The Russian rental market grew by almost 35% in 2011 to reach an estimated value of €700 million and could triple in size by 2015, according to the Russian rental consultancy and training organisation RusRental.
In its new market report RusRental said the Russian rental market will grow at a far faster rate than other sectors of the Russian economy such as mining, construction and utilities. The €2.1 billion forecast for 2015 would be equivalent to a compound annual growth rate (CAGR) of 32%.
The organisation is also forecasting explosive growth in general rentals, with revenues generated by tools and small equipment - including on-site equipment, power and temperature control equipment, portable accommodation, scaffolding, concrete pumps - expected to grow from 6% of the total in 2011 to closer to 18% in 2015. That would mean revenues expanding from around €40 million to more than €370 million in just four years.
Rental in Russia is currently dominated by lifting equipment (cranes and aerial platforms) and large construction machines. RusRental said it expected extremely high growth of smaller equipment as contractors progressively switched to rental.
A spokesperson for RusRental said; "Russian rental companies have realized that small equipment and tools rental may be more profitable than large machines rental, and they are adding more and more of this equipment to their fleets."
One consequence of this will be a shift towards non-operated plant. Around 30% of all rental activity is currently of non-operated plant, said RusRental, but it expects this to increase to 45% by 2015.
The organisation said growth would also occur in eastern Russia (rental is currently focused on St Petersburg and Moscow and to a lesser extent Sochi).
For details of how to obtain the report, visit www.rus-rental.com.