The European equipment sector is entering 2026 with cautious expectations. I mean, who isn’t? Last week, analysts shared the latest Euro outlook during Intermat’s Industry Day in Paris.

Intermat

is an enormous off-highway equipment tradeshow in France. At Industry Day, associations reviewed a variety of topics — market data, sustainability initiatives, economic risks and opportunities — and painted a realistic picture of Europe's off-highway sector. I visited Intermat once, and it might be time to go again. The Paris-based tradeshow runs every three years and gathers global OEMs, contractors, rental firms, and policymakers to discuss infrastructure, equipment, and technology trends across Europe. These ideas and products often end up in America as well. The next edition of Intermat takes place April 21-24, 2027, at Paris Nord Villepinte.

Now, here are seven things I learned from Intermat’s Industry Day press kit:

1. Equipment sales have maybe stabilized

European equipment sales improved in 2025 after a difficult 2024. According to the report: “The legacy of 2024 continued to weigh heavily, with that year widely regarded as one of the most difficult in recent decades due to enduring inflation, spiraling borrowing costs, and high costs of materials and labor.” But there’s good news: 2025 third-quarter sales jumped 12 percent, confirming recovery momentum. Sales for the first nine months of 2025 were 3 percent above those of the previous year.

2. Most OEMs reported equipment sales were higher last year

Photo provided by Volvo Construction Equipment.

Nearly 60% of European equipment manufacturers recorded sales gains in 2025. Analysts emphasize that much of this increase reflects recovery from weak 2024 conditions, but hey, up is up. From the report: “‘The European construction machinery market should see a moderate upturn in 2025 and 2026, driven by housing, civil engineering, and healthy business in repairs and maintenance. While conditions for growth are improving, the market still faces risks associated with tariffs, labor shortages, and supply chain pressures,’ emphasized Riccardo Viaggi, CECE secretary general.” CECE is the Committee for European Construction Equipment.

3. Rental remains a massive economic force

Europe’s equipment rental sector generated about €33.9 billion in 2025 revenue ($36.6 billion USD in today’s market). It’s interesting to note that the United Kingdom, Germany, and France account for nearly 60 percent of the market. Not unlike here in America, rental companies strongly influence technology adoption – especially greener tech. From the report: “An independent report commissioned by the ERA [the European Rental Association] showed that the rental model promotes equipment use efficiency, generating significant emission reductions of 30 to 50 percent, depending on users’ practices.”

4. Electric and alt propulsion have hurdles

Europe’s alternative fuel strategy is shifting. It’s moving to a more pragmatic approach — the same attitude we’re feeling here in America. These alternatives (electric, hydrogen, biofuel, hybrids) are expensive right now, and the infrastructure just isn’t there yet to support them. From the report: “‘Sustainability brings many opportunities but also poses many challenges in terms of its implementation, among which the existence of national specificities. These specificities require an EU approach but must be implemented on domestic and local scales. There is also the question of who will finance it. For businesses, the availability of labor and the need to upskill employees require investment in training. In this respect, the green and digital transitions represent an opportunity to attract more young people and women,’ adds Domenico Campogrande, FIEC director general.” FIEC is the European Construction Industry Federation or (as they say it) the Fédération de l'Industrie Européenne de la Construction. The report also noted that the European Commission has launched several simplification initiatives for green tech, including sustainability reporting and new environmental legislation.

5. Sustainability rules now affect financing

This is an interesting nugget.

EU sustainability taxonomy standards

increasingly influence how projects receive financing. Banks, insurers, and investors use environmental criteria to evaluate construction activity, and contractors must align projects with this type of reporting and compliance requirements. It’s something European contractors should get used to. From the report: “The main goal (a carbon net zero EU economy by 2050) remains in place, meaning that the green and digital transitions are therefore inevitable.”

6. Labor shortages remain a challenge

Same old story: Construction companies across Europe continue to face persistent workforce shortages. In the report, industry leaders emphasized training, upskilling, and workforce development programs. As mentioned in “thing” No. 4: Green and digital transition may help attract younger workers. A manifesto signed at Intermat 2024 includes four pillars. One of those is supporting skills and job development by focusing on training courses and increasing the appeal of careers in construction.

7. Time to look ahead to Intermat 2027

Photo provided by Intermat.

Intermat 2027 will spotlight all the coolness going on in European off-highway equipment. There will be a focus on electrification, biofuels, AI, cybersecurity, workforce development, and (yeah) construction equipment. Organizers expect more than 1,000 exhibitors and roughly 150,000 visitors. There were 127,500 visitors in 2024. The event continues to serve as a major European platform for equipment sectors of all types.

Learn more right here

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