The financial leasing services market size has grown rapidly in recent years, increasing from $200.03 billion in 2023 to $221.11 billion in 2024 at a compound annual growth rate (CAGR) of 10.5%. This growth during the historic period can be attributed to factors such as economic growth, tax benefits, asset utilization efficiency, industry-specific demand, and an increased focus on risk management. Looking ahead, the market size for financial leasing services is expected to continue its rapid growth, reaching $331.22 billion in 2028 at a CAGR of 10.6%. This forecasted growth is driven by sustainability and green initiatives, increased infrastructure investment, urbanization and the development of smart cities, global supply chain optimization, and a rising interest in asset-light models. Major trends expected during this period include digital transformation and automation, expansion of fintech solutions, growth in leasing among small and medium-sized enterprises, the emergence of circular economy practices, and the customization and personalization of services.
Major Driver In The Financial Leasing Services Market
The growing number of small and medium-sized enterprises (SMEs) is expected to drive the expansion of the financial leasing services market in the near future. SMEs, defined by specific employee and revenue thresholds, are experiencing growth due to a surge in entrepreneurial activity and supportive policies that encourage business creation and innovation. Financial leasing services enable SMEs to acquire essential equipment and assets with reduced upfront costs, thereby improving cash flow management. For instance, according to the House of Commons Library, the number of private-sector businesses in the UK increased from 5,509 in 2022 to 5,555 in 2023, reflecting a positive trend in private sector expansion. The financial leasing services market is expected to grow from $2 billion in 2023 to $2.5 billion in 2024, with projections estimating a market size of $3 billion by 2028. This growing SME base will continue to drive the financial leasing services market through 2023, into 2024, and is expected to further accelerate by 2028.
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Financial Leasing Services Market Competitive Landscape
Major companies operating in the financial leasing services market are JPMorgan Chase & Co, Bank of America Corporation, Banco Santander S.A, Wells Fargo & Company, Siemens AG, Citigroup Inc, International Business Machines Corporation, Royal Bank Of Canada, HSBC Holdings plc, Barclays plc, Société Générale Equipment Finance, U.S. Bancorp, Nordea Bank AB, KBC Lease, Bank of Beijing Co. Ltd., ABN AMRO Bank N.V., First American Equipment Finance, Macquarie Equipment Finance LLC, General Electric Capital Corporation, De Lage Landen International B.V., Deutsche Leasing AG, Crédit Agricole Leasing & Factoring, Hannover Leasing GmbH & Co. KG, BNP Paribas Lease Group S.A.
Key Financial Leasing Services Market Trend
Major companies in the financial leasing services market are focused on creating innovative leasing solutions, such as fitout lease services, tailored for large and midsized corporations to gain a competitive edge. Fitout lease services involve providing and managing leased spaces that are fully equipped and furnished to meet the specific requirements of tenants or businesses. For example, in March 2021, Skootr Global Pvt. Ltd., an India-based company, launched Skootr FinSave, offering a unique fitout financing solution that enables businesses to lease fully furnished and customized office spaces without upfront capital costs. Key features include flexible lease terms, comprehensive interior design and setup, and financial savings through efficient space utilization and reduced initial expenses. This service allows companies to concentrate on their core operations while enjoying a tailored, high-quality workspace.
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Global Financial Leasing Services Market Segmentation
The financial leasing services market covered in this report is segmented –
1) By Type: Capital Lease, Operating Lease, Other Types
2) By Provider: Banks, Non-Banks
3) By Application: Transportation, Aviation, Information Technology (IT) And Telecommunication, Manufacturing, Healthcare, Construction, Other Applications
By Geography:The regions covered in the financial leasing services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the financial leasing services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
The Financial Leasing Services Global Market Report 2024 furnishes information about the global financial leasing services market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
