The Europe Construction Machinery Rental is anticipated to register a CAGR of about 3.21% during the forecast period (2020 - 2025).
- Renting and leasing of construction machinery is on the rise. Buying a new equipment’s involves a high cost, maintenance and storage related issues. Renting is becoming a viable possibility for newer business as well. Countries such as Germany, in particular, along with Northern and Western Europe, are seeing record levels with rented construction equipment market. Moreover, the recovery of poorly performing Southern Europe, Central, and Eastern European countries will now see improved forecasted sales in their respective regions.
- However, factors such as free trade crisis and ongoing political and economic uncertainties, such as Brexit could hinder the growth on the. In 2018, machine delivery times also became one of the limiting factors in the drop in expected sales.
Key Market Trends
Demand for Rented Motor Graders, Backhoe and Excavators is Growing
Due to rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns, and limited space availability renting market is seeing a demand.
Off-Highway Research reports that the motor grader market is expected to grow by 20% by 2020. Due to the high purchasing cost associated with the motor graders, many of the smaller companies prefer rented motor grader. In 2018, backhoe loaders accounted for over 68.23% of total sales and also, second-hand excavator market is expected to bounce back by 2020. Excavators are extremely versatile and come with multiple attachments and provide better productivity, becoming the primary reasons it's the growth
Also, with massively scaled projects such as port extension, railway tunnels, and underwater tunnel connecting major European countries are seeing more significant demand for cranes, thus driving the entire crane market. This increase in net crane count indicates the prospering growth of the construction market, and it is to grow until 2030.
Although, for other construction equipment such as earthmoving and road equipment, only 70% of manufacturers anticipate a positive growth and, component manufacturers in 80% of the major companies are also planning a higher increase. However, concrete equipment producers expect to see a far lesser growth. Nevertheless, the construction industry is getting smarter with improved digitalization, connectivity, and automation, and the future remains bright.
Germany Holds the Largest Market Share
In recent years, Europe's construction industry in industry output has increased and crossed 1.64 trillion euros in 2016. The civil Engineering sector has generated 267.1 billion euros, the most significant income by any in the construction industry. With the ongoing recovery of Europe's construction industry and favourable economic policies such as low-interest rates have further improved the growth of rented construction equipment’s.
In 2016, The European Commission received a request for over 50 million euros in funding for undertaking over 550 projects across the EU. Poland is the largest requesting country seeing a rise in construction by 20%. The majority of projects were related to road infrastructure and energy sectors.
However, with capable machinery and advanced equipment's employment in the civil sector in 2016, has decreased from 1.68 million to 1.87 million in 2009. Nevertheless, developed nations in Europe are also investing in newer technologies to cope up with a growing demand to replace older techniques to adopt sophisticated construction equipment.
Europe Construction Rental Machinery is consolidated with existing players such as Caterpillar, Kobelco Construction Machinery, Deere & Company, Komatsu Ltd, Volvo Group, Doosan Infracore, and XCMG.
Since the construction machinery market is characterized by the presence of numerous international and regional players, construction manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.2 Telescopic Handlers
5.1.4 Loader & Backhoe
5.1.5 Motor Grader
5.2 Drive Type
6.1.2 United Kingdom
6.1.6 Rest of Europe
7.2 Company Profiles
7.2.1 Caterpillar Inc.
7.2.2 Kobelco Construction Machinery Co. Ltd.
7.2.3 Deere & Co.
7.2.4 Komatsu Ltd.
7.2.5 Volvo Group
7.2.6 Doosan Infracore
7.2.9 Battlefield Equipment Rentals
7.2.10 Ahern Rentals