Discover our Carlsquare’s latest Equipment as a Service (EaaS) Market Report 2025, highlighting how service-based equipment models are reshaping industry dynamics, driving flexible financing, and fueling M&A activity across Europe and the US.

Highlights:

• Market Growth: The EaaS market is expected to grow at a 6% CAGR through 2032, driven by flexible financing, digitalization, and IoT adoption.
• Global Focus: In-depth analysis of DACH, Europe, and the US – including top M&A deals and sponsor-backed platforms.
• Industry Trends: Outcome-based contracts, digital monitoring, predictive maintenance, and performance guarantees are shaping the sector.
• Valuation Insights: Median EV/EBITDA multiples around 8x, with premium valuations for service and digital solution providers.
• Sector Overview: Construction, medical technology, security & surveillance, HVAC, and more – with market size and growth forecasts.

Key Insights

Sector overview

• Although construction activity is under pressure in parts of Europe, demand for equipment rental is supported by public infrastructure investment and renovation programs. Leading to the EaaS sector showing modest but steady growth, with an expansion of +0.9 % in 2024, and estimated +2.8 % in 2025, and +3.6 % in 2026
• Key drivers shaping the sector:
  • Outcome-oriented contracts and usage pricing: More customers prefer paying for equipment uptime or performance instead of a flat fee, encouraging to bundle maintenance, upgrades, and monitoring
  • Digitalisation and IoT monitoring: Sensors and connectivity allow predictive maintenance, remote performance tracking, and real-time guarantees, improving uptime and utilisation
  • Industry consolidation & specialisation: Stronger firms are expanding into higher-margin niches (e.g. site power, temperature control, medical device leasing) and acquiring specialized operators to bolster geographic reach

Definition of EaaS and value creation

EaaS is transitioning from a niche alternative to a strategic imperative for manufacturing companies

Equipment-as-a-Service (EaaS) is a service-based model in which customers pay for equipment usage or defined outcomes rather than purchasing or leasing the asset. Ownership remains with the provider, who assumes responsibility for maintenance, upgrades, and sometimes even performance guarantees.

Unlike rental, which is limited to paying for temporary access to equipment, EaaS integrates performance commitments, digital monitoring, and service responsibilities.

• Over the past decade, there has been a shift from one-off capex sales to a recurring revenue model.
• Contracts are structured around pay-per-use, subscription, or outcome-based models

Value chain of EaaS

EaaS creates stable returns for lessors and immediate CapEx relief for lessees

Typical EaaS payment models overview

Four key market trends are shaping the EaaS landscape: evolving customer priorities, IoT advances, the shift toward service-based solutions and continuous product innovation

• Customer demand:
  • Customers increasingly demand EaaS models for greater flexibility and risk-sharing with asset manufacturers
  • The focus is shifting from price and equipment choice to results, driven by higher KPIs priorities like OEE⁽¹⁾ and ROI⁽²⁾
• IoT technology advances
  • Advancements in IoT⁽³⁾, 5G, Cloud, Big Data and AI have enabled and improved EaaS models, providing real-time performance indicators
  • IoT solutions allow for equipment to automatically share performance and usage data
  • Enable to better track assets and improve maintenance
• Decline in equipment sales and margins
  • Declining asset margins and sales, driven by market saturation and rising costs, have made aftersales a key profit driver for many OEMs⁽⁴⁾
  • OEMs are integrating consumables and services into EaaS models to capture greater market share and increase their share-of-wallet
• Product innovations
  • Product innovation is shifting from individual processes to system optimization, driving demand for integrated solutions
  • IoT advancements drive continuous process improvements, enhance stability and long-term value, fuelling the shift to service-based model

EaaS market update

• Global growth in 2025 has so far exceeded expectations, supported by robust trade flows, resilient industrial output, and easing financial pressures
• Following a very strong Q4 2024, overall business services transactions have softened, while the EaaS segment continues to record high-profile deals and remains one of the most active areas
• Multiple EaaS platforms are currently in market, attracting significant sponsor interest as investors seek stable, service-driven asset cash flows
• Infrastructure spending in the U.S. is set to accelerate further, with Europe experiencing similar momentum as public investments in energy transition and modernization programs gather pace

Regression analyses indicate that capital markets place the highest valuation premiums on strong revenue growth – especially coupled with absolute company size