Non-Banks
By Application
- Transportation
- Aviation
- IT and Telecom
- Manufacturing
- Healthcare
- Construction
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- Crest Capital
- Fifth Third Bank
- Wells Fargo
- BNP Paribas Leasing Solutions
- Minsheng Financial Leasing
- Bank of America Corporation
- CMB Financial Leasing CO., LTD.
- BOC Aviation
- Sumitomo Mitsui Finance and Leasing Co., Ltd
- General Motors Financial Company, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FINANCIAL LEASING SERVICES MARKET, BY TYPE
CHAPTER 5: FINANCIAL LEASING SERVICES MARKET, BY PROVIDER
CHAPTER 6: FINANCIAL LEASING SERVICES MARKET, BY APPLICATION
CHAPTER 7: FINANCIAL LEASING SERVICES MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the financial leasing services market was valued at $214.9 billion in 2022, and is estimated to reach $624.3 billion by 2032, growing at a CAGR of 11.5% from 2023 to 2032.The financial leasing services market is likely to experience a significant growth rate of 11.5% from 2023-2032, owing to the capital efficiency, flexibility and customization, tax benefits and favorable accounting treatment offered by financial leasing.
Financial leasing means the leasing of items for an agreed rent for a definite period, usually paid in regular installments, with the objective of transferring the ownership of these items to the lessee. The lessor charges a reward for hiring the particular asset to the lessee for the lease that is undertaken. A finance lease substantially transfers the risks and rewards that are associated with the ownership of the lessee to the lessor. In addition, many companies opt for leasing rather than standard borrowing because it offers them an opportunity to replace the moveable capital equipment they use in their workplace without reducing their equity capital.
Furthermore, in November 2021, Tesla launched a new financial product called 'financial leasing” that enables customers to buy its cars with no down payment. It is only available in China. Afterward, Tesla updated its online configurator in China to add a new financing option when buying a vehicle online. Moreover, in June 2022, Fifth Third Bank, National Association deepened its commitment to customized leasing and financing solutions by integrating Celtic Commercial Finance and LaSalle Leasing as Fifth Third Technology Finance. Therefore, such strategies drive the growth of the financial leasing services market.
The market also offers growth opportunities to the key players in the market. Key players are adopting strategies to strengthen their market positions in the financial leasing services industry, including new technology adoption, product developments, mergers and acquisitions, joint ventures, alliances, and partnerships. For instance, in July 2022, Ford Trucks and BNP Paribas Leasing Solutions joined forces to offer tailor-made financing solutions in Europe. Ford Trucks formed an agreement with BNP Paribas Leasing Solutions to offer finance solutions to their customers based in France, Germany, and Benelux. Through this cooperation, customers have access to a range of leasing and financing solutions for all their requirements across the Ford Trucks Dealer Network. Furthermore, in July 2020, Sumitomo Mitsui Finance and Leasing Company and LCI Helicopters Limited entered into an agreement to establish and operate a joint helicopter leasing business.
The financial leasing services market is segmented into type, provider, application, and region. On the basis of type, the market is categorized into capital lease, operating lease, and others. On the basis of provider, it is bifurcated into banks and non-banks. On the basis of application, the market is divided into transportation, aviation, IT and telecom, manufacturing, healthcare, construction, and others. Region wise, it is analyzed across North America (the U.S., and Canada), Europe (UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study are Bank of America Corporation, General Motors Financial Company, Inc., Fifth Third Bank, Crest Capital, Minsheng Financial Leasing Co. Ltd., BNP Paribas Leasing Solutions, Wells Fargo, CMB Financial Leasing Co., Ltd., BOC Aviation, and Sumitomo Mitsui Finance and Leasing Co., Ltd. The players in the market have been actively engaged in the adoption of various strategies such as business expansion, product launch, collaboration, and partnership to remain competitive and gain an advantage over the competitors in the market. For instance, in December 2022, Getinge formed a new European partnership with BNP Paribas Leasing Solutions for innovative payment solutions. The bespoke finance solutions make it easier for healthcare professionals to invest in products and solutions of Getinge helping them to preserve working capital and in parallel, transition towards sustainable usage-based models.
Key Market Insights
On the basis of type, the operating lease segment was the highest revenue contributor to the market and is estimated to reach $353.65 billion by 2032, with a CAGR of 9.0%. However, the capital lease segment is estimated to be the fastest-growing segment with a CAGR of 16.6% during the forecast period.On the basis of provider, the banks segment was the highest revenue contributor to the market and is estimated to reach $378.53 billion by 2032, with a CAGR of 10.1%. However, the non-banks segment is estimated to be the fastest-growing segment with a CAGR of 14.0% during the forecast period.
By application, the transportation segment was the highest revenue contributor to the market, and is estimated to reach $104.42 billion by 2032, with a CAGR of 7.2%. However, the healthcare segment is estimated to be the fastest-growing segment with a CAGR of 17.0% during the forecast period.
Based on region, North America was the highest revenue contributor, accounting for $79.00 billion in 2022, and is estimated to reach $190.02 billion by 2032, with a CAGR of 9.4%. However, Asia-Pacific is estimated to be the fastest-growing region with a CAGR of 14.5% during the forecast period.
Companies Mentioned
- Crest Capital
- Fifth Third Bank
- Wells Fargo
- BNP Paribas Leasing Solutions
- Minsheng Financial Leasing
- Bank of America Corporation
- CMB Financial Leasing CO., LTD.
- BOC Aviation
- Sumitomo Mitsui Finance and Leasing Co., Ltd
- General Motors Financial Company, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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