Construction Equipment Rental Market by Application, Type, and Geography - Forecast and Analysis 2023-2027

Construction Equipment Rental Market Forecast 2023-2027

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 market depends on various factors, such as 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.

What will be the size of the Construction Equipment Rentals Market During the Forecast Period?

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The market is influenced by various factors, including interest rates, technological advancements, and the activities of construction firms and contractors. With a focus on both commercial and residential civil projects, the market caters to the needs of diverse infrastructure developments such as roads, bridges, multi-family houses, expressways, metros, loaders, port extensions, railway tunnels, and underwater tunnels. Cranes play a pivotal role in construction activities, while location tracking technologies enhance efficiency and productivity in equipment rental operations. As construction projects continue to evolve globally, the demand remains robust, driving growth in the market.

Market Dynamics and Customer Landscape

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 machines 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. 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.

Key Market Driver

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.

Significant Market Trends

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.

Major Market Challenge

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.

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

Market Segmentation

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.

By Application

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, 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. 

Key Regions

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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. 

Who are the Major Market Companies?

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:

• 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.
• Sunstate-Equipment Co. LLC

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.

Market Analyst Overview

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.

Segment Overview

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. 

• Application Outlook
  • ECRCE
  • MHE

• Type Outlook
  • ICE
  • Electric

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

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 31.47 billion
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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on market growth and forecasting factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the  market size and its contribution to the parent market
• Accurate predictions about market growth and trends and changes in consumer behavior
• market research and growth across North America, Europe, APAC, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the growth of  market companies

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