87% of European firms say equipment ownership is constraining growth

BNP Paribas Leasing Solutions has published new research showing that European businesses are reassessing how they invest in equipment as capital constraints, rapid technology change and lifecycle management pressures intensify.

The company’s European Business Equipment Outlook 2026, based on research involving more than 1,000 C-suite and senior decision-makers across Europe, found that 87% of business leaders have experienced growth constraints because capital remained tied up in owned physical assets.

The findings suggest businesses are increasingly questioning traditional ownership models as they balance investment needs against financial flexibility, technology uncertainty and sustainability pressures.

The research covered equipment-intensive sectors including agriculture, construction, transport and logistics, technology, healthcare and renewable energy.

Against a backdrop of inflationary pressure, higher borrowing costs and geopolitical uncertainty, the report found that long-term capital allocation decisions are becoming more challenging for business leaders.

According to the research, many organisations would redirect capital currently tied up in equipment towards strategic growth priorities if it were freed up. Around 33% said they would invest in sustainability initiatives, green technologies or energy efficiency, while 32% would prioritise market expansion and digital transformation. A further 31% said they would increase investment in research and innovation.

“For many businesses, the issue is no longer whether to invest, but how to invest without unnecessarily tying up capital that could be deployed elsewhere,” he said.

“Capital lock up is reducing flexibility for European businesses at a time when they need it most. Leaders want to invest in growth, innovation and sustainability, but too much capital remains locked into assets that can quickly lose value.”

The report also highlights growing concerns around the accelerating pace of technology change. Nearly all respondents (95%) said equipment becomes obsolete faster than it did five years ago, while 64% said uncertainty around future technology developments is delaying capital expenditure decisions.

The findings point to a growing dilemma for businesses: invest today and risk assets becoming outdated more quickly, or delay investment and potentially lose competitiveness.

Alongside financial and technology pressures, organisations are also facing increasing operational complexity linked to equipment lifecycle management.

Nearly nine in ten respondents (87%) said managing the end-of-life of owned equipment is challenging, while 68% said the ease of refurbishment, reuse, recycling or disposal now influences procurement decisions.

The report suggests businesses are taking a broader view of equipment strategy, considering not only acquisition costs and operational performance, but also sustainability requirements, regulatory expectations and long-term lifecycle responsibilities.

Pein said ownership would continue to play an important role for many organisations, but businesses were becoming more selective about when ownership remained the best option.

“Ownership remains an important and appropriate strategy in many situations,” he said.

“But organisations are increasingly evaluating equipment decisions through a broader lens — considering not only control and long-term use, but also flexibility, adaptability and lifecycle responsibility.

“The question is becoming less about ownership versus access, and more about choosing the right approach for the asset, the business need and the pace of change.”