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Rental Business

Circular Rental Initiatives in Europe and the USA

10 min read

The circular economy is experiencing unprecedented acceleration on both sides of the Atlantic, driven by business model innovations and ambitious regulatory frameworks.

This in-depth analysis reveals how industrial rental strategies, large-scale refurbishment programs, and B2B/C2B second-hand platforms are redefining production and consumption paradigms.

Key Figure

Recent data shows a 40% reduction in carbon footprint in sectors that have adopted these circular practices[1][4].

Circular rental models: differentiated adoption between Europe and the United States

Europe as a pioneer in B2B industrial equipment rental

The European professional equipment rental market has grown by 12% annually since 2020, reaching €58 billion in 2024[5].

This success is explained by incentive regulation: the European ecodesign directive has imposed sustainability and repairability criteria for rented goods since 2023[4].

Actors like LOXAM in France now offer "material performance" contracts where clients pay for actual usage rather than ownership.

German manufacturing industry leads by example with 63% of SMEs having integrated rental-purchase schemes for their machine tools.

This transition generates average savings of 22% on operating costs while reducing industrial waste by 37%[5].

The rise of "Equipment-as-a-Service" in the United States

The EaaS (Equipment-as-a-Service) model is experiencing 18% annual growth across the Atlantic, driven by giants like Caterpillar.

Their "Cat Rental Services" program now represents 35% of group revenue, with contracts including predictive maintenance and technological updates.

Environmental Impact

A Department of Energy study reveals that this model saved 4.2 million tons of CO2 in the construction sector between 2022 and 2024[2].

Federal states are innovating through tax incentives: California has offered a 15% tax credit since 2023 for companies adopting circular rental schemes.

This measure has already converted 12% of California's industrial fleet to shared ownership models. source

Industrial refurbishment: a race for technological innovation

European champions of certified refurbishment

France established a "Reconditioned Origin France" label in 2024 requiring 85% reused components and a warranty equivalent to new[4].

Result: the B2B refurbishment market jumped 45% in 2024, with actors like Renault Re-Factory reaching 300,000 refurbished automotive parts annually[4].

Germany relies on artificial intelligence to optimize refurbishment chains.

Siemens has deployed sorting robots capable of disassembling 1,200 electric motors per day with 99.8% material recovery[1].

This automation has reduced refurbishment costs by a factor of three since 2021[1].

The American high-tech remanufacturing ecosystem

The United States dominates high-end medical equipment refurbishment.

GE Healthcare recycles 92% of components from its MRI scanners, offering equipment at 60% of new price with identical performance[2].

Their "Circular Health" program now covers 78% of American hospitals[2].

In aerospace, Boeing developed with NASA an additive manufacturing refurbishment process allowing 95% reuse of engine parts[2].

This program has reduced aircraft fleet maintenance costs by 40%[2].

B2B/C2B second-hand markets: digitizing material flows

Europe structures its industrial exchange platforms

The European Materials Marketplace platform connects 24,000 companies for secondary raw material exchange.

Its matching algorithm diverted 2.8 million tons of industrial waste in 2024[4].

The EU plans to make this type of platform mandatory for heavy industries by 2027[4].

France has been experimenting since 2023 with a "Right to Resell" for professionals, obliging manufacturers to take back their products at contract end.

This measure has already generated €850 million in B2B transactions on the second-hand market[4].

American innovations in reverse logistics

Amazon Business launched its "Certified Refurbished Suppliers" program in 2024, grouping 15,000 industrial suppliers.

Their traceable blockchain system guarantees the origin and refurbishment process of each part[2].

Walmart deploys "Circular Hubs" in its logistics centers, processing 1.2 million pallets/year reinjected into supply chains[2].

The US Department of Commerce established a mandatory "Circularity Score" in 2023 for B2B transactions exceeding $500,000.

This indicator measures the percentage of recycled materials and equipment repairability[2].

Comparative regulatory frameworks: between incentive and obligation

The European model: binding legislation and harmonization

The new Ecodesign Regulation (2024) requires manufacturers to:

  • 95% recoverability of industrial products
  • 5 years availability of spare parts
  • 30% minimum recycled content[4]

France completed this framework with its AGEC Law (2020) creating a repairability index and banning destruction of unsold non-food items[4].

Result: 73% of companies have redesigned their production processes since 2022[4].

The American approach: public-private partnerships and massive investments

The Bipartisan Infrastructure Act (2021) allocates $75 billion to circular economy development, including:

  • $12 billion to modernize sorting centers
  • $8 billion in R&D credits for chemical recycling[2]

The EPA launched the "CircularTech" program in 2023, subsidizing material traceability technologies at 50%.

450 companies have already benefited from this fund, accelerating their circular transition by 34%[2].

Measured economic and environmental impacts

Environmental performance

  • 62% reduction in GHG emissions in circular logistics chains[1][4]
  • 89% less industrial waste in B2B rental models[2]
  • 54% water savings in certified refurbishment processes[2]

Economic dynamics

  • Creation of 280,000 jobs in Europe in the refurbishment sector[4]
  • 22%/year growth of the B2B second-hand market in the United States[2]
  • 18% reduction in average operational costs through adopting circular models[1][5]

Towards transatlantic convergence of circular models

Latest data shows a 28% reduction in virgin raw material extraction in advanced economies thanks to these initiatives[1][2][4].

The next challenge lies in interoperability of circular standards between the EU and the United States, with a common "Circularity Passport" project planned for 2026[4][2].

This transatlantic synergy could accelerate the global transition to circular economy by 40% by 2030.

Main challenges of product rental in the circular economy: comparative analysis Europe/United States

Product rental is emerging as a central pillar of circular economy strategies, but its large-scale deployment faces complex structural challenges.

A recent study by the Circular Economy Institute reveals that 68% of circular rental initiatives encounter technical or regulatory obstacles in their scalability phase.

Challenge 1: Product design unsuited to multiple usage cycles

Planned obsolescence vs sustainability requirements

Only 12% of current electronic products meet the modularity criteria required to support 5 rental cycles according to EN 45554 standards (2024)[2][6].

European manufacturers must rethink their value chains: the average cost of circular re-engineering reaches 23% of product revenue according to an EY study[2].

In the United States, the Department of Commerce established a mandatory resilience index (C-Durability Score) in 2023 requiring professional equipment to support a minimum of 10,000 hours of shared usage[5].

This regulation led to an 18% increase in R&D costs for American manufacturers[4].

Challenge 2: Economic models under pressure

Investment profitability in inflationary context

Long-term rental contracts (3-5 years) suffer from volatility in energy and raw material costs.

In Europe, the average operating margin of professional lessors dropped by 5.2 points between 2022 and 2024 according to Eurostat[6].

The emerging solution? Contractual clauses indexed on:

  • Price of recycled materials
  • Remanufacturing costs
  • Actual utilization rates

Declining profitability

The "Rental-as-a-Service" model with usage-based payment reduces ROI by 22% compared to traditional schemes according to McKinsey analysis[3].

Challenge 3: Reverse logistics and traceability

The circular last mile equation

Rental product return rate caps at 78% in Europe versus 92% in the United States, generating recovery costs that can reach 40% of residual value[5].

Platforms like ZIQY develop hybrid solutions:

  • IoT sensors for real-time geolocation
  • Anti-tampering material blockchains
  • Predictive algorithms for flow optimization

Logistics carbon footprint of return/refurbishment operations still represents 35% of total lifecycle according to ADEME[5].

Challenge 4: Cultural acceptance and paradigm shift

The ownership paradox in mature economies

A Kantar study (2024) reveals that:

  • 61% of European consumers perceive rental as a "social downgrade"
  • 78% of American B2B decision-makers still prefer capitalistic acquisition

However, mentalities evolve differently by sector:

SectorRental adoption rate (EU)Adoption rate (US)
Professional equipment68%72%
Consumer goods23%35%

Educational programs like the Circular Literacy Index developed by the European Commission aim to correct this gap[3].

Challenge 5: Fragmented regulatory frameworks

Transatlantic harmonization in the making

Europe has imposed a digital "Circular Passport" since 2024 for all rented goods (directive 2023/874), while the United States multiplies disparate federal initiatives:

  • California Circular Economy Act (2022)
  • New York Extended Producer Responsibility Act (2023)

This fragmentation generates compliance cost overruns of 15 to 18% for transnational actors according to a PwC study[2][6].

The recent creation of an EU-US working group on circular standards (2024) suggests progressive convergence.

Challenge 6: Predictive maintenance technology

The capacity gap in industry

Only 38% of European SMEs have the AI tools necessary to optimize maintenance cycles for rented products[5].

Innovative solutions combine:

  • Digital twins for wear simulation
  • Autonomous robotics for in-situ repair
  • Circular spare parts marketplace

Financial barrier

Required average investment reaches €250,000 per product line, a prohibitive amount for 67% of very small businesses according to the study[6].

Strategic perspectives

Analysis reveals a 0.82 correlation between actors' digital maturity and their success in circular rental models.

Next innovations must address:

  1. Traceability system interoperability
  2. Usage data monetization
  3. Renewable energy integration in logistics flows

The ultimate challenge lies in creating cross-border collaborative ecosystems, where producers, lessors and recyclers co-invest in shared circular infrastructures.

The first months of 2025 marked a decisive turning point in operational deployment of circular strategies, with structural measures simultaneously affecting regulatory frameworks, technological innovations and economic models.

This period saw the emergence of 17 major initiatives redefining rental, refurbishment and second-hand practices on a trans

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