Our latest white paper sheds light on these dynamics and shows how leasing companies can make their business models fit for the future. Dr. Klaus Strenge, Partner at zeb, and Elisabeth Bergfelder, Senior Consultant at zeb, are leasing experts from our Captives Practice Group. They provide insights into the topics that will shape the future of the leasing business.

How is the leasing market currently developing?

Elisabeth Bergfelder: Our analysis shows that in many regions the European leasing market has not seen any real growth for several years. Many leasing companies are unable to increase their volume of new business above the annual inflation level. Growth is often only achieved by tapping into new markets, e.g. through acquisitions, and by further developing the business model.

What does this mean for the profitability of leasing companies?

Elisabeth Bergfelder: This is a key point. Our data indicates that leasing companies that do not invest in their business models do worse in the long term. They do not achieve economies of scale to reduce operating costs and their profitability performance does not match that of leasing companies that can generate real growth.

What developments and future topics are shaping the leasing industry?

Dr. Klaus Strenge: Three major topic areas are currently dominating the transformation of the leasing industry. First of all, digitalization & automation: digital platforms combine leasing offers with supplementary services. Automated processes ensure efficiency and facilitate access for customers. Secondly, future-oriented investment areas & public innovation stimulus: government subsidy programs and societal expectations are leading to an increasing share of resource-saving assets. At the same time, digital processes enable the efficient implementation of decentralized infrastructure projects. And thirdly, market & general conditions: political and regulatory changes as well as a shift in consumer behavior are resulting in more flexible, service-oriented contract models.

How are these developments impacting the business models of leasing companies?

Dr. Klaus Strenge: They are fundamentally changing the business models. We are seeing a realignment of asset strategies. Demand is increasingly shifting towards resource-efficient and usage-oriented assets. This results in a diversified portfolio with a focus on sustainable technologies and infrastructure. In addition, new customer segments are gaining in importance: “digital natives” (technology-savvy generations and start-ups), infrastructure project operators, energy-intensive businesses and international manufacturers. This requires adapted leasing offers and new sales and service processes.

Leasing as a transformation driver: what does this mean in concrete terms?

Dr. Klaus Strenge: Leasing is becoming a strategic enabler for digital transformation, automated value creation and the realignment of energy-intensive structures. Especially for investments with high capital requirements, leasing is becoming a strategic instrument for macroeconomic transformation processes.

And how is the market structure changing?

Dr. Klaus Strenge: We are observing a platformization of the market. Leasing is increasingly embedded in ecosystems that require cooperation with manufacturers, tech and service partners. This leads to new forms of value creation. At the same time, data-driven management logics are becoming established: real-time and usage data becomes the basis for decisions on products, pricing, contract terms and services. This fundamentally changes the management of business models.

What insights should leasing companies take away from the white paper?

Dr. Klaus Strenge: Growth does not happen on its own. Those who do not change, will miss out. The future belongs to leasing companies that actively shape topics, tap into new customer segments and consistently develop their business model. We also saw this in our white paper: some of the leasing companies are already making strides on their growth path.

Elisabeth Bergfelder: And those who see transformation as an opportunity can position leasing as a strategic instrument for innovation – thus creating real added value.

Our conclusion

• The white paper clearly shows that the European leasing market is at a strategic turning point. Traditional growth is reaching its limits – new ways of thinking, strategic investments, digital and service-oriented models and the willingness to actively shape future transformation processes are required. Digitalization, sustainability and platformization are not peripheral issues, but key levers for long-term success.