The leasing industry includes businesses that lease or rent a wide variety of tangible goods, such as cars, industrial machinery, and consumer goods. It also includes lessors of intangible assets. Various types of leases are available, such as operating leases, financial leases, and operating leases. There are many different types of leases in the industry, and these types vary widely.
The leasing industry is expanding rapidly. The global market is expected to grow to $2 trillion by 2025, with a CAGR of 8%. The world’s largest leasing markets are North America and Asia Pacific. North America accounts for more than three-quarters of the global market for leased equipment. Germany and the UK are the third and fourth-largest leasing markets in the world.
The open-end segment of the leasing industry is expected to grow at the fastest pace during the forecast period. This type of lease allows the lessee to make one payment at the end of the lease period, which is equal to the difference between the fair market value and the surplus value of the asset. This type of lease is most popular with business clients. Transport companies, for example, frequently purchase cars and vans under this type of lease.
The leasing industry has an important role in the economy, especially in developing countries. While access to capital is difficult in most countries, leasing companies are increasingly being used by businesses to provide the capital needed to expand.