KBS - Equipment-as-a-Service - Market Insight

MARKET INSIGHT – EQUIPMENT-AS-A-SERVICE (EAAS) INDUSTRY

MARKET INSIGHT

• The global EaaS market size was valued at $86.57billion in 2024. It is expected to grow from $94.87 billion in 2025 to $216.16billion by 2034 at a CAGR of 9.6%.

• Government infrastructures have created demand for EaaS. Large-scale projects such as highways and data centres in the US and UK are driving the need for rented equipment. A CBRE report noted a 30% one-year return on listed infrastructure investments in 2024, partly due to easing inflation and rate cuts, which increase demand for equipment on new projects.

• In terms of end-use, the manufacturing end-use segment led the market and accounted for 39.1% of the global revenue share in 2023.

• EaaS has enabled businesses to lease equipment and pay for extra services such as preventative maintenance based on the equipment’s production. Consumers in the construction industry can rent state-of-the-art equipment without heavily investing upfront.

• North America dominated the global market in 2023, accounting for 36.7% of market share. In Europe, Germany held a share of more than 33%.

• The UK’s move towards productivity improvements in construction, the need to replace ageing machinery with greener options, and ongoing labour shortages all support the EaaS model.

The global EaaS market size was valued at $86.57billion in 2024 . It is expected to grow from $94.87billion in 2025 to $216.16 billion by 2034 at a CAGR of 9.6% .

FACTORS DRIVING GROWTH Key drivers of EaaS include the growing adoption of subscription-based models, increasing demand for operational flexibility, and technological advancements. The EaaS market has witnessed a surge in cloud-based platforms and IoT-enabled equipment, facilitating real-time data analytics and enhanced equipment utilisation. REGULATIONS AND SAFETY STANDARDS The UK’s stringent safety and emissions regulations encourage the use of modern, up-to-date equipment. From low-emission construction machinery to safer lifting gear, regulatory compliance necessitates continual equipment upgrades. EaaS offers an avenue to access compliant equipment without upfront investments. SUSTAINABILITY There is growing recognition in the UK that equipment rental supports sustainability goals. Renting enables higher utilisation of each asset, reducing the total number of machines that need to be manufactured and eventually disposed of. Moreover, many EaaS firms in the UK are introducing greener technologies such as electric plant equipment and solar lighting towers in their fleets. Environmentally conscious customers and government procurement policies favour more sustainable options. TECHNOLOGY The rise of telematics and IoT in equipment management has enhanced the capabilities of EaaS. UK rental companies leverage these telematics for usage-based pricing, predictive maintenance and asset tracking, thereby improving accuracy, reliability and transparency. The technology integration lowers downtime and optimises fleet efficiency. Furthermore, online platforms have created a seamless process to rent via instant quotes and digital ID of equipment, broadening the customer base and retention. INFRASTRUCTURE Large infrastructure projects often opt to rent equipment to avoid logistics of ownership and to ensure access to a broad range of machinery. In the UK, due to government initiatives in infrastructure and a focus on improving productivity in construction, EaaS solutions are in demand to support these projects. The rental industry’s ability to provide turnkey solutions, i.e. equipment, service and logistics, aligns with the needs of contractors - driving growth in EaaS as these projects roll out.

M&A ACTIVITY CONTINUES TO RISE WITHIN THE EAAS INDUSTRY

Mergers and acquisitions (M&A) activity in the equipment-as-a-service (EaaS) industry is showing strong momentum.

This sector comprises companies which provide physical equipment to customers on a subscription or pay-per use basis, rather than selling it outright. That approach shifts a capital expense to an operational cost, allowing customers to access the latest technology without the need for large upfront investments. Typically, the service includes bundled offerings such as maintenance, monitoring and technical support, with the provider retaining ownership of, and responsibility for, the equipment. Many EaaS solutions incorporate smart technology and Internet of Things (IoT) sensors to track performance, usage and maintenance needs in real time, enabling predictive servicing and improved efficiency. This model is increasingly popular in sectors such as manufacturing, construction and healthcare where organisations benefit from scalability, reduced downtime and cost predictability.

Construction Equipment Rental & Leasing in the UK PRODUCTION & SERVICES SEGMENTATION Industry revenue in 2025 broken down by key product and service lines.

Earthmoving equipment (£3.5bn)

39.2%

Aerial work platforms and scaffolding (£2.3bn)

25.9%

Cranes (£1.3bn)

14.0%

Pumps and generators (£1.1bn)

12.3%

Other equipment (£776.6m)

8.6%

SOURCE: IBISWorld

KBS Corporate’s extensive experience in advising on successful EaaS transactions, allied to our ongoing engagement in this dynamic market, has provided us with a unique perspective. We have conducted an in-depth analysis of the company sales landscape within this sector, offering valuable insights into the key trends shaping sales activity. This includes the strategic moves of leading acquirers and the vital role of private equity in driving industry consolidation. We present significant industry transactions, highlighting notable deals and market dynamics that are reshaping the competitive landscape - along with a detailed overview of completed transactions facilitated by KBS Corporate - offering a practical look into real-world M&A examples within the EaaS space.

CURRENT LANDSCAPE

Deal flow has remained robust over the last few years even when interest rates were rising, indicating sustained buyer interest.

In 2024, disclosed deal values in this sector rose to $8billion from $5.8billion the previous year and from $4.2billion in 2022.

Moreover, the current market is highly fragmented, with acquirers targeting specialised rental firms focused on niche segments. To add perspective, the top 50 operators represent only 50% of the market and the top 10 represent 25% of the market in Europe.

EAAS MARKET BY REVENUE (NORTH AMERICA AND EUROPE) 2018 - 2025, $ in Billions

U.S. and Canada

Europe

122.6

117.4

109.7

100.3

89.9

86.9

34.6

83.8

33.7

78.9

32.1

31.2

29.0

26.9

27.3

24.1

56.5

54.8

60.9

60.0

69.1

77.6

83.7

88.0

2018A

2019A

2020A

2021A

2022A

2023A

2024A

2025E

In 2024, disclosed deal values in this sector rose to $8billion from $5.8billion the previous year and from $4.2billion in 2022.

KEY DRIVERS AND MOTIVATIONS FOR ACQUIRERS INCREASED REPAIR COMPLEXITY EaaS models are enabled by digital technology, i.e. the Industrial Internet of Things (IIoT). Providers equip machines with IoT sensors and telematics to monitor usage, performance and maintenance needs in real time. This data-driven approach allows for predictive maintenance and optimal asset utilisation. Furthermore, IoT connectivity and cloud analytics have made it possible for firms to offer equipment on a pay-per-use or subscription basis with confidence in tracking and billing. This aligns with the broader digital shift in enterprise services, as businesses increasingly prefer service models over outright purchases. CONSOLIDATION The current market is fragmented, and leading rental firms are broadening their services and geographic reach. For example, Sunbelt Rentals (Ashtead) has been very active in the market, completing multiple acquisitions e.g. JLL Group, a technical broadcast and production solutions provider, and Hybrid Power Hire (HPH). Moreover, some firms have been moving into adjacent verticals, as JLL Group provides film and TV equipment rentals. United Rentals has continued to bolt on regional competitors to extend its fleet and customer base. In 2025, it announced the acquisition of H&E Equipment Services for $4.8billion. This follows a period of strategic acquisitions including Yak Access for $1.1billion and Ahern Rentals for $2billion.

Construction Equipment Rental & Leasing in the UK INDUSTRY MARKET SHARE BY COMPANY Industry specific company revenue as a share of total industry revenue

Sunbelt Rentals Ltd (£574.6m)

6.4%

Speedy Hire plc (£431.0m)

4.8%

HSS Hire Service Group Ltd (£274.0m)

3.0%

Select Plant Hire Company Ltd (£183.7m)

2.0%

Other equipment (£7.6bn)

83.8%

SOURCE: IBISWorld

SUSTAINABILITY There has been ongoing emphasis on the integration of technology and a focus on sustainability in EaaS offerings. Rental firms are deploying IoT/telematics for smarter asset usage and predictive maintenance, and offering electric or low-carbon equipment to meet environmental goals. This shift is opening new opportunities and helping EaaS providers stay at the forefront of market needs, such as zero-emission construction sites in the UK. RECURRING REVENUE MODELS EaaS companies offer subscription-like pricing or usage-based charges. Customers benefit by converting a large capital expenditure into a more flexible operational cost, often bundled with maintenance and support. Firms are seeking greater flexibility and cost control and therefore are turning to EaaS. Moreover, recurring revenue models are attractive not only to customers but also to investors.

PORTFOLIO DIVERSIFICATION Trade buyers pursue acquisitions to broaden their equipment and service offerings. By adding complementary products, they can serve a wider customer base. Moreover, acquirers gain access to new technology and capabilities to strengthen their existing offering. Firms look to obtain innovative technology, digital platforms and sustainable equipment e.g. solar powered lighting towers and hydrogen generators. GEOGRAPHIC EXPANSION Many consolidators are motivated to enter new regions or strengthen their presence in key markets. Acquiring a regional player is often the fastest way to gain market share in a target location. For example, UK-based Vp plc’s purchase of Charleville Plant Hire gave a pathway into the Irish market. Cross-border deals of this nature constitute approximately 48% of European rental M&A, a strategy designed to achieve multinational scale.

FACTORS DRIVING BUYER APPETITE & DEAL VALUES

In the UK EaaS sector, we have seen deal values that have been calculated on adjusted EBITDA/earnings multiples ranging from 5/6x to double-digit figures, depending on various factors such as recurring and contracted revenue, vertical specialisation, strategic positioning and scalability.

Key factors that can influence the value have included:

• Premiums for Recurring Revenue Models: Recurring contracts and subscription-based service bundles are commanding higher EBITDA multiples. Buyers that value predictability and customer stickiness are often willing to pay 1-2x EBITDA more for EaaS businesses versus traditional rentals. • Servitisation and IoT Integration Providers: Companies embedding IoT, remote monitoring or predictive maintenance into their offering are receiving technology-like valuation premiums. These value-adding services justify higher pricing by reducing downtime and driving efficiencies for clients, with EBITDA multiples ranging from 7.5x-11x. • Private Equity Roll-Ups: Private equity firms are actively consolidating regional or niche players into platform models, and these platforms trade at higher EBITDA multiples of 8x-10x. Specialisation drives pricing power, customer loyalty and entry barriers. • ESG and Sustainability Premiums: Equipment providers with energy efficiency, emissions reduction or circular economy models (e.g. asset re-usability) are beginning to attract ESG-driven capital. Sustainable EaaS providers may see early valuation premiums due to net-zero commitments, with EBITDA multiples ranging from 8x-11x.

In the UK EaaS sector, EBITDA multiples for company sales typically range from 9x to 11x.

Several key factors influence valuations in the EaaS sector, with a focus on recurring and predictable revenue and technology integration.

Recurring and predictable revenue: The strongest driver of higher multiples in the EaaS sector is the presence of recurring revenue streams such as subscription fees, long-term rental contracts and service agreements. Therefore, revenues under contract, usage-based billing tied to essential services, or auto-renewal subscription models will typically command higher EBITDA multiples than solely one-off rental businesses. Technology integration: EaaS firms which have heavily invested in advancing their technological capabilities (e.g. offering data analytics or proprietary software platforms) command a higher multiple. Tech-enabled companies have better scalability and a stronger competitive advantage, with higher barriers to entry. Energy transition and net-zero commitments: Due to the UK’s target of being net-zero by 2050, combined with energy efficiency mandates and carbon pricing, businesses and public entities are turning to EaaS providers. This demand increases growth potential, justifying higher valuations. Market position and growth trajectory: Fast-growing EaaS firms are using their market position to command higher multiples due to the demand in the sector. Leadership in specific sub-sectors (e.g. the NHS or schools) can also drive up premiums. Strategic buyer synergies: Strategic acquirers, including utilities, infrastructure and energy tech firms, may value EaaS platforms higher due to customer base access, cross-sell opportunities, geographic expansion and platform capabilities.

Regulatory certainty and incentives: Clarity in UK government policies boosts investor confidence, and incentive schemes for decentralised energy or behind-the-meter (BTM) solutions raise perceived value.

M&A INTEREST FROM ACQUIRERS & INVESTMENT ROUTES

PE firms have significantly increased their focus on EaaS. Roughly 25% of European equipment rental transactions since 2018 involved a financial sponsor (private equity or infrastructure fund).

BUY-AND-BUILD STRATEGIES Many PE firms view the EaaS industry as an opportunity for buy-and-build consolidation. The sector’s fragmentation allows a sponsor to acquire a platform company and then roll up smaller add-ons to drive growth and multiple expansion. For example, Allied Industrial Partners has built out CES Power (a specialist rental platform for event power solutions) through bolt-on acquisitions such as Base Craft and Fourth Generation. Likewise, Kinderhook Industries has been expanding its portable storage rental portfolio through acquisitions, e.g. The Eagle Leasing Company.

KEY ACQUIRERS AND INVESTORS Major players in this sector include

SPECIALIST/NICHE PROVIDERS Strategic buyers are actively seeking out niche rental and service specialists to complement their core operations. For example, large generalist rental companies have been acquiring firms in high-growth verticals such as event and entertainment equipment rental (e.g. Sunbelt’s acquisition of UK-based JLL, a film/TV production rental provider) and power/temperature control rental (e.g. Aggreko’s purchase of Crestchic, a UK loadbank testing equipment specialist). These niche acquisitions provide strategic expertise and market share in segments adjacent to their main business. TECHNOLOGY DRIVEN Another type of business that strategic buyers are pursuing is tech-enabled and innovative businesses - targets which have embraced digital platforms or usage-based billing and IoT analytics. Such acquisitions help modernise an acquirer’s operations. Additionally, firms with strong ESG credentials, e.g. electric rental fleets or circular refurbishing programmes, are attractive.

PE firms have significantly increased their focus on EaaS.

Roughly 25% of European equipment rental transactions since 2018 involved a financial sponsor (private equity or infrastructure fund).

M&A ACTIVITY IN THE EAAS SECTOR

Around 1,900 investors and acquirers have registered interest with KBS Corporate for companies in this industry.

The following is a selection of key deals completed:

TUSK LIFTING ACQUIRED BY FIRST INTEGRATED SOLUTIONS

KBS DEAL

KBS oversaw the seven-figure sale of Tusk Lifting, which specialises in the hire, sale, servicing, inspection and testing of lifting equipment, to Aberdeen-based equipment rental specialist First Integrated Solutions.

Centurion, a global leader in the supply of specialist rentals and services to a range of critical industries, acquired Greater Manchester-based Aerial Platforms, a specialist rental provider of powered access lifting equipment for working at height. AERIAL PLATFORMS ACQUIRED BY CENTURION GROUP

HUMBERSIDE LIFTING ACQUIRED BY BOWERS & BOWERS

KBS DEAL

A Scunthorpe-based specialist in the supply, maintenance and repair of industrial lifting and height safety equipment, Humberside Lifting was sold to experienced sector operators Bowers & Bowers in a deal advised on by KBS Corporate.

Charles Wilson’s equipment rental division CW Plant Hire had the second largest fleet of skid steer loaders in the UK after acquiring Wakefield-based MTS, whose range of equipment also includes mini excavators and site dumpers. MTS PLANT HIRE ACQUIRED BY CW PLANT HIRE

YORK LIFT TRUCKS ACQUIRED BY IVS MATERIALS HANDLING

KBS DEAL

A provider of short and long-term forklift truck rentals with flexi-hire contract options, York Lift Trucks was acquired by IVS, which specialises in the sale, hire and servicing of materials handling products and floor care equipment.

With 65 branches and nearly 1,200 employees, the acquisition of Riwal added around €310million in turnover to Boels Group, one of Europe’s largest rental companies with around 30 UK locations. RIWAL ACQUIRED BY BOELS RENTAL

Sunbelt and its parent company, Ashtead, acquired 26 rental businesses during FY2024 for a total amount of $845.6million. In 2023, it acquired more than 30 rental businesses for cash consideration of $1.061billion. These acquisitions were mostly in North America and the Caribbean, but Sunbelt Rentals UK acquired JLL Group, an Oxfordshire-based production and equipment rental partner. ASHSTEAD GROUP (SUNBELT RENTALS) ACQUISITIONS

United Rentals, the world’s largest equipment rental company, which has a UK division, expanded its presence in the Australian market with the acquisition of Shore Hire, a leading supplier of temporary work solutions. SHORE HIRE ACQUIRED BY UNITED RENTALS

Speedy Hire, the UK and Ireland’s leading provider of tools, specialist equipment and services, acquired sustainable power solutions specialist Green Power Hire for an enterprise value of £20.2million. GREEN POWER HIRE ACQUIRED BY SPEEDY HIRE

PRIVATE EQUITY TRANSACTIONS

ING CORPORATE INVESTMENT INTO STRAVERS TORENKRANE ING acquired a minority stake in Stravers, a leading European provider of electric tower crane solutions, which offers extensive rental services augmented with maintenance and other services. LONSDALE CAPITAL PARTNERS REINVESTMENT INTO CROSS RENTAL SERVICES Following Lonsdale’s sales of Cross Rental Services to Elysian Capital, the PE firm then made a significant reinvestment into the Hampshire-based company to continue to support its expansion. COOLWORLD ACQUIRED BY ARCUS INFRASTRUCTURE PARTNERS Arcus European Infrastructure Fund 3 invested an undisclosed amount to acquire a majority shareholding in Coolworld, a European industrial temperature control equipment rental specialist.

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