European leasing market grows 3.2% to €464bn in 2025

The European leasing market recorded further growth in 2025, with new business volumes increasing by 3.2% to €464bn, according to the latest annual statistics published by Leaseurope.

The figures, featured in Leaseurope’s newly released Annual Review 2025–2026, show that the total portfolio of outstanding leased assets reached €1,024 bllion at the end of 2025, an increase of 4% compared with the previous year.

The results highlight the continued importance of leasing in supporting European business investment, although performance varied considerably across asset categories and regional markets.

Real estate leasing leads growth

Real estate leasing recorded the strongest growth during 2025, with new business volumes increasing by 15.5% year-on-year.

Equipment leasing grew by 4.5%, while vehicle leasing increased by 2.3%.

Vehicles continued to dominate the European leasing market, accounting for 74% of total new leasing volumes, followed by equipment at 23% and real estate at 3%.

The figures underline the significance of automotive finance within the wider leasing industry, alongside continued demand for financing machinery, equipment and property assets.

Central and Eastern Europe records strongest performance

Regional performance was mixed, with Central and Eastern Europe (CEE) recording the highest growth in new leasing volumes at 10.4%.

The Mediterranean region followed with growth of 7%, while the UK market expanded by 5.1%.

Germany recorded growth of 3.5%, while Italy increased by 3.8% and the Austria, Belgium and Netherlands grouping grew by 5.8%.

However, new leasing volumes declined by 5.8% in France and by 0.4% across the Nordic and Baltic countries.

Leaseurope notes that the regional growth rates are based on a consistent sample of reporting members and may be influenced by inflation and exchange rate movements.

Correction to regional figures: The chart in Leaseurope’s Annual Review (above) shows that France grew by 3.5%, while Germany declined by 0.4% and Italy fell by 5.8%. The Nordic and Baltic countries recorded growth of 3.8%. The UK, Mediterranean, Austria/Belgium/Netherlands and CEE figures above are correct.

Electric vehicles and sustainable investment

Leaseurope’s latest environmental statistics also highlight the role of leasing in Europe’s transition towards cleaner transport and more sustainable business investment.

Battery-electric cars accounted for 28% of new leased cars in 2025, demonstrating the growing importance of leasing in supporting electric vehicle adoption.

New leasing volumes for renewable energy-generating equipment exceeded €2bn, remaining broadly stable compared with 2024, while bicycle leasing also generated approximately €2bn of new business.

Leaseurope estimates that leasing facilitated more than a quarter of European business investment in the relevant equipment and non-residential construction categories, with SMEs representing a particularly important customer group.

Leasing’s role in European competitiveness

“In a period of geopolitical uncertainty and rapid economic and technological change, resilience is about more than withstanding disruption. It is the ability to adapt, invest and continue moving forward. Leasing has repeatedly demonstrated the vital role it can play in enabling that resilience.”

The review also outlines Leaseurope’s work on European regulatory developments, including prudential requirements for leasing, securitisation, sustainable finance and corporate fleet electrification.

Leaseurope represents national associations across Europe covering bank-owned, captive and independent leasing companies, alongside long- and short-term vehicle rental providers.

The latest statistics show that the European leasing industry continues to expand, although differing regional and asset-level performances underline the challenges facing individual markets.

The full Leaseurope Annual Review 2025–2026 is available to download, alongside the federation’s 2025 Annual Statistics at a Glance.