United States Material Handling Leasing and Financing Market Size

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.