The outlook for the global leasing industry appears positive, defying the general trend for weak economic performance, according to analysis from asset finance software provider White Clarke Group (WCG).

Brendan Gleeson director of global business development and strategy at WCG, said that in spite of an uncertain economic climate, the industry "can still find encouraging trends from the last 12 months and see solid prospects for the year ahead."

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

While some market challenges, such as the European sovereign debt crisis and the ongoing adoption of international accounting standards, are common to all, there are specific challenges facing many of the major global markets.

In China, the leasing market rose 50% in the first nine months of 2012, with the trade volume for the full year expected to reach RMB 1,500bn (€179bn). This follows a slower growth period in 2011. Looking ahead WCG said 30-50% growth had been predicted for 2013.

Gleeson warned of several challenges for the Chinese market, including "access to funding for small and medium-sized businesses, access to reliable accounts for lessors," and better regulation, "particularly regarding the rising rate of default, new tax legislation, and corruption." He added that lessors entering China without "the right operating model and a framework for managing risk and growth" could be at risk.

In the USA, WCG cited Equipment Leasing & Finance Foundation (ELFA) figures for 2012 predicted equipment finance volume would reach $725bn (€540bn), up more than 9% on 2011 and surpassing the pre-recession peak reached in 2007.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Gleeson said ELFA’s 2013 Outlook report predicted the rate of growth in US leasing would be slow, and suggested that increasing liquidity in a slowing market would drive competition, with the focus on relationship building and leveraging technology rather than on price.

The outlook for UK leasing was "encouraging", said Gleeson citing Finance & Leasing Association data showing 7% growth in asset finance investment for the first ten months of 2012, although it was noted that the loss of ING Lease was a major blow. WCG reported "confident expectations" for 2013, boosted by the continuing dearth of mainstream bank lending.

Gleeson said the leasing industry in continental Europe was "standing still", with countries severely hit by sovereign debt issues suffering especially. There were some exceptions such as the Russian market, which enjoyed strong growth, and Germany, Europe’s largest leasing market, which grew in 2012 albeit marginally, up just 0.5% more than in 2011.