Report reveals scale of Brazil’s equipment rental market

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Brazil’s equipment rental market is forecast to grow by 7% this year and next, and is expected to reach a total value of R$56.7 billion (€8.8 billion) by 2027.

The forecasts come from a new report by KPMG, commissioned by Brazilian rental association ANALOC, which is the first such detailed report into Brazil’s fast-growing rental market.

Among other findings, the study reveals that Brazil’s rental market is larger than major European rental markets including the UK, Germany and France, and almost twice the scale of the total Nordic rental business.

Forecast growth in Brazil’s equipment rental market, from KPMG report for ANALOC. (Image: ANALOC)

The report forecasts that Brazil will experience a compound annual growth rate (CAGR) of 11% between 2022 and 2027. It said the sector has more than 50,000 rental companies, with construction representing 60% of market activity.

Using ERA methodology

The study has been conducted using the same economic methodology that KPMG uses on its reports for the European Rental Association (ERA), making the figures directly comparable.

Paulo Esteves, president of ANALOC, called the publication a “historic step” for the industry in Brazil; “Global trends driving rental growth have reached Bra­zil.

“Factors such as prioritizing capital allocation in the core business, greater operational flexibility, access to new technologies, and increased customer productivity have contributed to the segment’s increased penetra­tion outside of construction.

“The study’s projections indicate that the market will continue to expand in the coming years, sustained by in­frastructure projects, industry modernization, and the global trend of replacing ownership by rental.”

Included in the report is a detailed breakdown of the rental fleets in Brazil, by revenue and by fleet size. For example, there are an estimated 75,000 excavators in Brazil’s rental fleet and 55,000 larger dump truck type machines, as well as 50,000 aerial platforms, 1,000 telehandlers and 50,000 generator sets.

Of the current R$49 billion €7.6 billion) rental market, around 50% is generated by ‘yellow line’ machines, while industrial forklifts, aerial platforms, scaffolding, hoists and tower cranes represent more than 25% of the total market.

Report widely welcomed

The report was widely welcomed throughout Brazil’s construction and rental market. Monica Zambolini, president of ALEC, the association that represents the smaller equipment segment of the rental market in the country, writing in a forward to the report, said the growth in the industry over the past 15 years had been remarkable.

“To grasp the scale of this progress, consider that in 2012 Brazil hosted roughly 4,000 light-equipment leasing opera­tions. Today, that number has surged to over 30,000 busi­nesses nationwide”, wrote Zambolini.

“This growth goes far beyond volume — it reflects skyrocketing economic significance, massive job generation, and a direct impact on national infrastructure and civil construction.”

Lead author of the report was Martin Seban of KPMG, who also produces KPMG’s market studies for the ERA in Europe.

To view the report, click here.