Dec 07 (News On Japan) - In 2024, the global lifting equipment rental market experienced significant growth, driven by rising construction activities, infrastructure development, and industrial expansion across Europe, Asia, and the United States.
With the continuous rise of port logistics and infrastructure projects, the demand for specialized equipment such as the Harbour Portal Crane has also increased within rental fleets, adding new momentum to the sector.
Europe rebounds
Lewis Tyler, Editor at International Rental News, noted that the European equipment rental industry is highly fragmented, with numerous small companies serving local or regional markets, while a smaller number of medium- and large-sized companies serve regional, national, and international customers. However, as industry specialization increases, end-market demand grows, and investment needs rise, the sector has undergone significant consolidation in recent years.
According to the European Rental Association (ERA) 2024 Market Report, the EU economy began recovering after a period of stagnation. The growth rate is expected to reach 1% in 2024 and rise to 1.6% in 2025, after stabilizing at 0.4% in 2023. Since early 2024, inflation has returned to normal levels. Meanwhile, the European labor market remains tight, with wages rising rapidly.
Overall, in 2024 the European rental market normalized and experienced a post-pandemic rebound. Interest rates and general uncertainty have directly affected the residential market, impacting the entire EU housing sector (which remains relatively important to the rental industry).
In the coming years, investments under the EU’s National Recovery and Resilience Plans (NRRP) are expected to support rental activity. According to the ERA, Europe’s rental market is projected to grow 2.8% in 2025 and 3.6% in 2026, reflecting steady expansion.
Central Europe and the UK are undergoing post-pandemic normalization. The market is expected to soften this year, Ireland being a notable exception due to strong housing demand and energy projects. France continues to see weak growth, while Germany will achieve slight growth in 2024. Poland and the Czech Republic face volatility due to general uncertainty and limited growth drivers.
Finland and Sweden are in recession, with stagnant economies and halted residential development. Both countries are expected to recover in the second half of 2025, supported by public investment and energy-related projects. Denmark and the Netherlands continue to rebound. Italy, Portugal, and Spain maintain stable rental market growth in 2024.
In recent years, rental penetration in the European market has steadily increased, reflecting a growing preference for renting rather than purchasing equipment and tools. Renting offers modern machines, flexibility, and cost advantages by reducing capital expenditures, fixed ownership costs, and residual-value risks, while enabling customers to adapt to changing project needs.
Asia on the move
Murray Pollok of Rental Briefing wrote that the rapid increase in China’s aerial work platform rental fleet—now reaching 700,000 units and still growing—has exposed the market to oversupply, while China’s economic slowdown has led to rental price declines and excess equipment availability.
This has prompted many Chinese rental companies to explore international expansion, with one of the most prominent examples being Shanghai-based CDHorizon.
Rental Briefing reports that CDHorizon now operates more than 1,100 machines in the UAE and has launched operations in Saudi Arabia. Domestically, it has already expanded into Malaysia, Indonesia, Vietnam, and Thailand.
At the 11th International Rental Conference (IRC), Li Ying, General Manager of Liugong Aerial Work Platforms, said rental prices in China have fallen by more than 20% compared with 2023:
“The sharp drop in rental rates has caused widespread default and financial pressure. Under such circumstances, it is nearly impossible for companies to recover costs or generate profits.”
The economic downturn has forced many rental business owners to re-evaluate their strategies. “Just two years ago, many of these new rental leaders were optimistic and confident,” he said. “Now, as the market contracts, they are questioning their direction and experiencing severe self-doubt.”
Jimmy Wang, Founder and CEO of CCBF, said expanding overseas is one result of the tightening domestic market:
“The pursuit of profit is driving international diversification.”
He noted that the Middle East is the primary target market, followed by Southeast Asia, and lastly countries involved in China’s Belt and Road Initiative, including Pakistan, Kazakhstan, Sri Lanka, and Laos.
David Ho, Director of International Sales & Marketing at Sinoboom, shared the OEM perspective. He said Chinese manufacturers must shift from a volume-based approach to a “value-based” strategy:
“You cannot sacrifice profit or imitate products just to gain market share.”
After-sales service must also be improved:
“I strongly recommend all Chinese manufacturers—including Sinoboom—place greater emphasis on after-sales service. If you do that, you are more likely to succeed.”
He also acknowledged the role Chinese OEMs have played in oversupplying the market:
“If China releases even more production capacity, it will jeopardize the entire market.
“We need to move away from dependency on scale. We need to develop new use cases and new technologies. This will create a healthier ecosystem.”
United States revival
According to the latest report from the American Rental Association (ARA), the size of the U.S. equipment rental industry is expected to reach USD 79.2 billion in 2024.
Tom Doyle, ARA Vice President of Program Development, said:
“With our unique rental revenue model and survey data from members, ARA’s 2024 forecast confirms continued growth in the rental industry.”
Scott Hazelton, Managing Director at S&P Global, added:
“There has been no major recession, and therefore no major boom. The outlook remains stable, and inflation is easing. Growth rates are expected to gradually decline in the coming years—to 3.8% in 2025 and 3.1% in 2026.”
Jeff Vance, Senior Vice President of Operations Services at Sunstate Equipment, said S&P’s projections align with the company’s expectations of a softer winter and spring sales season, along with weakening used equipment prices.
In Canada, equipment rental revenue is projected to grow 7.2% in 2024, reaching CAD 5.79 billion.
Darryl Cooper, President of Cooper Equipment Rentals, noted:
“Our experience aligns with the ARA findings. Despite headwinds in the residential market, revenue continues to rise, with Western Canada outperforming Eastern Canada.”
Sunstate has observed easing pressures in the supply chain, with fleets and spare parts becoming more readily available.
Vance also reported that new suppliers are entering the market with new technologies:
“We’ve done a lot of research on electrification. The power grid has been a major concern. But more electrification is coming, so we must be prepared to serve customers in that way.”
In the Middle East, where international projects, logistics hubs, and large-scale infrastructure developments are booming, competition among lifting-equipment suppliers is intensifying. Analysts note that many companies are referring to industry evaluations such as Top 10 Overhead Crane Suppliers in UAE to better understand shifts in regional equipment rental demand.
