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    Leasing Market

    ID: MRFR/BFSI/22850-HCR
    128 Pages
    Aarti Dhapte
    October 2025

    Leasing Market Research Report By Asset Type (Real Estate, Equipment, Vehicles, Technology Assets, Healthcare Assets), By Lease Term (Short-Term (up to 24 months), Medium-Term (25-60 months), Long-Term (61 months and above)), By Lessee Type (Corporations, Small Businesses, Government Entities, Individuals) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Leasing Market Infographic
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    Leasing Market Summary

    The global leasing market is projected to grow from 252.17 USD billion in 2024 to 449.81 USD billion by 2035, indicating robust expansion.

    Key Market Trends & Highlights

    Leasing Key Trends and Highlights

    • The global leasing market is valued at 252.2 USD billion in 2024.
    • By 2035, the market is expected to reach 449.7 USD billion, reflecting a substantial increase.
    • The compound annual growth rate (CAGR) for the period from 2025 to 2035 is estimated at 5.4 percent.
    • Growing adoption of leasing solutions due to increased demand for flexible financing options is a major market driver.

    Market Size & Forecast

    2024 Market Size 252.17 (USD Billion)
    2035 Market Size 449.81 (USD Billion)
    CAGR (2025-2035) 5.40%

    Major Players

    Caterpillar, DLL, BNP Paribas, Goldman Sachs, Societe Generale, ING, Wells Fargo, Morgan Stanley, HSBC, Deutsche Bank, Royal Bank of Scotland, UBS, Citigroup, JPMorgan Chase, Bank of America, Credit Agricole Corporate and Investment Bank, Barclays

    Leasing Market Trends

    The Leasing Market is projected to witness significant growth in the coming years, driven by factors such as the increasing adoption of flexible financing options and the growing demand for asset optimization. Market trends include the rise of digital leasing platforms, the expansion of leasing services into new asset categories, and the increasing focus on sustainability. Key drivers include the need for businesses to conserve capital, the flexibility and scalability of leasing arrangements, and the ability to access specialized assets that may not be available for purchase.

    Opportunities exist in emerging markets, the adoption of leasing by small and medium-sized businesses, and the growing popularity of subscription-based business models.

     

    The Global Leasing Market is poised for robust growth as businesses increasingly seek flexible financing solutions to adapt to evolving economic conditions.

    U.S. Small Business Administration

    Leasing Market Drivers

    Global Economic Recovery

    The Global Leasing Market Industry is poised to benefit from the ongoing global economic recovery. As economies rebound, businesses are likely to invest in new assets to support growth and expansion. Leasing provides a viable solution for companies looking to acquire necessary equipment without incurring substantial debt. This trend is particularly relevant in emerging markets, where access to capital may be limited. The anticipated increase in leasing activity aligns with the industry's projected growth trajectory, with the market expected to reach 449.7 USD Billion by 2035. This recovery phase presents opportunities for leasing companies to expand their offerings.

    Market Growth Projections

    The Global Leasing Market Industry is projected to experience substantial growth over the next decade. With a market size of 252.2 USD Billion in 2024, the industry is expected to expand at a compound annual growth rate of 5.4% from 2025 to 2035. By 2035, the market could reach approximately 449.7 USD Billion, driven by factors such as increasing demand for flexible financing, technological advancements, and sustainability initiatives. This growth trajectory suggests a robust future for leasing, as businesses continue to seek innovative solutions for asset acquisition and management.

    Sustainability Initiatives

    Sustainability initiatives are becoming a driving force within the Global Leasing Market Industry. Companies are increasingly recognizing the importance of environmentally friendly practices, leading to a rise in demand for sustainable leasing options. This trend is particularly prevalent in industries such as automotive and construction, where leasing electric vehicles and eco-friendly equipment is gaining traction. By opting for leased assets, businesses can reduce their carbon footprint while maintaining operational efficiency. The growing emphasis on sustainability is expected to influence market dynamics, potentially contributing to a compound annual growth rate of 5.4% from 2025 to 2035.

    Technological Advancements

    Technological advancements are significantly shaping the Global Leasing Market Industry. Innovations in asset management and tracking technologies, such as IoT and AI, enhance the efficiency and transparency of leasing operations. These technologies facilitate real-time monitoring of leased assets, improving maintenance and reducing downtime. Furthermore, digital platforms streamline the leasing process, making it more accessible for businesses of all sizes. As organizations increasingly adopt these technologies, the leasing market is likely to expand, with projections suggesting a market size of 449.7 USD Billion by 2035. This evolution indicates a shift towards more sophisticated leasing solutions.

    Regulatory Support and Incentives

    Regulatory support and incentives play a crucial role in shaping the Global Leasing Market Industry. Governments worldwide are increasingly recognizing the economic benefits of leasing, leading to the implementation of favorable policies and tax incentives. These measures encourage businesses to consider leasing as a viable financing option, particularly in sectors such as renewable energy and infrastructure. By reducing the financial burden associated with asset acquisition, regulatory frameworks foster a conducive environment for leasing growth. As a result, the market is projected to grow significantly, with a valuation of 252.2 USD Billion in 2024, reflecting the positive impact of these initiatives.

    Rising Demand for Flexible Financing

    The Global Leasing Market Industry experiences a notable increase in demand for flexible financing solutions. Businesses are increasingly seeking alternatives to traditional purchasing methods, which can be capital-intensive. Leasing allows companies to acquire assets without the burden of upfront costs, thus preserving cash flow. This trend is particularly evident in sectors such as technology and transportation, where rapid advancements necessitate frequent upgrades. As of 2024, the market is valued at approximately 252.2 USD Billion, indicating a robust appetite for leasing as a financial strategy. This shift towards leasing is expected to continue, contributing to the industry's projected growth.

    Market Segment Insights

    Leasing Market Asset Type Insights

    The Leasing Market is segmented into various asset types, each with its unique dynamics and growth prospects. The key asset types in the leasing market include Real Estate, Equipment, Vehicles, Technology Assets, and Healthcare Assets. Real Estate: Real estate leasing is a dominant segment in the Leasing Market, driven by the increasing demand for commercial and residential properties. The growth is attributed to factors such as urbanization, rising population, and increasing demand for office spaces and residential apartments.

    Equipment: The equipment leasing segment is another significant contributor to the Leasing Market.This segment covers the leasing of various types of equipment used in industries such as manufacturing, construction, healthcare, and transportation. The growing demand for equipment leasing is driven by the need for businesses to acquire and utilize equipment without having to make large upfront investments. Businesses and individuals prefer vehicle leasing due to its flexibility and cost-effectiveness. The vehicle leasing market size is anticipated to reach USD 1.67 billion by 2032, growing at a CAGR of 2.91%.

    Technology Assets: The increasing adoption of technology and digitalization has led to the growth of the technology assets leasing segment.This segment includes the leasing of hardware, software, and other IT-related assets. The growing demand for technology asset leasing is driven by businesses seeking to stay competitive and adapt to technological advancements without incurring significant upfront costs. Healthcare Assets: The healthcare assets leasing segment involves the leasing of medical equipment and facilities.

    Leasing Market Lease Term Insights

    The Lease Term segment of the Leasing Market is segmented into Short-Term (up to 24 months), Medium-Term (25-60 months), and Long-Term (61 months and above). The Short-Term segment accounted for the largest share of the market in 2023 and is projected to continue to grow at a steady pace over the forecast period. The Medium-Term segment is expected to experience moderate growth, while the Long-Term segment is expected to grow at a slower pace.

    The growth of the Short-Term segment can be attributed to the increasing popularity of flexible leasing options, as well as the growing demand for short-term rentals in the automotive and equipment leasing sectors.The Medium-Term segment is expected to benefit from the growing demand for leasing in the commercial and industrial sectors. The Long-Term segment is expected to be driven by the growing demand for long-term leasing in the infrastructure and energy sectors.

    Leasing Market Lessee Type Insights

    The Lessee-type segment of the Leasing Market is segmented into Corporations, Small Businesses, Government Entities, and Individuals. Among these, Corporations dominate the market with a revenue share of approximately 60% in 2023. This dominance is attributed to the increasing demand for equipment, machinery, and vehicles by corporations to enhance their operational efficiency and productivity. Small Businesses hold a significant share of around 25%, primarily driven by the growing number of start-ups and small enterprises seeking flexible financing options to acquire necessary assets.Government Entities account for a moderate share, driven by government initiatives and infrastructure projects.

    Individuals contribute a smaller share to the market, typically leasing vehicles and consumer durables for personal use. The market is expected to witness steady growth in the coming years, with the Corporate segment continuing to lead the growth.

    Get more detailed insights about Leasing Market

    Regional Insights

    The Leasing Market segmentation by region offers insights into the market's performance across key geographies. North America holds a significant share of the market, driven by factors such as the presence of established players, technological advancements, and favorable regulatory policies. Europe follows closely, with a large number of leasing companies and a mature leasing market. The APAC region is expected to witness significant growth in the coming years, fueled by rising demand from emerging economies such as China and India.

    South America and MEA have relatively smaller market shares but offer growth potential due to increasing infrastructure development and urbanization.The Leasing Market revenue is projected to reach 1.29 billion USD in 2023, and with a CAGR of 2.91%, it is expected to reach 1.67 billion USD by 2032. This growth is attributed to increasing demand for leasing services across various industries, including transportation, manufacturing, and healthcare.

    Leasing Market Regional Insights

    Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

    Key Players and Competitive Insights

    Major players in Leasing Market industry are constantly investing in research and development to enhance their product offerings and gain a competitive edge. Leading Leasing Market players are focusing on developing innovative solutions that cater to the evolving needs of customers. The Leasing Market Competitive Landscape is characterized by a diverse range of players, including both established incumbents and emerging challengers.

    To stay ahead in the competition, key players are adopting various strategies such as strategic partnerships, acquisitions, and product diversification.A leading company in the Leasing Market, Caterpillar has a strong global presence and offers a comprehensive range of leasing solutions to various industries. The company focuses on providing customized leasing programs tailored to the specific requirements of customers. Caterpillar leverages its extensive dealer network and financial expertise to deliver tailored leasing solutions that align with customer budgets and operational needs.

    Through its commitment to innovation and customer-centric approach, Caterpillar has established itself as a trusted partner for businesses seeking flexible and cost-effective leasing solutions.Another major player in the Leasing Market, DLL, specializes in providing equipment leasing and financial solutions to various industries, including healthcare, technology, and manufacturing. The company has a global presence and offers flexible leasing options to meet the diverse needs of customers. DLL emphasizes building strong customer relationships and providing personalized service to ensure customer satisfaction. The company's commitment to sustainable practices and environmental responsibility further enhances its competitive advantage in the market.

    With its focus on customer-centricity and innovative leasing solutions, DLL has positioned itself as a leading provider in the Leasing Market.

    Key Companies in the Leasing Market market include

    Industry Developments

    The Leasing Market is projected to reach USD 1.67 billion by 2032, exhibiting a CAGR of 2.91% during the forecast period 2024-2032. Key factors driving market growth include increasing demand for flexible financing solutions, technological advancements, and growing adoption of leasing in various industries. The market is segmented by asset type (equipment leasing, real estate leasing, and vehicle leasing), industry (manufacturing, healthcare, transportation, and others), and region (North America, Europe, Asia-Pacific, and Rest of the World).

    Recent news developments include the launch of new leasing products and services by major players, as well as strategic partnerships and acquisitions to expand market reach. Key industry participants are actively investing in digital transformation to improve customer experience and streamline operations.

    Future Outlook

    Leasing Market Future Outlook

    The Global Leasing Market is projected to grow at a 5.40% CAGR from 2025 to 2035, driven by technological advancements, increasing demand for flexible financing, and sustainability initiatives.

    New opportunities lie in:

    • Develop innovative leasing models for electric vehicles to capture eco-conscious consumers.
    • Leverage digital platforms for streamlined lease management and customer engagement.
    • Expand into emerging markets with tailored leasing solutions for small and medium enterprises.

    By 2035, the Global Leasing Market is expected to be robust, reflecting dynamic growth and evolving consumer preferences.

    Market Segmentation

    Leasing Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Leasing Market Asset Type Outlook

    • Real Estate
    • Equipment
    • Vehicles
    • Technology Assets
    • Healthcare Assets

    Leasing Market Lease Term Outlook

    • Short-term (up to 24 months)
    • Medium-Term (25-60 months)
    • Long-Term (61 months and above)

    Leasing Market Lessee Type Outlook

    • Corporations
    • Small Businesses
    • Government Entities
    • Individuals

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 252.17 (USD Billion)
    Market Size 2035 449.81 (USD Billion)
    Compound Annual Growth Rate (CAGR) 5.40% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled BNP Paribas, Goldman Sachs, Societe Generale, ING, Wells Fargo, Morgan Stanley, HSBC, Deutsche Bank, Royal Bank of Scotland, UBS, Citigroup, JPMorgan Chase, Bank of America, Credit Agricole Corporate and Investment Bank, Barclays
    Segments Covered Asset Type, Lease Term, Lessee Type, Regional
    Key Market Opportunities Digital transformationIoT integrationEmerging economiesInfrastructure developmentGreen leasing
    Key Market Dynamics Growing demand for equipment financingRise of digital leasing platformsIncreasing popularity of operational leasesGovernment regulations and policiesTechnological advancements
    Countries Covered North America, Europe, APAC, South America, MEA
    Market Size 2025 265.79 (USD Billion)

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    FAQs

    What is the expected market size of the Leasing Market in 2024?

    The Leasing Market is expected to reach a valuation of USD 252.17 billion in 2024.

    What is the projected CAGR of the Leasing Market from 2025 to 2035?

    The Leasing Market is projected to grow at a CAGR of 5.40% from 2025 to 2035.

    Which region is expected to hold the largest market share in the Leasing Market in 2023?

    North America is expected to hold the largest market share in the Leasing Market in 2023, accounting for approximately 35% of the global market.

    What are the key growth drivers of the Leasing Market?

    Key growth drivers of the Leasing Market include increasing demand for flexible financing options, rising adoption of leasing in various industries, and government initiatives promoting leasing.

    Who are the major competitors in the Leasing Market?

    Major competitors in the Leasing Market include global banks such as HSBC, Citigroup, and BNP Paribas, as well as specialized leasing companies such as DLL, Element Finance, and ORIX Corporation.

    What are the major applications of leasing in the Leasing Market?

    Major applications of leasing in the Leasing Market include equipment leasing, real estate leasing, and vehicle leasing.

    What are the challenges faced by the Leasing Market?

    Challenges faced by the Leasing Market include economic downturns, regulatory changes, and competition from alternative financing options.

    What are the emerging trends in the Leasing Market?

    Emerging trends in the Leasing Market include the rise of digital leasing platforms, increased focus on sustainability, and growing demand for leasing in emerging markets.

    What is the impact of COVID-19 on the Leasing Market?

    The COVID-19 pandemic had a significant impact on the Leasing Market, leading to a decline in leasing activity in 2020. However, the market is expected to recover in the coming years.

    What is the outlook for the Leasing Market in the long term?

    The long-term outlook for the Leasing Market is positive, with increasing demand for flexible financing options and government support for leasing expected to drive growth.

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