The equipment finance industry expanded to an estimated $1.51 trillion in 2025, a new all-time high, with 87% of end-users using some form of financing to fund their equipment and software (E&S) acquisitions, according to a survey from the Industry Horizon Report: A Market Sizing Study 2026 – 2027. The report, which was released by the Equipment Leasing & Finance Association, also reveals that approximately 55.2% of the $2.7 trillion (nominal) invested in E&S, and 61.2% of private sector E&S investment, was financed in 2025.
“Equipment and software investment continued to expand in 2025, contributing to solid U.S. economic growth despite tariff impacts, and the trillion-dollar-plus equipment finance industry contributed significantly by supporting these acquisitions,” James Cress, acting president and CEO of ELFA, said. “Despite a shift in investment toward AI-related technology, much of which is funded by large firms with ample internal cash flow rather than reliance on financing, the share of end-users using at least one form of financing rose. The industry’s footprint is 2.5 times larger than it was at the time of the industry’s first end-user survey in 2007, and it is projected to continue expanding in the years ahead. This report delivers must-have insights that will give business leaders and decision makers a competitive edge in driving that growth.”
Highlights from the Industry Horizon Report include:
- Equipment finance industry grew 8.7% since 2024. According to the U.S. Bureau of Economic Analysis, E&S investment (both financed and not financed) expanded by 10% in 2025 to $2.7 trillion (nominal). ELFA estimates that approximately 55.2% of this investment was financed, leading to an estimated industry size of $1.51 trillion. This figure represents 8.7% nominal growth for the equipment finance industry compared to 2024.
- More end-users are relying on financing. The end-user survey revealed that 87% of respondents who acquired equipment or software in 2025 used at least one form of financing to do so. This represents an increase from 82% in the 2024 survey.
- 2027 will likely see acquisitions continue to increase. End-users were twice as likely to believe their E&S acquisitions will increase in 2027 (35%) versus decrease (17%). The most commonly selected verticals among end-users who plan to boost acquisitions were software, computers, office equipment, and communications equipment, reflecting the importance of online sales channels, AI, and other new technology tools critical to business operations.
- Top methods of payment to acquire equipment and software. In 2025, 23% of total E&S acquisitions were leased, followed by lines of credit (14%), secured loans (13%), and unsecured loans (8%). Among non-financed acquisitions, paid-in-full credit card purchases were the most prevalent payment method (20%), followed by cash (17%).
- Optimizing cash flow is the primary reason to use financing. The top reasons end-users chose to finance their E&S acquisitions in 2025 were “optimization of cash flow” (72%), “tax advantages” (55%), and “protection from equipment obsolescence” (54%). Going into 2027, users cited “technology advancements and/or obsolescence” (37%), “general economic conditions” (34%), “interest rates/Federal Reserve policy” (34%), and “inflation” (31%) as reasons for financing E&S acquisitions.
- Medical equipment tops list of most financed equipment types. Medical equipment was the most likely equipment type to be financed (82% of acquisitions) followed by automobiles (77%), agricultural (73%), and construction (70%). Furniture (41%), computers (47%), and other industrial equipment (50%) were the least likely equipment verticals to be financed. Because computers were both among the least-financed verticals and the fastest-growing category of investment amid the AI buildout, the shift toward investment in computers contributed to the modest decline in the overall propensity to finance, even as the share of firms using financing increased.
- Health care tops list of industries most likely to finance equipment. End-users in the health care industry were the most likely to use financing (80%), followed by finance & insurance (74%), construction (71%), and information businesses (62%).
- AI adoption is growing rapidly. Per the end-user survey, 74% of respondents currently use generative AI in their businesses (up from 42% in 2024), and an additional 19% intend to do so over the next two years. Businesses use generative AI primarily to analyze data (54%), automate workflows (44%), and generate content (43%). Notably, the lowest-ranked reason for harnessing generative AI was to identify/mitigate fraud (20%), despite the rapid increase in AI-enabled fraud.
- Companies want digital financing experience. An overwhelming majority of end-user survey respondents (82%) say they would use a free, fully digital online platform to manage the equipment acquisition process, if available. The digital features that would have the greatest positive impact on the financing experience for end-users include real-time tracking of application status (44%), online document upload and verification (43%), and electronic signatures (43%). Currently only 5% of respondents primarily interact with their equipment financing provider via a mobile app.
The Industry Horizon Report focuses on ELFA’s biennial survey of equipment end-users, which was conducted in summer 2026. Using data collected through the survey, ELFA estimates the current size of the equipment finance industry, assesses the propensity to finance private sector equipment investment for key equipment verticals, and forecasts end-user plans to acquire and finance equipment in 2027.The Industry Horizon Report focuses on ELFA’s biennial survey of equipment end-users, which was conducted in summer 2026. Using data collected through the survey, ELFA estimates the current size of the equipment finance industry, assesses the propensity to finance private sector equipment investment for key equipment verticals, and forecasts end-user plans to acquire and finance equipment in 2027.
