Our strategy aims at capturing opportunities in the market via differentiation through products, services and innovative digital solutions designed to increase productivity for our customers. In Sweden, Norway and Finland we see growth opportunities in both the industrial segment and through digital offerings as well as in the high demand for rental-related services. In our markets in Germany, Czech Republic, Estonia, Lithuania, Poland, Austria, Hungary and Slovakia, the growth opportunities are rooted in increasing rental penetration, outsourcing deals and in the possibility to proactively build on the demand for rental-related services. In all markets we are also looking to grow both organically and inorganically.
The estimated size of the rental market in the countries where Cramo operates totalled about EUR 10 billion in 2019.
In 2019, the market growth levelled out in many countries. Our sales decreased largely due to overall weaker market conditions in Sweden, but was also affected by the ending of two large industrial projects. New projects were commenced only in late 2019 and will have positive sales impact in 2020.
For 2020, the European Rental Association (ERA) estimates that growth in the equipment rental industry will be between 4-5% in all of Cramo’s operating countries, except in the Czech Republic and Polish market, where growth is forecasted to be 6% and above 8%, respectively.¹
In equipment rental, ERA sees two trends that are pushing rental penetration. One is the better understanding rental customers have regarding the advantages of renting out a piece of equipment, such as savings, modern equipment, more flexibility and less capital expenditure. Secondly, the rental market is consolidating, which plays a major role in the rental industry’s efficiency and promotion.
1 ERA Equipment Rental Industry 2019 Market Report
|Market overview and our position|
|Market size 2019 (ERA), MEUR||Market CAGR 19-21||Market size 2019 (Forecon), MEUR||Market growth 2020, %||Market position estimate|
|Finland and Eastern Europe||1,500||5.8%||1,700||6.4%|
|Eastern Europe1||900||6.6%||900||7.5%||#1, #44|
|Other Central Europe2||700||4.7%||700||4.8%||#23|
Forecon data for Poland and Central European countries based on ERA outlook for 2019 and 2020
1 Estonia, Lithuania and Poland
2 Austria, Czech Republic and Slovakia
3 #2 in Austria and one of the leading equipment rental companies in Czech Republic and Slovakia
4 #1 in the Baltics and #4 in Poland
Sources: ERA market report and Forecon
Market with long term structural growth and robust mid-term outlook
Equipment rental outgrowing the construction market
Source: ERA Market Reports, Forecon, EIU, Euroconstruct, World Bank
1 In Cramo’s geographic markets. Data for Sweden, Finland and Norway are based on average between ERA and Forecon (starting 2013/2014 depending on data availability). No historical data available for Austria and Czech Republic beyond 2013; 2013 figures applied as base numbers for years before
|A diversified end-market exposure drives balance between growth and stability|
|Mature markets||Developing markets|
|Share of sales (2019)||~70%||~30%|
|Construction rental penetration||High||Low|
|Growth and volatility||