Summary

According to ERA (Europe Rental Association) research, Germany is the second-largest construction equipment rental industry behind the United Kingdom. Renting compact equipment like mini excavators lifts, and telehandlers is becoming more popular in the German construction equipment rental market because these machines are mostly employed for minor construction projects. The government's long-term plan for the home construction industry as well as investments in infrastructure projects is important factors supporting the country's economic revival. For example, the government intends to rehab and repair roads across the country in 2022. The government intends to start more than 200 construction projects across the country. In addition, the government has set aside USD 429.2 million for road network maintenance in Baden-Wurttemberg State. The heightened economic instability caused by rising energy prices and inflation in Germany is predicted to drive up demand for construction equipment rental in 2022. The increasing economic uncertainty prevents construction companies and contractors from investing substantial sums of money in purchasing equipment for their projects. As a result, they prefer to hire construction equipment rather than buy new, strengthening the German construction equipment rental sector. The top companies in the German construction equipment rental market are Caterpillar, Komatsu, Volvo Construction Equipment, Hitachi Construction Machinery, Liebherr, Hyundai Construction Machinery, Xuzhou Construction Machinery Group Co. Ltd. (XCMG), SANY, and JCB.

According to the research report, “Germany Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 1.40 Billion by 2028. Infrastructure improvement projects in rural areas of the country, such as the refurbishment of commercial buildings, railway stations, and airports, the repair of runways, and the extension of roadways and bridges, are fuelling the strong demand for the Germany construction equipment rental industry. The renting of construction equipment has the advantage of avoiding high capital expenses, costly construction equipment maintenance, and the lack of availability of modern, technologically equipped construction equipment. Renting electric forklifts is also growing in the German industry due to trends in zero-emission warehouses. In 2022, DHL, the world’s leading contract logistics provider, planned to construct a 400,000 sqm carbon-neutral warehouse in major European markets, including Germany. The government invests USD 14.99 billion on logistics each year. This investment is projected to drive the development of warehouses around Germany, such as Maersk's construction of a warehouse in Duisburg. In 2022, digital technology deployment in the logistics and warehouse industries is predicted to assist the expansion of these sectors. Maersk has begun work on a 43,000-square-meter facility in Germany. High investment in the logistics and warehouse sectors is likely to fuel demand for forklifts and aerial platforms such as scissor lifts, articulated boom lifts, and telescopic boom lifts.

According to the World Bank, Germany has a population of 83.1 million people, with 41.1 million men and 42 million women. The majority of the population, 53.18 million people, is between the ages of 15 and 65. There are 64.24 million urban residents and 18.86 million rural residents. According to the World Bank, Germany's GDP in 2021 was USD 4.22 trillion, with an inflation rate of 3.1% and a per capita income of $ 50,801.8. (2021). Germany saw growing inflation and consistently high energy prices in 2022, affecting consumer purchasing power and the country's economic growth. In October 2022, the inflation rate increased to 10.4%. The inflation rate also had an impact on the construction industry, causing revisions and greater expenses than the project's anticipated budget. Rising labour and building material costs will be major challenges for the German construction industry in 2022. According to the Federal Statistical Office, the prices of building materials such as wood (64.1%), steel (53.2%), and iron (25.4%) increased in 2022 over 2021. A sharp rise in inflation, high energy prices, and rising building material prices are predicted to boost the growth of the German construction equipment rental sector. The prolonged conflict between Russia and Ukraine exacerbates the country's market issues. According to the IMF, Germany's inflation rate is predicted to rise further in 2023.

In 2022, the German construction industry faced a labour shortage. According to the German building association, the German construction industry will face a shortage of 100,000 construction workers by 2030. Factors such as an ageing population and a scarcity of skilled personnel will pose significant problems to the country's industry in 2022. According to official German figures, the country will face a skilled worker shortfall of more than 200,000 during the next four years. Rapid technical improvement for digital transformation raises the demand for trained personnel. The dearth of skilled workers in the German market is projected to impede sales of modern technology-equipped rental equipment. Furthermore, the German construction association warned of a delay in the supply of new industry equipment owing to a shortage of raw materials (iron, nickel, and steel) supplied from Russia, Ukraine, and Belarus. The poor availability of stocks in the rental company's fleet is expected to have an influence on the German construction equipment rental industry.

The existence of small and medium-sized construction enterprises such as Bagela Baumaschinen GmbH & Co., Multimon Group, and Miltex GmbH is projected to drive growth in the equipment renting market. In Germany, Zeppelin GmbH and HKL Baumaschinen GmbH have the industry's largest market share in construction equipment rental and leasing. For the operation of borrowed equipment, certain construction machinery rental businesses provide trained operators. To attract new consumers, other construction equipment rental businesses offer logistical and insurance services. For example, Klarx, a construction machinery rental company, offers its customers logistics and insurance services.

Recent Development:
In 2022, German IT Company UMT (United Mobility Technology) will launch Smart Rental, an online rental marketplace based on a mobile app. In addition, the company creates technologies to digitise commercial operations, such as online payment tools and equipment testing tools. Smart Rental joins other online rental markets such as Klarx and Klickrent (owned by Zeppelin Group, a construction equipment rental company) to expand its client base. Due to a spike in the German construction equipment rental sector, the usage of these technologies increased in 2022.

Covid-19 Impact:
The spread of COVID-19 contributed to the decline of the Germany Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries.

Considered in this report
• Geography: Germany
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Germany Construction Equipment Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment type
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application type
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.