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The compact power equipment rental market size is forecast to increase by USD 2.09 billion, at a CAGR of 6.3% between 2023 and 2028. The growth rate of the market depends on several factors, such as the growth of global construction industry, the increasing popularity of equipment rentals and the increased investment in infrastructure.
The report offers extensive research analysis on the market, with a categorization based on Product, including electric power tools rental, engine-driven power tools rental, and pneumatic power tools. It further segments the market by Type, encompassing period rental, rent to own, and on-demand rental. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the market growth during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges of market growth and forecasting will help companies refine marketing strategies to gain a competitive advantage.
The global construction industry has experienced drastic changes over the past decade. In addition, developed economies such as the US and the UK are currently facing the problem of aging infrastructure. In addition, maintenance and restoration operations, along with a shift to sustainable building development and retrofitting practices, are driving the growth of the construction industry in these countries.
Moreover, green and sustainable building developments have led to significant investments and technological innovations. In addition, the overall growth of the global economy is supporting the growth of the global construction industry. Furthermore, the increase in government spending, population, per capita income, and economic growth across developing countries has contributed to the growth of the market. Hence, such factors are driving the market growth during the forecast period.
The integration of telematics and Internet of Things (IoT) devices in compact power equipment allows real-time tracking, remote monitoring, and data analytics. In addition, this facilitates proactive maintenance, reduces downtime, and enhances equipment utilization, contributing to cost savings and improved operational efficiency.
Moreover, advanced technologies enable predictive maintenance by collecting and analyzing data on the health and performance of compact power equipment. In addition, this allows rental companies to anticipate potential issues, schedule timely maintenance, and extend the lifespan of their equipment, leading to increased reliability and customer satisfaction. Furthermore, smart technologies contribute to improved safety standards in compact power equipment. Hence, such factors are driving the market growth during the forecast period.
Regular maintenance and occasional repairs are important to ensure the proper operation of compact power equipment. In addition, rental compact power equipment may have varied usage histories, resulting in increased wear and tear and potentially leading to operational disruptions and downtime. Therefore, ensuring the availability of specific types of compact power equipment whenever needed can be challenging, especially during peak demand seasons.
Moreover, scheduling conflicts and delays may impact the project timelines of end-users, hindering the reliability of rental services. In addition, moving compact power equipment to and from rental sites could lead to logistical challenges. Furthermore, delays or damage to compact power equipment during transportation can lead to project setbacks and impact the overall efficiency of rental operations. Hence, such factors are hindering the market growth during the forecast period.
The electric power tools rental segment is estimated to witness significant growth during the forecast period. The global focus on environmental sustainability and the reduction of carbon emissions have resulted in an increase in demand for electric power tool rentals. In addition, rental services provide an easily accessible avenue for end-users to use eco-friendly equipment without the long-term commitment of ownership. Furthermore, compact electric power tools are known for lower emissions and reduced noise levels when compared to their gas-powered counterparts.
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The electric power tools rental segment was the largest segment and was valued at USD 2.24 billion in 2018. Moreover, this makes them suitable for use in urban and noise-sensitive environments, contributing to increased demand, particularly in residential and commercial settings. In addition, electric power tools are often lighter, easier to handle, and require less maintenance than gas-powered alternatives. Furthermore, this makes them attractive to a wide range of users, including do-it-yourself (DIY) enthusiasts, contractors, and professionals, thus driving demand for compact electric power tool rental services. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period..
Based on the type, the market has been segmented into period rental, rent to own, and on-demand rental. The period rental segment will account for the largest share of this segment. The period rental segment can be referred as the practice of renting power equipment for a specific duration, including a specific number of days, weeks, or months, rather than on a short-term or one-time basis. In addition, this rental model caters to the needs of businesses and individuals who require compact power equipment for extended projects, seasonal work, or ongoing operational needs. Furthermore, period rental provides flexibility for businesses and contractors with fluctuating project timelines. Therefore, renting for a specific period allows them to ensure that equipment availability aligns with the project demands, optimizing resource utilization. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period..
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North America is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Factors such as low-interest rates on housing loans will also encourage construction companies to make more investments. In addition, Canada and Mexico are also projected to exhibit a positive trend in the market. Therefore, the growth in the construction industry fuels the market growth in North America. Moreover, commercial construction has experienced strong growth in the US in the last five years owing to factors such as high corporate earnings and increased business and leisure travel. In addition, the Federal Government in the US has increased construction spending on highway and street projects. Hence, such factors are driving the market growth in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aggreko Plc: The company offers compact power equipment for rental such as 125 kVA Diesel Generator, 500 kVA Containerised Diesel Generator, and 45 kVA Battery.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Ahern Rentals, Ashtead Group Plc, Bierschbach Equipment and Supply, Briggs and Stratton LLC, Caterpillar Inc., Compact Power Equipment Rental, Construction Equipment Rentals OMATA, Cooper Equipment Rentals Ltd., Cummins Inc., Doosan Portable Power Co., Dynamic Equipment Rentals, Finning International Inc., Herc Holdings Inc., Makita Power Tools India Pvt. Ltd., Manlift Middle East LLC, Pioneer Power Service Pvt Ltd., STARK Building Materials UK Ltd., The Home Depot Inc., United Rentals Inc., and Titan Machinery Inc
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Compact Power Equipment Rental Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
Market Growth 2024-2028 |
USD 2.09 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.93 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aggreko Plc, Ahern Rentals, Ashtead Group Plc, Bierschbach Equipment and Supply, Briggs and Stratton LLC, Caterpillar Inc., Compact Power Equipment Rental, Construction Equipment Rentals OMATA, Cooper Equipment Rentals Ltd., Cummins Inc., Doosan Portable Power Co., Dynamic Equipment Rentals, Finning International Inc., Herc Holdings Inc., Makita Power Tools India Pvt. Ltd., Manlift Middle East LLC, Pioneer Power Service Pvt Ltd., STARK Building Materials UK Ltd., The Home Depot Inc., United Rentals Inc., and Titan Machinery Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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