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The global equipment finance services market reached a valuation of USD$1.2 trillion in 2022 and is projected to reach $3.1 trillion by 2032, according to a recent report from Allied Market Research, a US-based market analysis firm.

The market is anticipated to witness a compound annual growth rate (CAGR) of 9.7% from 2023 to 2032.

Technological advancements, including AI, blockchain, and IoT, are cited as primary drivers of the equipment finance services market.

Market growth is also propelled by evolving consumer preferences, demand for flexible financing options and a surge in value-added services. Despite these trends, regulatory compliance and economic uncertainty present ongoing challenges to market expansion.

A noteworthy development is the increasing emphasis on sustainability and environmental consciousness, leading to a demand for eco-friendly equipment and practices, thus contributing to the market’s growth.

Partnerships and collaborations across industries are identified as strategic avenues for equipment finance companies to enhance their service offerings and expand their market reach by leveraging complementary expertise and resources.

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Key Segment Findings:

  • Equipment Loan Segment: Held the highest market share in 2022, contributing to over two-thirds of the global equipment finance services market revenue. This is expected to maintain its leadership throughout the forecast period. This dominance is attributed to the rising demand for modernised equipment across various industries coupled with favourable financing terms and accessibility for businesses of all sizes.
  • Equipment Lease Segment: This is projected to manifest the highest CAGR of 12.3% from 2023 to 2032. This growth is attributed to the flexibility it offers businesses in acquiring necessary equipment without a substantial upfront investment, preserving capital for other operational expenses or investments.
  • Provider Segment: Banks: Held the highest market share in 2022, contributing to over two-thirds of the global market revenue. It is projected to maintain its leadership status throughout the forecast period. Banks are favoured due to their substantial financial resources, competitive rates and reputation. On the other hand, the Non-Banking Financial Companies (NBFCs) segment is anticipated to witness the highest CAGR of 11.9% from 2023 to 2032. This growth is attributed to agile decision-making processes and streamlined operations, enabling quicker loan approvals and disbursements.

As the equipment finance services market evolves, partnerships, technological integration, and a focus on sustainable practices are expected to play pivotal roles in shaping its trajectory.