The European Rental Association (ERA) has forecast that Europe’s equipment rental market will grow by 2.7% next year, which represents a significant increase on the sub-2% growth rates of 2014 and 2015.
In its ERA Market Report 2015 – to be published next week – the association values Europe’s rental market at €23.06 billion in 2014 and has forecast 1.4% growth this year followed by a 2.7% expansion next year.
The report also highlights the growth opportunity in many European markets, with the ERA arguing that large variations in rental GDP penetration – rental activity as a proportion of overall construction volumes – indicate the scope for expansion.
The average GDP penetration in the most mature 14 countries is estimated by the ERA to be 1.71%, while the equivalent figure for the remaining EU28 and EFTA countries is just 0.77%.
“Overall, growth in the industry remains correlated to construction activity”, said Michel Petitjean, secretary general of the ERA. “However, the variations in market penetration in different countries suggest there is room in the future for the rental market to grow ahead of the overall economy.”
He said that the ERA was seeing growing recognition of the advantages that renting brings to businesses, including more efficient use of capital, access to a wider range of equipment, compliance with regulations, and improved sustainability performance.
“Intensively used, carefully chosen and well maintained equipment on demand can bring real benefits to companies across the continent”, said Mr Petitjean.
The report shows the wide variation in the health of rental markets around Europe. For example, in 2014 the Polish market grew by 8.8% after a sharp contraction the previous year, while the Italian market shrank by 2.1%.
Mr Petitjean said; “The European rental industry as a whole continues to grow despite difficulties in some markets, particularly in central and southern Europe”.
This year’s report includes for the first time country-specific data for Austria and Switzerland in addition to 12 other countries, and there is a special focus on Germany.
The 96-page report contains statistical information and expanded details on 14 countries in Europe. Prepared by consultant IHS for ERA, the report is available to ERA members for €300 and to prospective and non-members for €900. E-mail the ERA for details: firstname.lastname@example.org