The global finance lease market size was USD 221.76 Billion in 2022 and is likely to reach USD 346.98 Billion by 2031 , expanding at a CAGR of 5.1% during 2023 – 2031.The growth of the market is attributed to the growing demand for expensive equipment, machinery, and other necessary assets.
Financial Leasing is a known process of involving the finance where lessor buys given amount of assets for the lessee and rent it for the agreed duration or period. The lessee has an option to take over the ownership of the asset on the completion of the lease period. In addition to this, the lessor is liable for the maintenance, insurance, and taxes. The COVID-19 pandemic outbreak has brought a negative impact on the market resulting in decelerating investment spending. The market is expected to rebound by the end of 2021 as organizations are resuming their operations globally.
Market Trends, Drivers, Restraints, and Opportunities
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Cost-effective nature of finance lease for acquiring assets is one of the key factors driving the market growth.
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Governments support for banks and non-banking financial institutions is expected to boost the market growth in the coming years.
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Lessee loses complete ownership from the asset once the agreement is made, which is likely to hinder the market growth during the forecast period.
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Non-payment can negatively affect the credit rating of both the guarantor and the business present a major restraining factor. This is anticipated to hamper the market expansion during the projected timeline.
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Lucrative government initiatives for customers as well as business to create a significant growth opportunity for the market in the near future.
Scope of the Report
The report on the global finance lease market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Finance Lease Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Applications (Construction Machinery, Automotive, Energy Chemical and Infrastructure, Medical Devices, Aviation, Telecom Media and Technology, Shipping, Manufacturing, and Others), Products (Domestic Business and International Business), and Types (Non-banking Financial Institutions and Banks)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Bank of America Leasing & Capital, LLC; BNP Paribas Leasing Solutions; Sumitomo Mitsui Finance and Leasing Co., Ltd; HSBC Group; JP Morgan Chase & Co.; and Wells Fargo Bank N.A.
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Market Segment Insights
Aviation segment is expected to grow at a rapid pace
Based on applications, the global finance lease market is divided into construction machinery, automotive, energy chemical and infrastructure, medical devices, aviation, telecom media and technology, shipping, manufacturing, and others. The aviation segment is expected to grow at a rapid pace during the forecast period owing to the high purchase associated with the equipment, which are in high demand globally.
Lesser risk related to domestic business to drive the segment
In terms of products, the market is bifurcated into domestic business and international business. The domestic business segment is projected to expand at a considerable CAGR during the forecast period attributed to the lesser risks associated with the regulatory changes and fluctuating exchange rates.
Non-banking financial institutions segment is anticipated to hold significant market share
On the basis of types, the global finance lease market is bifurcated into non-banking financial institutions and banks. The non-banking financial institutions segment is anticipated to hold significant market share in the coming years owing to rise in preference for leasing equipment in small and medium-sized businesses because of capital constraints.
Asia Pacific is anticipated to constitute a key market share
In terms of regions, the global finance lease market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to constitute a key share of the market during the projected period attributed to the expansion of the construction industry across the region.
Segments
The global finance lease market has been segmented on the basis of
Applications
- Construction Machinery
- Automotive
- Energy Chemical and Infrastructure
- Medical Devices
- Aviation
- Telecom Media and Technology
- Shipping
- Manufacturing
- Others
Products
- Domestic Business
- International Business
Types
- Non-banking Financial Institutions
- Banks
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global finance lease market are Bank of America Leasing & Capital, LLC; BNP Paribas Leasing Solutions; Sumitomo Mitsui Finance and Leasing Co., Ltd; HSBC Group; JP Morgan Chase & Co.; and Wells Fargo Bank N.A. As part of their efforts to grow their client base and acquire a competitive advantage over competitors, manufacturers operating in the market are adopting various strategic initiatives such as partnerships, collaborations, mergers & acquisitions, and new product development.
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