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The global construction equipment rental market size which stood at USD 98.21 billion in 2018, is projected to reach USD 145.22 billion by 2026, exhibiting a CAGR of 5.0% during the forecast period (2019 – 2026).
The rental industry is proved to be beneficial for the companies who use the equipment for a stipulated time period. Apart from this, with the adoption of rental services, dealers and contractors are saving money as rental services provide access to modern equipment. And it also provides operational flexibility and can lower the complexity in organizations for reducing the size of the fleet that may impact on activities such as procurement, maintenance, logistics, and asset disposals.
According to the Construction Equipment Rental Association (CERA), rental services of construction equipment is growing substantially and is also expected to grow during the forecast period across the developing countries such as China, India, Mexico, and many more. The local and regional SMEs are likely to prefer the rental service business in order to attain flexibility and generate revenue from the customer base from the local & regional contractors. Furthermore, in markets where construction equipment rental services are just being adopted, rates of expansion in specific rental sectors are truly remarkable and the United States and Italy are witnessing the results of the same.
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Nowadays, it is observed that the contractors who prefer renting equipment have more exposure for new and advanced equipment that has in-built technological features. For instance, excavator with telematics is one such example. Accordingly, there are numerous highly advanced equipment that can only be rented as the cost of ownership is too high. Owing to the plethora of equipment options available for renting, the construction rental equipment market growth is expected to elevate during the forecast period.
“Government Plans for Building Infrastructure Worldwide to Boost Growth of the Construction Equipment Rental Market”
Governments of many developing countries are consistently emphasizing on fixing the nations’ infrastructure deficit in order to improve the quality of life and strengthen economic competitiveness. In the current scenario, there is an evident growth in the global infrastructure sector. For example, as per the logistics performance index rankings of the World Bank Group, the positions of prominent countries worldwide are United States 14th, Germany 1st, United Kingdom 9th, China 26th, India 44th, Saudi Arabia 55th, Brazil 56th, and Mexico 51st in the infrastructure sector.
It has been observed that the funding for this plan would be cumulatively from the federal spending and the state and local governments. With the development of this infrastructure plan, manufacturers of construction equipment have tremendous opportunity to increase their revenue as this equipment play a vital role in the construction sector. Use of excavators, loaders, and other construction equipment will witness significant growth that is likely to create golden opportunities during the forecast period.
“Earthmoving Equipment Segment to Hold the Highest Market Share During the Forecast Period”
Based on equipment type, the market is classified into earthmoving equipment, material handling equipment, concrete and road equipment, and others which include civil engineering equipment. Earthmoving equipment includes excavators, backhoe loaders, bulldozers, skid-steer loaders and trenchers. This segment is anticipated to hold the highest construction equipment rental market share in 2018 as the manufacturers are witnessing remarkable opportunities due to the rise in the construction of bridges, buildings, and roads.
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Additionally, rapid industrialization and increasing demand for construction equipment for industrial applications are expected to boost the growth of the market. Material handling equipment segment holds the second highest market share. Concrete & road construction equipment segment is anticipated to grow at a moderate rate, owing to its high demand across the world.
“Residential Sector to Exhibit the Highest Market Share During the Forecast Period.”
Based on application, the market is segregated into residential, commercial, and industrial, wherein the residential sector holds the highest construction equipment rental market share. Demand for construction equipment across this sector is estimated to grow significantly due to the rising construction of residential buildings. Additionally, macroeconomic factors are highly favorable for the house buyers as they aid in lowering mortgage rates and in creating strong employment. This is further expected to spur the construction equipment rental market growth.
In the commercial sector, the demand is expected to increase as a result of the growing infrastructural activities across developed and developing countries. Moreover, commercial properties are creating lucrative opportunities for the 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 the 2019 budget of the developing countries, the heavy equipment rental market growth would be progressively steady, as governmental projects more prefer the rental services. The industrial sector is anticipated to exhibit a steady growth over the forecast period, owing to rapid industrialization.
The market value is geographically divided into North America, Europe, Asia Pacific, the Middle-East Africa, and Latin America.
North America held the highest construction equipment rental market revenue in 2018. This occurred mainly due to the presence of strong players such as United Rentals, Inc., Sunbelt, and Herc. According to the America Rental Association (ARA), despite economic imbalance, rental market is expected to perform exponentially over the forecast period. Additionally, it is being observed that the construction companies across North America are reluctant to invest in new equipment under these economic conditions. Therefore, there are significant opportunities for the market to spur over the forecast period.
North America Construction Equipment Rental Market Size, 2018 (USD Billion)
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Following North America, Europe held significant market share in 2018. This is mainly due to the growth of the 15 European countries such as the U.K., Italy, Spain, Netherlands, Switzerland etc. Furthermore, according to the European Rental Association (ERA), the sustainability performance of companies can be enhanced by preferring the rental services rather than purchasing it. Additionally, expansion of fleet across these countries is also strengthening the growth of the European market.
Asia Pacific is expected to have the highest growth rate during the forecast period, owing to the robust economic progress of the countries, namely India, China, and Japan with the cumulative development of the market this region.
Followed by Asia Pacific, the Middle East and Africa is expected to grow exponentially, owing to the investments in infrastructure across the GCC countries. Also, it is expected that over the five years, there would be a tremendous infrastructure investment that can create remarkable growth opportunities for the market. Latin America is expected to have a steady growth for the market owing to the less initiatives taken by the construction equipment rental companies for infrastructural development.
“United Rentals, Herc, and Sunbelt are Focusing on Fleet Expansion to Gain Competitive Edge”
Fleet expansion is one of the trending aspects revolving across the construction rental market. Many prominent players such as United Rentals, Herc, and Sunbelt are focusing on expanding their fleet and are also investing for the same. This is happening mainly due to the growing demand for a wide variety of construction equipment across the residential, commercial, and industrial sector. For instance, from the fleet of 48,250 in 2018, Loxam, a European company increased its Mobile Elevating Work Platform (MEWP) fleet to 53,150.
Additionally, at present, these companies are expanding their services beyond their conventional set up in order to deliver value to customers throughout the lifecycle of their products by providing digital solutions.
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The construction equipment rental market report provides detailed information regarding various insights of the market. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the construction equipment rental market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2019 to 2026 to provide the financial competency of the market. The information gathered in the report has been taken from several primary and secondary sources.
Value (USD billion)
By Equipment Type
Fortune Business Insights says that this market was valued at USD 98.21 billion in 2018.
In 2026, the market is expected to be valued at USD 145.22 billion.
The market will grow at a CAGR of 5.0% in the forecast period (2019-2026).
North America is anticipated to be the dominant region in the market and was valued at USD 31.89 billion in 2018.
The earth moving equipment segment under the equipment type criterion is expected to lead the market during the forecast period.
Government plans for building infrastructure worldwide is expected to drive the growth of the market.
United Rentals, Herc, Sunbelt, Loxam, and Mateco are the top players in the market.
The residential sector is expected to hold the highest share in the market owing to rising construction
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