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Lease Team

Global Leasing: UK sets sights on third place



White Clarke Group has released a report showing that the global leasing market grew 9.4pct over 2016, and that China showed the most significant growth, gaining on the USA and climbing by nearly 62 pct to US$206 billion in 2016.

The annual Global Leasing Report covers the world’s top 50 leasing markets and tracks country trading environments and trends in auto and equipment finance. It attributes the strong growth to the development of innovation and new ways to finance equipment globally.

The man behind the report is Brendan Gleeson, Group CEO at White Clarke Group. He said, "The report reveals a confident industry outlook, with the top 50 countries in 2016 reporting growth in new business volume of 9.40pct rising from US$1,005 billion in 2015 to US$1,099 billion in 2016. The leasing industry has experienced significant growth and has introduced new and innovative ways to finance equipment for companies worldwide."

The United States remains the largest leasing market, although its pace of growth showed signs of slowing. The Survey of Equipment Finance Activity (SEFA) suggests that the USA experienced decelerated growth of new business volume, which grew 2.54pct in 2016, down from 11.10pct growth in 2015. This may give a pointer as to what to expect from 2017 figures.

The United Kingdom and Germany remain the third and fourth largest leasing markets in the world and are the dominant players in Europe, accounting between them for fully 42pct of the European market total. 2016 saw the UK industry take US$81.77bn of new business (growth of 8.98pct compared with the previous year). It is worth remembering that Brexit negotiations had already begun to affect the market from Spring 2016.

Germany’s growth was much less strong (up 3.42pct in comparison to 2015) while in Japan lease transaction volumes actually fell by 1.3pct in 2016.

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