Market Size of United States Material Handling Leasing and Financing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.33 Billion |
| Market Size (2029) | USD 2.77 Billion |
| CAGR (2024 - 2029) | 15.71 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Material Handling Leasing & Financing Market Analysis
The United States Material Handling Leasing and Financing Market size is estimated at USD 1.33 billion in 2024, and is expected to reach USD 2.77 billion by 2029, growing at a CAGR of 15.71% during the forecast period (2024-2029).
Material-handling equipment expanded due to the US economy's strong industry growth and corporate capacity for revenue.
- Reasons, such as technological advancements and avoiding obsolescence, are likely to become the top priorities of the region's capital spending, leading to the emergence of leasing and other financing options as more viable solutions than buying.
- The market for material handling equipment improved due to the US firms' substantial industrial expansion and income potential. The US economy historically grew at a 3.1% annual pace, the fastest growth rate since 2005. Over time, the output increased by USD 560 billion. Such information supports the region's rising economic activity.
- According to recent data from the US Department of Commerce, demand from the construction sector decreased throughout all four quarters, primarily due to high mortgage rates, labor and land shortages, and tariffs on imported lumber.
- According to ELFA, about USD 1.8 trillion was spent on capital goods or fixed business investments by US corporations, nonprofit organizations, and government agencies in 2021. As a result of the Fed's commitment to maintaining interest rates at or near zero for many years, firms are more likely to finance equipment than they have been over the previous two years.
- Moreover, leasing requires paying interest, which sometimes can be more expensive than outright purchasing the piece of machinery, which might hamper the market's growth.
- Since the COVID-19 pandemic, the manufacturing industry struggled during the year, with industrial production flat or declining as businesses with fixed investments contracted.
US Material Handling Leasing & Financing Industry Segmentation
Material handling equipment is mechanical equipment used for moving, storing, controlling, and protecting materials, products, and goods throughout manufacturing, distribution, and disposal.
The report covers the Material Handling Leasing and Financing Market in the United States.
United States Material Handling Leasing and Financing Market Size Summary
The US material handling equipment financing market is poised for significant growth, driven by robust industrial expansion and the increasing need for technological advancements to avoid obsolescence. As businesses prioritize capital spending on leasing and financing options over outright purchases, the market is expected to experience a substantial increase in size and share. The demand for material handling equipment is further bolstered by the rising labor costs in industrialized nations and the customization of equipment integrated with supply chain and warehouse ecosystems. Despite challenges such as high mortgage rates and tightening bank lending standards, the market continues to thrive, supported by the expansion of industrial real estate and the growing reliance on external warehousing by small businesses and local companies.
The competitive landscape of the material handling leasing and financing market is characterized by the presence of both domestic and international players, with companies like CIT Group, Crest Capital, and DLL Finance leading the charge. These firms are leveraging collaborations and product innovations to maintain their market positions. The market's growth is also influenced by the increasing service levels in e-commerce and same-day delivery, which necessitate the expansion of warehouse space. Technological advancements, such as digital twins and synthetic data modeling, are enhancing warehouse performance and efficiency, further driving the demand for leasing solutions. As the market evolves, the US-China trade conflict and economic policy changes present both challenges and opportunities for leasing and lending businesses, potentially impacting consumer purchasing power and creating new prospects for growth.
United States Material Handling Leasing and Financing Market Size - Table of Contents
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1. MATERIAL HANDLING LEASING AND FINANCING MARKET OVERVIEW
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1.1 Current Market Scenario (Market Volume and Forecast)
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1.2 Historical Industry Indicators
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1.3 Relative Positioning of the Material Handling Segment
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1.4 Pricing Trends and Market Projections of the Individual Material Handling Equipment
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1.5 Impact of COVID-19 on the Market Ecosystem
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United States Material Handling Leasing and Financing Market Size FAQs
How big is the United States Material Handling Leasing and Financing Market?
The United States Material Handling Leasing and Financing Market size is expected to reach USD 1.33 billion in 2024 and grow at a CAGR of 15.71% to reach USD 2.77 billion by 2029.
What is the current United States Material Handling Leasing and Financing Market size?
In 2024, the United States Material Handling Leasing and Financing Market size is expected to reach USD 1.33 billion.
