Europe Construction Machinery Rental Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

Europe Construction Machinery Rental Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The Europe Construction Machinery Rental was valued at USD 40.2 Billion in 2021, and It is expected to reach USD 48.98 Billion by 2027. The market is anticipated to register a CAGR of about 4% during the forecast period (2022 – 2027).

The rapid spread of COVID-19 had a negative impact on the construction equipment rental industry in Europe, as countries throughout the continent saw massive economic disruption and strict lockdowns in the first two quarters of 2020. The pandemic also negatively influenced ongoing building projects, resulting in a drop in rental equipment demand. However, over the forecast period, the construction industry will be supported by a shift in construction businesses’ inclinations toward renting equipment to lower operational costs, and the ongoing recovery of Europe’s construction industry is expected to drive the market positively in the coming years.

Over the long term, the market demand is fuelled by the constant demand for new infrastructure, increased business in the construction and real estate sectors, and the rapid construction of substantial road infrastructure and smart cities in Europe. The expansion of the industry is also aided by government and construction company initiatives aimed at infrastructural development.

Construction equipment is progressively becoming rented or leased. Purchasing new equipment comes with a significant price tag and maintenance and storage concerns. Renting is becoming a feasible option for newer businesses. The rental construction equipment market is at record highs in countries like Germany and Northern and Western Europe. Furthermore, the recovery of Southern Europe’s, Central Europe’s, and Eastern Europe’s underperforming countries will now result in increased anticipated demand for rental services in their respective regions.

The rental industry is seeing a demand due to rising equipment costs, increasing economic instability, a cash shortage, technology upgrades, unpredictable building and infrastructure growth, depreciation issues, costly failures, and restricted space availability. The motor grader demand is predicted to grow steadily in the coming years; however, many smaller businesses prefer to rent one because of the high expense of acquiring a motor grader.

Additionally, large projects such as port extensions, railway tunnels, and reconstruction activities are witnessing increased demand for cranes, pushing the crane business. This increase in net crane count implies that the construction market is thriving and will continue to do so until 2030.

However, only 70% of manufacturers expect favorable growth in other construction equipment, such as earthmoving and road equipment, while component manufacturers in 80% of the large corporations expect a higher gain.

The rapid increase in the deployment of modern concreting machines on construction sites is expected to propel the concrete equipment market to significant growth over the forecast period. Concrete pumps, transit mixers, crushers, asphalt pavers, and batching facilities are all part of the category. In Europe, asphalt pavers are in high demand for road construction projects.

The rise of hired construction equipment has been boosted by the continuous recovery of Europe's construction industry and favorable economic policies such as low loan rates.

Germany is the largest market in the European construction equipment market. The total turnover of the German equipment rental sector increased dramatically during the last decade, nearly doubling in size. It is expected that revenue from rental and leasing of construction and civil engineering machinery and equipment in Germany will amount to approximately USD 6.4 Billion by 202.

Local market participants are attempting to boost the efficiency and productivity of their operations by incorporating automation into the workflow. For example, Zeppelin Rental, a renowned European provider of construction support and equipment rental services, has begun rolling out SmartEquip technology to its 120 locations. Zeppelin intends to automate equipment servicing and repair operations, increase technician efficiency, eliminate spare part order problems, and improve rental fleet uptime and availability by implementing such a system. The high-intensity competition in Germany is also driving investments up, creating a market where rental companies have to keep a high level of investments in equipment and innovations to stay appealing to clients. All these factors are expected to propel the market's growth in Germany in the future.

Following Germany, the United Kingdom is expected to witness growth in construction equipment rentals. Over the decade, the UK government has allocated over GBP 600 billion to invest in construction projects. At least GBP 44 billion of this funding will be earmarked for housing, with the rest to be spent on improving infrastructure. Additionally, the recovery in hire demand has seen many hire companies investing in fleet upgrades and expansion. Time utilization has increased in recent years and is at high levels overall due to improved logistics and planning. However, rental rates are not growing at best. Small- and medium-sized companies are relatively aggressive on prices.

The Europe Construction Rental Machinery market is fragmented with the presence of several players such as Caterpillar, Kobelco Construction Machinery, Deere & Company, Komatsu Ltd, Volvo Group, Doosan Infracore, and XCMG.

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