ERA Market Report 2018
The European equipment rental market is growing ahead of the general economy, backed by increased investment from rental companies, but still shows significant opportunity, reports the ERA Market Report 2018.
The report is the leading source of market intelligence on the European equipment rental market and the only European-wide industry benchmark. It contains detailed market information for the years 2015 to 2020 and key indicators, including rental turnover, fleet value and investments.
For the first time, the report also provides an analysis on rental penetration based on equipment unit sales from a selected range of categories, alongside penetration rates by GDP and construction output. This new insight, conducted with Off-Highway Research, highlights the significant opportunity in less mature markets to grow common equipment rental categories.
The report shows that rental growth in the 15 major markets it investigates was 4.4% in 2017; an estimate for 2018 shows an increase of 3.7% and a forecast for 2019 of 3.4% - all at constant exchange rates. In 2017, the market for equipment rental without operators, for the EU-28 and European Free Trade Association, had a total turnover of EUR25.7bn with the 15 countries of the report accounting for more than 95% of sales. The sector is comprised of 17,100 rental companies employing more than 140,000 people.
Of the big 3 mature markets, France was the big winner in 2016 - 2017 with an increase of 7.8% in turnover to more than EUR4bn, driven by residential and infrastructure investments. Germany, which enjoyed a similar recovery in the previous year, grew 4.2% and is estimated to continue at 3.7% for 2017 – 2018. Only the UK, the biggest equipment rental market, worth EUR6.75bn in 2017, grew at just 1.4%, YOY ‘16/’17, held back by business uncertainty surrounding Brexit outcomes. The report estimates 2018 growth for the UK at 2.1% as negotiations continue; however, it remains the largest European market and investment is expected to have increased over 2018 by 7.9%.
As well as European-wide investment in fleet expansion and renewal, drivers for growth include an increasing recognition of the role of rental in ensuring sustainability and minimising environmental impact. Thanks to the new analysis in the special section about penetration, the ERA also highlights opportunity as the market gains traction, revealing a patchwork of penetration for a common equipment category such as a mini-excavator, from 85% of demand in the UK to less than 5% in a market such as Portugal.
Michel Petitjean, Secretary-General of the ERA said: “The market is maturing and growing which is encouraging. Businesses across Europe increasingly use rental as part of their competitive toolkit as it makes better use of capital, minimises environmental impact and provides access to new equipment and expertise, as well as ensuring compliance.
“The additional analysis this year on penetration rates for different common categories across Europe points to further growth opportunities for an exciting, modern industry, also both political and economic prospects only show short term trends leaving uncertainty after 2019.”
About the Report:
The ERA Market Report 2018 contains a country-by-country analysis of 15 European countries, detailing market size actual (2015–16) estimates (2017–18) and forecasts (2019-2020) in the local currency and key ratios including fleet size and investment (2015 – 2018) It also includes penetration rates against countries’ GDPs and construction outputs. It also includes an estimate, in euros, of the size of the total equipment rental market in the EU-28 and EFTA countries for 2017.
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.”
In addition, this year, for the first time, the report provides an analysis of rental penetration based on sales of equipment units on a selected range of product categories in 15 countries and over a 10-year history. This project was conducted with Off-Highway Research, based on detailed interviews with OEMs and dealers/distributors in each country.
The report, commissioned by ERA, is available to ERA members for €300 (hard copy) or for EUR 500 (digital version) and to non-members for €900 (hard copy) or EUR 1,200 (digital version). For copies, please contact the European Rental Association at Avenue de Tervueren 188A, 4th floor, Postbox 4, 1150 Brussels, Belgium or by email to firstname.lastname@example.org.
The ERA Market Report 2018 is copyright-protected and proprietary to the European Rental Association. Figures, charts or findings from the ERA Market Report 2018 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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