The European Rental Market Report 2024

The European Rental Association (ERA) has released its 2024 Market Report. The European equipment rental industry is highly fragmented, with a large number of small players serving local or regional markets, and a smaller number of medium-sized to large players serving regional, national, and international customer bases.

However, with the increasing professionalism of the trade, the rise in demand across end markets, and the growing need for investment, the industry has experienced a high degree of consolidation in recent years.

The EU economy has begun to emerge after a period of stagnation. Growth should reach 1% in 2024 and then rise to 1.6% in 2025, after having plateaued at 0.4% in 2023. Since the beginning of the year, inflation has returned to normal levels. At the same time, labor markets throughout Europe continue to be tight, with wages growing at a high rate.

Overall, in 2024, the European rental market is normalizing, undergoing a post Covid-19 rebound. Interest rates and ‎general uncertainty are directly affecting the residential segment, which is suffering across the EU ‎‎(albeit with relative importance for the rental industry).

In the coming years, EU investment via the ‎National Recovery and Resilience Plan (NRRP) is expected to boost rental activity.‎ According to the report, the European rental market is projected to grow by 0.9% in 2024, 2.8% in 2025, and 3.6% in 2026, reflecting steady growth in the industry.

Central Europe and the UK are in the post-Covid normalization phase. The market is forecast to soften in 2024, apart from Ireland, which maintains a strong outlook driven by resilient housing demand and energy projects.

France continues to see soft growth, and Germany experienced slight growth in H1, prospects appear better in H2. Poland and Czech Republic face fluctuations due to general uncertainty and limited growth drivers.

Finland and Sweden are experiencing downturns, with continued stagnation expected through 2024, with largely halted residential construction. Both countries anticipate a recovery in the second half of 2025, driven by public investments and energy-related projects.

Denmark and the Netherlands continue to rebound. In 2024, the equipment rental markets in Italy, Portugal, and Spain are set for steady growth.

The European rental market has experienced a steady increase in its rental penetration rate over the past years, reflecting the growing preference of customers to rent rather than buy equipment and tools.

Renting offers access to modern equipment, flexibility, and cost-efficiency, as it reduces capital expenditure requirements, fixed costs of ownership, and residual value risk while allowing customers to adapt to changing demand and project requirements.

Besides, during the Working in Rental for a Sustainable Future webinar organized as part of European Rental Week, insights from the Market Report 2024 were also shared.

For ERA members (and rental members of the national rental associations members of ERA), the ERA Market Report is available again this year for free to provide more visibility for the industry. It is also available for non-members for a fee of EUR 1,200.

If you would like to access or to order the report, please email the ERA team at [email protected].