Insight into European Equipment Leasing 2026

In 2026, European businesses continue to face significant challenges in securing lease financing, as economic and regulatory pressures persist through the year.

Main Take Aways.

European equipment leasing and vendor programmes in 2026 are growing in volume but are shaped by high rates, weak core EU economies, tighter regulation, and stronger demand for flexible, Green- and “as-a-service” structures.

Europe’s financial leasing services market is projected to grow at about 10.5% CAGR from 2025 to 2033, driven by transportation, construction, manufacturing, IT and healthcare demand.

Leaseurope’s latest biannual survey for 2025 reports that new business volumes in Europe remain positive but with slower growth, reflecting economic stagnation in France and Germany and generally sluggish EU GDP.

 Elevated borrowing costs and risk‑averse credit appetite from banks continue into 2026, especially for SMEs, making vendor leasing and non‑bank funders more central to capital investment.

Manufacturers with integrated vendor leasing frameworks are using finance as a sales accelerator to overcome Capex blocks, shorten deal cycles, and retain control of residuals across 30+ European countries via multi‑funder panels.

Banks remain key providers but are constrained by Basel IV / CRD VI capital rules, pushing them toward risk transfer, rated structures and partnerships with private credit and institutional investors.

Key Strategic Implications for Vendors.  

Manufacturers selling into Europe in 2026 need embedded leasing in their sales process to neutralise Capex freezes, shifting discussion from €80k+ ticket prices to daily or quarterly rentals with mid‑term upgrade paths.

Manufacturers with integrated vendor leasing programmes are using finance as a sales accelerator to overcome Capex blocks, and to push back against continuing economic headwinds.

This is crucial in the Dachs region, where the traditionally resilient Mittelstand in Germany, are continuing to suffer. CFOs are navigating an increasingly complex environment of rising energy costs, tariffs,  stagnating revenues, lower sales volumes, and uncertain investment climates. Switzerland especially has been hit by the new tariffs, causing uncertainty across the country.

Whilst traditional leasing markets are stagnant, Spain, Portugal, Poland, and Greece are showing strong leasing potential due to growth as the countries upgrade their infrastructure needs and the move to digital transformation including the building of large data centres.

The equipment leasing industry, in particular for automotive and industrial goods faces reduced demand, trickier financing, and downward pressure on portfolio values, as Europe adjusts to a more fragmented global trade landscape.

In summary, tariff volatility creates a “risk-off” environment in leasing finance, spawning both headwinds , with slower deal flows, higher costs, and tighter terms and new opportunities for agile, adaptive funders looking  increasingly to captive  arrangements with manufacturers and vendor programmes where leasing, as a true sales – aid, will assist in higher sales and better margins for both manufacturers  and funders.