PUBLISHER: The Business Research Company | PRODUCT CODE: 1526951
PUBLISHER: The Business Research Company | PRODUCT CODE: 1526951
Equipment finance service involves providing businesses and individuals with tailored financial solutions to acquire necessary equipment for their operations. This service includes leasing, loans, or other arrangements customized to meet specific needs, enabling clients to access equipment without significant upfront costs.
The primary types of equipment finance services include equipment loans, equipment leases, and other options. An equipment loan entails a lender providing funds to a borrower specifically for purchasing equipment, with the equipment serving as collateral for the loan. Providers of these services include banks, non-banking financial companies (NBFCs), and others, catering to industries such as transportation, aviation, information technology, telecommunications, manufacturing, healthcare, construction, and more.
The equipment finance service market research report is one of a series of new reports from The Business Research Company that provides equipment finance service market statistics, including the equipment finance service industry global market size, regional shares, competitors with the equipment finance service market share, detailed equipment finance service market segments, market trends, and opportunities, and any further data you may need to thrive in the equipment finance service industry. These equipment finance service market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The equipment finance service market size has grown rapidly in recent years. It will grow from $1,177.43 billion in 2023 to $1,302.25 billion in 2024 at a compound annual growth rate (CAGR) of 10.6%. The increase in the historical timeframe can be credited to alterations in regulations, shifts in interest rates, expansion within various industries, corporate expansions, and initiatives for vendor financing.
The equipment finance service market size is expected to see rapid growth in the next few years. It will grow to $1,958.93 billion in 2028 at a compound annual growth rate (CAGR) of 10.8%. The growth in the forecast period is expected due to expansions in healthcare, developments in infrastructure, adoption of Industry 4.0 practices, endeavors toward sustainability, and the ongoing process of digital transformation. Notable trends in the forecasted period encompass heightened utilization of data analytics and artificial intelligence, the expansion of digital platforms, the incorporation of blockchain technology, the rise in cross-border financing, and the enhancement of customer experiences.
The increasing emphasis on public infrastructure development is poised to drive the growth of the equipment finance service market in the foreseeable future. Public infrastructure development involves the planning, construction, and maintenance of critical facilities and systems, such as transportation networks, utilities, and public buildings, typically funded and overseen by governmental bodies to bolster economic growth and societal well-being. This growth trajectory in infrastructure development is buoyed by rising governmental initiatives aimed at stimulating economic expansion, modernizing infrastructure, and championing sustainable and resilient solutions to combat climate change. Equipment finance services play a pivotal role by providing essential funding for the procurement and upkeep of vital construction and operational machinery in government-backed infrastructure projects. For instance, data from the office of the Parliamentary Budget Officer in Canada indicates a projected federal infrastructure expenditure of $32,240 million for the fiscal year 2024-2025, marking a consistent upward trend from the $22,778 million spent in 2020-2021. Consequently, the escalating focus on public infrastructure development is propelling the expansion of the equipment finance service market.
Key companies in the equipment finance services market are channeling their efforts toward developing technologically advanced software solutions designed to deliver functionalities such as predefined configurations and process catalogs. These features aim to enable proactive infrastructure management and confer a competitive advantage in the market. Predefined configurations and process catalogs encompass preset system settings and standardized operational procedures tailored to streamline implementation and ensure consistency across business processes. For example, Alfa Financial Software Holdings plc introduced Alfa Start in October 2023, a preconfigured software platform tailored for equipment finance organizations in the US market. Leveraging the renowned Alfa Systems platform, Alfa Start offers rapid deployment at entry-level costs through its predefined configuration and process catalog. It encompasses over 30 back-office business processes supported by predefined workflows, business rules, document generation, and user roles. Additionally, Alfa Start features out-of-the-box sales tax and payment integrations, facilitating seamless compatibility with existing systems. The platform can be deployed as-is or customized to expedite project delivery and optimize value realization.
In December 2021, Commercial Credit Inc (CCI) augmented its capabilities by acquiring Keystone Equipment Finance Corp, a US-based small-ticket equipment financing company, for an undisclosed amount. This strategic acquisition aimed to harness CCI's resources and broaden its transactional scope. Keystone Equipment Finance Corp specializes in funding new and used equipment for small and mid-sized businesses, aligning with CCI's overarching objectives and bolstering its market presence.
Major companies operating in the equipment finance service market are JPMorgan Chase & Co., Bank of America Corporation, Wells Fargo, GE Capital, Crest Capital, American Express, Toronto-Dominion Bank, Societe Generale S.A., Truist Financial Corporation, The PNC Financial Services Group Inc., First American Equipment Finance, First-Citizens Bank And Trust Company, TIAA Bank, UMB Financial Corporation, Balboa Capital, OnDeck Capital, Commercial Credit Group Inc., National Funding Inc., SLR Investment Corp., Blue Bridge Financial LLC, American Capital Group Inc., Keystone Equipment Finance Corp., Smarter Finance USA.
North America was the largest region in the equipment finance service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the equipment finance service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the equipment finance service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The equipment finance service market includes revenues earned by entities by providing financial services such as leasing services, loan services rental services, and vendor financing for the acquisition of various types of equipment, such as machinery, vehicles, and technology. 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.
Equipment Finance Service Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on equipment finance service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for equipment finance service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The equipment finance service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.