87% of European businesses say capital trapped in equipment is constraining growth  

Paris, London 20^th May 2026 – BNP Paribas Leasing Solutions, a leading provider of business equipment finance, has released new research showing that European businesses are re-evaluating equipment investment decisions as capital, technology and lifecycle pressures intensify. 

The European Business Equipment Outlook 2026, based on research among 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 that equipment decisions are becoming more complex, as organisations weigh the benefits of ownership against capital constraints, technology uncertainty and lifecycle management challenges. 

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

Against a backdrop of rising borrowing costs, persistent inflationary pressures and geopolitical uncertainty, the research shows that long-term capital allocation decisions are becoming increasingly difficult for business leaders. According to the Purchasing Managers’ Index (PMI), eurozone business activity contracted in April as global conflict pushes up fuel and production costs for many European businesses. This is adding further cost pressure to businesses and making long-term investment decisions inherently more complex. 

When asked how they would redeploy capital if it were freed from physical assets, respondents identified a range of strategic priorities: 

• 32% would prioritise market expansion and digital transformation  
• 31% would invest in R&D and innovation 
• 33% would invest in sustainability initiatives, green technologies or energy efficiency.

“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. 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.” 

Neil Pein, CEO at BNP Paribas Leasing Solutions

The research also highlights growing pressure from accelerating technology cycles. Business leaders are almost unanimous (95%) in their belief that equipment becomes obsolete faster than it did five years ago while 64% say uncertainty about future technology is delaying capital expenditure decisions. This creates a growing challenge for organisations: commit capital today and risk assets becoming outdated faster than expected, or delay investment and risk slowing innovation and competitiveness. 

Alongside financial and technology pressures, the report points to a growing operational challenge around lifecycle management. 

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

The findings suggest that business leaders are placing greater emphasis not only on acquisition and financing decisions, but also on how equipment is managed across its lifecycle, as regulatory expectations, sustainability scrutiny and operational complexity continue to rise. 

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

Neil Pein, CEO at BNP Paribas Leasing Solutions

More insights can be found in the European Business Equipment Outlook 2026. 

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ABOUT BNP PARIBAS LEASING SOLUTIONS  

BNP Paribas Leasing Solutions provides capital‑efficient equipment financing solutions across key sectors including agriculture, construction, transportation, materials handling, ICT, healthcare and green technologies. With 70 years of experience, the company supports partners and clients with deep market expertise, asset know‑how and advisory services to drive growth, transformation and the transition to a low‑carbon circular economy. In 2025, BNP Paribas Leasing Solutions advanced €15.5 billion in asset finance and manages a leased asset portfolio of €38.8 billion. Present in 18 countries across Europe and Türkiye, and employing more than 3,000 experts, the company also offers vendor finance solutions in the United States and Canada in partnership with Bank of Montreal, and in China through a joint venture with Jiangsu Financial Leasing. BNP Paribas Leasing Solutions is wholly owned by BNP Paribas and operates within the Group’s Commercial, Personal Banking & Services division.  

For more information, visit leasingsolutions.bnpparibas