IPAF released the "Global High-Equipment Leasing Market Report 2024". The aerial work platform (MEWP) rental market has shown significant resilience and growth after the epidemic, with strong rebounds in both Europe and the United States. This article summarizes and explores the key trends, growth drivers, and challenges facing the MEWP rental market in 2024, compares them to previous years, and provides forecasts for the near future.
European MEWP rental market
The European MEWP rental market totaled €3.4 billion in revenue in 2023, with most markets experiencing strong growth, especially in the non-construction sector. The increase was driven by GDP growth of 4%, marking a recovery from the previous year's decline. Europe’s GDP outlook remains positive, with further growth expected in 2024 and 2025. However, construction output fell in 2023 in the ten European countries included in the study, is expected to fall slightly again in 2024, and show early signs of recovery in 2025.
The European MEWP fleet numbered approximately 357,000 units at the end of 2023. Utilization remains stable, partly due to limited equipment supply in some countries and partly due to strong demand. All European countries reported satisfactory utilization rates of over 60%, indicating a positive and stable market outlook. As lead times for MEWP manufacturers shorten and strong demand for environmentally friendly equipment continues, rental companies continue to invest in their fleets to keep up with renewal and expansion plans.
France retained its position as having the largest MEWP rental fleet with over 71,000 vehicles, an increase of approximately 3,500 vehicles. This is followed by Germany with a fleet size of nearly 64,500 vehicles, while the UK has nearly 62,000 vehicles. Significant growth rates were seen in Spain (10%) and other major markets. Average revenue per vehicle increased to €9,597, with Germany retaining the highest revenue per vehicle.
Investment in fleet renewal and expansion increased by 6% in 2023 compared with 2022. The investment is driven by high demand and a desire to transition to greener technologies. Due to unprecedented market demand, inflation and rising MEWP purchase prices, rental companies have been forced to significantly increase rental rates in most European countries, resulting in average rent increases. The Nordic region faces challenges, mainly due to consolidation activity increasing competition in the market, thereby restraining rental growth.
The market outlook for 2024 remains positive as manufacturers’ lead times are expected to stabilize further and rental companies predict that demand will continue to remain healthy. However, with inflation expected to ease in Europe, rental increases should slow, while investment is expected to decline as rental companies plan to spend more cautiously, targeting profits rather than sales.
USA MEWP Rental Market
In the US, the MEWP rental market also sees substantial growth in 2023. US GDP grows 7% in 2023 after an 8% increase in 2022, partly due to strong performance across all construction sectors. Construction output increased by around $20 billion, leading to strong demand in the MEWP rental market. US MEWP rental revenues reach a record $15 billion in 2023, up 10%. The fleet size expands by 10%, totaling 857,861 units by the end of the year.
Average utilization in the U.S. remains at an all-time high of 73%. Despite improvements in manufacturer lead times for new equipment, rental companies report that continued demand levels combined with U.S. tariffs on Chinese equipment are weighing on utilization. The average age of the fleet declines slightly in 2023 due to higher investment levels and easing equipment supply.
High tariffs on Chinese-made machines continue to limit the availability of certain models on the market, adding to market pressures. Rental rates rise by 5% in 2023 to compensate for rising MEWP procurement costs and inflationary pressures. Most companies expect rental rates to rise further in 2024, albeit at a slower pace, as it becomes challenging to maintain high year-on-year growth in customer relationships.
China MEWP Rental Market
China's GDP declines by around 1% in 2023, with the 2024 forecast set at around 5%. The macroeconomic outlook for 2024 and 2025 is generally more optimistic than for 2023. Construction activity is expected to remain strong.
In 2023, China's MEWP rental market revenue increased significantly by 19.5% over the previous year. Rental revenue reached RMB 14,882 million (EUR 1,946 million), driven by fleet expansion and improved utilization. Nevertheless, rental prices continue to decline due to increased competition, especially in major cities in East and South China.
The total rental fleet in China has increased to nearly 530,000 units, mainly consisting of scissor lifts (73.5%) and boom lifts (25%). The market is expected to grow further in 2024 and 2025, driven by opportunities in emerging industries such as urbanization, maintenance and renewable energy. However, rental companies are expected to be more cautious about fleet expansion due to economic uncertainty.
In 2023, as lockdown measures are relaxed and downstream projects resume, average utilization rebounds to 71%. Although rental rates are expected to continue to decline, the rate of decline is expected to slow, with regional rate changes varying. Overall, the market outlook remains positive, with demand stable driven by building safety and efficiency awareness.
Global Trends and Outlook 2024
Looking ahead, market penetration is calculated using the ratio of each country's MEWP rental fleet to population. The total value of the European MEWP rental market reached €3.4 billion in 2023, now well above pre-pandemic levels. The overall market value has increased due to higher rental rates and fleet size growth in all studied countries, although inflation has also played a role. Three countries still dominate the market, with Germany, the UK and France together accounting for 60% of total market revenue.
The European MEWP rental market continues to shift towards green energy, supported by the increasing supply of new equipment from manufacturers. Electric scissor lifts dominate the fleet in all countries, especially in the Netherlands, Germany and the Nordic countries. The shift to electric scissor lifts continues elsewhere in Europe, but combustion scissor lifts remain popular for work in rough terrain and at heights above 20 meters. Rental companies report progress from MEWP manufacturers in electrification options and expect an increase in available models in the coming years. The pace of the shift to electric lifts varies, depending on national and local demand for rough terrain equipment, heights above 20 meters, and the availability of charging infrastructure.
In summary, the MEWP rental markets in Europe, the United States, and China show varying degrees of growth in 2023, driven by high demand, improved rental rates, and investments in fleet expansion and greener technologies. The outlook for 2024 remains positive, although challenges such as inflation, geopolitical uncertainty, and supply chain issues remain. The transition to electric MEWPs and continued technological advancements will continue to shape the future of the global MEWP rental market.