Spanish rental market: stability, growth and niche innovations

When IRN visited Spain last year, the sentiment among OEMs was that demand from rental companies was stable, perhaps surprisingly so given rising interest rates and a weaker-than-usual construction market.

In fact, the ERA/IRN RentalTracker survey found that at the end of the fourth quarter of 2024, 69% of respondents from Spain said they were experiencing improving market conditions.

That sentiment is backed up by aerial platform association for Spain ANAPAT, which tells IRN that in general, the rental companies in Spain expected “good financial numbers” for the 2024 financial year, backed up by a growing economy.

It’s a good sign, of course. If an economy is growing, projects can go ahead. If there are projects, there is demand for equipment, and if there is demand, there is the stability required for OEMs to innovate.

In that respect, the OEM landscape in Spain is vast, offering everything from earthmoving equipment, scaffolding and generators to smaller, more niche equipment such as rack and pinion hoists.

It was the view of many companies that we visited in 2024 that demand for these more niche products was better in 2024 due to a rise on home construction projects.

Niche demands

In terms of those niche products, lighting tower and genset manufacturer Himoinsa counts itself in that bracket, which is one of the reasons the company believes that it managed to navigate the challenges of 2024.

Digitisation and sustainability are two focus areas for customers, Himoinsa says. Photo: Himoinsa

The company tells IRN, “2024 has been a good year for Himoinsa globally. We have reached our growth goal in the different business unit. The Mobile Power business unit has grown significantly.

“We are developing new products for this market niche, and we are positioning as a strategic partner for rental companies offering a complete power product for their fleets.”

Focusing on market trends in Spain, Himoinsa highlights two areas of focus for customers: digitisation and monitoring and sustainability and electrification.

It says, “Companies are adopting advanced technologies to optimise processes and improve operational efficiency using, for example, remote fleet monitoring systems.

“There is a growing demand for cleaner and more efficient energy solutions, driven by environmental regulations and consumers’ ecological awareness.”

In addition, it says the construction of renewable energy-related infrastructure, such as solar and wind farms, is becoming “increasingly important“ and is contributing to the expansion of demand for lifting and handling rental equipment.

“Expectations are positive, as the drive for renewables is leading to continued investment in new infrastructure,“ it tells IRN. “As public policies continue to support the energy transition, this will keep demand for rental equipment active.“

In the case of compaction and road equipment manufacturer Bomag, a subsidiary of French construction and industrial firm Fayat Group, increased demand in Spain was one of the reasons that the company decided to establish a subsidiary near the Spanish capital of Madrid in August last year.

The new subsidiary, named Bomag Ibérica de Maquinaria, follows Bomag’s deal to acquire Maquinter, a dealer of its equipment since 1993.

Lorenzo Wakonigg, former managing director of Maquinter – on left – with Jonathan Stringham, Bomag vice president of sales and marketing. Photo: Bomag

Dr Ingo Ettischer, president of Bomag Group, explains the reasoning behind the move; “We have enjoyed a successful and cooperative partnership with Maquinter for over 31 years. We see great potential and increased demand for the future in the growing Spanish market.

“By integrating Maquinter into our organisation, we are strengthening our position in the long term and further expanding our presence in the asphalt segment in the region.”

Another international player made a similar move just a month later, when Italy-based Multitel Pagliero announced that it was setting up a subsidiary in Spain to enhance its presence in Europe’s fifth largest market for truck mounted platforms.

The company will be based in Barcelona, forming part of the newly-established Multitel Iberica S.L, and manage sales directly in the country, along with after-sales service and spare parts.

‘The new branch will fully reflect the Multitel Pagliero style and policy established in recent years,” said Roberto Marangoni, global marketing and international sales director at Multitel Pagliero.

The strategy includes models specifically designed for the Spanish market, a stock of machines ready for delivery, the availability of all related services and greater proximity to the customer.

Rental focus

As for rental companies, 2024 brought about a number of challenges. One of the biggest challenges is the skills shortages, says ANAPAT, with demand for mechanics high in the industry.

Again, this is backed up by the RentalTracker Survey, which found that 55% of companies intend to employ more staff.

One of the big players in Spain, GAM Rentals, is one of those companies that have found the retention and attraction puzzle difficult to overcome, as it tells IRN; “The difficulty in retaining and attracting qualified workers remains a major concern for companies, mainly due to the shortage of profiles and the commitment that companies have with sustainability. In this context, adapting to the new customer demands and market needs has been crucial.

An under-construction church in Barcelona, Catalonia, Spain. Photo: prn.studio via Adobe Stock

In terms of growth, the company says 2024 was very much mixed, with activity and business levels good and strong growth in demand in some sectors.

However, it notes that the financial outlook has been marked by several challenges, notably due to “the increase in financial costs resulting from high interest rates, which has affected our profitability.”

Additionally, it says operational costs, especially related to logistics, supplies and fleet maintenance have also had an impact. Although, it adds that its strategy “remains strong and we are focused on maintaining long-term sustainable growth.”

ANAPAT adds that one of the market trends it is seeing is a growing number of international players entering the market, such as Kiloutou, Boels and Loxam, due to the growth of the economy. This, it says, is “driving market concentration.”

In fact, you only have to go back to October 2024 to find a significant entry from an international company, with Kiloutou acquiring ToolQuick Alquiler, adding 30 branches to its footprint in Spain in the process.

The company followed that deal up in December with the purchase of two rental acquisitions in December (see box story).

Future outlook

Looking ahead to 2025, ANAPAT expects the high investment of the post-pandemic era to decrease in the second half of the year, mirroring the slowdown in central Europe at the time of writing.

Meanwhile, Himoinsa is of the view that although it has seen several years of “strong investment from rental companies in Spain, a predicted growth of the construction sector will likely mean that the demand will be maintained throughout 2025.

It also cites a preference for rental over purchase by construction companies, the renewal of the rental fleet in search of greater efficiency and compliance with new regulations as reasons why it is expecting high rental investment.

Elsewhere, GAM is expecting activity to remain high in the construction sector in the coming years, especially in renewable energy where investment in rental machinery and equipment is more than necessary.

Kiloutou makes two rental acquisitions in Spain

Kiloutou has acquired low-height specialist Liftisa S.L. and truck mounted platform company Gloobal Movingrent S.A.

Kiloutou acquired Toolquick Alquiler last year. Photo: ToolQuick

The deals, for undisclosed prices, will give Kiloutou six further rental locations in Spain, in Barcelona, Valencia and Madrid, where each company has depots.

The two companies had a single owner, Ivan Papell, a veteran of Spain’s access rental business, who was CEO of both.

Liftisa was founded in 2011 – although the brand has existed since 1989 – and its 80 staff manage a fleet of more than 2,000 lifts.

Gloobal was founded in 2015 and specializes in short- and long-term rental of vehicle-mounted platforms and cranes. It has 30 staff and has a fleet of more than 550 vehicles.

Kiloutou said the Liftisa and Gloobal teams will manage the commercial development of this new range of equipment throughout Kiloutou’s national network in Spain, which comprises 56 branches and 400 employees.

Cyril Brillouet, managing director of Kiloutou Spain, “We seek to add expertise and leadership in the rental of platforms for working at height, and the acquisition of these two companies perfectly meets these objectives.

“We aim to achieve leadership in these three communities and extend it to other regions. Our goal at Kiloutou is to support their growth strategy by combining our offerings in the Spanish market and sharing our teams’ market knowledge.”

Ivan Papell added; “I am very pleased and proud to announce the acquisition of our two companies by Kiloutou. Both projects are very solid, ambitious, and have strong potential.

This new step, in addition to consolidating their position, will allow our teams and projects to continue their strong growth while benefiting from Kiloutou Group’s services and resources, enabling new and additional investments and expansion throughout the rest of Spain.”