The machine and equipment rental market is booming today. What are its key figures and by how much is it growing?
Following the various economic and health tragedies such as the Covid-19 crisis, it is time to take a look at the equipment rental industry. This market and trends study gathers news and the key figures of the machine and equipment rental market. Let’s take a look at the current state of the equipment rental market and why more and more equipment rental companies and fleet managers are using harmony equipment rental software.
What is the equipment rental market?
The equipment rental market is made up of the various industry players or construction equipment operators. The equipment rental industry is therefore mainly aimed at public works, construction, and extraction companies. More broadly, the rental of construction equipment includes all the equipment used by construction companies on construction sites in addition to equipment strictly intended for the construction itself. Also, the machine rental market can be addressed to individuals wishing to rent certain construction machinery or equipment for personal use. At the same time, the audiovisual industry is also becoming increasingly important in the equipment rental industry.
Who are the players in the equipment rental market?
More and more players in the equipment rental market are starting to compete against the industry leaders. In fact, most equipment rentals go through the two industry giants, Loxam and Kiloutou, there is a clear growth of independent SMEs in the machine rental market. This is reflected in numerous acquisitions and growing investments, particularly in the diversification of equipment rental companies’ offerings, which now include generators, forklifts and aerial platforms for material handling, as well as small and complementary equipment. Structuring your offer is a key element to be successful in the equipment rental industry. Before starting or expanding your business, make sure you research your regional market.
What is the state of the equipment rental market?
It’s safe to say that the state of the equipment rental market is doing well despite the turbulence. While the equipment rental industry was expected to grow at a 4% CAGR for the next four years due to infrastructure investments, the coronavirus outbreak ultimately slowed that growth. Indeed, the equipment rental market was logically impacted by Covid-19 due to the sudden halt of construction sites and the closure of agencies. The ensuing recovery made it possible to resist after three years of strong growth.
Between renting or buying equipment, renting is nowadays one of the most interesting choices for construction companies, especially in a context of crisis and uncertainty. This has led to a recovery in activity. This revival of the equipment rental industry is due to the global awareness of the construction industry in terms of digital and eco-responsibility but also many other parameters. Among others, the improvement of the rate of rotation and the increase in the value of the fleet that management software allows has largely driven the machine rental market, we will come back to this later in the article.
What are the key figures for the equipment rental market?
It’s important to understand the figures in the equipment rental market. It is estimated that the construction equipment rental industry is currently worth more than 4 billion euros and includes more than 1,600 companies and 27,500 employees. It should be noted that the increase in the sale of second-hand equipment (+33%) is to the detriment of rental in the construction industry (-12%). The distribution of handling equipment is worth nearly 2 billion euros with a 4% growth in rental! These figures for the machine rental market are therefore very respectable given the current context and should not decrease in the coming years due to by the economic recovery.
Who are the equipment rental market partners?
Surrounding yourself with the best partners in the equipment rental market is important in order to face the acceleration and digitalization of the sector. Thanks to its experience, hitech supports equipment rental professionals with its harmony management software. The harmony solution is an ERP that allows you to completely manage your machine rental activity and will support you in the growth of the equipment rental market. From planning to accounting, including invoicing and inventory management, harmony is a powerful tool already widely adopted by many players in the equipment rental market.
Perfectly integrated with your existing computer system, the harmony management software is compatible with the rentpad inventory application or your website to take into account your online reservations. It is today the ideal solution to boost your activity and face the new challenges of the equipment rental industry. Optimizing and managing your machine fleet, your business, your maintenance or your workshop is done in a few clicks from the harmony software package tailored to the specificities of your business. The price of the harmony management solution can be adapted to all types of organizations, from independent SMEs to large corporations. We highly recommend you to try harmony software, considered today as the best partner in the equipment rental market!