ERA Market Report 2015 – a closer look
By Helen Wright03 December 2015
While the headline figures from the European Rental Association’s (ERA) Market Report 2015 forecast Europe’s overall equipment rental market to grow 2.7% next year, a country-by-country analysis revealed a more detailed picture – with stronger growth in some regions, and declines in others.
The largest market in the region in terms of rental revenues was the UK, where the report forecast revenues would grow 1.5% in 2015 to £5.68 billion (€8 billion), with a further 3.7% increase in 2016. The report also estimated that non-construction demand in the UK made up 40% of sales, with the remaining 60% coming from the construction sector.
However in France – the second largest market by revenues – the report estimated that rental sector turnover would fall in 2015 by 0.1% to €3.64 billion, but growth was forecast for 2016 again – a rate of 2.4% in 2016.
The report also estimated that the construction sector share of rental demand in France was 70%, making construction sector growth essential for the well-being of the rental industry. Total construction spending in the country was expected to post a 1.7% gain in 2015, followed by an increase of 1.6% in 2016.
Revenues in the German equipment rental sector, meanwhile, were forecast to rise 1.7% in 2015 to €3.5 billion, increasing a further 1.8% in 2016. The ERA estimated the construction industry sector share of rental demand in Germany at 70%, and construction spending was expected to grow a 4% in 2015, followed by an increase of 4.1% in 2016.
Elsewhere in Europe, the equipment rental sector in the Netherlands was forecast to grow 1.9% in 2015 to €850 million, with a further 1.8% increase in 2016. Construction spending in the country was also expected to pick up for both 2015 and 2016.
And in Belgium, the equipment rental sector was expected to grow 1.5% in 2015 to €621 million, with forecast growth of 2.3% 2016. Here too, most rental revenue came from construction, where spending was expected to grow 0.7% this year and a further 1.5% in 2016.
In Austria, the ERA estimated that rental equipment revenues would grow 3.7% this year to €324 million, and forecast growth of 2.9% in 2016. The reports said most rental revenue in Austria stemmed from the construction sector, where real total construction spending was expected to post a 0.7% gain in 2015, followed by an increase of 2.0% in 2016.
Looking to Switzerland, revenues in the equipment rental sector were forecast to decline 0.1% in 2015 to CHF420 million (€385 million), with growth of 0.3% expected to return for 2016. Construction spending was expected to post a 1.1% gain in 2015, followed by an increase of 1.3% in 2016.
Nordic countries were also forecast to see growth in rental revenues. For Sweden – the largest country by revenues in this area - equipment rental revenues were forecast to grow 1% in 2015 to SEK13.3 billion (€1.4 billion), with further growth of 0.9% next year. Total construction spending was expected to post a 4.9% gain for 2015, followed by an increase of 3.1% in 2016.
In contrast, Norway’s equipment rental sector was forecast to see a decrease of -1.5% in total revenues for 2015 to NOK7.3 billion (€797 million), after three years of growth. For 2016, the ERA said growth was back in the picture, with a forecast of a 2.3% increase.
It said more than half of rental revenue in Norway stemmed from the construction sector, where total spending was expected to post a 0.3% gain in 2015, followed by an increase of 1.5% in 2016.
In Finland, rental revenues were forecast to increase 1.7% in 2015 to €447 million, with an outlook for a further increase of 3.6% in 2016. Construction spending in Finland was expected to grow 1.9% in 2015.
And Denmark’s rental sector was expected to see growth of 1.4% in 2015 to DKK3.28 billion (€440 million), with growth of 2.6% on the cards for 2016, in line with the overall economy. Real construction spending in Denmark was expected to post a 1.7% gain in 2015, followed by an increase of 1.9% in 2016.
Positive forecasts were also in the picture for Southern Europe. In Spain, the report estimated that rental revenues would grow 3.7% in 2015 to €1.43 billion, with a further 3.1% increase in 2016. This year’s total construction spend in Spain was expected to grow 1.5%, followed by 2.2% growth next year.
Meanwhile in Italy, the report estimated that rental revenues would grow 2.7% in 2015 to €1.09 billion, and forecast growth of 3.4% for 2016. The share of rental demand from the construction sector in Italy was estimated at 70%, and spending here was expected to post a -1.3% drop this year due to continued weakness in the residential sector, followed by an increase of 1.8% in 2016.
Finally, one Eastern European country featured in the report – Poland. Here, rental revenues were forecast to see 2.6% growth this year PLN1.68 billion (€392 million), with further growth of 1.8% expected in 2016. The ERA said most rental revenue in Poland stemmed from the construction sector, where spending was expected to increase 3.3% this year and 2.6% in 2016.
About the report
The 96-page ERA Market Report 2015 was produced in cooperation with research company IHS. As well as detailed market size information for the years 2012-2015, it also includes key ratios including fleet size and investment, rental penetration rates against countries’ GDPs, construction outputs and populations.
The full 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
ERA secretary general Michel Petitjean said, “The report shows how the rental sector is evolving. Equipment rental brings real benefits to business, and this is increasingly recognised across Europe.
“It allows more efficient use of capital, access to a wider range of equipment, expert maintenance and servicing, compliance with regulations, and improved sustainability performance. Intensively used, carefully chosen and well-maintained equipment on demand brings real benefits to the European economy and environment.”