Enjoy complimentary customisation on priority with our Enterprise License!
The construction equipment rental market size is projected to grow by USD 36.43 billion at a CAGR of 5.64% between 2023 and 2028. Market growth is driven by heightened infrastructure investment and the high costs of owning and maintaining equipment. The shift towards rental services allows contractors access to the latest construction machinery without the financial burden of ownership, enhancing operational efficiency and flexibility.
Market Forecast 2023-2027
To learn more about this report, Request Free Sample
The market thrives on emerging economies' construction and mining operations, fueled by government spending on public infrastructure. With advanced technologies, rental companies offer new construction equipment and digital service solutions, ensuring efficient equipment service tracking & mapping. Despite global supply chain disruptions and fluctuating raw material prices, the market remains resilient due to a skilled workforce. Construction firms rely on rental services for commercial and residential civil projects, including roads, bridges, and multi-family houses. Expansion projects such as expressways, metros, and port extensions further drive demand for rental equipment like cranes, supported by location tracking capabilities. The construction equipment rental market leverages telematics systems and mobile phone apps for performance tracking and vehicle information. Companies like UMT (United Mobility Technology AG) support concrete and road construction machinery for mega-road projects, enhancing road connectivity and efficiency.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased investment in infrastructure is notably driving the market growth. The demand for rental equipment is growing due to the increasing investment in infrastructure projects and power rental across the world. For instance, China invested around USD 13.1 billion in the development and construction of the Beijing International Airport, designed to handle about 45 million people annually by 2019 and 72 million passengers by 2025. In July 2019, the Government of India announced significant funds for several infrastructure development projects, including industrial corridors, Dedicated Freight Corridor (DFC), Bharatmala Pariyojana, the Sagarmala Programme, and the UDAN schemes focused on improving connectivity.
Governments worldwide are investing significantly in the development of sports infrastructure and facilities. For example, the 2022 FIFA World Cup held in Qatar increased construction spending in the Middle Eastern regions. The Qatari government built nine new stadiums and renovated three existing stadiums for the event. Thus, spending on such capital-intensive projects and infrastructure development is expected to grow significantly in the next decade, augmenting the growth of the market during the forecast period.
The increase in the adoption of automation is an emerging trend in the market. The construction market is experiencing automation renovation and the deployment of autonomous, self-driving machines to carry, dig, spread, or move materials under minimum supervision. Automated machines operate more efficiently than manually operated machines.
The popularity of automated guided vehicles (AGVs) is increasing due to the adaptability of this technology. AGVs determine the best possible route for the efficient movement of goods. Foundation repair services benefit from this automation by streamlining logistics within construction sites. AGVs can help eliminate the trouble of adjusting physical barriers and ensure seamless movement around construction zones, enhancing operational efficiency. They make real-time routing decisions based on various environmental conditions, facilitating easy navigational adjustments and control. CAD-based software programs integrated into AGVs map all available paths and provide precise locations for picking and unloading materials essential for foundation repair. Hence, automation in logistics and material handling through AGVs will further increase the efficiency and effectiveness of foundation repair services, driving market growth during the forecast years.
Operational challenges are the major issues impeding the market. During the last five years, contractors in the construction industry have been rentals equipment to increase their fleet size. This has resulted in the equipment being used for several end-user applications. Thus, rental companies are exposed to the challenge of efficiently managing and tracking various customers and the equipment rented.
Rental companies often serve two different end-user industries on consecutive days, with probably the same equipment performing two different jobs according to the requirements of each end-user. This creates challenges for the rental firm in terms of logistics, heavy rental equipment configurations, maintenance, and repair if required. Maintenance and repair might take more than a day. Hence, the rental firm needs to have the appropriate inventory to reduce the downtime of the equipment. Hence, operational challenges could affect the growth of the market during the forecast period.
In the application channel segment of the market, construction and mining operations remain the primary drivers of demand, especially in emerging economies witnessing significant government spending on public infrastructure projects. Rental services cater to the diverse needs of these operations, offering a wide range of construction equipment, including new machines equipped with advanced technologies and automation features. Digital services play a crucial role in facilitating equipment service tracking and mapping, enhancing operational efficiency and ensuring timely maintenance. However, challenges such as global supply chain disruptions and fluctuations in raw material prices impact the market dynamics, necessitating adaptability and resilience. Additionally, factors like the availability of a skilled workforce and prevailing interest rates influence rental decisions, while ongoing technological advancements drive innovation in rental offerings to meet evolving industry requirements.
The market share growth by the ECRCE segment will be significant during the forecast period. The earthmoving, concrete, and road construction equipment (ECRCE) segment is designed to carry, dig, spread, or move materials. These are usually used to excavate or move large amounts of earth, dig foundations, and landscape an area. The heavy machinery rental under this segment includes excavators, loaders, dozers, and motor graders. The increasing investments in the infrastructure industry to improve facilities in the government and private sectors are providing great growth opportunities for companies in the earthmoving equipment rental segment of the market.
Customized Report as per your requirements!
The ECRCE segment was valued at USD 80.96 billion in 2018. The rapid growth in urbanization, especially in developing countries, will lead to an increase in the number of megacities during the forecast period. Megacities are defined as cities with a population of more than 10 million. The growth in the number of megacities reflects the growing migration of the population from rural areas to urban areas. Migration also signifies the growing disposable income of the population. As a result of the increased disposable incomes and the migration of the population to urban areas, cities are expanding to accommodate the growing population. This, in turn, has resulted in the construction of roads, railways, residential buildings, hospitals, and hotels. Such developments will lead to increased construction activities and growing infrastructure, which will augment the demand for construction machinery during the forecast period.
For more insights on the market share of various regions Download Sample PDF now!
Europe is estimated to contribute 41% 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. Positive factors such as low-interest rates on housing loans will encourage construction companies to make huge investments in the region. Numerous infrastructure-related projects are expected to be launched in the US during the forecast period. For instance, the new US administration is planning to make an investment of USD 2.3 trillion to re-engineer infrastructure, which includes renovating and upgrading several old bridges, roads, and drainage systems. Such factors will drive regional market growth 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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aktio Corp., Associated Equipment Rentals Pvt. Ltd., Briggs Equipment, Byrne Equipment Rental, Caterpillar Inc., Cramo Oy, Finning International Inc., Herc Holdings Inc., HSS ProService Ltd., Kanamoto Co. Ltd., Komatsu Ltd., Kwipped Inc., LGH, Liebherr International Deutschland GmbH, Loxam, Nishio Rentall Co. Ltd., Sarens NV, Sunstate Equipment Co. LLC, Titan Machinery Inc., and United Rentals 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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the realm of construction, construction equipment rental services play a crucial role, particularly in large-scale commercial projects and residential civil projects. These services cater to the diverse needs of construction firms across various sectors, including the agricultural industry and mining industry. From earthmoving excavators to backhoe loaders and crawler excavators, a wide range of equipment is available for rental to meet specific project requirements. Skid-steer loaders and mini excavators are particularly popular for their versatility and maneuverability, making them ideal for navigating harsh working environments.
The market is influenced by various factors, including interest rates impacting investment decisions in the automobile and heavy equipment sector. As construction projects expand, demands for efficiency and performance drive the integration of telematics systems monitoring engine hours idling, GPS location, and fuel consumption to optimize operations and reduce the total cost of ownership. Rental options offer flexibility, catering to diverse needs for earthmoving machinery, material handling machinery, and vibratory plates. With the rise of smart cities and the expansion of highways and in the port extension, the market experiences growth, despite occasional price fluctuations. Innovations like Smart Rental platforms and mobile phone apps streamline rental processes, enabling efficient equipment management and supporting construction endeavors worldwide.
The market experiences robust growth fueled by increasing construction and mining operations globally, especially in emerging economies. Government spending on public infrastructure drives demand for new construction machines equipped with advanced technologies like equipment service tracking & mapping and digital service integration. However, challenges such as global supply chain disruptions and fluctuating raw material prices impact market dynamics. The need for a skilled workforce remains crucial amidst rapid technological advancements in the industry. Rental equipment caters to diverse projects, including multi-family houses, expressways, metros, port extensions, railway tunnels, and even underwater tunnels, with location tracking ensuring efficient operations. As governments prioritize infrastructure development, the construction equipment rental market continues to thrive, facilitating the realization of ambitious construction projects worldwide.
Industry Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.64% |
Market growth 2024-2028 |
USD 36427.1 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.26 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 41% |
Key countries |
US, UK, China, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aktio Corp., Associated Equipment Rentals Pvt. Ltd., Briggs Equipment, Byrne Equipment Rental, Caterpillar Inc., Cramo Oy, Finning International Inc., Herc Holdings Inc., HSS ProService Ltd., Kanamoto Co. Ltd., Komatsu Ltd., Kwipped Inc., LGH, Liebherr International Deutschland GmbH, Loxam, Nishio Rentall Co. Ltd., Sarens NV, Sunstate Equipment Co. LLC, Titan Machinery Inc., and United Rentals Inc. |
Market dynamics |
Parent market analysis, market trends and analysis, market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.