Construction Equipment Rental Market size exceeded USD 136.5 Billion in 2023 and is anticipated to cross USD 258.75 Billion by 2033, registering a CAGR of more than 4.4 % during the forecast period. Construction equipment rental is a crucial part of the industry because it enables businesses to access a variety of equipment without incurring the high upfront costs involved with acquiring, maintaining, and storing it.
The rental industry for construction machinery is considerable and has been expanding consistently over time. This increase is influenced by elements including urbanisation, infrastructural expansion, and the complexity of building projects as they get more intricate. More rental companies are integrating technology into their daily operations. This comprises Internet of Things (IoT) solutions for maintenance and tracking as well as telematics systems to track equipment performance and usage.
Growth Drivers and Opportunities:
Rapid development in equipment rental industry in North America
Construction projects have increased dramatically in North America as a result of increased infrastructure investment by public and private organisations. This covers initiatives in the fields of utilities (water, energy), construction of homes and businesses, and transportation (roads, bridges, airports). Due to the increased demand for construction equipment, the market for equipment rentals is expanding. Renting equipment for particular projects is frequently more economical for construction companies than buying and maintaining it. The cost-effectiveness of this service is a major factor in the expansion of the equipment rental market. Urban building projects, where space is at a premium and specialised equipment is frequently required, are being driven by the urbanisation trend. Rental businesses are in a good position to supply the necessary tools for these initiatives.
Huge cost of new construction equipment
Companies in the construction industry have freedom when renting equipment. Depending on the needs of each project, they might select particular equipment. Due to their adaptability, they can change with projects as they arise without being reliant on the long-term ownership of expensive equipment. Additionally, owning construction equipment entails upkeep expenses. Construction companies are spared the costs and downtime associated with servicing and repairing equipment because rental companies are responsible for maintaining their rental fleet. Economic ups and downs can have an impact on the building business. Renting equipment allows construction enterprises to adjust their equipment requirements in response to changing market conditions, which lowers financial risk.
Report Coverage | Details |
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Segments Covered | Product |
Regions Covered | • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA) |
Growth Drivers | 1.Rapid development in equipment rental industry in North America 2.Huge cost of new construction equipment |
Company Profiled | Boels Rentals, H&E Equipment Services Inc., Herc Rentals Inc., Kanamoto Co., Ltd., NESCO Holdings, Inc., Maxim Crane Works, L.P., Mtandt Group, Ramirent AB, Sarens n.v./s.a., United Rentals, Inc. |
Industry Restraints & Challenges
Lack of skilled operators to hamper the market growth
The use of construction equipment may be constrained by a lack of qualified operators. The equipment may be offered to rental businesses, but if there aren't enough qualified operators to use it efficiently, the apparatus may sit idle, resulting in lost rental income. Inexperienced operators may not handle or maintain rental equipment appropriately, resulting in longer downtime due to malfunctions and maintenance requirements. Construction schedules may be affected, and equipment rental costs may rise. Project delays brought on by a lack of trained workers may have a ripple impact on costs and schedules for construction. The demand for construction equipment rentals is also impacted by this, as businesses may be reluctant to rent if they expect project delays.
North American Market
North America is anticipated to dominate the Construction Equipment Rental market from 2024 to 2033. The industry for renting construction equipment in North America was thriving and expanding steadily. The expansion of infrastructure, an increase in building activity, and the affordability of renting equipment as opposed to purchasing it were all factors in this boom. Excavators, loaders, bulldozers, cranes, aerial work platforms, concrete equipment, and other construction machinery were frequently available for rent from rental businesses in North America. The variety of equipment on hand met a range of construction needs.
Asia Pacific Market
Asia Pacific is witnessing the fastest market growth up to 2033. One of the fastest-growing markets for construction equipment rentals was the Asia-Pacific area. Rapid urbanisation, the development of the infrastructure, and construction activity in numerous industries were the main drivers of this boom. The government's investments in infrastructure projects together with the quick urbanisation of nations like China and India were major drivers of the construction equipment rental business. Significant demand for rental equipment was generated by large infrastructure projects including those related to motorways, airports, and urban growth. With increases in both residential and commercial construction, the APAC area has been witnessing a construction boom. Renting construction equipment became more popular as a result, particularly in crowded urban areas.