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
Copyright 2017-2023 All rights reserved.