Switzerland Construction Equipment Rental Market Overview, 2028

Switzerland market penetration rate remains low, with ownership still preferred over usership. This preference is due in part to clients' advanced requirements, which are more easily addressed by owning equipment. Competition between foreign and local rental firms remains a key part of the market, as it is in Austria, with local players having a larger local client base. Meanwhile, OEMs and distributors with rental business sections are becoming increasingly important. The forecast for equipment spending is similarly encouraging; after recouping three-quarters of its losses in the second half of 2020, investment remained stable in the first quarter of 2021. The resurgence of the industrial sector will help in the second half of 2021. Despite fiscal intervention to counteract the effects of the epidemic, medium-term prospects remain favourable, laying the groundwork for a solid foundation for the Swiss recovery. Options (Schweiz) AG, Boels Rental AG Zürich, Avesco Rent SA and among others are the agencies operating in Switzerland Market. According to the research report, “Switzerland Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to grow at a significant rate by 2028. The growing emphasis on infrastructure and the advancement of automation in construction and manufacturing processes have had a significant impact on market growth. The road construction machinery industry has grown significantly in recent years as a result of expanded road development plans conducted by the federal and state governments. Renting construction equipment has become more popular as the cost of the equipment and the maintenance procedures have risen.

Swiss rental turnover growth is predicted to grow at a significant rate, after declining 5% in 2020, wiping out gains gained in 2019. Despite a drop in activity beginning in 2019, the share of rental revenues derived from construction demand remained above 70%, owing to recent strong traction in Swiss construction. Furthermore, Swiss home prices began to fall in 2016 and have continued to fall in 2018, leading residential construction to be slightly constrained. Fortunately, the central bank's deactivation of the so-called countercyclical capital buffer, which banks had been compelled to hold in previous years, should stimulate mortgage lending and consequently residential development on March 27, 2020. Overall construction investment dipped 1% in 2020, with the non-residential segment declining 1.4%. Total spending increased by 1.7% in 2021 before dropping to 1.3% in 2022. By 2025, all segments are predicted to develop at a significant rate, indicating sluggish but steady expansion. The number of households is predicted to increase by 8% by 2030, while real GDP per capita is expected to increase by 13.5%, or 1.3% per year. This bleak prognosis will contribute to the lacklustre expansion in the residential sector. On the other hand, some large infrastructure projects, such as the CHF 18.7 billion New Transalpine Rail Link, are still in the works. Indeed, transportation-related building will outpace energy-related building in terms of growth in infrastructure spending. Future plans will be based on the return of COVID-19 cases across Europe, which might impede activity and shift funds to more short-term fiscal stimulus outlets. Infrastructure development projects in Switzerland • Northern bypass Zurich (Nordumfahrung): widening of the motorway to six lanes and a new tunnel through Gubrist (cost: CHF1.55 billion); • renovation of A9 at Vennes-Chexbres, including bridges and tunnels (cost: CHF800 million); • renovation of A1 at Luterbach-Härkingen, including a new bridge over the Aare river (cost: CHF886 million); • renovation of A6 at Rubigen-Thun-Spiez in the Bernese Highlands, including bridges and tunnels (cost: CHF700 million); • Extensive works for the reuse of the breakdown lane between Wankdorf (Berne) and Muri-B. Berne as traffic lines during peak times to reduce congestion problems, improve safety, and reduce environmental pollution (cost: CHF130 million); • NEAT: 57 km railway tunnel completed; remaining stages of the new railway transalpine axis for freight transport and passenger services (total cost: CHF23.5 billion); • HGV: improving Switzerland's accessibility to the European high-speed transportation network (for example, Biel/Bienne-Belfort, Zurich-Munich, and Basel-Mulhouse) (cost: CHF1.3 billion); • STEP AS 2035: strategic expansion of the Swiss railway network to increase the railway traffic on certain routes (cost: CHF12.89 billion); • Limmattalbahn: new railway infrastructure through the Limmat Valley, in the Swiss cantons of Aargau and Zurich, to the west of the city of Zurich (cost: CHF755 million). Growing government investments in infrastructure and other strategic initiatives are expected to improve the Switzerland country's construction sector. Therefore, with increase in the construction activities by government and the private sector the market for construction equipment rental has great potential.

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Manmayi Raval

Research Consultant

Covid-19 Impact The spread of COVID-19 contributed to the decline of the Switzerland Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries. Considered in this report • Geography: Switzerland • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Switzerland Construction Equipment Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation

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By Equipment type • Earthmoving • Material Handling • Concrete & Road Construction • Others By Application type • Residential • Non-Residential • Others (Infrastructure, industrial, real estate, etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.