Global Construction Equipment Finance Market 2016-2020

Overview of the global construction equipment finance market

Technavio’s market research analyst predicts that the construction equipment finance market will grow at a steady rate of close to 10% by 2020. Due to a rise in construction projects around the globe, the need for construction equipment will be on the rise. Since many construction companies have to choose between buying or leasing equipment or putting their funds into projects, lending companies offer them options to lease equipment. As renting helps construction companies to save in taxation and also allows them to pledge the equipment as collateral, it is increasingly being preferred over buying a new equipment as operators are exempt from depreciation charges.

Due to the availability of equipment financing, construction companies are able to find cost-effective loans. Online financing is another option available to customers and helps them use available working capital efficiently.  Most companies find that signing long-term rental contracts very advantageous as they can lease only the needed equipment. As for guarantees on loans, borrowers can negotiate terms and decide on signing covenants or asset liens.  Since renting equipment helps to save on taxes and depreciation charges, construction companies from across the globe prefer to rent equipment.

Geographical segmentation and analysis of the construction equipment finance market

• Americas
• APAC
• EMEA

The APAC region has the biggest market share in the construction equipment finance market and is expected to generate close to USD 118 billion by the end of the forecast period. The demand for infrastructure projects as well as equipment is rising in countries like India and China due to factors like growing populations and higher GDP. In this region, the enormous demand for rental equipment will boost the market demand for financing companies over the next few years.

Competitive landscape and key vendors

The scenario in the construction equipment financing market is quite complicated as many construction companies have money tied up with debtors in inventory and receivables.  Cash flow management plays a very crucial role, and companies are looking for ways to increase cash flow.  In this market, the lenders and borrowers work together to find viable solutions, which in turn will help to spur the prospects for market growth.

Key vendors in this market are -

• American Capital Group
• Crest Capital
• Fundera
• GE
• JP Morgan Chase

Other prominent vendors in this market are Marlin Leasing Corporation, TD Bank, Tetra Corporate Services, US Bank, and Wells Fargo.

Growth drivers, challenges, and upcoming trends: Construction equipment rentals

A significant trend that is influencing growth in this market is the rising preference and need for equipment rentals. Since there is such a big need for construction equipment, finance companies are providing a number of solutions to builders so that they can rent the equipment they need. Builders have observed that equipment rentals are a much better option as they can use the equipment they need without incurring major capital expenditure. Much of the equipment is available at competitive prices, leading to an expansion of the rental business. Consequently, we can expect the demand for construction equipment rentals and financing to rise during the forecast period. 

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the construction equipment finance market. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the construction equipment finance market?
• What are the key market trends impacting the growth of the global construction equipment finance market?
• What are the challenges to market growth for construction equipment finance?
• Who are the key vendors in the global construction equipment finance market?
• What are the market opportunities and threats faced by the vendors in the global construction equipment finance market?
• Trending factors influencing the market shares of the global construction equipment finance market in the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global construction equipment finance market?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Construction Equipment Market in the APAC Region 2015-2019
• Global Bulldozer Tractor Market 2015-2019
• Global Mobile Crane Market 2015-2019
• Global FinTech Financing Market 2016-2020