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Construction Equipment Rental Market Size, Share & Industry Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment, Concrete & Road Building Equipment, and Others), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2022-2029

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI102247



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The global construction equipment rental market size was valued at USD 111.6 billion in 2021 and is projected to grow from USD 116.0 billion in 2022 to USD 164.6 billion by 2029, exhibiting a CAGR of 5.1% during the forecast period. Asia Pacific dominated the construction equipment market with a market share of 42.38% in 2021.

Based on analysis, the global market exhibited a growth of 3.1% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with construction equipment rental experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

Construction equipment rental is a service that concludes a contract with terms of use and rents construction equipment to the end user for a certain period of time. Construction machinery is mainly used to facilitate heavy labor at mine construction sites. According to the Construction Equipment Rental Association, construction equipment rentals have increased significantly and are expected to foresee a substantial rise in developing countries such as China, India, and Mexico.

Local and regional small businesses may prefer rental service businesses to achieve flexibility and generate revenue from their local and regional contractor customer base. In addition, markets where these rental services have started to emerge have seen significant growth in the construction equipment rental, with similar results in the U.S. and Italy.


Market Growth Hampered Due to Major Disruption in Supply Chain & Halted Manufacturing Operations During Pandemic

The demand from the equipment rental industry was impacted by the COVID-19 pandemic. The global lockdown restrictions prevented the fulfillment of contractual obligations, resulting in a sharp decline in market revenue. The pandemic has delayed the completion of public infrastructure and private housing projects.

Additionally, after the outbreak of COVID -19 pandemic across the key economies, most of the leading market players registered a significant drop in their revenue generation and profit margins. Further, the sudden closure of the manufacturing facility affecting the rate of daily output from the production facilities played a pivotal role in plummeting the sales of these market players.

However, the market witnessed substantial growth in 2021 as many rental businesses have taken advantage of the uncertainty caused by the pandemic. The global construction activity moved at an erratic pace each time a wave of COVID-19 hit, prompting small and medium-sized construction firms to rent rather than buy equipment. The uncertainty in the construction sector is expected to be exacerbated by rising commodity prices, a shortage of skilled labor, and high interest rates for construction companies.

Therefore, the above factors are expected to increase the acceptance of rental construction equipment in the market.


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Technological Progression in Heavy Machinery to Accelerate the Market Growth

Technological advances in the heavy equipment and automotive industries have brought a number of new trends to the market. Construction equipment manufacturers are focused on assimilating cutting-edge safety aspects such as 360-degree camera views, lift assist, and auxiliary work lights to improve the productivity of their operations and reduce the need for maintenance.

Growing technological advances in the automotive and construction machinery sectors are increasing the efficiency and performance of construction machinery. Key players in the equipment market are primarily focused on developing smarter machines through the integration of proprietary technology systems. Telematics systems provide simple information about the location and performance level of construction equipment and vehicles. Data sent through the system includes GPS location, fuel consumption & engine idle time.

However, this system requires a huge investment, making it unaffordable for many small builders and contractors. The equipment rental service has solved the problem by eliminating the total cost and providing rental options. Thus, the aforementioned factors are further increasing the construction equipment market growth across the globe.


Increasing Adoption of Rental Equipment in Various Industries to Bolster the Market Growth

Hiring construction equipment offers a wide range of benefits considering the cyclical nature of the construction industry and the economic conditions. Many construction firms, contractors, and various industries are exploring more and more rental options. The equipment rental platform BigRentz cites a considerable shift from buying new equipment to a rental model among contractors and builders. While recession is being expected by many business leaders and economists, this could lead to a surging demand for equipment rentals, pushing businesses away from ownership and leasing.

Construction companies are cautious of such costs. The economic volatility and the cost factor force companies to make the most of the equipment they purchase to get the most value. This makes renting equipment an attractive alternative, which is contributing to the construction equipment rental market growth.


Economic Downturn in Construction Equipment Rental Industry to Obstruct the Market Growth

The construction industry is susceptible to slumps and recessions. The construction equipment leasing market goes through multiple business cycles in its life cycle and is affected by business cycles in economies with high or low levels of economic activity. The construction industry can suffer from a recession due to lower final production due to declining consumer demand. Therefore, a decrease in construction activity is expected to affect the equipment rental market.


By Equipment Type Analysis

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Earthmoving Equipment Expected to Hold Major Share Owing to Rising Demand 

Based on equipment type, the market is classified into earthmoving equipment, material handling equipment, concrete & road equipment, and others.

Earthmoving equipment includes excavators, wheel loaders, bulldozers, and trenchers. This segment is expected to hold the highest share of the market as manufacturers are seeing notable opportunities owing to an increase in bridge, high-rise, and road construction.

Moreover, the concrete & road equipment segment is anticipated to exhibit a progressive growth during the forecast period. As the road connectivity has the potential to define the future economy of the country, an established infrastructure plays an important role in enhancing commercial activities. In November 2021, the U.S. federal government passed a bipartisan infrastructure agreement (Jobs and Infrastructure Investment Act), authorizing a USD 110 billion investment to rebuild roads, bridges, and similar infrastructure for five years.

Furthermore, the material handling equipment segment is projected to experience major growth due to rapid industrialization and increasing demand for construction equipment for industrial applications. With an increased focus on maximizing output, industries are looking to minimize capital expenditures, much of which is spent on purchasing material handling machinery. Taking advantage of the same rental benefit allows major companies to expand their profit margins.

By Application Analysis

Commercial Segment to Grow Significantly Due to Rising Demand in Infrastructural Activities

Based on application, the market is segregated into residential, commercial, and industrial.

The commercial segment is expected to grow exponentially over the forecast period due to the rising demand for construction equipment. Commercial properties are generating profitable opportunities for equipment manufacturers to enhance their business in terms of rental services and sales of the product. Besides that, with the infrastructure plan incorporated by the governments of various countries in developing economies, the heavy equipment rental market growth would be increasingly stable as governmental schemes will choose rental services.

Moreover, the industrial segment is anticipated to exhibit substantial growth owing to rising investment and rapid industrialization in major economies. For instance, there is an increase in the construction of multi-family homes (with the growing trend of nuclear families) and a rise in investment in the construction of highways, bridges, subways, and smart cities due to population growth and urbanization. Further, the upward trend toward automation is expected to drive the growth of the market.

The residential segment is expected to depict considerable growth during the forecast period. The demand for construction equipment in this sector will increase significantly due to rise in the construction of residential buildings. In addition, macroeconomic factors are also very supportive for homebuyers as they help reduce mortgage rates and create more jobs. This is expected to drive the market growth.


Asia Pacific Construction Equipment Rental Market Size, 2021 (USD Billion)

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The report covers five major regions, North America, Europe, Asia Pacific, the Middle East, and Africa, and Latin America.

Asia Pacific currently holds the largest share in the market and is expected to expand at the fastest rate throughout the forecast period. The region is one of the largest markets that has seen a boom in infrastructure development and construction as governments increasingly focus on developing infrastructure for a growing economy. The region has seen remarkable growth in the number of Special Economic Zones (SEZs), hydropower projects, dams, construction of highways, subways, and airports to support the high level of industrial activity, increasing energy demand, and better connectivity. As a result, numerous international companies have started to invest and set up distribution centers and production facilities in the region to meet the growing demand and capture the regional market.

Furthermore, China is witnessing a phenomenal growth in the construction equipment rental industry. This country is estimated to hold the highest market share as a result of tremendous opportunities for the rental equipment manufacturers as the government is investing significantly in public infrastructures & residential construction projects & developments as the population in China is increasing rapidly. This is also elevating the market share across the globe.

Following Asia Pacific, the North America market share is expected to exhibit substantial growth in the upcoming years. The strong presence of leading global manufacturers is contributing to the growth of the market. Additionally, construction companies across North America are being observed to be hesitant to invest in new equipment in these economic conditions. Hence, there are significant opportunities for the market to push through during the forecast period. These factors drive North America's growth potential and continue to grow the market share at the global level.

The Europe market is projected to record considerable growth during the forecast period. This is mainly due to the increase in demand for new residential buildings. Additionally, Germany has a huge number of manufacturing plants, specifically in the automotive sector and the best performing machinery & equipment in the whole of Europe, which is further accelerating the market growth.

According to the European Rental Association (ERA), sustainability of companies can be improved by services rather than buying them. In addition, the expansion of the fleet in these countries also underpins the growth of the European market.

The Middle East & Africa region is predicted to exhibit steady growth during the forecast period. The Gulf Cooperation Council (GCC) holds the highest market share in the Middle East and Africa region, owing to the heavy application of automation and modernized techniques in manufacturing in the developed Gulf countries.

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Latin America is likely to grow at a modest rate due to niche opportunities for the development of manufacturing industries and the limited presence of global market players. Additional factor dictating the sluggish growth of the region is the underdeveloped distribution channel for the market.


Manufacturers Concentrating on Technological Advancements in their Renting Technique to Strengthen Industry Position

The market for construction equipment rental is identified as highly competitive with presence of multiple players operating in certain regions as well as at the global level. Fleet development is the major trend observed in the construction rental market. Many leading companies such as Herc, Sunbelt & United Rentals are focusing on expanding their fleets and investing in the same direction. This is mainly due to the increasing demand for a wide range of construction equipment in the residential, commercial, and industrial sectors. Furthermore, these companies are now extending their services beyond their conventional setup to provide value to consumers throughout their product lifecycle by providing digital solutions.


  • United Rentals, Inc. (U.S.)

  • Loxam (France)

  • Sunbelt (U.S.)

  • Taiyokenki Rental Co., Ltd. (Japan)

  • AKTIO Corporation (Japan)

  • Herc Rentals Inc. (U.S.)

  • Ahern Rentals. (U.S.)

  • H&E Equipment Services, Inc. (U.S.)

  • Nikken Corporation (Japan)

  • Nishio Rent All Co. Ltd. (Japan)


  • November 2021 - Herc Holdings Inc. acquired Rapid Equipment Rental Limited, a Toronto-based rental company.

  • June 2020 - H&E Equipment Services Inc., announced the relocation of its Georgetown branch to a Texas-based expanded unit.

  • April 2021 - General Finance Corp. and United Rentals inked a definitive agreement for the former’s acquisition by United Rentals. The deal involved a transaction value of USD 996 million.

  • February 2020 - Boels took over Cramo PLC to increase its customer base. The move was aimed at becoming one of the major players in the rental market in Europe.

  • June 2022 - Sunbelt Rentals announced its partnership with Britishvolt, to support the development of Britishvolt’s first full-scale Cambois-based battery Gigaplant. This long-term deal will also see the companies work closely together to favor the development of battery solutions for power plants and heavy equipment to help decarbonize the construction and equipment rental sector.


An Infographic Representation of Construction Equipment Rental Market

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The global construction equipment rental market research report provides a detailed analysis of the type and application of the product. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, current market trends, and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market growth in recent years.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)


By Equipment Type, Application, and Region

By Equipment Type


  • Earthmoving Equipment

  • Material Handling Equipment

  • Concrete & Road Construction Equipment

  • Others

By Application

  • Residential

  • Commercial

  • Industrial

By Region


  • North America (By Equipment Type, By Application, By Country)

    • U.S. (By Equipment Type)

    • Canada (By Equipment Type)

  • Europe (By Equipment Type, By Application, By Country)

    • U.K. (By Equipment Type)

    • Germany (By Equipment Type)

    • France (By Equipment Type)

    • Italy (By Equipment Type)

    • Rest of Europe

  • Asia Pacific (By Equipment Type, By Application, By Country)

    • China (By Equipment Type)

    • Japan (By Equipment Type)

    • India (By Equipment Type)

    • Southeast Asia (By Equipment Type)

    • Rest of Asia Pacific

  • Middle East & Africa (By Equipment Type, By Application, By Country)

    • GCC Countries (By Equipment Type)

    • South Africa (By Equipment Type)

    • Rest of Middle East and Africa

  • Latin America (By Equipment Type, By Application, By Country)

    • Brazil (By Equipment Type)

    • Mexico (By Equipment Type)

    • Rest of Latin America

Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 111.6 billion in 2021.

By 2029, the market is expected to be valued at USD 164.6 billion.

The global market is estimated to have a noteworthy CAGR of 5.1% during the forecast period (2022-2029).

Asia Pacific stood at USD 47.3 billion in 2021 and is expected to hold a major market share in the market.

Based on equipment type, earthmoving equipment is expected to be the leading segment in the market during the forecast period.

The market is majorly being driven by the increasing adoption of rental equipment in various industries.

United Rentals, Inc., Loxam, Sunbelt, Taiyokenki Rental Co., Ltd., AKTIO Corporation, Herc Rentals Inc., Ahern Rentals., H&E Equipment Services, Inc. Nikken Corporation, and Nishio Rent All Co. Ltd. are some of the leading players in the market.

Based on application, the commercial segment is expected to drive the market.

The major players constitute approximately 45%-50% of the overall market share, which is majorly owed to their brand image and presence in multiple regions.

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