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Summary and extracts
1 Market Overview
1.1 Definition and presentation
An operating lease is a contract through which it is possible to obtain the supply of goods necessary for the business of a company or professional through the payment of a monthly fee. This contract varies in duration but normally starts from a minimum of three years and is renewable. It applies to various types of capital goods, including computer equipment needed for business activities: so we are mainly talking about desktop and laptop computers, monitors, keyboards and mice, smartphones and tablets.
The broader global equipment leasing market is projected to grow from $316.22 billion in 2020 to $342.66 billion in 2021 with a compound annual growth rate (CAGR) of 8.4 percent, including IT equipment leases and rentals in its components.
In Italy, revenues from rental and leasing of office equipment, including IT equipment, accounted for 9.5% of total revenues from rental and leasing activities in 2018 [Istat]. In addition, revenues from the rental and leasing of office machinery and equipment (including computers) in this country are expected to grow at a CAGR of 3.5 percent between 2020 and 2024.
The main driver of demand for these contracts is the increasingly shortening life cycle of electronic products, especially computer products. Indeed, obsolescence is becoming a priority issue: the need for high-performance machines that support the latest available software or technologies is critical in many contexts. In addition, the increased attention that Italian consumers are paying to sustainability issues is another key aspect to consider for this market, as operating leases streamline the life-cycle and scrapping processes of machines.
Overall, the Italian IT and telematics equipment leasing and rental market appears to be in excellent shape and pointing toward important growth. In fact, the COVID-19 crisis has fostered greater attention by companies to their expenditures, thus representing an interesting opportunity for this market, which aims above all to allow companies not to have to bear the full cost of the initial purchase of IT and telematics equipment.
1.2 European market
To understand European market trends, you can use data from the Eurostat website with the code "N"**** - Rental and leasing of office machines and computers."
Turnover of the rental and leasing of office machines and computer equipment sector European Union, ****-****, billion euros Source: ****
It can be seen that the turnover of the IT rental market varies from year to year. In fact, between **** and ****, the equipment rental market declined by *.*** billion euros, as we went from a turnover of *.*** billion euros in **** to *.*** in ****. The market recovered quickly in **** to *.*** billion euros. In ****, the IT rental market contracted again with an estimated revenue loss of *.*** billion euros. Finally, **** saw the strongest revenue growth as the market grew **.** percent over **** to reach **.* billion euros.
European computer leasing market breakdown by revenue by country Europe, ****, percent Source: ****
France is the industry leader in Europe, accounting for **.* percent of EU turnover in ****. This puts it ahead of Germany (***). These three countries stand out from the rest of the EU countries by a wide margin, together generating **.* percent of the turnover of the office machinery and IT equipment rental and leasing industry in Europe in ****. In *ᵉ position is Belgium, whose turnover accounts for ...
1.3 Italian market
The leasing sector in Italy is growing a lot, thanks to tax breaks and the possibility of promptly receiving technical support. The sector of Ateco code **, i.e., the rental sector, with the highest turnover is machinery, while already in third place, although with ** percent less turnover, is office equipment including computers.
Rental turnover by sector Italy, ****, millions of euros Source: ****
Computer leasing industry turnover Italy, ****-****, millions of euros Source: ****
1.4 Impact of Covid on the industry
According to the results ofISTAT 's "Situations and Prospects of Businesses in the COVID-** Health Emergency," at the end of ****, more than two-thirds of businesses were experiencing declines in revenues compared to ****, and ** percent expected declining revenues in the first six months of **** as well; ** percent believed their chances of survival were jeopardized.
The survey looks at the entire rental sector, identified by Ateco code **, which encompasses computer leasing. According to the survey, **.* percent of companies identified with code ** are at operational risk; this is due in part to the fact that leasing activities in Italy during the pandemic were recognized as nonessential, and therefore consistent with forced business closure.
According to Assilea's survey, leasing companies experienced a sharp decline in revenues, by -*.* percent in **** that recovered by *.* percent in ****.
Impact of Covid on enterprise revenues Italy, **** VS ****, percent Source: ****
2 Demand analysis
2.1 Why you choose leasing
There are numerous reasons why companies switch to computer leasing:
TECHNOLOGICAL MODERNITY
Operating leasing allows the leasing company to have equipment that is always aligned with the technological state of the art and to avert the risk of obsolescence, which is particularly sensitive in the IT sector.
OPERATIONAL FLEXIBILITY
By renting PCs/laptops or other machines, the company can quickly cope with changes in scenario, changing organizational or production needs.
ECONOMIC AND FINANCIAL PREDICTABILITY
The company shields itself from the risk of major, unplanned outlays for IT fleet renewal, and is in a position to plan for related costs. The lessee acquires state-of-the-art assets and technology without affecting liquidity and immobilizing capital.
OUTSOURCING MAINTENANCE
Operational leases of PCs and other machines also allow for the inclusion of periodic maintenance and technical support services, enabling the lessee to secure a whole range of essential activities for which he does not, however, have in-house expertise.
FISCAL ADVANTAGES
Since the physical assets are owned by the lessee company, the lessee company does not have to enter the assets on the balance sheet, in the Statement of Assets and Liabilities, and therefore they
do not constitute indebtedness to suppliers do not generate fixed assets improve ...
2.2 Internet use in enterprises
The main customers of computer leasing are companies that provide this service to their employees. To understand how this demand may vary, it is good to see how much ICT technologies have entered Italian companies and various economic sectors, from the simple use of the internet to the more complicated IoT systems, which, in both cases, need computers to be managed and used.
Italy's economic sectors are strongly connected to internet technology, according to official data, in ****,the sector with the fewest businesses with broadband connection is accommodation and food services, with **.* percent, while the sector with the most connected businesses is information and communication services, with *** percent .
Enterprises with fixed or mobile broadband connection Italy, ****, percent Source: ****
Istat also reports, in percent, how many firms by sector provide employees with portable devices and mobile internet connections for work purposes. The sector that finishes the most devices is ICT, with **.* percent of companies, followed by "scientific activities," with **.* percent, and " Energy supply companies," with **.* percent.
Firms that provide employees with portable devices and mobile Internet connections Italy, ****, percent Source: ****
note that companies that provide portable devices and Internet connections do not always offer this service to all employees, but normally between ...
2.3 Companies and the Cloud
The Cloud is an online data storage and processing system, i.e., they are stored on remote hardware.
Businesses, for reasons of space and cost, are beginning to use this technology, and accessing it requires the use of an Internet-connected device. Companies may decide to take advantage of low-level Cloud services, such as e-mail, file storage, or high-level Cloud services, such as business software, finance, accounting, and computing power. Depending on the industry, more or less Cloud services are used. In ****, the sector that buys the least high-level Cloud services is understandably the restaurant and transportation sector being less computer-related activities but being more hands-on activities, while the highest services are bought by computer service companies, being strongly tied to Internet technology.
Firms purchasing cloud computing services, by level of service purchased (***) Italy, ****, percent Source: ****
To give an idea of the trends over the years, we note that the purchase of Cloud services by restaurant businesses had an increase of **.* percent between **** and **** and **.* percent between **** and ****, this most likely due to the need of restaurants to access online and delivery services due to the Covid-** pandemic.
Cloud service purchase trend of restaurant service businesses Italy, ****-****, percent Source: ****
Regarding IT ...
2.4 Companies and IoT
Another reason companies want to lease computers is so they can use IoT and interconnecting device technologies that can be monitored and controlled remotely. Among the most widely used systems are ERP, CRM applications, and IoT devices. As with Cloud technologies, the use of these systems depends on the area of application.
In ****, the situation was as follows :
Technologies for internal, supply chain and IoT organization by sector Italy, ****, percentage Source: ****
The ICT sector is the one that uses the most technologies and interconnected systems by far, while "Rental, tourism and travel agencies" is the least.
Going into more detail, it is interesting to see the trend over the years of these two sectors to see when these technologies were most developed both in the case of the sector in which it is most profitable and the one in which they are least present.
The ICT sector, given the strong link with technology, is the one that first registers an entry of IoT technology. This advent has led to a redistribution in the last year of the other technologies considered.
Technologies for internal organization by ICT sector Italy, ****-****,percent Source: ****
THE tour operator market saw an increase in the use ...
2.5 Which computers are most in demand
The models of computers leased by companies depend mainly on the operating system in use by the company itself, which, in turn, depends on the company's product and business.
In ****, the most widely used operating system is Windows, **.** percent, followed by macOS, **.** percent, and Linux, *.** percent. Windows, produced by Microsoft, is the oldest operating system, and therefore also the most widely used. Since ****, the market has become more diverse, and although it is still dominated by Microsoft with Window, macOs has gone from **** to **** to increase its market share by *.**% to **.**%, the same goes for Linux, which has increased by *.**%.
Market share of computer operating systems World, ****-****, percent Source: ****
3 Market structure
3.1 Business model
Leasing models consist mainly of three elements: the manufacturer, the leasing company, and the lessor.
In the computer business, computer manufacturers sell their products to a second company that buys them in large quantities. This latter company rents the products to the end customer in exchange for payment of a monthly fee. The most common customers for computer rental are offices, service or secondary sector companies, which rent both fixed computers to keep in their offices and laptops to leave with their employees, especially with the advent of smart working.
Companies that rent computers receive not only a loaner but also technical support, which is provided either through the renting company itself or through an outside company contacted by them, and insurance.
3.2 Computer rental companies
Enterprises offering computer rental services are analyzed under Ateco code **.** "Rental of office equipment including computers " .
In ****, *** active enterprises and **** employees are registered in the sector in Italy.
The number of enterprises grew by ** percent between **** and ****, while between **** and **** the number increased more slightly, by *.* percent
Number of active enterprises in the sector Italy, ****-****, units Source:Istat Ateco **.**.**
Source: ****
Number of employees in the sector Italy, ****-****, units Source:Istat Ateco **.**.**
3.3 Manufacturers and renters
Some computer companies are beginning to offer leasing or special financing for businesses themselves. In this way they are also taking care of the recovery of their products at the end of their life cycle.
4 Supply analysis
4.1 Type of rental
There are two types of leases, finance lease and operating lease:
Percentage change between **** and **** of financial and operating leases by price range Italy, ****-****, percent Source: ****
4.2 Prices
Rental prices depend a lot on the length of the contract, the type of contract, the type of computer being rented, the ancillary services required, and the amount of computers rented. it is therefore complicated to estimate rental prices since they are Tailored-made offers.
To get a very general idea, below are the prices of some models related to the sites NoleggioVr and Noleggio-fotocopiers :
5 Regulations
5.1 Regulations
Each rental contract is unique and customized, between the hiring entity and the end consumer. However, there is a decree, Legislative Decree **/****, that regulates equipment rental activities. It protects the end consumer, and disclaims responsibility for the conformity of the product to the hirer, while it protects the hirer with regard to the return of the asset, which must be in good condition.
LEGISLATIVE DECREE **, APRIL *, ****
Any person who sells, rents or leases work equipment referred to in Article **, paragraph *, shall certify, under his or her own responsibility, that the same complies, at the time of delivery to the person purchasing, receiving in use, renting or leasing, with the safety requirements set out in Annex V. Any person who rents or grants for use to an employer work equipment without a handler shall, at the time of handover, attest to its good condition, maintenance and efficiency for safety purposes. He shall also acquire and keep on file for the duration of the rental or concession of the equipment a statement from the employer indicating the worker or workers in charge of its use, who shall be found to be trained in accordance with the provisions of this title.
NEW SABATINI.
The ...
6 Positioning of actors
6.1 Segmentation
- Webkorner S.r.l
- HPFS Rental
- Intesa San Paolo Rent Foryou
- Ifis Rental
- Econocom Italia
- Grenke Locazioni
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the computer equipment rental market | Italy
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