Sweden Construction Equipment Rental Market Overview, 2028

Sweden Construction Equipment Rental Market Overview, 2028

Sweden was placed 10th out of 190 nations in the ease of doing business ranking in 2019, up from 12th in 2018. It has entire ICT and industrial internet sectors and is capable of collaborating effectively across industries, academia, and government, making it an appealing market for emerging innovations. Stockholm, Uppsala, and Oster Gotland are the key cities responsible for 66% of total GDP in 2021. Sweden has the highest rental GDP and construction penetration in Europe, owing to sophisticated client demands. It is also worth highlighting the advancement of entire rental solutions, which include transportation on-site, trash management, and safety solutions. Strong demand for modern, safe machinery with good environmental performance is critical. Sustainability and ecological considerations are crucial for contractors and government agencies in Sweden, as they are in other Nordic nations, with the largest mine in Sweden currently threatened with closure due to environmental concerns. If this happens, the impact on the supply chain will be felt throughout the industry. Skansha Rental, 2rent Sweden AB, Woodlite Sweden AB, etc. are the construction equipment agencies operating in Sweden.

According to the research report, “Sweden Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 0.45 Billion by 2028. Infrastructure improvement projects in rural parts of Sweden, such as the restoration of commercial buildings, railway stations, and airports, runway rehabilitation, and roadway and bridge extensions, are fuelling the strong demand for the Sweden construction equipment rental business. Rising equipment costs, growing economic uncertainty, a liquidity crisis, technological developments, and big infrastructure construction are all driving up demand in the rental industry. Contractors prefer to hire construction equipment to keep project expenses under control as labour and raw material prices grow. Rental firms are heavily investing in technologically advanced and environmentally friendly construction equipment in order to expand their fleet sizes and successfully satisfy the increasing expectations of their clients.

Since 2017, Sweden has been experiencing significant housing shortages. The Swedish government adheres to old and tight rent-control rules, which have hampered the construction of new residences for rent due to the narrow profit margins for house owners and builders. The stringent rent limits deter developers from constructing and renting out vacant properties. The government is also raising mortgage taxes, which is hurting the country's housing market. In 2021, demand for housing fell due to an increase in central bank interest, which resulted in a surge in inflation, limiting consumers' purchasing power. According to the Swedish government, 70% of towns in Sweden experienced a severe housing shortage in 2021. The substandard housing programme and rising taxes are predicted to have a negative influence on housing demand in the future.

Sweden government’s development projects
The Swedish government's national transport development plan for 2021 had allotted $86.9 Billion in funding over a 12-year period. The plan also involves $71.2 billion in investments for new construction, repairs, and upgrades of existing infrastructure. In addition, the government intended to treble mining output by 2025. The expansion of the construction and mining industries is predicted to boost demand for construction equipment in Sweden.

Major infrastructure projects in Sweden include the Stockholm Arlanda Airport ($200 million), North Bothnia rail line ($2.9 billion), double track between Angelholm and Helsingborg region ($200 million), Olskroken Project ($400 million), Onshore Wind Farm Markbygden Vind AB, Stockholm Bypass Project ($3.7 billion), and Motorway construction road between intersection Ronneby East & Nattraby.
The Swedish government proposed in 2021, under the transport development plan, to invest $89.6 billion on maintaining, expanding, and developing Swedish transportation infrastructure over the next twelve years. The government has created a national infrastructure plan for the years 2018–2029. In 2021, the government planned to invest in the development of airports, railway lines, highways, and bridges throughout the country's major cities.

Therefore, with increase in the construction activities by Sweden government and the private sector the market for construction equipment rental shows the great potential. As the cost decreases and profitability for the company’s increases, thus companies tend to rent the equipment instead of purchasing.
Covid-19 Impact
The spread of COVID-19 contributed to the decline of the Sweden Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries.

Considered in this report
• Geography: Sweden
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Sweden Construction Equipment Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment type
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application type
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.