ERA gives forecast for rental in Europe
15 November 2022
The European Rental Association (ERA) is forecasting that rental growth in Europe will be 4.1% this year, which is likely to be a reduction in real terms over 2021 after accounting for inflation.
The ERA’s new 2022 Marker Report estimated growth in rental of 7.9% in 2021 as the market recovered from the pandemic, but is expecting a slowdown this year and next. Despite that, ERA is expecting the market to remain strong through to mid-2023.
ERA estimated that total rental turnover in Europe in 2021 was more than €24.6 billion in the 15 countries covered by the report.
ERA said; “There was growth across all markets [in 2021], with the UK, Germany and France retaining the largest share of the European rental market, comprising about 60% of the total market.
“The market is expected to slow down to 4.1% growth in 2022, in nominal terms, as soaring energy prices, inflation and high interest rates dampen the outlook for businesses and households.
“In volume, this could represent a decrease from 2021 in real terms, with differences among countries depending on the level and impact of inflation. However, the market is projected to remain strong through to mid-2023.”
Longer term, ERA remains positive; “the European rental market will benefit from the economic uncertainty as rental will replace demand for machinery due to increasing price pressures and constant changes in technology and regulations.”
This year’s Market Report is available for the first time on a web-based platform – S&P Global Connect – which replaces the usual PDF document from IHS Markit.
This will make the report easier to navigate and more accessible, said ERA, with detailed reports broken down by country, as well as for Europe as a whole. Reports can then be saved to a ‘My Connect’ section of the platform for quick access at a later date. A detailed view of the key data per country is also available in the ‘Analytics’ section.
Developed in collaboration with IHS Markit, now a part of S&P Global, the ERA Market Report is the only Europe-wide source of data on the equipment rental market. It contains market information for the years 2019 to 2024 and key indicators, including rental turnover, fleet value and investments.
For ERA members, the ERA Market Report is available this year for free to provide more visibility for the industry. It is also available for non-members for €1,200.
For more information on the report, contact ERA at firstname.lastname@example.org.