About Finance Lease
A finance lease is a type of leasing contract where lessee selects an asset that is purchased by lessor. The lessee is entitled to use the asset during the lease and further an option of acquiring the property by paying the bargain purchase price to lessor. Amid growing financial instability across the globe, finance lease offers a great platform for costumers to acquire the assets of their desire. Further, its ability to offer high return on investment and options such as flexible repayment structure are expected to drive the market. Though, instability in global economy may hinder the growth.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Billion) |
As with all technology, Finance Lease will evolve time. Competition among existing players is due to the stiff market share occupied by leading players. The companies are implementing strategic activities such as acquisition and mergers along with collaboration with companies in other industries to help them in improving sustenance and maintaining their competitive advantages. Analyst at AMA Research estimates that United States and Chinese Players will contribute the maximum growth to Global Finance Lease market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
CDB Leasing [China], ICBC Financial Leasing Co., Ltd [China], BOC Aviation [Singapore], Minsheng Financial Leasing Co., Ltd [China], CMB Financial Leasing [China], HSBC Bank [United Kingdom], Sumitomo Mitsui Finance and Leasing [Japan] and Bank of America Leasing & Capital LLC [United States] are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are BNP Paribas Leasing Solutions [France], JPMorgan Chase [United States], People's United Financial [United States], SVB Financial Group [United States] and Global Financial & Leasing Services, LLC [United States].
Segmentation Overview
AMA Research has segmented the market of Global Finance Lease market by Type (Sale and Leaseback, Direct Leasing, Leveraged Lease, Straight Lease and Modified Lease and Primary and Secondary Lease) and Region.
On the basis of geography, the market of Finance Lease has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by End Users, the sub-segment i.e. Aviation will boost the Finance Lease market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Business Type, the sub-segment i.e. International Business will boost the Finance Lease market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Availability of Flexible Repayment Structures and Integrated Offering to Consumer by Stakeholders
Market Growth Drivers:
Ability to Offer Cost Effective Solution, Taxation Benefits for the Lesser and High Return on Investment (ROI) for Lessee
Challenges:
Greater Chance of Damage of Asset, Compulsion to Pay the Lease by Lessee in case the Lease Finance Company opt out of Agreement and Adverse Impact on Credit Rating of Both Lessee and Lesser in case of Non-Payment
Restraints:
Unprofitable in Case of Inflation, Fluctuating Interest Rates and Unfavorable Regulation Regarding Financial Leasing Solutions
Opportunities:
Rising Disposable Income and Living Standard of People in Emerging Countries and Flexible Taxation Policy and Stability in Economies
Market Leaders and their expansionary development strategies
In August 2023, Indigo and BOC Aviation Limited have entered into a finance lease transaction for ten Airbus A320NEO aircraft. These aircraft has equipped with CFM LEAP-1A engines, reflecting the airline’s commitment to modern technology.
In February 2023, BMO Financial Group and BNP Paribas unveiled a long-term commercial agreement and a fresh cross-border framework to enrich coverage and facilitate global network access for their commercial banking clients. Additionally, the two institutions established a comprehensive leasing services partnership. This collaboration agreement signifies the commitment of both banks to deliver and expand international services for their clients., and In March 2022, In a significant collaboration, CaixaBank, the foremost financial group in Spain, and BNP Paribas 3 Step IT has joined forces to provide a groundbreaking partnership. This alliance offers CaixaBank's professional clients access to cutting-edge and environmentally-friendly IT solutions, marking the first time such innovative offerings are made available to them.
In United States, from 2019, public-company borrowers and International Financial Reporting Standards (IFRS) users will face a change to the treatment of leasing transactions under US Generally Accepted Accounting Principles ("GAAP"). These new guidelines seek to establish a new level of consistency in the realm of lease accounting, but affected borrowers must consider, if they have not already, how the accounting change will affect and be treated under their credit agreements.
Key Target Audience
Finance Lesser Companies, Government Agencies, Potential Investor, Industry Associations, Research Institutes, Market and Research Firms and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.