The leasing industry is a global industry that provides companies with financial products to rent physical assets. These assets can include industrial machinery, cars, and nonfinancial intangible assets. Some of the major companies in the industry include Avis Budget Group, Hertz Global Holdings, U-Haul, and United Rentals. There are also many smaller and regional companies that operate in the industry.
The global leasing market is estimated at over $2 trillion in 2020 and is expected to grow at an 8% CAGR. The largest leasing markets are North America and Asia Pacific. These two regions accounted for more than 30% of the world’s leasing market in 2016. Europe is the third largest leasing market, followed by the US. The US leasing industry represents around 57,000 establishments and includes units of multi-location companies with combined revenues of $158 billion.
Today, the leasing industry has become a very popular business model for companies that don’t want to buy expensive equipment. Businesses can lease computers, monitors, cubicles, office space, automobiles, and trailers. These products are especially useful for new or small companies looking to finance their business expansion. This makes the leasing industry a viable and growing industry for businesses.
The leasing industry is driven by several factors. Low interest rates are a significant driving factor. The low cost of maintenance is another factor that is helping the industry grow.