Equipment Finance Services Market Report 2024

The equipment finance services market size has grown rapidly in recent years. It will grow from $1.2 trillion in 2023 to $1.33 trillion in 2024 at a compound annual growth rate (CAGR) of 11.1%. The growth during the historic period can be credited to economic growth and stability, which influenced capital investments. Additionally, regulatory changes impacting lease accounting and tax policies, increased globalization leading to a greater need for equipment, industry-specific demands for specialized solutions, and shifts in customer preferences toward leasing rather than purchasing played significant roles.

The equipment finance services market size is expected to see rapid growth in the next few years. It will grow to $2.03 trillion in 2028 at a compound annual growth rate (CAGR) of 11.2%. The forecasted growth period can be attributed to the rising demand for flexible financing options tailored to customer needs, the expansion of equipment leasing in emerging markets, increasing environmental and sustainability considerations influencing equipment choices, a shift toward sustainable and eco-friendly options, and the impact of geopolitical factors on global supply chains and equipment demand. Key trends in the forecast period include the integration of embedded insurance solutions, enhanced data analytics, the expansion of industry-specific solutions, and digital transformation.

The equipment finance services market is poised for growth driven by expansion in the construction industry. This sector encompasses activities such as construction, repair, and renovation of structures. Urbanization, infrastructure development, and increased demand for residential and commercial properties are fueling growth in construction. Equipment finance services in this industry facilitate growth by enabling companies to acquire advanced machinery and technology, enhancing efficiency and project scalability without significant upfront capital expenditure. For example, in February 2023, the Office for National Statistics reported a 5.6% annual increase in UK construction output compared to 2021, following a record 12.8% rise in 2021. Thus, the construction industry's growth is expected to propel the equipment finance services market forward.

Leading companies in the equipment finance services market are strategically enhancing their market position to meet evolving customer demands. They focus on embedded coverage solutions to improve customer relationship management and streamline operational efficiencies. Embedded coverage solutions integrate insurance or protection plans into financing agreements, providing automatic coverage for equipment against risks such as damage, theft, or loss. For instance, in August 2023, Great American Insurance Group introduced an embedded coverage solution for equipment finance companies using Salesforce. This technology seamlessly integrates insurance solutions into the leasing process, offering benefits such as instant quoting and enrollment, reduced data entry through metadata, and adaptable support for diverse workflows.

In January 2022, American Bank acquired ACG Equipment Finance to bolster its equipment finance offerings. The acquisition, for an undisclosed amount, integrates ACG Equipment Finance's specialized expertise and customer portfolio into American Bank. The combined entity will operate as American Bank Equipment Finance, significantly expanding its suite of equipment financing solutions across Texas and other markets. ACG Equipment Finance, a US-based provider of equipment financing services, enhances American Bank's capabilities in this sector.

Major companies operating in the equipment finance services market are JPMorgan Chase & Co., Bank of America Corporation, Wells Fargo & Company, Siemens AG, TD Bank N.A., U.S. Bancorp, Truist Financial Corporation, The PNC Financial Services Group Inc., Mitsubishi HC Capital Inc., Fifth Third Bank, Regions Financial Corporation, Huntington Bancshares Incorporated, KeyBank National Association, First-Citizens Bank & Trust Company, Macquarie Group Limited, CIT Group Inc., DLL Group, GreatAmerica Financial Services Corporation, Balboa Capital Corporation, OnDeck Capital Inc., Hitachi Capital America Corp., Crest Capital LLC, Keystone Equipment Finance Corp., Smarter Finance USA LLC.

North America was the largest region in the equipment finance services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the equipment finance services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the equipment finance services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Equipment finance services involve financial products and solutions that allow businesses to acquire and use equipment without significant upfront capital expenditures. These services typically offer financing arrangements tailored to the specific needs of businesses seeking equipment for their operations. They provide flexibility in payment schedules, loan terms, and end-of-lease options, catering to various business cycles and operational requirements.

The main components of equipment finance services include equipment loans, equipment leases, and other related products. An equipment loan involves a lender providing funds to a business or individual to purchase equipment outright, with the borrower repaying the loan amount plus interest over a specified period. Providers of these services include banks, non-banking financial companies (NBFCs), and others, catering to industries such as transportation, aviation, information technology (IT) and telecom, manufacturing, healthcare, construction, and more.

The equipment finance services market research report is one of a series of new reports that provides equipment finance services market statistics, including equipment finance services industry global market size, regional shares, competitors with an equipment finance services market share, detailed equipment finance services market segments, market trends and opportunities, and any further data you may need to thrive in the equipment finance services industry. This equipment finance services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The equipment finance services market includes revenues earned by entities by providing equipment operating leases, customized financing solutions, trade finance, asset-based finance leases, equipment refinancing, and asset management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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