Finance Lease Market Size Worth $324.40 Billion By 2030

Finance Lease Market Growth & Trends

The global finance lease market size is expected to reach USD 324.40 billion by 2030, growing at a CAGR of 5.1% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The market is anticipated to be driven by several advantages offered by finance leasing over traditional borrowing methods, including higher margins, tax advantages, and inflation-friendly and secure investments. Furthermore, the massive demand for new commercial models and branded equipment across the globe has become one of the significant factors driving the growth.

Benefits offered by leasing finance company services to lessees such as temporary occupant of the property, cost-effective method of acquiring assets, and others drive the market growth. Furthermore, it helps to free up working capital enabling the lessee to spend on its core tasks. On the other hand, the lessor, the legal owner of the asset or property, can recoup the cost of the asset and earn interest on the rental payments by the lessee.

The finance lease accounting assists businesses with capital constraints in obtaining highly-priced assets. The finance lease market still faces a few market constraints, such as the risks associated with exchange rate fluctuations. Furthermore, the difficulties encountered due to varying regulatory scenarios in different countries may also prevent finance lease service providers from offering global finance lease services.

The global COVID-19 pandemic has been favorable to market growth. Finance leasing has allowed SMEs and other businesses to grow significantly with the assistance of leasing options. Furthermore, the growing tendency of companies to finance equipment and software, aided by the Federal Reserve's interest rate reductions, is expected to create new growth opportunities for the finance leasing industry during the forecast period.

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Finance Lease Market Report Highlights

• The international business segment is expected to witness significant growth during the forecast period. The need for businesses to reduce cost and capital requirements for equipment and the ability to adapt to rapidly changing technological advancements is driving the segment growth

• The non-bank segment is expected to witness significant growth during the forecast period. Greater flexibility on interest rates and quick approvals of financing solutions offered by such institutions are driving their demand among start-ups and small businesses

• The IT & telecom segment dominated the market in 2021. Telecom and media companies are constantly aiming to grow their infrastructure to match the ever-changing market demands, which is anticipated to drive the growth of the segment

• The Asia Pacific is expected to register rapid growth during the forecast period. The rising popularity and awareness of finance leasing options across the region are expected to drive the development of the regional market

Finance Lease Market Segmentation

Grand View Research has segmented the global finance lease market based on product, type, application, and region:

Finance Lease Product Outlook (Revenue, USD Billion, 2017 - 2030)

• International Business

• Domestic Business

Finance Lease Type Outlook (Revenue, USD Billion, 2017 - 2030)

• Banks

• Non-banks

Finance Lease Application Outlook (Revenue, USD Billion, 2017 - 2030)

• Transportation

• Medical Devices

• Energy & Environment

• Construction Equipment

• Industrial Machinery

• IT & Telecom

• Others

Finance Lease Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • Germany

  • U.K.

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • Japan

  • Australia

  • South Korea

  • India

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa (MEA)

List of Key Players in the Finance Lease Market

• Sumitomo Mitsui Finance and Leasing Co., Ltd.

• BNP Paribas Leasing Solutions

• HSBC Group

• Wells Fargo Bank N.A.

• Texas Capital Bancshares, Inc.

• Commerce Bancshares, Inc.

• Fifth Third Bank

• Bank of America Corporation

• Crest Capital

• North Star Leasing