Microsoft has announced new investments in Dynamics 365 aimed at helping organisations run rental-based business models more efficiently, as demand for asset-as-a-service offerings continues to grow across industries. The new rental management capabilities are currently in development and are planned for release in Q4 2026.
The update is designed to support organisations that generate revenue from renting equipment, tools, machinery, medical devices, technology assets, and other products rather than selling them outright. According to Microsoft, rental and leasing markets are expanding rapidly, with global revenues already exceeding $500 billion annually, while North American equipment and tool rentals alone are expected to cross $80 billion.
Microsoft said many rental businesses today rely on disconnected systems for quoting, reservations, dispatch, billing, maintenance, and financial reporting. This fragmentation often leads to idle assets, slower deal cycles, billing errors, and poor customer experiences. The upcoming Dynamics 365 enhancements aim to bring these processes together inside a single ERP environment.
Planned capabilities include rental quoting and reservations to confirm asset availability, flexible contract and pricing management for short-term, long-term, and rent-to-own models, inspection coordination at delivery and return, and billing and invoicing directly tied to rental activity. These features are intended to help organisations reduce manual work, improve accuracy, and speed up the end-to-end rental lifecycle.
The rental functionality will be built natively across Dynamics 365 Finance, Dynamics 365 Supply Chain Management, Dynamics 365 Project Operations, and Dynamics 365 Field Service, allowing organisations to manage rentals as an extension of their core operations rather than as a separate system.
The company also highlighted the role of its partner and ISV ecosystem, noting that the new rental foundation can be extended with industry-specific solutions and AI-driven capabilities using Microsoft Copilot Studio and agent-based automation. These extensions are intended to support specialised pricing, compliance, and asset lifecycle requirements across different rental-heavy industries.
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