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The construction equipment rental market is estimated to grow by USD 31.46 billion, at a CAGR of 5.17% between 2022 and 2027. The growth of the demand for construction equipment rental market depends on various factors, notably increased investment in infrastructure, which fuels demand for heavy machinery. Despite high initial investment and maintenance costs associated with owning equipment, the rental market offers a cost-effective alternative for contractors. Moreover, the increasing penetration of heavy machinery rental signifies a broader shift in the industry towards flexible and efficient equipment utilization. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The construction rental industry is experiencing significant growth driven by increasing demand for leasing heavy equipment and machinery. As contractors seek cost-effective solutions, the rental sector provides access to a wide range of construction tools and equipment. Suppliers cater to diverse needs, offering everything from excavators and bulldozers to cranes and scaffolding. This trend is particularly pronounced in infrastructure and development projects, where rental services play a crucial role in meeting demand while optimizing resource allocation. This market has experienced significant growth in recent years due to the cost-effectiveness and flexibility it offers to construction companies. Major players in the construction equipment rental market include companies like United Rentals, Sunbelt Rentals, and Hertz Equipment Rental. Our researchers analyzed the data with 2022 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 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. AGVs can help eliminate the trouble of adjusting physical barriers. They help make real-time routing decisions based on various environmental conditions and enable easy navigational adjustments and control. CAD-based software programs in AGVs route all available paths and provide proper locations for picking and unloading. Hence, automation will further increase 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.
Market Customer Landscape
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
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.
Sarens NV - The company manufactures various services including crane rental services, heavy lifting, and engineered transport services. The key offerings of the company include these services.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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.
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The ECRCE segment was valued at USD 77.01 billion in 2017 and continued to grow until 2021. 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, is resulting 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.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period.
North America is a mature economy that is considering investments in the construction industry. 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.
The growth of the market in North America can also be attributed to the accelerated growth of the residential sector. In April 2019, housing starts rose 5.7% to 1.235 million units, primarily driven by the increasing construction of both single and multi-family housing units. Steady growth has been observed in the housing market in North America. The nation-wise house price index in Mexico experienced a high year-over-year growth rate in 2018. These factors will have a positive impact on the market.
The heavy equipment rental market research report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis and growth opportunities from 2017 to 2027.
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 demand for construction equipment rental services is on the rise, driven by factors such as the need for rental businesses to access specialized equipment without heavy upfront investments. Remote places benefit from these services, where purchasing and maintaining equipment may not be feasible. Data relayed from various sectors highlights the significance of rental equipment in facilitating construction activities.
Construction equipment rental markets thrive on providing access to a wide array of machinery, including cranes, bulldozers, scaffolding, boom lifts, forklifts, generators, and compressors. This enables construction firms to efficiently manage their projects while minimizing costs. With the construction equipment market witnessing steady growth, suppliers continually expand their offerings to meet the evolving needs of the industry. As economies develop and construction activity intensifies, the equipment rental sector remains a vital component of the construction industry landscape.
Construction Equipment Rental Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.17% |
Market growth 2023-2027 |
USD 31,466.43 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.09 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, UK, 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 Rentals Inc., HSS ProService Ltd., Kanamoto Co. Ltd., Kwipped Inc., LGH, Loxam, Nishio Rent All Co. Ltd., Sarens NV, Sunstate Equipment Co. LLC, Titan Machinery, United Rentals Inc., Liebherr International Deutschland GmbH, and Komatsu Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market growth 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. |
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