Your customers are increasingly reluctant to commit outright to assets that may not deliver full ROI before the next technology cycle arrives. This is reshaping the questions buyers bring to your sales conversations – and the answers your competitors are starting to offer.
2026.05.26
Capital lock‑up: when equipment ownership holds back growth – and what it means for OEMs and their distribution partners
Equipment is still widely treated as an investment – but for many businesses, it has become a source of capital lock‑up. That is exactly what our European Business Equipment Outlook 2026 reveals. Based on insights from more than 1,000 decision‑makers across 11 European countries, the report shows that for most businesses, capital locked into physical equipment is now actively constraining business growth.
For manufacturers and their distribution partners, these findings matter. They explain why customer conversations are getting harder, why deals stall later in the cycle, and why the question of how equipment is acquired is increasingly shaping whether it gets acquired at all. What follows is a read of your customers’ world – and what it signals for how you go to market.
A context that makes things worse
To understand why capital lock‑up has become such a pressing issue, we first need to look at the environment businesses are operating in. According to our survey, 95% of respondents say their equipment becomes obsolete faster than it did five years ago. The impact is significant: 43% say their equipment sometimes becomes obsolete before delivering the expected return on investment.
In this context, committing to heavy upfront investment is increasingly risky. This is where capital lock‑up becomes a central challenge, as businesses continue to tie up capital in assets that lose value faster than anticipated.
What this signals for OEMs and equipment suppliers
When equipment ownership constrains business growth
The numbers speak for themselves: 87% of business leaders say that capital lock-up in equipment has, at some point, limited their company’s growth opportunities. Only 13% say they have never experienced this problem.
This is not a marginal phenomenon. It is the norm. And for 35% of respondents, this constraint occurs frequently or very frequently – not occasionally, but on a recurring basis.
Geographic variations underline the scale of the issue: the Netherlands records the highest proportion of frequent constraints (45%), followed by Spain (38%). But no market is spared. In equipment-intensive sectors such as healthcare, transport and logistics, or agriculture, this phenomenon is cited as particularly significant.
Where buyers would deploy capital if it were freed up
What the numbers don’t say directly is what this blocked capital actually represents in practice. When asked what they would do if it were freed up, business leaders are clear: they would invest in areas that define future competitiveness.
33% would prioritise sustainability and green technology initiatives. 32% would focus on expanding into new markets. The same proportion would invest in digital transformation or technology upgrades. 31% would direct that capital towards innovation and R&D.
What stands out in these responses is their diversity. Business leaders are not looking for a single alternative: they are looking for the freedom to rebalance their investments according to their strategic priorities at any given moment. And that is precisely the freedom that capital lock-up takes away from them.
What this signals for OEMs and equipment suppliers
Every euro your customer doesn’t tie up in equipment is a euro they can deploy in sustainability, market expansion, digital transformation or R&D. The financing conversation is no longer competing only with other equipment vendors – it is competing with your customer’s entire growth agenda. That changes the bar your commercial proposition has to clear.
Technology uncertainty adds another layer of complexity
On top of these constraints, comes another: 64% of decision-makers say that uncertainty around future technologies is delaying their equipment investment decisions. Investing now means risking obsolescence. Waiting means risking a loss of competitiveness. A difficult dilemma to resolve when capital is already under pressure.
This creates a form of partial paralysis: businesses know they need to invest, but hesitate over when and in what, which, paradoxically, extends the lifespan of ageing equipment and compounds the obsolescence problem further.
What this signals for OEMs and equipment suppliers
Buyer hesitation directly affects your pipeline velocity. The manufacturers and dealers who can de-risk the investment decision through usage-based models, are quietly removing a barrier their competitors still impose on customers. In a market where 64% of buyers are already hesitating, that difference compounds.
Ownership still dominates equipment financing – but perspectives are shifting
Despite these pressures, asset ownership remains dominant: 41% of businesses primarily acquire equipment through outright purchase. This is not surprising. Ownership offers control, stability, and continues to be seen as fundamental across many sectors. But what is changing is how business leaders evaluate it. The question is no longer “Should we own?”, it has become “In which cases is the capital tied up in ownership still worth the cost?” A subtle shift in perspective, but a significant one.
What this signals for OEMs and equipment suppliers
Manufacturers who recognise this shift early – and who build flexible commercial propositions alongside their products rather than bolting them on later – will be having materially different conversations with buyers in two years’ time. The competitive question is no longer just what you sell, but how customers can access it.
Frequently asked questions
What is capital lock-up in equipment financing?
Capital lock-up refers to capital that is tied up in owned physical assets and is therefore unavailable for deployment elsewhere in the business. According to the European Business Equipment Outlook 2026, 87% of European business leaders report that capital lock-up has limited their company’s growth opportunities at some point.
Why is equipment becoming obsolete faster?
95% of European decision-makers surveyed say equipment becomes obsolete faster than it did five years ago, driven by accelerating technology cycles, embedded software, and connectivity standards that evolve independently of the hardware itself.
What are the alternatives to outright equipment purchase?
Businesses are increasingly evaluating leasing, rental and usage-based models alongside traditional purchase. The choice depends on asset type, technology cycle length, and how the business values flexibility versus control.
How does this affect OEMs and equipment suppliers?
The shift in buyer perspective means manufacturers and equipment suppliers are increasingly expected to offer flexible financing solutions alongside their products. Vendors who integrate financing and usage-based options into their go-to-market are removing a friction point that competitors still impose on customers.
Get the full report
Get practical, data‑driven insights into how European businesses are rethinking equipment strategy. Based on research with over 1,000 business leaders across six key sectors, the European Business Equipment Outlook 2026 highlights the trends, challenges and priorities shaping equipment strategy today, and what they mean for businesses looking to stay competitive.