Another year of growth in all European rental markets in 2019 despite an end in the cycle
21 October, 2020 (Brussels, Belgium): The European Rental Association (ERA) is today releasing its 2020 Market Report. Developed with the support of the ERA Statistics Committee, the ERA Market Report has been the reference source of intelligence for the European equipment rental market since 2008.
The building of a solid data foundation remains at the centre of the report. This year, more than ever, providing a clear picture of the short- and medium-term outlook for the rental market is critical not only for rental companies, but also for equipment manufacturers.
This edition, comprising market trends and international comparisons, uses a common methodology and definition to analyse 15 European markets, with detailed market size results for 2017-18 (actual), 2019-20 (estimates) and 2021-22 (forecasts). These countries account for more than 95% of the equipment rental industry in the EU, European Free Trade Association (EFTA) and the UK.
In 2019, equipment rental companies and other companies providing rental services generated a total rental turnover of more than EUR 27.7 billion in these countries (EU-EFTA-UK).
The release of national statistics vary across the region and this year there are only two countries, Germany and Austria, for which 2018 Eurostat data is available. For all the other countries, only 2017 figures are available. Therefore, for those, the 2018 and 2019 figures were based on forecast drivers only.
At a constant exchange rate, the equipment rental industry in the 15 countries saw growth of 4.1% in 2019. In 2020, there is an estimated decrease of 10.4%, with 2021 forecast to increase by 4.8%, also at a constant exchange rate.
The headline conclusion from this year’s report is that 2019 was a year of growth for all the markets covered. This growth, however, was at different stages, with some markets already slowing down (France, Belgium, Sweden) and others still reporting robust growth (Germany, Poland, Italy). The first quarter of 2020 reflected these dynamics.
The COVID-19 pandemic, however, hit European economies over the second quarter of this year. The immediate impact differed from country to country. The Nordic countries, which did not lockdown and had almost no site shutdowns, have performed differently to southern Europe and the UK, which faced severe lockdowns and disruptions to activity. The UK has been further impacted by the uncertainty surrounding the Brexit negotiations.
The estimates and forecasts included in this report are based on assumptions at the end of September. The hypothesis is that there will be no further lockdowns across Europe apart from local and temporary restrictions. The forecast also does not factor in the development and mass availability of a vaccine.
It is important to stress the extreme conditions of 2020, which have been analysed with the forecasts for 2021. Large drops are expected this year, but significant rises – some of them due to technical rebounds – are expected in the short-term, as well as in the medium- to long-term.
The ERA Market Report is the leading source of market intelligence on the European equipment rental market and the only Europe-wide industry benchmark. It contains detailed market information for the years 2016 to 2022 and key indicators, including rental turnover, fleet value and investments.
The report is available digitally for ERA members (EUR 500) and for non-members (EUR 1,200). To order a copy, please contact the European Rental Association at [email protected].
Download the press release here.
About the Report
The results for the European rental market in this report refer to renting of equipment without an operator. The figures are based on official statistics for NACE rev. 2 code 77.32: “Renting and leasing of construction and civil engineering machinery and equipment without operator.”
The ERA Market Report 2020 is copyright-protected and proprietary to the European Rental Association. Figures, charts or findings from the ERA Market Report 2020 may not be reprinted or copied in part or in full without the advance written permission of the European Rental Association.
However, the information included in this press release may be reproduced without further permission.
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Huw Longton: [email protected], +32 (0)471 58 13 14