What Has Been the Progress and Growth of the Construction Equipment Finance Market in Recent Years?
The construction equipment finance market has seen considerable growth due to a variety of factors.
• The construction equipment finance market has seen significant growth recently. It is forecasted to rise from $59.01 billion in 2024 to $64.08 billion in 2025, growing at a compound annual growth rate (CAGR) of 8.6%.
Growth is attributed to economic conditions, trends in the construction industry, the availability of financing options, regulatory changes, credit availability, high manufacturer incentives, and the high resale value of construction equipment.
How Does the Forecast Look for the Construction Equipment Finance Market?
The construction equipment finance market is expected to maintain its strong growth trajectory in upcoming years.
• The construction equipment finance market is projected to reach $89.96 billion by 2029, growing at a CAGR of 8.8%.
Growth is driven by the need for construction equipment, central bank policies, urban redevelopment, smart city initiatives, equipment rentals, and global economic cycles. Trends include the rise of digital financing platforms, flexible financing models, sustainability-focused financing, IoT and telematics integration, and equipment-as-a-service (EaaS) expansion.
What Are The Leading Drivers Of Growth In The Construction Equipment Finance Market?
The construction equipment finance market is expected to grow due to the expanding construction industry. This sector involves building, renovating, and maintaining structures such as buildings and infrastructure. The industry's growth is fueled by increased access to flexible finance options for construction equipment, allowing businesses to acquire advanced machinery and manage their projects more efficiently. These financial solutions help businesses manage cash flow by spreading equipment costs over time, avoiding large upfront payments. For example, in May 2024, the U.S. Census Bureau reported a 10.6% increase in construction spending during the first three months of 2024 compared to the same period in 2023, totaling $461.0 billion.
How Are The Segments Defined Within The Global Construction Equipment Finance Market?
The construction equipment finance market covered in this report is segmented –
1) By Financing Type: Loans, Mortgage
2) By Equipment: Earthmoving, Material Handling, Concrete And Road Construction, Transportation
3) By Application: Enterprise, Municipal, Other Applications
4) By End-User: Small And Medium Enterprises, Large Enterprises
Subsegments:
1) By Loans: Term Loans, Equipment Loans, Working Capital Loans
2) By Mortgage: Equipment Mortgage Financing, Real Estate Mortgage Financing
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What Emerging Trends Are Influencing The Growth Of The Construction Equipment Finance Market?
Companies in the construction equipment finance market are offering flexible solutions like excavator leasing programs to meet industry needs. For instance, in May 2023, Case Construction Equipment introduced CASE Power Leas, an excavator leasing program that offers flexible lease options, machine warranties, and planned maintenance throughout the lease term.
Who Are the Key Players In The Construction Equipment Finance Market?
Major companies operating in the construction equipment finance market are:
• Wells Fargo Equipment Finance Inc.
• Deere & Company
• Komatsu Financial Limited
• CNH Industrial Capital LLC
• Kubota Credit Corporation
• Liebherr-Finanz GmbH
• Doosan Corporation
• Atlas Copco Financial Services NV
• Terex Financial Services
• General Electric Corporation
• Wacker Neuson Finance B.V.
• Caterpillar Financial Services Corporation
• Hyundai Construction Equipment Co. Ltd.
• CIT Group Inc.
• De Lage Landen International B.V.
• H&E Equipment Services Inc.
• Société Générale Equipment Finance
• Sumitomo Mitsui Finance and Leasing Co. Ltd.
• Volvo Financial Services
• Sany America Inc.
• JCB Finance Ltd.
• Mitsubishi UFJ Lease & Finance Company Limited
• Bank of America Leasing & Capital LLC
• Hitachi Capital America Corp.
• US Bancorp Equipment Finance Inc.
What Is The Most Dominant Region In The Construction Equipment Finance Market?
North America was the largest region in the construction equipment finance market in 2023. The regions covered in the construction equipment finance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
