Construction Equipment Rental Market Set to Expand 1.6x, amid High Preference for Earth Moving Machinery: Fact.MR
Published : 27 Sep 2021 Industry: Industrial Goods
According to a recent study by Fact.MR, from 2021 to 2031, the global construction equipment rental market is anticipated to top US$ 115 Bn in 2021, expected to grow at a CAGR of 4.3% during the 2021-2031 forecast period. Expected valuation by 2031-end is US$ 176 Bn, as per the study.
Historically, the industry experienced a moderate expansion rate, clocking a CAGR of over 3% from 2016-2020, reaching a value of US$ 110 Bn. As the COVID-19 pandemic hit, prospects did contract substantially. However, the construction equipment rental market was buoyed through with unwavering financial support offered by governments across major construction hotspots.
In the context of economic expansion, the construction industry has exhibited strong growth, with construction equipment leasing and profitability increasing exponentially. This growth is due to strong consumer demand and easy access to public and private investment. As of 2020, more than 2,000 public infrastructure projects were announced, representing a 5% incline compared to 2019. Consequently, major construction giants began looking for approaches to reduce procurement costs, which increased reliance on construction equipment rental services.
Key Takeaways from the Market Study
- Earth moving equipment is expected to reach US$ 75.9 Bn by 2031, capturing 3/5th market demand
- Prospects are high for material handling machinery, set to register a 6% value CAGR
- U.S to be a promising market, expected to yield US$ 40 Bn in revenue by 2021 end
- China is one of the most lucrative markets, expected to grow at a rate of 5% until 2031
- India to post significant gains, growing at a CAGR of 4% through 2031
“Booming infrastructure development in developing countries like India and China act as main drivers of demand for construction equipment rental services,“ says a Fact.MR Analyst
The market for construction equipment rental is dominated by the top 5 service providers, who account for the majority of the market. During the forecast period, the competitive landscape is expected to be shaped by acquisitions, strategic partnerships, and equipment procurements.
- In May 2021, for instance, United Rentals Inc. completed the acquisition of General Finance Corporation. The acquisition, comprising of strong strategic and financial merits, was timed in order to enable the company to fulfil increasing demand across end markets, by expanding mobile store and modular office solutions
- Likewise, in August 2021, Herc Holdings Inc. completed the acquisition of all assets of CBS Rentals, a Texas-based construction equipment rental service provider. This addition has expanded the formers presence across the state to 38 physical locations to better provide general and specialty equipment rental solutions
More Insights Available
Fact.MR, in its new report, offers an unbiased analysis of the global construction equipment rental market, analyzing historical demand from 2016-2020 and forecast statistics for 2021–2031.
The study reveals growth projections on the construction equipment rental market on the basis product type (earth moving machinery, material handling machinery and concrete & road construction machinery) across seven major regions (North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa).
About the Industrial Goods Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned Industrial team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analyzed the industrial goods industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
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Consultant - Industrial Goods and Automotive