In our previous articles, we explored how capital tied up in equipment can constrain growth, how lifecycle complexity is adding to the overall challenge of managing assets, and how usage-based models are being considered alongside ownership in this evolving context. 

Taken together, these perspectives point to a broader issue: how are businesses approaching investment decisions in an increasingly uncertain environment? 

Across Europe, the data highlights a context where investment is not necessarily slowing, but where committing capital is becoming more complex. 

An environment shaped by uncertainty 

The conditions in which equipment decisions are made have evolved. Faster technology cycles are reducing the lifespan of assets. At the same time, uncertainty around future developments is influencing how organisations approach long-term commitments. 64% of decision-makers say that uncertainty about future technologies is delaying capital expenditure decisions. In this context, investment decisions are made under a combination of pressures — technological, financial and operational. 

Capital constraint as a constant factor 

This uncertainty does not operate in isolation. As highlighted in the Outlook, capital tied up in equipment remains a widespread constraint. With 87% of business leaders reporting that capital lock-up has limited growth at some point, investment decisions are already being made within constrained conditions. This creates a context in which committing capital today may limit flexibility tomorrow. 

As a result, investment is often evaluated not only in terms of cost or return, but also in terms of what it may prevent organisations from doing elsewhere. 

A decision-making tension 

The data points to a recurring tension. On one hand, delaying investment may increase exposure to ageing equipment and slower innovation.  On the other, committing capital too early may increase exposure to obsolescence and reduced flexibility. This does not resolve into a single direction of travel. Instead, the findings suggest that decision-making is becoming more conditional – influenced by timing, asset type and uncertainty around future developments. 

Uncertainty and decision timing 

Beyond technology, the Outlook also points to wider factors influencing decision-making. Economic conditions, cost of capital and broader market uncertainty are all cited as influencing equipment investment decisions. These do not necessarily change the need to invest, but they may affect: 

• the timing of decisions 
• the scale of commitment 
• the level of flexibility required 

This contributes to a more cautious approach, where decisions are reassessed rather than accelerated. 

Ownership remains relevant – but evaluated differently 

Despite these pressures, ownership continues to play an important role. In many cases, it remains associated with control, predictability and long-term use. At the same time, the data suggests that ownership is increasingly assessed in context — taking into account: 

• capital commitment 
• technology risk 
• flexibility over time 

This does not indicate a shift away from ownership, but a more situational evaluation of when it is appropriate.   

Conclusion: investment under constraint 

What emerges from the findings is not a reduction in investment activity, but a change in how it is assessed. Capital constraints, technological uncertainty and operational complexity are combining to make decision-making more conditional. Investment becomes less about a single decision, and more about balancing trade-offs over time. The data therefore points to an environment where businesses continue to invest, but do so within a tighter framework of constraints and uncertainty.

In our next article, we take a closer look at end-of-life management — and why it is increasingly influencing procurement decisions, while remaining a significant operational challenge for many organisations. 

In our previous articles, we explored how capital tie-up and lifecycle management are constraining growth and adding complexity to equipment strategies across Europe. Together, these pressures raise an important question: as ownership becomes more complex, how are businesses approaching alternative models?

Across Europe, the Outlook shows that organisations are adopting usage-based models for part of their equipment. 45% of businesses already access at least a quarter of their equipment through these models. At the same time, the findings suggest a more nuanced picture. Adoption does not appear to be progressing uniformly, and in many cases, remains constrained by a range of factors. Among the most frequently cited barriers preventing greater use are: 

• a preference for ownership 
• lack of supplier options 
• perceived higher cost over time 
• lack of internal understanding of how these models work 
• uncertainty around end-of-contract processes 
• accounting or reporting complexity 
• procurement policy 

Taken together, these factors create friction in wider adoption of usage-based models and help explain why uptake remains uneven.

Leaders recognise the value of usage-based models 

Despite these barriers, the report shows that business leaders clearly recognise the potential of usage-based models: 

• 58% say that greater access to equipment would improve their agility. 
• 50% believe traditional CAPEX models expose them to unnecessary financial risk. 
• 49% say more flexible access would help them respond to sudden shifts in demand 

The findings also suggest that some organisations associate usage-based models with: 

• improved access to newer technologies 
• reduced exposure to obsolescence 
• greater flexibility in uncertain environments 

This points to a broader perception of usage-based models not only as financing alternatives, but as tools that support flexibility and their responsiveness in changing market conditions. 

Ownership still matters but expectations are evolving 

Despite the presence of usage-based models, ownership remains a central component of equipment strategies. In many sectors, it continues to provide: 

• control 
• predictability 
• long-term stability 

At the same time, the data suggests its role is increasingly assessed in context. Rather than a binary choice, businesses are evaluating ownership alongside other options, depending on asset type, lifecycle and strategic priorities. 

Conclusion: a more complex landscape of ownership and usage 

The Outlook findings do not point to a simple shift towards usage-based models. Instead, they highlight a more complex landscape. Usage-based models are present within the data, and their potential benefits are recognised by business leaders. At the same time, adoption remains shaped by a range of practical, structural and ecosystem factors. Overall, the picture is less one of transition and more one of reassessment – where different approaches are considered alongside one another, depending on context. 
  

Frequently asked questions 

In our next article, we bring these insights together to explore a broader question: if ownership and usage both have a role to play, how are businesses finding the right balance between them?

In our previous article, we explored how capital tied-up is constraining growth for European businesses and why ownership decisions are becoming harder to justify in a fast-changing environment. But equipment strategy is not only being reshaped by financial pressures.  

A second, equally significant shift is underway: the increasing complexity of managing equipment beyond acquisition. We tend to think of equipment decisions as a moment in time. A purchase. A contract. A deployment. Increasingly, they are not. 

They are becoming ongoing responsibilities extending beyond acquisition into tracking, compliance, maintenance, and end-of-life coordination. And for many European businesses, this shift is proving difficult to manage in practice.

Our latest research – the European Business Equipment Outlook 2026 – conducted among more than 1,000 decision-makers across 11 European countries, highlights a growing reality: equipment strategy is no longer just about access and financing. It is about managing assets across their full lifecycle and meeting rising expectations along the way.  

For manufacturers, dealers and equipment suppliers, this shift has direct implications. It is already reshaping how your customers evaluate equipment, how procurement decisions are made, and what “value” means in a sales conversation. 

A changing context: lifecycle expectations are rising 

The environment in which businesses operate has changed significantly. Alongside economic pressures, such as interest rates, cost-of-capital constraints, and supply chain volatility, organisations are facing growing regulatory and reporting requirements. Frameworks such as CSRD, SFDR and the Circular Economy Act are increasing expectations around transparency, traceability and asset management over time. As a result, equipment decisions are no longer judged solely on performance or price. They are increasingly assessed on how assets are: 

• tracked throughout their lifecycle 
• maintained and optimised 
• redeployed, refurbished or recycled 
• documented for compliance and reporting purposes 

What was once a downstream operational concern is now moving upstream into procurement and investment decisions.

Lifecycle management is already influencing procurement decisions 

This shift is not theoretical. It is already shaping behaviour. 68% of European business leaders say that the ease of managing refurbishment, reuse, recycling or disposal influences their equipment purchasing decisions. In other words, lifecycle considerations are no longer secondary. They are becoming part of the initial decision-making criteria. But this growing importance is not matched by operational readiness. 

Nearly nine in ten organisations (87%) say that managing the end-of-life of owned equipment is challenging. This reveals a fundamental gap. Businesses increasingly understand what is required of them. But many do not yet have the capabilities, processes or visibility to deliver on those expectations. 

A structural gap between ambition and execution 

This gap is not simply a matter of intent or awareness. It is structural. Traditional ownership models were designed predominantly around acquisition and depreciation. They were not built to provide full lifecycle visibility, tracking, or coordination across multiple stakeholders. As lifecycle accountability becomes more complex, this limitation is becoming more apparent. Organisations are being asked to: 

• monitor assets more closely 
• report on asset lifecycle impact 
• ensure responsible end-of-life outcomes 

Yet the tools, processes and ecosystems required to manage these responsibilities at scale are still evolving. This explains why lifecycle management is simultaneously a strategic priority and an operational challenge.

Where financing fits and where it does not 

It is tempting to view financing models as the primary lever for improving lifecycle outcomes. They can play a role. In certain contexts, solutions that incorporate structured return mechanisms may facilitate: 

• asset redeployment 
• refurbishment 
• improved lifecycle visibility 

But financing alone does not determine lifecycle performance. Outcomes also depend on: 

• product design 
• maintenance practices 
• supply chain coordination 
• the ability to track and manage assets over time 

This is an important distinction. Lifecycle strategy is not purely a financial question. It is an operational and ecosystem question as well. 

Ownership still matters but the criteria are evolving 

Despite these changes, ownership remains important. Across many sectors, it continues to offer: 

• control 
• predictability 
• and long-term availability 

But it is no longer evaluated in isolation. The question is no longer simply whether ownership is important. It is how it fits within a broader strategy that includes lifecycle management, flexibility and compliance. 

Conclusion: from equipment strategy to lifecycle strategy 

What is emerging is a broader transformation. Equipment strategy is becoming lifecycle strategy. What was once a discrete transaction is now part of a continuous process, one that spans acquisition, use, optimisation, and end-of-life. For businesses, this increases complexity. For OEMs and equipment suppliers, it changes the nature of value. The competitive question is no longer only:  what equipment do you sell? It is increasingly: how does that equipment perform, evolve, and get managed over time? 

Frequently asked questions 

In our next article, we will explore how businesses are responding to these pressures by rethinking the balance between ownership and access – and what is really driving the adoption of usage-based models across Europe. 

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.

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. 

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. 

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. 

Frequently asked questions 

In our next article, we explore another major challenge identified by European decision-makers: the growing complexity of equipment lifecycle management and why it is reshaping procurement criteria for European businesses.

A recent briefing from the European Environment Agency reviewed evidence on how circular economy strategies can contribute to reducing greenhouse gas emissions. One of its most useful contributions is not a headline number, but a framework: impact sits across before use, during use and after use. 

For business leaders, this is less about sustainability rhetoric and more about how assets create value over time. Circularity is not just about recycling. It is about how products are designed, how intensively they are used, and what happens to them once their first use cycle ends. Increasingly, these stages are commercially connected.

Before Use: Design Shapes Cost and Performance 

A significant share of a product’s cost base – and environmental footprint – is determined at the design and production stage. Decisions around durability, repairability, modularity and material efficiency directly affect uptime, maintenance costs and replacement frequency. Manufacturers are already responding to supply chain volatility, material constraints and regulatory pressure. Designing products that last longer and can be upgraded rather than replaced is becoming a competitiveness issue. 

Business models influence this. When value is delivered over time rather than captured only at the point of sale, durability and serviceability become commercially relevant. 

During Use: Utilisation Is an Efficiency Question 

The “during use” phase is often overlooked in executive discussions, yet it is where significant operational inefficiency can sit. Across sectors, assets are frequently underutilised, replaced earlier than necessary, maintained inconsistently and disconnected from structured lifecycle planning 

From a management perspective, this represents idle capital and avoidable cost. Usage-based approaches – including rental, product-as-a-service and performance contracts – shift the focus from ownership to outcomes. Instead of asking “Who owns the asset?”, the question becomes “How efficiently is it delivering value?” 

Higher utilisation rates can mean fewer assets are required to deliver the same business output. Extended lifetimes reduce replacement cycles and disruption. Structured maintenance improves reliability and productivity. 

Research reviewed by the European Environment Agency suggests that these shifts can contribute to lower emissions by reducing demand for new production. But even without the climate lens, the commercial logic stands: better utilisation improves capital efficiency and operational resilience. Any emissions benefit is a by-product of improved asset productivity – not a standalone claim.

After Use: Recovery Depends on Earlier Decisions 

Recycling and recovery remain important, but they rarely compensate for inefficient use upstream. End-of-use outcomes can depend on multiple factors such as: 

• Whether condition and usage data were tracked 
• Whether the product was designed for refurbishment or disassembly 
• Whether secondary applications exist 

If assets are deployed within structured frameworks where maintenance and condition are monitored, then refurbishment and redeployment become more viable. For the user, this translates into smoother transitions, less operational disruption and more predictable asset planning. Again, the commercial driver is continuity and efficiency. Environmental gains follow when fewer new products need to be manufactured to replace prematurely discarded ones. 

Connecting the Phases: Why Business Model Matters 

The EEA’s lifecycle framing highlights something practical: the three phases reinforce each other:

• Design affects longevity. 
• Utilisation affects replacement demand. 
• Traceability affects redeployment options. 

Usage-based models operate most directly in the “during use” phase, but they influence the others. When revenue is linked to performance over time, here is greater incentive to support durable design, maintenance becomes structured rather than reactive and asset planning becomes lifecycle-based rather than transaction-based. 

This alignment does not automatically reduce emissions. Outcomes depend on sector characteristics, energy systems and user behaviour. But it does create conditions in which lower material throughput – and therefore lower upstream production emissions – become more likely. For general management, that translates into improved asset productivity, reduced operational downtime and stronger collaboration with suppliers. The climate dimension increasingly sits within these operational choices, rather than outside them. 

A Practical Perspective 

Circular economy discussions can become abstract. The more relevant question for executives is straightforward: How do we extract more value from the assets already in circulation? 

• Extending useful life by two or three years?
• Increasing utilisation across difference customer segments? 
• Designing products that can be upgraded instead of replaced? 

These are operational decisions with financial consequences. The European Environment Agency’s research suggests that when these shifts occur at scale, they can also contribute to emissions reduction. The degree of impact will vary, and it should be measured rather than assumed. 

No single model guarantees outcomes. What matters is whether lifecycle thinking becomes embedded in commercial decision-making. In that sense, the circular economy is less about waste management and more about asset strategy – and for many sectors, that conversation is already moving from sustainability teams into the boardroom. 

A social commitment in line with our Employer Brand  

The centre also upholds strong social commitments by integrating inclusive recruitment practices that support people with disabilities, those in reintegration pathways, and seniors, via its Disability Mission. 

Testimonials for Hellowork, such as that of Christophe, an employee recruited through the Disability Mission, highlight the positive impact of these policies: they provide a new professional chance and contribute to the creation of rewarding career paths in technical jobs related to the circular economy. 

One step further towards sustainable models

This new centre perfectly illustrates how practical solutions such as IT refurbishment can support an efficient circular economy, address environmental challenges related to electronic waste, and offer inclusive career paths to our employees. 
 
By combining innovation, sustainability and inclusion, BNP Paribas 3 Step IT and BNP Paribas Leasing Solutions truly help propel the circular economy, in line with our purpose and our vision of a more sustainable and shared world.

Find out more about BNP Paribas 3 Step IT.

* Aprolis Finance is a joint venture owned 51% by BNP Paribas Leasing Solutions and 49% by Aprolis.