ERA Releases 2023 Market Report: European Rental Market Growth to Slow Down

The European Rental Association (ERA) has released its 2023 Market Report, showing that the European equipment rental market experienced growth of 7.5% in 2022, with a total rental turnover of €28.9bn in the 16 countries covered by the report.

Growth across the 16 countries in 2022 ranged from 1.2% (Switzerland) to 18.2% (Portugal), with 14 out of the 16 rental markets growing by more than 5%. The UK, Germany and France remain the largest rental markets in Europe, now accounting for almost 69% of the total market size. Most of the positive growth in 2022 is attributed to increased prices rather than significant improvements in activity.

Growth is expected to slow down to 2.7% in 2023, with a rental turnover of €29.7bn. ‎Higher borrowing costs and still elevated inflation are taking their toll on activity. However, high machinery ‎purchase prices and uncertainty about the economic environment is shifting demand to usership over ‎ownership, so the rental market is expected to outperform the construction sector. ‎

Subdued eurozone economic growth, less favourable financing conditions, reduced business ‎confidence and inflation will also weigh on investment. The residential sector will remain the main ‎drag on overall growth, while infrastructure projects supported by the EU’s Recovery and ‎Resilience Fund should support the rental market going forward.

In the longer term, the diversification of the industry away from construction and investments in green projects will ‎benefit the sector growth.

Source: ERA

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