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Market Overview

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The France construction equipment rental market was valued at USD 3.11 billion in 2022 and is projected to reach USD 4.25 billion by 2029, with a compound annual growth rate (CAGR) of 4.55%. The French government has set a target to achieve carbon neutrality by 2050 and has implemented stringent measures to control emissions. These measures include reducing mining production in the region and prohibiting fossil fuel extraction by 2040. In 2021, significant funds amounting to USD 1 billion were allocated for the development of nuclear power plants, followed by USD 1.9 billion for green hydrogen initiatives. The ‘New Greater Paris’ project, which aims to connect the entire Greater Paris region, is essential for the development of office, commercial, and institutional infrastructures. This ambitious project is scheduled to be completed by 2030. Furthermore, the government plans to support residential growth by creating an additional 1.5 million households by 2030. The introduction of the ‘France 2030’ investment plan in 2021, which focuses on transforming key sectors of the economy, is expected to drive the growth of the France construction equipment rental market during the forecast period.

Within the construction equipment rental market, the material handling segment holds the largest market share in France, with aerial platforms being the most prominent sub-category in 2022. Paris is currently undertaking various infrastructure projects in preparation for the upcoming Olympic Games in 2024. Approximately 70 Olympic-related projects, such as the Olympic Village and Aquatic Centre, are anticipated to be completed by 2024. The Olympic Village, designed to accommodate 14,000 athletes, will be a remarkable feat of construction. Additionally, the Aquatic Centre near the France Stadium will host water polo, diving, and artistic swimming events.

Metro Line 16, which will connect the Olympic venues in Seine and Saint-Denis, is scheduled for completion by 2026. Furthermore, plans are underway to construct Metro Line 17 to Media Village during the forecast period. The construction of various infrastructure projects and residential developments in France is expected to drive the demand for aerial platforms in the construction equipment rental market. As part of the ‘France Renov’ program initiated in 2022, the government aims to provide financial aid for nationwide home renovations, with a target of repairing 800,000 housing units in 2022.

In 2022, the French government approved the bypass project in the City of Rouen, which will connect with the A28 and A13 Autoroutes on the city’s eastern side. Construction on this project is anticipated to commence in 2027 or 2028, covering a distance of 41.5 km and requiring an investment of approximately USD 950.1 million. Another notable project is the Eco-Pole Waste Storing Plant in Chene-en-Semine, Haute-Savoie department, Auvergne-Rhône-Alpes region. This project entails constructing a waste storing plant on a 7-hectare site with a processing capacity of 200,000 tonnes per annum. Construction began in Q1 2022 and is expected to be completed by Q1 2023.

The Nantes New CHU Hospital Development is another significant undertaking, with construction commencing in Q1 2022 and expected to conclude in Q4 2027. This project involves the construction of a new hospital complex spanning 2,25,000 square meters on 10.1 hectares of land in Nantes, Pays de la Loire region, with an estimated value of USD 1.4 billion. The government has also allocated approximately USD 60 billion for nationwide surface transportation repairs. The development of the Glassboro-Camden rail line, with an estimated cost of USD 1.6 to USD 1.8 billion, is projected to be completed in 2028. This rail line will include stops at Glassboro, Pitman, Sewell, Mantua, Woodbury Heights, and Camden stations.

The French government aims to develop 50 territorial water management projects by 2022 and an additional 100 projects by 2027. The surge in water management initiatives is expected to drive the demand for rental backhoe loaders in the construction equipment rental market. Moreover, the development of the Paris Tour Triangle High-Rise Building is underway. This project involves the construction of a 42-story triangular office building covering 80,000 square meters at Porte de Versailles in the 15th arrondissement of Paris. Work on this project began in Q1 2022 and is anticipated to be completed by Q1 2026, with an estimated construction cost of USD 755 million. The project aims to cater to the growing demand for hotel and office amenities in the city.

In 2022, the French President introduced the Renewable Energy Acceleration Bill, which aims to enhance the development of renewable energy sources such as offshore wind farms and solar power. Companies like BayWa r.e. and Lhyfe have planned projects combining solar power production, battery storage, and green hydrogen production. These developments are expected to fuel the demand for rental cranes in the France construction equipment rental market.

In 2021, the French government launched the ‘France 2030’ investment plan, which allocated a total of USD 57.9 billion. This plan aimed to transform key sectors of the economy, including energy, automotive, and aeronautics. The investment plan included the development of small nuclear reactors (USD 1 billion), carbon-free hydrogen, zero-emission vehicles, and biomedicines. Additionally, investments were made in the transportation sector, with USD 1.2 billion allocated for the improvement of bicycle and public transport services. The plan also focused on enhancing the rail network to connect densely populated areas with urban centers.

Furthermore, in 2021, the European Investment Bank (EIB) granted a loan of USD 134.2 billion to BATIGERE Network, a company specializing in social housing, to construct 1,500 homes over five years, accommodating 3,500 residents. Housing renovation projects experienced a surge nationwide, with over 750,000 housing units renovated in 2021. The government also disbursed USD 3.1 billion for the renovation of an additional 751,646 housing units.

In 2022, the French government introduced the ‘France Renov’ program to provide financial assistance for home renovations across the country. The government aimed to repair 800,000 housing units in 2022. Public building repair projects were also prioritized, with USD 4 billion allocated for school and public administration buildings, followed by USD 2 billion for private houses and social housing (USD 0.5 billion).

According to projections by the IMF for 2023, inflationary effects are expected to reduce household real incomes and consumption. The increase in interest rates will lead to a decline in investments. Inflation reached 7.1% in October 2022 and is expected to remain high in the coming months. However, the IMF predicts that inflation will peak in the near future but remain around 5% on average in 2023 as price controls ease. Inflation is projected to persist in 2024 and gradually decline to around 2% in 2025. Additionally, supply disruptions have led to increased prices for new equipment, which has contributed to the growth of the construction equipment rental market in France.

In line with France’s goal of achieving zero greenhouse gas emissions by 2050 and reducing emissions by 40% by 2030, rental companies in France are focusing on environmentally friendly solutions. For instance, LOXAM, a leading European rental equipment company, introduced its LOXGREEN range in 2021 to minimize the environmental impact of its operations and help customers reduce their carbon footprint. This initiative encompasses core business activities such as delivery, servicing, maintenance, and procurement.

Various sectors, including construction, transportation, healthcare, and agriculture, are facing a significant shortage of skilled labor, resulting in approximately 400,000 job vacancies. Surprisingly, the most populous region, Ile-de-France, has the highest number of vacancies (160,000). The Auvergne Rhône-Alpes region comes second with 145,000 vacancies. Furthermore, during Q1 2022, the unemployment rate in Hauts-de-France was 8.7%, the highest in France.

The COVID-19 pandemic exacerbated this situation in 2020, causing France’s unemployment rate to reach its highest level in Q2 2020. The ‘Great Resignation’ significantly impacted the country’s unemployment rate.

France aims to achieve its national target of reducing carbon emissions by 40% by 2030 and eliminating greenhouse gas emissions by 2050. One of the major challenges in France is the decarbonization of construction sites and buildings. According to data published by the Ministry of Ecological Transition, the construction industry accounts for approximately 43% of annual energy consumption and 23% of greenhouse gas emissions. Policies such as Extended Producer Responsibility (EPR), which require producers to consider the environmental costs of their products, have disrupted construction activities and hindered the growth of the construction equipment rental market in France.

In 2022, the government implemented a new policy that restricts the maximum duration of new mortgage loans to 25 years, lower than the limit set in 2021. Additionally, the total amount borrowed is capped at 35% of the borrower’s income. Housing prices have increased significantly by 27.8% over the past five years. In Q3 2022, prices rose by 6.4% compared to the previous 12 months. As a result, housing sales have steadily declined.

For houses that are five years older, prices increased by an average of 8.2% over the 12-month period leading up to Q3 2022. Non-urban areas experienced an 8.6% price increase during the same period. In cities like Nice, Paris, Toulon, Lyon, Montpellier, and Rennes, the average housing prices exceed USD 428,728.

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Market Segmentation

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The market is segmented based on various factors, including type and end user.

Segmentation by Type
Earthmoving Equipment – Excavator, Backhoe Loaders, Motor Graders, Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
Material Handling Equipment – Crane, Forklift & Telescopic Handlers, Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
Road Construction Equipment – Road Rollers, Asphalt Pavers

Segmentation by End Users
Construction
Logistics & Warehouse
Mining
Others

The logistics and warehouse sectors in France are expected to experience positive growth due to the expansion of the e-commerce industry and increased investments in warehouse infrastructure. This growth will have a direct impact on the demand for rental forklifts and telehandlers in the French market in the coming years.

In terms of the construction equipment rental market, the earthmoving segment held the largest share of 40.0% in 2022, and it is projected to reach $1,658.4 million by 2029 with a compound annual growth rate (CAGR) of 4.17%. This segment is also the second-largest by type. The significant growth can be attributed to government investments in public infrastructure as part of the France 2030 initiative, which is expected to drive the demand for rental construction equipment.

Furthermore, the construction segment, which accounted for a 45.4% share of the France construction equipment rental market by end-user in 2022, is expected to reach $1,994.3 million by 2029 with a CAGR of 5.04%. This segment is expected to witness substantial growth due to government investments in affordable housing, railway and road development projects, airport expansion, and renewable energy initiatives.

In 2021, the construction sector in France experienced significant growth, with a 10.5% increase compared to the previous year, resulting in the creation of approximately 45,000 jobs. The construction of residential buildings saw a surge of 24.1%, accounting for 390,000 housing units, while non-residential housing recorded an 8.7% increase from 2020. These positive trends in the construction industry are further supported by the government’s commitment to invest $60.8 billion under the Great Investment Plan (2018-2023) for overall economic development.

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Competitive Landscape

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Prominent vendors in the construction equipment rental market in France include Caterpillar, Volvo Construction Equipment, Liebherr, Hitachi Construction Machinery, Komatsu, SANY, Hyundai Construction Equipment, and JCB & Kobelco. Additionally, other notable vendors in the market are Yanmar, Kubota, JLG, and Terex.

Liebherr, Caterpillar, Volvo Construction Equipment, Komatsu, and Hitachi Construction Machinery are considered market leaders in the industry. These vendors possess a significant market share and offer a wide range of products in the construction equipment rental market in France.

JLG, SANY, and Hyundai Construction Equipment are emerging as strong players in the construction equipment rental market in France. These companies are introducing innovative products to capture a larger share of the market.

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Key Questions Answered

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How large is the construction equipment rental market in France?

The construction equipment rental market in France had a value of USD 3.11 billion in 2022 and is projected to reach USD 4.25 billion by 2029.

What is the growth rate of France’s construction equipment rental market?

The growth rate of France’s construction equipment rental market is expected to be 4.55% during the period from 2022 to 2029.

Which rental companies are significant players in the construction equipment rental market in France?

Loxam, Kiloutou, Sarens, Bergerat Rentz, Mediaco, Uperio Group, SALTI, and Duma Rent are prominent rental companies in France’s construction equipment rental market.

What are the main trends observed in France’s construction equipment rental market?

The main trends in France’s construction equipment rental market include the integration of innovative technology in the rental fleet to support the country’s goal of achieving net-zero emissions by 2050, as well as a focus on including compact and electric equipment in rental fleets.

Who are the key players in France’s construction equipment rental market?

The key players in France’s construction equipment rental market include Caterpillar, Komatsu, Hitachi Construction Machinery, Volvo Construction Equipment, Liebherr, Hyundai Construction Machinery, SANY, Kobelco, and JCB.