PUBLISHER: The Business Research Company | PRODUCT CODE: 1704297
PUBLISHER: The Business Research Company | PRODUCT CODE: 1704297
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 $1302.25 billion in 2024 to $1445.67 billion in 2025 at a compound annual growth rate (CAGR) of 11.0%. The growth in the historic period can be attributed to regulatory changes, interest rate trends, industry growth, corporate expansion, and vendor financing programs.
The equipment finance service market size is expected to see rapid growth in the next few years. It will grow to $2166.86 billion in 2029 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecast period can be attributed to healthcare expansion, infrastructure development, industry 4.0 adoption, sustainability initiatives, and digital transformation. Major trends in the forecast period include increased use of data analytics and AI, growth of digital platforms, integration of blockchain technology, cross-border financing growth, and enhanced customer experience.
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 October 2024, Kapitus, a US-based provider of financing for small and medium-sized businesses, acquired Ten Oaks Commercial Capital for an undisclosed amount. This acquisition supports Kapitus's strategy to broaden its product offerings and strengthen support for businesses in key sectors such as construction, manufacturing, hospitality, and healthcare. With the addition of its equipment finance division, alongside existing small business loans and revenue-based financing products, Kapitus seeks to foster growth and innovation for small and medium-sized businesses critical to the economy. Ten Oaks Commercial Capital, a US-based company, specializes in equipment finance and working capital loans.
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 2024. 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 2025 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.