The construction equipment rental market - Italy

1.1 Definition and scope of study

The rental of construction equipment is mainly intended for the public works and construction and extraction sectors.

In the broadest sense, rental construction equipment refers to all the equipment used by the building and public works industry on construction sites, and not only to equipment strictly intended for construction itself. Even if private individuals can rent some construction equipment, our study will focus on the B2B market.

Leasing construction equipment avoids a large initial purchase cost, reduces repair and maintenance costs and provides protection against market fluctuations.

The surge in the construction industry, especially in developing countries, is the major factor driving the market growth. Asia is the region with the highest market growth, due to government measures to increase the number of Special Economic Zones (SEZ), allowing the establishment of capitalist companies. The European Union's funding of large-scale projects to facilitate trade between member countries, support economic development, and promote energy transition has also fueled market growth.

In Italy, the market is very dynamic, with an increase in investment in the construction sector of 54% in the second quarter of 2020 compared to the same period last year. Works are also longer, rising from 7 to 12 months on average and up to 20 for public works. In addition, the creation of construction equipment rental companies increased in 2020, exceeding the 5000 mark.

The construction equipment rental market, however, held up well during the crisis. Although the health crisis impacted demand and the March-April 2020 lockdown brought the industry to an abrupt halt, a strong recovery was observed in the months following the lockdown. Measures put in place by the government allowing for tax breaks, such as the 110% Superbonus, should also support this growth.

As construction industry players have the choice between buying or renting their equipment, the study will show how renting can be an interesting solution, especially in a context of uncertainty and crisis. In addition, players must face the challenges of digital and eco-responsibility.