United States Material Handling Equipment Leasing and Financing Market Report and Forecast 2024-2032

United States Material Handling Equipment Leasing and Financing Market Outlook

The United States material handling equipment leasing and financing market size reached approximately USD 1.15 billion in 2023. The market is projected to grow at a CAGR of 15.2% between 2024 and 2032, reaching a value of around USD 4.13 billion by 2032.

Key Takeaways

• Sale of class 8 trucks recorded a year-on-year growth of 14.6% in 2022 in the US.

• Transportation equipment accounted for 24.7% of all equipment in the US, which contributed to a surge in businesses in 2022.

• The demand for leasing material handling equipment is expected to grow significantly from small-size businesses in upcoming years.

Material handling equipment like mezzanines, palletizers, reclaimers, and forklifts are expensive and require a significant amount of investment from businesses. They simplify the task of organising inventory, processing materials, and packaging and transporting them to the designated area.

With the emergence of flexible leasing and financing options, the financial burden of equipment ownership has been eliminated for businesses, giving them the flexibility of switching to newer machines with advancements in technologies.

The market is being driven by the expansion of various industries, including retail and e-commerce, in the USA. As banks and financial institutions continue to diversify their digital presence, the accessibility of financial loans and other forms of support is increasing.

Over the forecast period, the United States material handling equipment leasing and financing market is expected to grow amid increasing attempts by financial services firms to expand their product portfolio and benefit businesses with attractive leasing and financing schemes.

Key Trends and Developments

Reduced interest rates on borrowings; labour shortage for material handling; increasing demand for material handling equipment from small and medium-sized businesses; and the high popularity of leasing are the major trends impacting the market growth.

United States Material Handling Equipment Leasing and Financing Market Trends

Flexible and convenient options for leasing and financing material handling equipment are necessary for businesses seeking to enhance their profits to create a hedge fund for times of economic slowdowns and losses.

Retailers who seek to expand their market presence through e-commerce channels and companies who seek to benefit from automated machines without getting their investments locked into a particular technology are enhancing the demand for simple leasing and financing options for material handling equipment.

The manufacturing industry is expected to witness a shortage of 2.1 million workers for material handling by 2030, which can contribute to the demand for financing bulky machines and automated robots.

Market Segmentation

“United States Material Handling Equipment Leasing and Financing Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Industrial trucks and lifts are expected to dominate the United States material handling equipment leasing and financing market share in the forecast period

8/10 businesses require some sort of leasing/financing support to purchase new trucks or software. The most common option for financing these trucks and lifts was leasing (26%), followed by other options like secured loans (19%) and lines of credit (17%).

Since industrial trucks and lifts are important for handling and transporting goods over long distances, their demand is expected to contribute to the United States material handling equipment leasing and financing market development  in the coming years.

The demand for other engineered systems, including warehouse robots and automated guided vehicles is also expected to witness significant growth in the forecast period as various industries switch towards automating crucial tasks like storing, packaging, and shelving materials.

The US mining and manufacturing industry is expected to increase the demand for bulk handling equipment over the forecast period

Since the mining and quarrying industry requires efficient processing systems that can crush, grind, and mix minerals effectively, the demand for bulk handling systems is likely to gain momentum over the forecast period.

Moreover, the manufacturing industry requires a sophisticated arrangement of equipment capable of storing, loading, and unloading materials efficiently, hence the demand for conveyors and hoppers is fuelling the United States material handling equipment leasing and financing market.

With the expansion of the e-commerce industry in the USA, the demand for warehouse management equipment like palletisers, and smart robots is expected to gain momentum, which is likely to drive the market growth. A similar trend can be observed for assembly and other equipment.

Competitive Landscape

Major players in the United States material handling equipment leasing and financing market are offering flexible and convenient financing options to the retail industry

Other key players in the United States material handling equipment leasing and financing market include Crest Capital LLC, Element Vehicle Management Services Group, LLC, Trust Capital, De Lage Landen International B.V., Taylor Leasing & Rental, Inc., and Harbor Services Group, Inc., among others.

Key Highlights of the Report