Regulatory changes, political tensions and technological advances have all played a part in shaping the asset finance market in 2024. While many regions around the world have enjoyed growth across different sectors, long-term optimism is often hampered by short- and medium-term uncertainties – many of which will carry on into 2025.

In this article, we explore the major happenings across key geographies around the world, providing financiers with insights into anticipated growth trends, regional shares and technological advancements in the new year.

United States market: Continued growth amid political uncertainty

Unsurprisingly, the presidential election results loom high when considering upcoming trends for asset financing in the US market. Based on Trump’s previous administration, as well as comments made during his campaign, the president-elect is expected to lean toward deregulation in key sectors, including agriculture and construction. This could stimulate investments in equipment finance, with businesses adopting new models to meet industry demands. On the other hand, plans to raise tariffs on the US’s major trading partners may result in tighter budgets, especially in the short-term.

The president-elect is expected to lean toward deregulation in key sectors, including agriculture and construction.
According to: Missouri Independent. (2024). & CNBC. (2024)

Trump’s presidency will also impact the automotive finance sector. Having announced his intention to withdraw from the Paris Agreement on Climate Change we may see a significant reduction to investment in environmental, social and governance (ESG) initiatives, notably in emissions targets and green assets like electric vehicles (EV). This could lead to short-term gains in the US asset finance market, with a growth in traditional vehicles, but long-term losses as the US falls behind other markets, notably the UK and Europe.

Despite the uncertainties, expect the US to grow even stronger in 2025. Thanks to world-leading initiatives in advanced technologies such as artificial intelligence (AI) and machine learning (ML), the country remains a global powerhouse for startups and large corporations alike.

European market: Betting on green financing

The Paris Agreement on Climate Change also plays a large role in the future of asset finance in Europe, with many countries prioritizing green initiatives. Per the Global Green Finance Development Index, seven out of the ten leading countries for environmental considerations within financial systems are European. This focus on sustainable finance has seen a major boost in AI/ML investment, with organizations across Europe looking to shift operations to more environmentally sound approaches, like cloud-based solutions and SaaS offerings. Despite sustainable financing gaining momentum, other aspects of asset financing in Europe are facing significant challenges.

While new regulatory requirements, such as the Digital Operational Resilience Act (DORA) and Basel 3.1, aim to render the financial ecosystem more robust, they also pose operational problems. Companies could decide that long-term strategies in asset finance aren’t worth the hassle amid heightened regulations – a factor that may have played a part in the recent sale of Société Générale Equipment Finance to BPCE for €1.1bn.

In September 2024, new EU car registrations fell by 6.1%, marking a downturn in three out of the EU’s four major markets. Despite this drop in September, total registrations for the first nine months of 2024 remained slightly positive at +0.6% compared to last year. Over the same nine-month period, the share of battery-electric vehicles decreased from 14% to 13.1%.

New EU car registrations fell by 6.1%, marking a downturn in three out of the EU’s four major markets.
According to: ACEA. (2024). New car registrations

European construction markets have also experienced challenges, largely due to the number of issued building permits decreasing. However, there is hope that this will progress in 2025 as the housing market is expected to improve, which will likely result in further infrastructure growth across the continent. As we can see, European asset financing in 2024 was a mixed bag, with regulatory challenges and broader economic pressures contributing to a number of struggling markets. However, thanks to green initiatives that promise long-term benefits and improving markets across the continent, there are reasons for optimism in the new year.

Asia-Pacific market: Focus on infrastructure, boosted by green and digital

As of the beginning of 2025, the asset finance market in Asia-Pacific is already in good shape. It can boast being the largest contributor to the global wholesale market, resulting in a subsequent boost in wholesale and floorplan solutions; significant increases in early-stage venture investment; and a string of partnerships with Western organizations to drive innovation and improve market reach.  What’s more, Asia-Pacific’s market is only set to continue its growth in 2025. Sustainability and digitization are key drivers across the region, with many manufacturers actively modernizing their operations to meet the ever-changing needs of today’s consumers.

A good example of growth across the region is the massive rise of the EV sector. Increased global demand coupled with government policies that encourage consumers within the region means that Asia-Pacific is enjoying huge sales, both locally and internationally. This in turn, has attracted investment, new jobs, factories and a boom in relevant technologies, such as AI. Geopolitical tensions, especially between China and the US, could put a dampener on the region’s progress moving forward, but for the time being, the immediate future seems bright, especially in India, Australia and Singapore.

African market: Digitization and access to financial services

For many years now, there’s been a strong emphasis on infrastructure and SME growth in the African region. Mobile-based financing solutions and innovations in fintech are expanding throughout much of the continent, providing access to credit in underbanked markets and, in turn, helping to foster growth in consumer and small business finance.

Throughout 2024, growth has continued, thanks largely to technological advancements and regulatory reform. As in Asia, the African market has seen a rise in fintech startups, which has paved the way for a significant uptick in payments, lending, insurance and mobile money platforms. A more recent emerging trend across the region is sustainable finance, which has been enjoying growth in recent years thanks to ESG considerations, including green bonds, responsible lending and impact investing.

These trends are set to continue throughout 2025. With the continued success of the African Continental Free Trade Area – an agreement put in place in 2020 to reduce friction in intra-continental trade and investment – we can expect to see even more exciting financing opportunities to come.

Navigating toward success in asset finance in 2025 with SBS

Whether your business is bullish or bearish in 2025, support from a world-leading, experienced software partner can help you to navigate toward success. For more than four decades, the SBS Financing Platform (SFP) has helped asset finance organizations worldwide to optimize their floorplan and wholesale business operations by transitioning to a modern, cloud-based solution that enhances agility, scalability and flexibility. Learn more about the SBS Financing Platform by clicking here.

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James Powell

Chief SaaS Transformation Officer and Head of Specialized Finance Strategy

SBS