Market overview in 2023 and H1 2024 results

Leaseurope, the trade association representing the European leasing and automotive rental industries, has released European leasing market figures for the first semester of 2024, comparing them with the latest annual results for 2023 published earlier. These figures indicate that growth in new business continued in H1 2024, albeit at a slower pace.

The 2023 Annual Statistical Enquiry showed that total new leasing volumes in Europe reached €447.9 billion in 2023, marking a 10.8% increase compared to 2022. Most national markets performed well, with about three-quarters enjoying double-digit growth, notably Belgium, Croatia, Greece, Turkey, Latvia, and Poland.

Performance across major asset categories varied in 2023. The automotive segment, the largest asset category, led the growth, with new leasing volumes for passenger cars expanding by 14.5% and for commercial vehicles by 14.4%. Equipment leasing saw more modest growth at 3.9%, with machinery and industrial equipment—representing 15% of total new leasing volumes—growing by 2.2%. In contrast, leasing of computers and business machines declined by -6.6%. Real estate leasing also contracted significantly, shrinking by -14.2% to €11.7 billion in new volumes for 2023.

As the results of Leaseurope’s 2024 Biannual Statistical Survey reveal, the upward overall market trend slowed down, partly due to more subdued growth in the equipment segment. Total leasing volumes in the first half of 2024 amounted to €195.5 billion, up by 5.6% from the same period in 2023. Vehicle leasing showed strong performance, with new business volumes up by 8.6%. However, equipment leasing stagnated, with a marginal decline of -0.5%. Real estate leasing continued its downward trend, falling by -7.2% in new business volumes despite large geographical variations ranging from significant gains in some key markets to double-digit drops over the same period.

“Following upbeat results from our 2023 annual survey, the European leasing business has expanded new business volumes in the first half of this year, despite macroeconomic uncertainties and prolonged weakness in business investment. The ECB’s second interest rate cut this year points to a potential easing of monetary policy, coupled with a continued drop in inflation, which could foster a gradual recovery in business investment. Indeed, the latest European Economic Forecast indicates that equipment investment is expected to rise modestly in 2024, with further acceleration anticipated in 2025. This trend suggests that the leasing sector will benefit from improved investment conditions and continue to grow new business for the remainder of the year."