Dutch leasing market sees robust growth in H1 2024

The Dutch asset leasing market has recorded a strong first half in 2024, with a 7.5% increase in growth compared to the same period in 2023, and an impressive 11% growth over the latter half of last year. According to figures released today by Leasing Nederland-NVL, the market has reached nearly €4 billion in volume, marking the best first half of the year on record.

“Around 17,000 companies have benefited from leasing to invest in business assets, driven largely by the need to invest in electrically powered buses, trucks, and excavators due to the ongoing energy transition and the introduction of low-emission zones (LEZ) in cities.”

The energy transition is a significant factor in this growth, as businesses are increasingly required to invest in more expensive, environmentally friendly equipment. Spijkers emphasized that three-quarters of leasing company customers are small and medium-sized enterprises (SMEs), which rely heavily on external financing to make such investments. “Electrically powered construction machines, for example, are considerably more expensive than their diesel-powered counterparts. We expect the demand for leasing to only increase in the coming years,” he added.

The positive outlook for the leasing market has attracted attention from investors, as demonstrated by the recent sale of Beequip by NIBC to Apollo Global Management, a foreign investor. Spijkers commented, “The leasing market is an attractive investment for financiers due to the growth prospects driven by the energy transition. This trend is not just confined to the Netherlands but is seen across Europe. Additionally, the credit risk in leasing is typically low, as the leased assets themselves act as collateral, with their value being well-understood and predictable.”

Data from the European umbrella federation Leaseurope supports this view, with leasing loss figures historically remaining low at around 20 basis points.

Leasing Nederland-NVL also reported on the second quarter, noting a volume of €1.9 billion, reflecting a 6.8% growth compared to the same quarter in 2023. A notable trend in this quarter is the increased use of online channels, where the application, processing, and management of lease contracts are conducted through web portals, allowing for faster customer service. Additionally, the average contract value is on the rise, partly due to the increasing prices of new equipment.

For detailed equipment leasing market figures in the second quarter of 2024, click here.