The construction equipment rental market - France (2025)

1.2 A growing global market

Construction equipment rental market sales World, ****-****, in billions of US$ Source: MarketsandMarkets CAGR **** - ****: *% approx

The global construction equipment rental market is experiencing positive momentum, supported by rising infrastructure investment and increasing urbanization. In ****, it is estimated at $***.* billion, and should reach $***.* billion in ****, representing average annual growth of *.*%. This growth is largely attributable to the increase in commercial, industrial and residential construction projects in emerging economies, as well as to the need for new construction.economies, as well as the need for construction companies to optimize their costs by leasing equipment rather than buying it.

The infrastructure boom in developing countries is playing a key role in this growth. In Latin America, for example, around *** shopping malls have been built since ****, while in India, more than ** technology parks have sprung up in cities such as Mumbai, Delhi and Bangalore. At the same time, residential and industrial construction programs are multiplying in Africa, where equipment rental is emerging as a cost-effective solution to developers' budget constraints.

Beyond these structural factors, the market is also benefiting from technological transformation. The integration of theInternet of Things (***) into site equipment is helping to optimize its management, reduce maintenance costs and improve site productivity. ...

1.3 A growing French market

Sales of construction equipment rental in France have been growing steadily since ****, rising from *.* billion euros in **** to *.** billion in ****. This trend underscores the growing role of rental in the sector, responding to the need for cost optimization and flexibility on the part of construction companies.

Virtually continuous growth: despite a few slight fluctuations (***), the market has seen a gradual rise, supported by increasing infrastructure needs and the rise of rental as an alternative to purchase. Strong growth since ****: from ****, the trend accelerated, with sales rising from *.** billion to *.** billion by ****, driven by the intensification of construction sites, the need for more modern equipment and the boom in major infrastructures (***). A slight downturn in ****: the drop to *.** billion could be a sign of a slowdown in the market, in line with the overall contraction of the construction sector in ****. This could reflect an adjustment after several years of strong demand, but also a transition to a new dynamic, potentially marked by changes in supply and rental conditions.

This graph confirms that rental has established itself as a key solution in the construction sector, enabling companies to adapt to market variations while keeping costs under control. Despite a slight dip in ****, the ...

1.5 A new demand trend: long-term rental

Construction equipment rental is primarily a short-term offer, ranging from a few days to a few months. A new demand is emerging: long-term rental. Following on from the development of this business in the truck market, where two companies, Fraikin and Petit Forestier, enjoyed very rapid growth, we've now moved on to the materials handling sector.s the materials handling and forklift truck sector (***), where long-term leasing has made its mark, this market has seen spectacular growth in recent years. Long-term leasing, with contracts ranging from * to * years, is developing particularly for large machines with capacities in excess of ** tonnes. Several companies are expanding rapidly in this market:

The Poisson group, market leader in large equipment for construction and public works companies, and especially for companies operating in the environmental market (***), manages a fleet of some *** machines.

BM Rent, a subsidiary of Bergerat Monnoyeur, the importer of the Caterpillar brand, rents out a fleet of over *,*** large Caterpillar machines.

ENCO rents out over *,*** different brands of construction and quarrying equipment.

2.1 Determining demand: construction

The construction equipment rental market is closely linked to the dynamism of the building and public works (***) sector. The greater the number of construction projects, the greater the demand for construction equipment. conversely, a slowdown in activity in the sector has a negative impact on the rental market, reducing the need for temporary equipment. An analysis of current trends reveals a contrasting situation, marked by a decline in housing starts and persistent inflation in construction costs, both of which have a direct impact on demand for rental equipment.

Number of premises started and built France, Jan **** - Oct ****, in thousands of units Source: ****

The trend in the number of units started and authorized in France between January **** and October **** highlights a clear slowdown in the construction sector. According to data from the Ministry of Ecological Transition, the number of authorized premises fell from ***,*** in January **** to ***,*** in October ****, a drop of over **% in less than two years. Similarly, the number of premises actually started fell from ***,*** to ***,*** over the same period, a decline of **%.

This contraction in activity has a direct impact on the equipment rental market. Fewer worksites mean lower demand for construction equipment, particularly cranes, aerial work platforms, earthmoving ...

2.2 Determining demand: the public works market

The public works market plays a central role in the dynamics of demand for construction equipment rental. This sector encompasses a range of activities requiring heavy, specialized equipment, often acquired by companies on a rental basis in order to optimize costs and flexibility on worksites.

Public works sales France, **** - ****, in billions of current euros Source: ****

Sales growth in the French public works sector between **** and **** illustrates the sector's steady progress. According to FNTP data, the market has seen marked fluctuations, with a significant drop between **** and ****, followed by a notable recovery from **** onwards. In ****, sales reached **.* billion euros, confirming the upward trend that began after the ****-**** crisis. This momentum is having a direct impact on demand for equipment rental, as companies seek to meet the growing needs of infrastructure projects.

Breakdown of public works sales by business line France, ****, in % of sales Source: ****

An analysis of the breakdown of public works sales by trade provides a better understanding of the segments with the greatest demand for construction equipment. In ****, roadworks will be the sector's leading source of revenue, accounting for **.*% of total sales. This is followed by earthworks (***), although their contribution to demand for specific equipment remains significant.

Breakdown ...

2.3 Determining demand: the extraction market

The extractive industry relies heavily on the use of construction and civil engineering equipment, particularly for quarrying, mining and oil and gas production. In ****, almost *,*** quarries will still be in operation in France, although their numbers have been declining for several years. Over **% of these quarries produce aggregates, which are essential to the construction and public works sector, generating a constant demand for equipment such as excavators, loaders and dump trucks. These quarries produced an average of *** million tonnes of aggregates per year between **** and ****.

The *** mines in operation in **** also require specific equipment for the extraction and transport of raw materials, notably for gold in French Guiana and other strategic ores such as lithium and cobalt. Although energy extraction is in decline (***), these activities still require heavy equipment.

Sales of the extractive industries on the French market France, ****-****, index base *** **** Source: ****

The graph illustrates the evolution of extractive industries sales in France between **** and ****, in index base *** (***). After a decline between **** and ****, growth resumed until ****, before contracting in ****, probably due to the health crisis. Since ****, there has been a marked upturn, peaking in **** at ***.*, before a slight decline to ***.* in ****.

This dynamic trend has a direct impact on the ...

2.4 Why rent rather than buy construction equipment?

The main argument is cost control, but leasing is also more flexible and environmentally friendly, according to DLR. The table below compares some of the advantages and disadvantages of buying and renting construction equipment.

So, except when the equipment in question represents the manufacturer's core business, leasing seems to offer a number of advantages. Machine utilization is a good criterion for choosing between leasing and purchasing (***).

For Joël Fruchart, chairman of the DLR's "Rental" group, "rental has a long way to go, as the notion of use is becoming increasingly important, to the detriment of ownership". [***]

Rental terms: wide-ranging and often flexible possibilities[***]

The duration of construction equipment leases varies widely:

most rentals last from a few days to a few weeks rentals can last several months, or even several years (***) with some rental companies. More often than not, rental companies also offer the possibility of servicing the equipment during this period.

Contract extensions are possible and quite frequent.

3.1 Segmentation and player dynamism

Simplified industry value chain :

Player analysis:

The table below analyzes the evolution of players in the construction equipment rental market, according to DLR.

The construction equipment rental market in France is structured around over *,*** companies operating through more than *,*** establishments in ****. Despite a slight drop in the number of companies compared with ****, the sector remains dynamic, with continued growth in the number of employees, reaching **,*** jobs in ****. This development reflects the importance of rental as an essential solution for players in the building, civil engineering and quarrying sectors, enabling them to access equipment without the constraint of purchase.

Against this backdrop, Loxam has established itself as a major player, consolidating its position as French market leader. With sales exceeding * billion euros by ****, the group accounts for over **% of the national market, confirming its central role in the sector's dynamism. Its influence far exceeds that of its competitors, thanks to a sustained investment strategy, a specialized offering and a widespread presence across the country.

Competitive strategy:

Loxam confirms its position as number one in equipment rental in France and Europe, with a record **** despite an uncertain economic context. The group posted consolidated sales of *.* billion euros, **% of which were generated in France, ...

3.2 Production analysis

There was a drop in investment - of almost **% - between **** and ****, after two years (***). This is also a sign of a slight slowdown in growth compared with **** and ****.

Investment trends in the construction equipment rental sector France, **** - ****, in billions of € and in % Source : DLR Evolution investment amounts **** vs **** : - **% Change in investment amounts **** vs ****: + **%

ROI (***) - pure rental sales / fleet value - has also deteriorated in ****, from **% in **** to **.*% in ****.

the value of construction equipment for hire, meanwhile, is on the rise, reaching €*.* billion in ****.

Value of construction equipment rentals France, ****-****, € billion Source : DLR Growth rate **** vs ****: + *.*%

The average age of the fleet stood at **.* months in ****, i.e. around just over * years: there has therefore been an overall rejuvenation of the fleet since ****.

Average age of the construction equipment rental fleet France, ****-****, in months Source: ****

3.3 Distribution analysis

How do you rent? [***]

Construction equipment rental groups use a large network of agencies to optimize rentals to construction industry players.

Agencies can be more or less specialized in a particular segment, as is the case with LOXAM:

Loxam Rental for construction equipment (***). Loxam Access for aerial work platforms Loxam Module for Modular Construction Loxam TP for heavy equipment, earthmoving, compaction and demolition Loxam Power for electrical equipment

While the counter is still used in **% of cases for rentals, and the telephone remains the most widely used means of communication and booking, the boom in online bookings is significant in the sector and growing. Direct web bookings are likely to supplant telephone use in the long term.

We're also seeing an increase in the number of equipment deliveries to worksites within a radius of less than ** minutes.

E-commerce, the future of distribution? [***]

Joël Fruchart, chairman of the DLR's "Rental" group, says that e-commerce is likely to become widespread in the long term. But this poses several problems:

it drives prices down it takes time to learn how to use the tools (***), compared with traditional telephone exchanges

Digital technology must provide "more services", according to the president of the DLR rental ...

3.4 Cost inflation persists in the rental sector

Cost price is a key indicator in the construction equipment rental sector. It represents all the costs incurred by rental companies in providing equipment. This cost includes several components, such as machine depreciation, financial charges, personnel costs, maintenance and upkeep costs, as well as commercial rents. It forms the basis for calculating rental rates, guaranteeing companies a balance between profitability and competitiveness.

In a context marked by a general rise in costs, management of this item is becoming a strategic challenge. Leasing companies need to keep a close eye on the evolution of their costs in order to adjust their prices accordingly and preserve their margins.

Cost trends for the main expenses in construction equipment rental France, *rd quarter ****-*rd quarter ****, as % of total costs Source: ****

The cost price index for equipment rental, calculated by NEO Engineering for DLR, shows an increase of *.**% in Q* **** over the last ** rolling months. This increase is mainly due to several factors:

Rising credit costs (***), reflecting higher interest rates and increasing costs for companies borrowing to finance equipment purchases. Increased depreciation (***), reflecting the impact of inflation on the value of rental assets and the need to invest in new equipment. Higher personnel costs (***), due ...

3.5 Modular construction: a structuring market segment

The modular construction sector operates in an environment dominated by environmental imperatives and the need for flexibility on the part of the construction industry. This type of construction, historically limited to the temporary needs of construction sites, is experiencing significant expansion due to its advantages in terms of speed of execution, cost reduction and energy efficiency.

Industrialized and modular construction sales France, ****-****, in millions of euros Source: ****

With average annual growth worldwide estimated at *.**% between **** and ****, modular construction is establishing itself as an increasingly preferred alternative in the building sector. In France, this dynamic is particularly pronounced: market sales have risen by **% between **** and ****, from *** million euros in **** to *.** billion euros in ****. This trend is fuelled by increased demand for fast, sustainable solutions, in line with the sector's new requirements.

The entry into force of the RE**** (***) plays a central role in this evolution, imposing strict criteria in terms of energy performance and carbon footprint. Modular construction meets these requirements by limiting waste, optimizing the use of materials and promoting industrialized manufacturing processes, thereby reducing environmental impact. Furthermore, the growing pressure to achieve carbon neutrality by **** is accelerating the adoption of more sustainable and circular construction techniques, within which modular ...

3.6 Construction equipment on the decline: Is this a consequence of the crisis in the construction industry, or characteristic of a new way of doing business?

The market for construction equipment in units is marked by cycles of growth and slowdown, with a significant drop in ****. After several years of strong activity, the sector is recording a significant correction, bringing the level of equipment put into circulation back to a threshold more in line with the real needs of construction companies.

Since ****, trends in the number of units of construction equipment have followed a characteristic cycle:

****-**** : A phase of sustained expansionThe market is experiencing positive momentum, with growth of +**% in **** followed by +**% in **** and more moderate increases in ****(***). This period is marked by renewed investment in the building and public works sector, driven by infrastructure projects and an overall economic recovery. **** : First post-expansion slowdownAfter several years of growth, the number of units brought to market declines by -**% in ****. This is largely due to the effects of the health crisis, which temporarily halted many construction projects and disrupted supply chains. ****-****: A post-COVID reboundThe end of the crisis has led to an immediate upturn in the market, with growth of +**% in ****, followed by +*% in ****. This recovery is fuelled by the need to catch up on project backlogs and renewed investment in the construction industry. ****: A ...

4.1 Types of construction equipment for hire

We offer a wide range of construction equipment for hire.

Tracktor's most popular equipment rentals include :

mini-excavators or backhoes aerial platforms (***) forklifts or telescopic handlers construction site barriers mini-cranes

The graph below shows the breakdown of Loxam's rental equipment fleet. [***] The breakdown may of course vary depending on the rental company and its specialization.

Distribution of Loxam's construction equipment rental fleet France, ****, in Source: ****

4.2 Price analysis

The rental price index for machinery and equipment for construction and civil engineering (***) rose moderately but steadily between **** and ****, with a noticeable acceleration since ****.

****-****: Relatively stable prices around **-*** points. ****: Gradual increase, exceeding *** points in Q*. ****: Sharp rise at the start of the year, reaching ***.* points in Q* **** (***).

Evolution of the price index for rental and leasing of machinery and equipment for construction and civil engineering (***) France, ****-****, in index base *** **** Source: ****

In reality, prices are variable and depend on:

the type of equipment rented the length of the contract negotiation (***) Rental with operators is more expensive (***) Presence of optional equipment On-site collection or delivery of equipment to job site Average purchase cost of equipment - rising as equipment becomes more sophisticated Price may also depend on volumes purchased for major B*B players

Generally, fixed rental costs - order processing, equipment preparation, equipment inspection - are incorporated into invoice prices. Prices ****:

Source: ****

Key findings:

Loxam is systematically more expensive than Kiloutou, sometimes up to +***%, particularly on backhoe loaders and mini-excavators. Kiloutou offers more competitive rates, but seems to have fewer references on heavy mini-excavators (***). The differences are consistent with the positioning of the two companies: Loxam targets a ...

4.3 Supply trends: eco-responsibility

The ecological transition is now central to the development of the construction equipment rental market. Faced with growing regulatory requirements and environmental imperatives, industry players are investing massively in low-emission equipment and developing alternative solutions to reduce the carbon footprint of worksites.

Leading equipment rental companies, such as Loxam and Kiloutou, are stepping up their efforts to offer more sustainable solutions. by ****, Loxam will have devoted **% of its capital expenditure to low-emission equipment, compared with **% for conventional thermal equipment. This trend is part of a long-term dynamic, with the aim of gradually reducing the share of combustion engines in the rental fleet.

This greening of equipment involves

Electrification of machines (***). Integrating alternative engines (***). Improving the energy efficiency of existing equipment.

Loxam Group capital expenditure World, ****, in Source: ****

Beyond the purchase of new equipment, retrofitting appears to be a promising solution for accelerating the transition without massively renewing fleets.in June ****, Kiloutou and Manitou Group presented the first retrofitted telescopic forklift.allowing the conversion of a combustion engine into an electric version, with a **% reduction in CO₂ emissions compared with a conventional model. [***]

This project, which mobilized ** people and required *,*** hours of development, illustrates the growing interest in the circular economy in ...

4.4 The impact of equipment theft on the rental market

The construction equipment rental market is increasingly faced with a major scourge: the theft of construction machinery and equipment. This growing phenomenon is having a direct impact on the industry, particularly on rental companies, which are suffering substantial financial losses and need to strengthen their security systems.

In ****, theft caused over * billion euros in losses for construction companies (***). These losses concern a wide range of equipment, from cherry pickers and mini-excavators to trailers, generators and heavy machinery such as loaders and compactors. Even more alarming is the fact that this type of crime has increased sharply with the rise of corporate identity theft, enabling networks to order equipment under false identities before making them disappear. [***]

How often is construction equipment stolen, and what are the consequences? France, ****, in % Source: ****

The graph illustrates the growing impact of equipment theft in the building and civil engineering sector, a phenomenon that is set to intensify, with losses of * billion euros in ****. Nearly * out of ** respondents say they have witnessed theft in their workplace, and **% are exposed to it every two to three months, underlining the alarming frequency of these crimes.

The consequences for worksites are severe: a third suffer delays, a quarter have to ...

5.1 Regulations

The interprofessional general conditions for rental of business equipment without operator have been drawn up by a specialized commission bringing together users (***), in the document opposite: Conditions générales interprofessionnelles de location de matériel d'entreprise sans opérateur.

The main measures and obligations for rental companies include Periodic General Inspections, which must be up to date and present in rented equipment.

Another important regulation for the sector is the tax niche on non-road diesel, which is due to be abolished in July ****, which should boost electric and hybrid vehicles. [***]

The decree of July *, **** reinforces the regulatory framework applicable to companies specializing in the rental, sale and maintenance of equipment for the construction, agriculture and materials handling sectors. This development falls within the scope of the national collective agreement for companies in the maintenance, distribution and rental of agricultural, public works, construction, handling and recreational motorized equipment (***). [***]

Main regulatory points:

Company obligations Compliance with working conditions and wage provisions defined by the collective bargaining agreement. Compliance with safety and maintenance standards for leased equipment. Supervision of contractual relations with customers and suppliers. Consequences for customer companies (***) Guarantee of equipment compliance with safety and maintenance requirements. Framework of rental conditions and ...

5.2 DLR regulations for construction equipment rental

The construction equipment rental market is governed by professional general rental conditions, defined and validated by the sector's representative bodies. These rules apply both to rental contracts with and without operators, and are designed to guarantee the transparency of contractual commitments, the safety of equipment, and the protection of stakeholders' interests.

*. Contractual obligations and responsibilities

All rental contracts must include explicitly stated general terms and conditions, and specify special conditions such as : Identification of leased equipment. Place of use. Duration and terms of use. Pricing conditions. The hirer is responsible for the equipment from the moment he takes charge of it, and must comply with the conditions of use definedby the manufacturer and the lessor. The lessor undertakes to supply equipment that complies with current standards, is in good working order and is accompanied by the necessary regulatory documents.

*. Use and maintenance of equipment

The equipment must be used only on the designated site and by qualified personnel with the required authorizations. Routine maintenance of the equipment (***) is the responsibility of the lessee, while major repairs and replacement of wearing parts are the responsibility of the lessor. A geolocation clause can be included in contracts to ensure equipment tracking.

*. ...

6.1 Segmentation

6.2 The analyst's eye

Context:

The construction equipment rental market is based on a flexible model that gives construction companies access to equipment without heavy financial outlay. In ****, nearly **% of the market will be held by a multitude of players, with Loxam (***) dominating the sector. This fragmentation reflects the diversity of offers adapted to the needs of worksites, from light to heavy equipment. Rental meets several imperatives: cost control, adaptation to variations in activity and compliance with environmental regulations. Against this backdrop, pressure on production costs is forcing rental companies to reinvent their models to maintain their competitiveness.

Major trends:

trend *: Rise of rental: the **% drop in purchases of construction and civil engineering equipment by **** confirms the rise of rental, which is favored for cost containment and flexibility. Certain categories, such as aerial work platforms and telescopic forklift-trucks, remain stable thanks to the rental offer, while cranes, in sharp decline, could follow this trend.

trend *: Sustained demand for equipment for the extractive industry In ****, nearly *,*** quarries were in operation in France, producing an average of *** million tonnes of aggregates per year, a key sector for the construction industry. With *** mines in operation in ****, notably for gold, lithium and cobalt, demand for heavy machinery (***) remains high, ...

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