Equipment Finance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The equipment finance market size is expected to increase from USD 1.5 trillion in 2025 to USD 1.60 trillion in 2026 and reach USD 2.10 trillion by 2031, growing at a CAGR of 5.60% over 2026-2031. This report is segmented by Financing Product (Equipment Loans and Title-Finance Products, and More), Asset Type (Industrial, Manufacturing and Materials-Handling Equipment, and More), End-User Industry (Manufacturing, Construction and Infrastructure, and More), and Geography (North America, South America, and More). The Market Forecasts are Provided in Terms of Value (USD).

Global Equipment Finance Market Trends and Insights

Asset-Light Capital Allocation and Working-Capital Preservation

Businesses are reassessing whether equipment ownership remains the best use of available capital, a decision that is shaping demand across the equipment finance market. A BNP Paribas Leasing Solutions survey of more than 1,000 leaders across 11 European countries found that 95% believed equipment became outdated faster than 5 years ago. The same survey found that 60% considered capital tied up in assets a challenge, while only 17% still viewed ownership as central to competitiveness. Leasing and usage-based models can preserve liquidity for hiring, inventory, software, and other operating needs, allowing a business to align cash outflows with the revenue or cost savings expected from the equipment during its useful period. The equipment finance market benefits when finance teams compare the operating and financial effects of leasing against direct purchases, including the expected useful life of the asset, the effect on available credit capacity, the need for scheduled upgrades, and the practical role the equipment plays in daily operations. IFRS 16 and ASC 842 have also made lease classification a more deliberate financing decision for many borrowers, since finance teams must consider the accounting presentation, reporting effects, contractual terms, and practical operating needs of each equipment arrangement.

Growth in Equipment Replacement, Modernization, and Capital Investment

Artificial intelligence infrastructure is supporting a rapid increase in demand for financed technology and related physical assets. The Equipment Leasing and Finance Foundation recorded USD 14.3 billion in seasonally adjusted new business volume in July 2026, which it attributed to artificial intelligence-related investment. The financing need extends beyond servers and networking equipment because data center projects also require power, cooling, construction, and materials-handling assets, bringing equipment manufacturers, dealers, banks, captives, and independent providers into the same investment cycle even though their financed assets serve different technical functions. This broad asset requirement links digital investment to several parts of the equipment finance market. Replacement cycles are becoming more important where equipment performance, energy use, or technology compatibility can affect business operations, because retaining an older asset can increase maintenance requirements, limit capacity, or reduce compatibility with newer production and digital systems.

Interest-Rate Volatility and Funding-Cost Pressure

Interest rates remain the most immediate constraint on equipment finance profitability. Prime was 7.5% in mid-2026, compared with 3.25% in early 2022, keeping equipment borrowing costs well above earlier levels. ELFA identified the cost of funds as a principal risk for the second half of 2026. Independent providers rely on bank revolvers, warehouse lines, forward-flow buyers, and asset-backed securities markets for funding. Those sources can become more expensive or less available when bank balance sheets tighten, requiring independent providers to manage their liquidity, pricing, credit terms, and portfolio sales with greater care, even when underlying equipment demand remains healthy. ELFA reported a 1.8% delinquency rate and a 0.46% loss rate in July 2026, but stable credit performance does not remove the pressure created by higher funding costs

Other drivers and restraints analyzed in the detailed report include:

• Expanding SME and Mid-Market Access to Asset-Backed Financing
• OEM, Dealer, and Vendor-Supported Financing Programs
• Residual-Value and Equipment Obsolescence Risk

Segment Analysis

Equipment loans and title-finance products held 47.6% of the equipment finance market in 2025. Larger and capital-intensive businesses continue to use these structures when ownership and long-term control of an asset are important. Loan structures can also align with tax planning for businesses that have sufficient taxable income and a clear preference for keeping the equipment on their books, particularly when the asset is expected to remain productive for a long period. Finance leases remain relevant where borrowers seek ownership economics through a lease agreement. The equipment finance industry, therefore, continues to include financing structures that meet different balance-sheet and operating requirements.

Operating leases are projected to grow at a 7.4% CAGR through 2031, the fastest rate among financing products. Businesses use operating leases when they want flexibility, as equipment changes or usage levels vary. This structure can be especially useful for assets that are likely to become outdated before the end of a conventional ownership period, because it gives the customer a defined process for returning, renewing, or replacing equipment as operational requirements change. The United Kingdom Finance and Leasing Association reported GBP 877 million (USD 1.11 billion) in operating lease new business during June 2026 and GBP 2.44 billion (USD 3.10 billion) during the first half of 2026. The equipment finance market can gain from this shift as customers increasingly choose access to equipment over outright ownership, particularly when they need to protect liquidity, avoid committing to an asset with an uncertain future value, or retain the ability to adjust equipment capacity as business conditions change.

Industrial, manufacturing, and materials-handling equipment held 17.4% of the equipment finance market in 2025, giving this category a leading position within the equipment finance market. This category is supported by factory modernization, automation, and investment in domestic production capacity. It also serves a broad customer base across industrial production, warehousing, construction support, and materials movement, which helps maintain demand even when investment conditions differ between individual industrial sectors or end-user locations. Construction and earthmoving equipment remains a major part of financed asset portfolios because of long equipment lives and large transaction sizes, while the need for maintenance, periodic replacement, utilization planning, and site-specific deployment creates a continuing role for lenders that understand the commercial use of these assets. Agricultural, healthcare, energy, and mining equipment add distinct financing needs based on their operating cycles and asset characteristics.

IT, telecommunications, and office equipment are projected to grow at a 9.2% CAGR through 2031 in the equipment finance market. The United Kingdom Finance and Leasing Association reported that IT equipment finance rose 21% year over year in June 2026. CHG-MERIDIAN reported a managed technology portfolio of EUR 12.59 billion (USD 14.73 billion) in 2025, after 7% year-over-year growth. Its 2025 lease originations reached EUR 3.12 billion (USD 3.16 billion), with 10% growth linked to technology investment and artificial intelligence applications. Faster hardware refresh cycles make leasing a practical option for cloud operators and enterprise technology teams that need to preserve flexibility, avoid holding aging equipment for too long, and plan replacement decisions around system performance and capacity needs.

Complete Report Scope:

• By Financing Product
  • Equipment loans and Title-Finance Products
  • Finance Leases
  • Operating Leases
• By Asset Type
  • Industrial, Manufacturing and Materials-Handling Equipment
  • Construction and Earthmoving Equipment
  • Marine, Rail and Intermodal Equipment
  • Aviation Equipment
  • Information Technology, Telecommunications, and Office Equipment
  • Healthcare and Medical Equipment
  • Agricultural Equipment
  • Energy, Power and Utilities Equipment
  • Mining and Oilfield Equipment
  • Other Equipment
• By End-User Industry
  • Manufacturing
  • Construction and Infrastructure
  • Transportation and Logistics
  • Aviation and Aerospace
  • Energy and Utilities
  • Oil and Gas
  • Mining
  • Healthcare and Life Sciences
  • Agriculture
  • Information and Communications Technology
  • Retail, Wholesale, and E-Commerce
  • Government and Public Sector
  • Hospitality and Foodservice
  • Other End-User Industries
• By Equipment Finance Provider Type
  • Banks and Bank-Affiliated Equipment Finance Providers
  • Captive Equipment Finance Companies
  • Independent Equipment Finance Companies
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Vietnam
    • Rest of Asia-Pacific
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Turkey
    • South Africa
    • Egypt
    • Rest of Middle East and Africa

Geography Analysis

North America held 39.8% of the equipment finance market in 2025 and remained the largest regional contributor. ELFA forecast USD 137.3 billion in new United States equipment finance business volume for 2026, following the July increase in artificial intelligence-related investment. New business volume through July 2026 was 16.8% higher than in the corresponding period of 2025. The region benefits from established bank, captive, and securitization channels that can serve a wide range of assets and borrower profiles, from small-ticket technology equipment to large industrial, construction, transportation, and energy-related transactions with longer documentation and funding requirements. Canada contributes through energy, mining, and construction equipment needs. Mexico benefits from manufacturing activity connected to nearshoring, which can create demand for production equipment, logistics assets, and related financing structures that support the movement of industrial activity within the North American region. Elevated funding costs remain a concern because prime stayed at 7.5% in mid-2026.

Europe represents a substantial part of global leasing activity and remains an important contributor to the equipment finance market. The United Kingdom, Germany, Japan, the United States, and China accounted for more than 73% of global leasing activity. Germany recorded EUR 83.12 billion (USD 91.4 billion) in new leasing finance during 2025, an increase of 3.2%. The German leasing penetration rate reached 26.6% in 2025. The United Kingdom reported 15% year-over-year growth in asset finance new business during June 2026, including 17% growth in plant and machinery and 21% growth in IT equipment. European Investment Fund programs and KfW partnerships are also supporting SME equipment access by helping providers extend financing capacity to businesses investing in productive assets, digital tools, environmental upgrades, and infrastructure-related equipment.

Asia-Pacific is projected to grow at a 7.1% CAGR through 2031, making it the fastest-growing regional segment. India’s National Infrastructure Pipeline targets more than USD 1.4 trillion in investment through 2030. China’s leasing sector is shifting toward asset-based financing under regulatory changes, which may place more focus on the underlying equipment, its use, and its value rather than on structures that resemble general credit, while also changing the approach of larger leasing groups operating across the region. Chinese leasing groups are also expanding into Vietnam, Indonesia, and the Philippines. Japan provides established leasing capacity, while South Korea, Australia, and Singapore add regional scale through mature financial systems and diverse equipment needs, giving the region a mix of developed leasing markets and rapidly expanding investment destinations. South America, the Middle East, and Africa offer further potential but face currency, interest-rate, and cross-border financing constraints.

List of Companies Covered in this Report:

• BNP Paribas Leasing Solutions
• Mitsubishi HC Capital Inc.
• DLL Group
• Societe Generale Equipment Finance
• Sumitomo Mitsui Finance and Leasing Co., Ltd.
• Deutsche Leasing AG
• Wells Fargo Equipment Finance
• Bank of America Global Leasing
• Caterpillar Financial Services
• ICBC Financial Leasing Co., Ltd.
• Mizuho Leasing Company, Limited
• Fuyo General Lease Co., Ltd.
• PNC Equipment Finance
• First Citizens Bank Equipment Finance
• Huntington Equipment Finance
• BMO Equipment Finance
• U.S. Bank Equipment Finance
• PACCAR Financial Corp.
• CNH Industrial Capital
• John Deere Financial
• Air Lease Corporation

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support