The construction equipment rental market in France

The construction equipment rental market has established itself as a strategic lever for building and civil engineering companies, giving them access to equipment without heavy financial outlay. In 2023, the French market will remain fragmented, with Loxam (21.1%) and Kiloutou (15.03%) leading the way, while 63.87% of the market is held by a multitude of players. This diverse offering meets the specific needs of construction sites, whether for light equipment, heavy machinery or solutions adapted to new environmental challenges.

After strong growth momentum between 2016 and 2023 (+18.8% of public works sales), the sector will experience a marked slowdown in 2024, with purchases of new equipment falling by 21% this year, confirming the rise of rental as the preferred alternative. This trend is accentuated by construction cost inflation of +18% between 2021 and 2024, making the purchase of equipment increasingly expensive and driving companies to opt for flexible solutions.

Île-de-France remains the sector's key region, concentrating 21.8% of public works sales thanks to major infrastructure projects such as the Grand Paris Express and the 2024 Olympic Games. nationwide, roadworks dominate demand (33.4% of sales), followed by earthworks (17.7%) and water-related projects (17%).

However, the market is facing major structural challenges. rising operating costs (+4.82% in 2024) are having a direct impact on the profitability of rental companies, as a result of increases in financial expenses (+37.1%), depreciation (+4.4%), commercial rents (+4.1%) and salaries (+3.4%). This pressure on margins is forcing market players to review their strategies: impact on prices, optimization of fleets, lengthening of equipment life cycles and digitalization of services.

Finally, the risk of equipment theft is reaching critical levels. In 2024, over 1 billion euros in losses wereattributed to these crimes, with 11,683 items stolen in three years and a recovery rate of less than 2%. The increase in copper and cable theft, amplified by soaring raw material prices, is forcing rental companies to step up their tracking systems, secure their fleets and cooperate with the authorities.

Faced with these challenges, rental companies need to adapt quickly to maintain their competitiveness, by focusing on innovative solutions (electrification of equipment, retrofitting of thermal machines) and digitalized services to optimize machine use and guarantee optimum return on investment.