France Construction Equipment Rental Market Report 2023-2029: Rising Inflation & Supply Restraints Could Restrict Purchasing Power and Propel Demand for Rental Machinery

DUBLIN, May 12, 2023 /PRNewswire/ -- The "France Construction Equipment Rental Market - Strategic Assessment & Forecast 2023-2029" report has been added to  ResearchAndMarkets.com's offering.

The France construction equipment rental market is expected to reach a value of $4.252 billion by 2029 from $3.113 billion in 2022, growing at a CAGR of 4.55% during 2022-2029.

The Material handling segment of the overall rental construction equipment accounted for the largest France construction equipment rental market share in 2022. In the material handling segment, aerial platforms accounted for the largest share in 2022.

Various infrastructure projects are under construction in Paris in response to the upcoming Olympic Games 2024. Approximately 70 Olympic projects, such as Olympic Village and Aquatic Centre, are expected to be ready by 2024. The Village will have the capacity to accommodate 14,000 athletes in 2024. Similarly, the Aquatic Centre near the France Stadium will include water polo, diving, and artistic swimming events.

The planned construction of Metro Line 16 to connect the Olympic venues in Seine and Saint-Denis will be completed by 2026. Construction on Metro Line 17 to Media Village is also planned during the forecast period.

The construction of various infrastructure and residential projects in the country is expected to drive the demand for renting aerial platforms in the France construction equipment rental market. In 2022, the government introduced the 'France Renov' program to provide financial aid for home renovations nationwide. Under this policy, the government targeted to repair 800,000 housing units in 2022.

MARKET TRENDS & DRIVERS

Government Investment in Public Infrastructure is Expected to Support the Demand for Rental Construction Equipment

In 2021, the French government rolled out the 'France 2030' investment plan with a total investment of USD 57.9 billion.

This plan focused on transforming major sectors of the economy, for instance, energy, automotive, and aeronautics. The investment plan announced the development small nuclear reactor (USD 1 billion), carbon-free hydrogen, zero-emission vehicles, and biomedicines.

The plan also announced investments in the transport sector; for instance, USD 1.2 billion worth of expenditure was granted to develop the use of bicycles and public transport by improving existing services. It also involved improving the rail network across the country to link the densely populated areas to the urban areas.

Growth in Housing Renovation Projects Across the Country to Benefit the France Construction Equipment Rental Market

In 2021, European Investment Bank (EIB) granted a loan to BATIGERE Network (the company that builds social housing) of USD 134.2 billion to build 1,500 homes over five years for 3,500 residents.

Moreover, there was a surge in housing renovation projects nationwide in 2021. According to France Housing data, more than 750,000 housing units were renovated in 2021, and the government disbursed USD 3.1 billion for the renovation of additional 751,646 housing units in 2021.

In 2022, the French government introduced the 'France Renov' program to provide financial aid for home renovations nationwide. Under this policy, the government targeted to repair 800,000 housing units in 2022. The government also focused on public building repair projects in 2022. The government allocated USD 4 billion in funds for school & public administration buildings, followed by USD 2 billion, liquidated for private houses, & social housing (USD 0.5 billion).

Rising Inflation & Supply Restraints in the Country are Likely to Propel the Demand for Rental Machinery

According to the IMF projections for 2023, the inflationary effects will shrink household real incomes and consumption. The year will witness a decline in investments due to growing interest rates. In October 2022, the inflation rate reached 7.1% and was expected to remain high in the coming months.

Therefore, IMF anticipated that inflation would peak in the coming months but remain near 5% in 2023 on average as price controls ease. It will remain persistent in 2024 and will only gradually decline to around 2% in 2025.

Further, the supply disruptions have also hampered the manufacturing of new equipment leading to a surge in the prices of the new equipment. Such factors have propelled the growth of the France construction equipment rental market.

INDUSTRY RESTRAINTS

Skilled Labour Shortage to Hamper the Pace of Construction Projects

Various sectors, such as construction, transportation, healthcare, and agriculture, are witnessing a significant shortage of skilled labor, accounting for approximately 400,000 vacant jobs.

Surprisingly, Ile-de-France, the most populated region, has the most vacancies (160,000). In line, Auvergne Rhone-Alpes is the 2nd largest region with vacant jobs (145,000). Additionally, the unemployment rate in Hauts-de-France during Q1 2022 was 8.7%, the highest in France.

The Pandemic added further pressure to this situation in 2020. France's unemployment rate rose to its highest level in Q2 2020. The unemployment rate in the country was significantly affected by the 'Great Resignation.'

Strict Environmental Regulations Can Hamper the Demand for Large Rental Construction Equipment

France aims to achieve its national goal of cutting carbon emissions by 40% by 2030 and eliminating greenhouse gas emissions by 2050.

In France, the decarbonization of construction sites and buildings is one of the major challenges. As per the data published by the Ministry of Ecological Transition, the construction industry in France accounts for approximately 43% of yearly energy consumption and 23% of GSG emissions.

Policies like Extended Producer Responsibility (EPR) which mandates the producer (manufacturer, importers, and distributors) to consider all the environmental costs of the product, have disrupted the construction activities and hampered the France construction equipment rental market growth.

Increasing Housing Prices Due to the Energy Crises May Restrict the Demand for Residential Units in the Country

In 2022 the government introduced a new policy that restricted the new mortgage loan limit to a maximum of 25 years, which is less than 2021, and the total amount borrowed would be covered at 35% of the borrower's income.

Housing prices over the last five years have increased significantly by 27.8%. During Q3 2022, the prices increased by 6.4% over 12 months. Consequently, housing sales also witnessed a continuous decline.

Prominent Vendors

• Caterpillar
• Komatsu
• Hitachi Construction Machinery
• Volvo Construction Equipment
• Liebherr
• Hyundai Construction Machinery
• SANY
• Kobelco
• JCB

Other Prominent Vendors

• Yanmar
• Terex Corporation
• Kubota
• JLG

Rental Companies Profile

• Loxam
• Kiloutou
• Sarens
• Bergerat Rentz
• Mediaco
• Uperio Group
• SALTI
• Duma Rent

Segmentation by Type

• Earthmoving Equipment:
• Excavator
• Backhoe Loaders
• Wheeled Loaders
• Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
• Road Construction Equipment
• Road Rollers
• Asphalt Pavers
• Material Handling Equipment
• Crane
• Forklift & Telescopic Handlers
• Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
• End Users
• Construction
• Mining
• Logistics & Warehouse
• Others

For more information about this report visit https://www.researchandmarkets.com/r/ydh5wc

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