explore our market researches

European Sustainability Report 2024

European Sustainability Report 2024

Market reports

See all
usp

News I published 05 November 2023

Leasing of installation products will likely grow in the future, although installers do not often offer this service yet

Services are increasingly important for brands of installation products to distinguish themselves from the competition. That increase coincides with the trend of servitization in the economy at large. Ownership is getting less dominant, as it is becoming more and more normal to sell access to products as a service.  

These days, it is getting rarer to pay for ownership of a movie, for instance, and more common to pay a monthly fee to a streaming service to get access to all sorts of movies. Similarly, it is becoming more common for consumers to pay a monthly fee to lease a car instead of coughing up the entire sum to own the car. 

But what about the installation industry? For the European Mechanical Installation Monitor, we asked HVAC installers and plumbers from six counties to what extent the leasing of products is desired or offered as a service. 

Leasing is not offered much yet 

When asked to what degree installation companies offer leasing of products to their clients, it appears that installers from Germany, Belgium, and the Netherlands offer this service most often. The actual figures show that most often is not that often, though. 

In Germany, for instance, where leasing is most common, only 17% of installers offer leasing products to their clients. Next come Belgium and the Netherlands, where the share of installers offering leasing to their clients will increase to 13% in 2023. In the other three countries, the share of installation companies that offer leasing is significantly lower.

Leasing will likely get bigger in the future, though 

Although leasing is not offered much yet, leasing products will likely become more common as they offer solutions that align with the trend towards sustainability and the energy transition. The installation sector is in the vortex of moving away from fossil fuels and towards electrical solutions like heat pumps, for instance. However, these new solutions often require hefty initial investments. 

For people who do not have that kind of money lying around, leasing offers the option to make use of more sustainable installations for a monthly fee. Given the vast number of new installations necessary to achieve the energy transition and the fact that many people may not be able to afford the investment to own those new installations, this is an area where we will expect interest in and offerings of leasing products to grow 

Manufacturers can play an important and lucrative role here 

There is another indicator that leasing will grow in the installation market. We measured installers’ interest in certain services and offerings from manufacturers of installation products. In all six countries, interest in manufacturers offering products that installers’ clients can lease instead of buy is still on the low side but is growing rather significantly. 

For manufacturers, offering the usage of a product as a service is very interesting, as it has the potential to generate much more revenue than just selling the ownership once. As the manufacturer remains involved, leasing also provides more efficient ways of reusing materials from old installations when they are replaced. As such, leasing contributes to circularity at a time when materials are often in short supply.  

Altogether, manufacturers should be aware of the potential that leasing their products via installation companies may have for generating revenue and adding value to their brands in the years to come. For an overview of installers’ interest in all kinds of services from manufacturers, we refer you to the Q2 2023 report of USP Marketing Consultancy’s European Mechanical Installation Monitor. 

 

 

Fresh Insights Await

Our latest reports

Delve into the newest findings across various market segments, crafted for a cutting-edge overview. Explore our latest reports, brimming with up-to-date data, trend analyses, and in-depth examinations, all tailored to provide you with a comprehensive understanding of the current market dynamics.

Construction

Home Improvement

Installation

Special reports

Construction

Prefab H1 2024

2024 63 pages

Discover the adoption rate and benefits of prefabrication technology among European contractors in H1 2024. Understand the driving forces behind prefab usage and its impact on project efficiency and cost-saving.

Construction

Future of construction Q2 2024

2024 82 pages

Explore the evolving future in construction sector among European architects in Q2 2024. Delve into the factors driving material preferences and the impact on construction aesthetics and sustainability.

Construction

Trends in material usage Q1 2024

2024 102 pages

Explore the evolving trends in material usage among European architects in Q1 2024. Delve into the factors driving material preferences and the impact on construction aesthetics and sustainability.

Construction

Media orientation H2 2021

2024 161 pages

Explore the media engagement patterns of contractors to optimize your marketing strategies. Dive into a pool of insights that unveils how contractors interact with different media channels.

Construction

European Green Deal Q4 2021

2024 88 pages

Explore the impact and reception of the European Green Deal among architects. Understand how the initiative is influencing architectural practices and sustainability measures.

Construction

BIM Q4 2023

2024 246 pages

Key insights regarding the BIM usage and behaviour of European architects, and our latest future building volumes prognoses

Home Improvement

Purchase channels Q2 2024

2024 90 pages

The European Home Improvement Monitor offers valuable insights on purchase channels in the European home improvement industry, examining the evolving preferences and behaviors of consumers across traditional retail and emerging online platforms.

Home Improvement

Sustainability Q1 2024

2024 81 pages

Delve into sustainability trends in the home improvement sector in Q1 2024. Discover consumer preferences and the shift towards eco-friendly home improvement solutions.

Home Improvement

DIY versus DIFM Q4 2021

2024 113 pages

This report is a must-have if you’re in the home improvement industry. It provides a wealth of information on the behaviour of DIY and DIFM consumers, their motivations, and the factors that influence their purchasing decisions.

Home Improvement

DIY or DIFM Q4 2023

2024 70

Explore the prevailing trends between DIY and DIFM in Q4 2023. Understand consumer preferences and the factors influencing their choice between DIY and DIFM.

Home Improvement

Branding Q3 2023

2023 93 pages

This report offers an extensive overview of the home improvement industry, with a focus on branding and the most popular brands within different categories. Within this report, you will gain insights into how customers perceive home improvement brands and what motivates them to buy certain products.

Home Improvement

Purchase channels Q2 2023

2023 114 pages

The European Home Improvement Monitor offers valuable insights on purchase channels in the European home improvement industry, examining the evolving preferences and behaviors of consumers across traditional retail and emerging online platforms.

Installation

Smart & Connected Products Q2 2024

2024 120 pages

This report provides a comprehensive view of the attitudes of installers toward smart building solutions, specifically among electrical installers and their clients. In the report, you will find insights into the installers' experiences with installing smart products and the willingness of end users to invest in such solutions, as well as their motivations and pain points.

Installation

Smart and connected products Q2 2024

2024 129

This report provides a comprehensive view of the attitudes of installers toward smart building solutions, specifically among HVAC installers, plumbers and their clients. In the report, you will find insights into the installers' experiences with installing smart products and the willingness of end users to invest in such solutions, as well as their motivations and pain points.

Installation

BIM Q1 2024

2024 84 pages

The European Mechanical Installation Monitor report provides a detailed analysis of the plumbing and HVAC industry. This report specifically focuses on BIM adaptation in the industry.

Installation

Sustainability Q1 2024

2024 99 pages

The European Electrical Installation Monitor report provides a detailed analysis of the sustainable solutions in the installation industry. This report specifically focuses on sustainability aspects in the industry.

Installation

Challenges toward sustainable future Q4 2021

2024 111 pages

Installation

Purchase channels Q4 2021

2024 106 pages

Delve into the training needs within the electrical installation sector. Understand the areas requiring skill development to meet the evolving demands of the industry.

Special reports

European Sustainability Report 2024

2024 51 pages

This report provides in-depth insights based on triangulation of key market information and data as well as data from USP Marketing Consultancy’s key monitors that are carried out year in, year out. The focus of this report is on the most important stakeholders within the construction industry, namely architects, contractors, electrical and HVAC installers within The United Kingdom, The Netherlands, Belgium, Germany, Poland, France, Italy, and Spain.