Europe Construction Equipment Rental Market Outlook, 2028

The European market is projected to record considerable growth during the forecast period. This is mainly due to the increase in demand for new residential buildings. Additionally, Germany has a huge number of manufacturing plants, specifically in the automotive sector, and the best-performing machinery and equipment in the whole of Europe, which is further accelerating the market's growth. According to the European Rental Association (ERA), the sustainability of companies can be improved by using their services rather than buying them. In addition, the expansion of the fleet in these countries also underpins the growth of the European market. The market is anticipated to witness higher market growth owing to the recovering construction business with major and small-scale commercial and residential advancements. The soaring emphasis of construction firms on establishing long-term partnership projects with equipment rental, design, and consulting firms, along with government initiatives for infrastructure improvement, is likely to boost regional profits. For instance, in April 2022, the EU launched the Climate-Neutral and Smart Cities Mission with the goal of providing 100 climate-neutral and smart cities by 2030.

According to the research report, "Europe Construction Equipment Rental Market Outlook, 2028," published by Bonafide Research, the market is anticipated to grow at a rate of 5.36% CAGR from 2023 to 2028. Construction equipment is increasingly being 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. Over the long term, 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.

Based on the report, the Europe construction equipment rental market is categorised into six major countries, including Germany, the UK, Spain, Italy, France, and Russia. Germany and the United Kingdom will account for more than 38% of the market in 2022.Concrete equipment will be highly desirable in the U.K., Germany, Italy, Denmark, and Croatia following the demand for advanced concrete machines on construction sites. Asphalt pavers, for example, will be in high demand due to the region's brisk road construction activity. Prominently, the Polish government announced the highway development plan in 2014 to expedite the development of more than 1,800 km of new highways by 2021. Stakeholders are slated to further their investments in earthmoving and road building equipment on the heels of the soaring adoption of excavators, backhoes, and loaders across the region. These machines will gain prominence for digging trenches, grading soil, and removing dirt and rocks. The earthmoving and road building equipment rental market share in Europe will increase at a rapid pace. Based on these factors, the market is segmented into various product types, including earthmoving, material handling, concrete and road construction, and others. Among them, the earthmoving segment occupies nearly half of the market share.

The earthmoving and road building equipment segment is poised to grow at a healthy CAGR during the forecast timeline, driven by the increasing adoption of loaders, backhoes, and excavators in construction activities. These machines are used for a wide range of earthworks, including grading soil, laying foundations, digging trenches, removing dirt and rocks, and demolition work. The proliferation of excavators has increased over the years due to their adoption in quarrying, mining, and road-building activities. Different types of equipment used in modern construction include material handling equipment and cranes, concrete equipment, and earthmoving and roadbuilding equipment. The demand for materials handling equipment and cranes across Europe is expected to grow substantially in the coming years, with a strong need for goods movement machinery and an attractive economic landscape. The majority of building and construction companies are utilising bulk material handling machinery for faster completion of mega construction projects. The equipment helps move goods across different locations faster and more effectively while ensuring a safe working environment. The presence of strict workers' safety regulations in the industry will certainly augment the adoption of cranes and other material handling equipment.

Rising equipment costs, increasing economic insecurity, a cash shortage, technology upgrades, unpredictable building and infrastructure growth, depreciation issues, costly failures, and limited space availability are all driving demand for the rental industry. The demand for motor graders is predicted to grow steadily in the coming years; however, many smaller businesses prefer to rent one because of the high expense of acquiring one. Additionally, large projects such as port extensions, railway tunnels, and reconstruction activities are witnessing increased demand for cranes, pushing the crane business. The rise of hired construction equipment has been boosted by the continuous recovery of Europe's construction industry and favourable economic policies such as low loan rates. The industry's growth is driven by an upward market trend towards adopting technologically integrated equipment in rental fleets. Technological innovations, such as the integration of autonomous driver assistance systems and telematics into construction equipment, have propelled market demand. A telematics system provides machine diagnostics and timely alerts that help reduce downtime, misuse, and theft of the equipment. It also offers enhanced security, greater efficiency, and productivity in operations. Shifting consumer preferences towards technologically advanced construction rental equipment will support market expansion.



The European construction equipment rental industry has been adversely impacted by the prevailing COVID-19 health crisis. The suspension of government-funded construction projects owing to financial insecurities and a lack of capital has led to a decline in demand for construction equipment. However, the high cost of new equipment is expected to stabilise the market during the pandemic. Construction companies and building contractors are highly inclined towards renting the equipment instead of investing in expensive new machines. The growing number of public infrastructure developments, including airports and railways, in Italy, Germany, and France is driving the growth of the regional construction sector. The rapid increase in government investments in infrastructure development is supporting the demand for construction equipment rental in Europe. The investment encompasses the expansion of the airport by extending the terminal size and developing additional facilities at the airport. The growing availability of technologically advanced construction equipment rental is fuelling demand for rental services in public infrastructure projects. Construction equipment rental companies in Europe include A Plant, Aggreko, Banner Plant, Fork Rents, Hawk Hire, Hewden Hire, HSS, Land & Water, Liebherr Rental Division, Lynch, Ridgway Rentals, Speedy Hire, Volvo Rents, and HeavyRentalz.

The EU’s strategy of building over 300 smart cities in the region by 2021 will provide new opportunities for market players. Factors such as strict labour safety laws in several European countries, including Germany, France, and the UK, will further strengthen the regional industry share. Construction OEMs with strong presences, such as Liebherr Group and Volvo, support the expansion of the construction equipment rental industry across Europe. Russia and the U.K. are currently investing in the development and automation of road transport and railways. Growing technological advances and the need for mechanisation in construction are likely to provide regional manufacturers with ample opportunities. Local construction machinery suppliers are constantly focusing on design improvements to meet these needs and challenges. The construction equipment rental industry in Europe is also likely to amass hefty proceeds in the years ahead, given consistent technological evolution, including the integration of ADAS (autonomous driver assistance systems) and telematics into building equipment. Telematics systems can deliver timely alerts and machine diagnostics to decrease downtime, theft, and misuse of the equipment. It also improves the efficiency, security, and productivity of operations. A shift in the propensity of consumers towards technologically advanced rental equipment will also accelerate market expansion in the region.

Construction equipment manufacturers, suppliers, and rental service providers in Europe are expected to witness tremendous opportunities in the forthcoming years. In anticipation of robust demand in the future, leading companies such as Thyssenkrupp AG, ZF, Wirtgen, Schwing Stetter, and Liebherr have been making extensive research and development efforts to develop advanced, more reliable heavy-duty machinery. Furthermore, Klarx, Germany’s leading online rental platform for construction equipment, has raised €4 million to bring the European rental market into the digital age. The round was led by Target Global, with the participation of some of Europe’s most successful mobility entrepreneurs. The number of highways, metros, airports, Special Economic Zones (SEZs), hydropower projects, and dams has increased in this region in order to meet expanding energy demand, high-level industrial activity, and increased connectivity. Because of these factors, there are modern production facilities, cheaper labour, and a large output capacity.

Recent Developments:
• In May 2022, Case Construction Equipment launched its new D-Series mini excavators for the European market. The line comprises 20 models, including two zero-emission electric machines. D-Series machines can be used with the Case SiteWitch fleet management tool by customers managing large equipment fleets, such as those in the rental industry.
• In June 2021, Loxam Group announced the acquisition of Dutch rental company JM Trykluft A/S. This acquisition reinforces Loxam’s setup in Western Denmark, with its 21 general plant branches and six specialised plant branches, to set up a best-in-class service network for its clients.
• In June 2021, Ashtead Group PLC entered into a global rental partnership with Switzerland-based Hydromea, the innovative subsea wireless access provider. Under the deal, Ashtead will actively promote and use Hydromea’s LUMA high-speed through-water wireless optical modems as an integral part of its AMS+ and DMS (Autonomous and Deflection Monitoring Systems) for the global subsea construction market.
• The European Commission has planned to invest about $340 billion by 2027 in infrastructure, digital, and climate projects.
• To increase market share, companies involved in mergers and acquisitions and facility expansions
• In July 2021, a subsidiary of Sany Heavy Industry Co. Ltd., Sany UK Ltd., opened a new branch in Scotland, which offers construction machinery.
• In October 2021, Manitowoc Company Inc. acquired the crane business of H&E Equipment Services Inc., a rental equipment company in the U.S., for approximately $130 million. Manitowoc has also expanded its capacity to deliver new equipment sales, used equipment sales, aftermarket parts, crane servicing, and crane financing to a broader range of clients.
• In October 2021, a subsidiary of Toyota Industries, Cascade Corporation, acquired Lift Technologies Inc. (U.S.) and Lift-Tek Elecar S.p.A. (Italy), commonly referred to as Lift-Tek, which manufactures and sells forklift masts. Forklifts are used for various material handling operations in factories and distribution warehouses.

Major Companies present in the market:
Caterpillar Inc., Sumitomo Corp., Hitachi Construction Machinery (Hitachi Group), Hyundai Construction Equipment Ltd., Loxam Group, Finning International Inc, Maxima Carne Works Lp, Boels Rental, United Rental Inc, Kanamoto Co Ltd

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

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

Countries covered in the report:
• Germany
• United Kingdom
• France
• Spain
• Italy
• Russia

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 list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing 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 conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the 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.