ERA publishes 2024 Market Report

The rental market in Europe is normalising, that’s according to the 2024 Market Report from the European Rental Association (ERA).

The European equipment rental industry is highly fragmented, says the ERA in its report, 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.

Interest rates and ‎general uncertainty are also directly affecting the residential segment, which is suffering across the EU.

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.

According to the report, which is available to ERA members for free, the European rental market is projected to grow by 0.9% in 2024, 2.8% in 2025, and 3.6% in 2026

It said that Central Europe and the UK are in what it describes as the post-Covid normalisation phase, with the market forecast to soften in 2024 although it found that Ireland maintains a strong outlook driven by resilient housing demand and energy projects.

France continues to see soft growth, and Germany experienced slight growth in the first half of 2024. The ERA said prospects in the second half of 2024 in Germany “appear better.”

In Poland and Czech Republic, companies are facing fluctuations due to general uncertainty and limited growth drivers, while Finland and Sweden are both experiencing downturns and are expected to continue to stagnate through 2024 due to “largely halted residential construction.”

However, the report predicts a recovery in the second half of 2025, driven by public investments and energy-related projects.

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

Meanwhile, it said that 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.

The report said that in the coming years the EU investment via the ‎National Recovery and Resilience Plan (NRRP) is expected to boost rental activity.‎