Construction Equipment Rental Market

Construction Equipment Rental Market Outlook (2024 to 2034)

Revenue from the global construction equipment rental market is estimated to reach US$ 131.2 billion in 2024. The market has been projected to climb to a value of US$ 201.81 billion by the end of 2034, expanding at a CAGR of 4.4% between 2024 and 2034.

Government investment in public infrastructure is increasingly propelling building and mining activities across multiple countries, thereby creating a substantial demand for construction equipment in the market. Escalating prices of construction machinery are prompting construction companies and contractors to pivot towards renting equipment.

Renting construction equipment offers many benefits, such as reduced maintenance and technical costs. Industry reports indicate a shift from traditional equipment to AI, telematics, and IoT-enabled machinery in response to rising fatalities at construction sites. These technological advancements are contributing to the expansion of the construction equipment rental market size.

These systems transmit data on engine idling hours, GPS location, and fuel consumption; however, their high cost poses a barrier for smaller contractors and builders. Consequently, the market addresses this issue by lowering total ownership costs and providing flexible rental options. Such innovations are projected to drive construction equipment rental market share during the forecast period.

Key Market Growth Drivers

• The benefits of leasing power generation equipment are more pronounced in today's economic environment, especially considering the cyclic nature of emerging enterprises.
• The emergence of new technologies and increased automation levels are fueling the growth of the market.
• Innovations such as equipment service tracking, mapping, and digitized services for automated enhancements are fueling market expansion.
• By opting to rent construction equipment, businesses avoid significant capital expenditures and the maintenance costs associated with owning machinery.
• Due to the varying needs for machinery based on projects and seasons, continuously purchasing different equipment becomes costly, prompting companies to favor renting.
• A notable construction equipment rental market trend is that contractors and construction firms are shifting from purchasing new equipment to leasing it for production sites, driven by cost-effectiveness and lower capital expenditures.

Report Attribute	Detail
Construction Equipment Rental Market Size (2024E)	US$ 131.2 Billion
Forecasted Market Value (2034F)	US$ 201.81 Billion
Global Market Growth Rate (2024 to 2034)	4.4% CAGR
North America Market Share (2024E)	27.6%
East Asia Market Value (2024E)	US$ 26.63 Billion
Earth Moving Machinery Segment Value (2034F)	US$ 110.39 Billion
Residential Construction Segment Value (2034F)	US$ 73.66 Billion
Key Companies Profiled	Titan Machinery Inc.; Associated Equipment Rentals Pvt. Ltd.; HSS ProService Ltd.; Kanamoto Co. Ltd.; United Rentals Inc.; Finning International Inc.; Herc Holdings Inc.; Aktio Corp.; Komatsu Ltd.; Sunstate Equipment Co., LLC; Cramo; and Texas First Rentals.

How are Construction Equipment Rental Services Helping Small Contractors?

“Rental Services Reducing Overall Cost of Ownership with Affordable Rental Options”

Technological advancements in the automotive and heavy equipment industries are enhancing the performance and efficiency of construction machinery. Leading companies in the construction equipment rental sector are focusing on developing smarter machines through proprietary technological systems or by partnering with manufacturers.

Telematics systems provide precise data on the location and performance metrics of construction equipment and vehicles. These systems track engine idle hours, GPS positions, and fuel consumption; however, they require significant investment, making them costly for many small contractors and builders. Consequently, construction equipment rental companies address this issue by lowering the overall cost of ownership and offering rental options.

What are the Challenges Faced by Construction Equipment Rental Companies?

“Requirement of High Capital to Start or Maintain Business”

Significant challenge for companies in the construction equipment rental business is the high initial capital requirement. To meet diverse client needs across various construction projects, rental firms must invest heavily to establish a wide range of equipment. This includes purchasing expensive machinery such as bulldozers, cranes, excavators, and specialized tools.

Companies must update their fleet with newer, more efficient models to remain competitive. The substantial financial barrier to entry for new companies and the expansion potential for established rental businesses are largely due to the costs of acquiring and maintaining such extensive inventories. This consequently affects construction equipment rental market growth.

Country-wise Insights

In 2024, North America is estimated to lead with 27.6% of the global construction equipment rental market share. The East Asia market is evaluated to expand at a significant CAGR of 4.7% during the projection period (2024 to 2034).

Why are Construction Equipment Rental Businesses Booming in the United States?

“High Investments in Residential Construction Sector”

Attribute	United States
Market Value (2024E)	US$ 28.57 Billion
Growth Rate (2024 to 2034)	4.4% CAGR
Projected Value (2034F)	US$ 43.98 Billion

In North America, the United States is poised to account for 78.9% of revenue share in 2024. Rising investment in the residential sector is fueling market growth in the United States. In addition, the development of innovative and fuel-efficient construction equipment with standard safety measures contributes to market expansion. Many organizations are adopting rental solutions to meet the increasing construction activity. The market is also expected to embrace new technology due to heightened government spending on public infrastructure and utilities.

• Alberta's government recently spent over $10 billion on infrastructure projects to enhance the province's economy. Thus, governmental developments are quite responsible for accelerating the growth in the United States market of construction equipment rentals.
• In December 2023, MyCrane, an online crane rental firm with its headquarters in Dubai, launched its own business in the United States. As it has done in other places, the firm said that it decided to establish its operations in the United States as opposed to selecting a franchisee.

Why Do Most Construction Companies in Japan Prefer Renting Equipment?

“Reconstruction Post Natural Disasters Necessitating Immediate Access to Equipment”

Attribute	Japan
Market Value (2024E)	US$ 5.89 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 9.45 Billion

Japan faces significant challenges from natural disasters such as earthquakes, tsunamis, typhoons, and volcanic eruptions due to its topography and geographic location. When these events occur, rapid reconstruction operations are necessary to address the severe damage to communities, buildings, and infrastructure. This urgency increases the demand for construction equipment.

Businesses and government organizations require various machinery to clear debris, repair roads, restore buildings, and implement measures to protect against future disasters, leading to a surge in construction equipment rentals during reconstruction and recovery periods.

Category-wise Insights

Based on end use, the market is segmented into residential, commercial, and industrial construction. The commercial construction segment holds a significant market share, and demand for equipment is projected to increase in residential and industrial construction at a 4.5% CAGR from 2024 to 2034.

Why is Demand for Earth-Moving Machinery Higher Compared to Other Equipment?

“Adaptability of Earth-Moving Machinery to Wide Range of Construction Tasks”

Attribute	Earth-Moving Machinery
Segment Value (2024E)	US$ 71.64 Billion
Growth Rate (2024 to 2034)	4.4% CAGR
Projected Value (2034F)	US$ 110.39 Billion

In the construction equipment rental market, the demand for earth-moving machinery surpasses that for material handling, concrete, road construction machinery, and others due to its versatility and essential role in most building projects. Excavators, bulldozers, loaders, and graders exemplify the earth-moving equipment used in various tasks, ranging from road construction and landscaping to site preparation and foundation work. These machines are indispensable in nearly all construction projects, regardless of their scale or complexity.

Their multifunctionality makes them crucial throughout all phases of construction, from initial ground clearing to final grading. Additionally, the high costs associated with purchasing and maintaining such large equipment make renting a more attractive option for many contractors, particularly for short-term or specialized projects.

Which Industry Accounts for High Demand for Construction Equipment?

“Extensive Use of Construction Equipment in Commercial Projects”

Attribute	Commercial Construction
Segment Value (2024E)	US$ 48.41 Billion
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 73.66 Billion

Companies in the construction equipment rental industry are generating higher revenues from commercial projects. Compared to residential construction, commercial projects–such as office buildings, retail establishments, and industrial facilities–typically have larger scales and longer completion times. This allows rental businesses to charge higher fees due to extended rental periods and intensive equipment usage.

The growing commercial construction sector in various countries, driven by the increasing number of start-ups and the expansion of established companies seeking to enhance their market presence, further fuels the demand for construction equipment rentals.

Competitive Landscape

Key players in the construction rental industry are focusing on providing flexible rental solutions such as short-term, medium-term, long-term, and rent-to-own programs to capture clients' attention and increase market presence. To provide better services, market players are launching digital platforms and mobile applications for equipment tracking, easy online bookings, and maintenance scheduling.

• In March 2024, the well-known American trench safety equipment rental company Trench Shore Rentals, Inc. sold all of its assets to Sunstate Equipment Co., LLC, a subsidiary of Sumitomo Corporation.
• In April 2023, Boels Rental created Cramo, a Nordic subsidiary, by acquiring the Norwegian firm BAS Maskinutleie. It increases the scope of its rental services in the Nordic region with this acquisition.
• In December 2022, the acquisition of Rental One, a full-service equipment and storage container rental company that provides a comprehensive line of construction equipment and supplies in 15 locations throughout the Dallas-Fort Worth Metroplex and Central Texas regions, was announced by Texas First Rentals, a division of HOLT.
• United Rentals and General Finance Corp. reached a formal agreement in April 2021 for United Rentals to buy General Finance for US$ 996 million. Under the terms of the transaction, United Rentals will buy General Finance for US$ 19 per cash share and assume US$ 400 million in net debt.

Fact.MR provides detailed information about the price points of prominent players in the construction equipment rental market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Construction Equipment Rental Market Research

• By Product :

  • Earth-Moving Machinery
  • Material Handling Machinery
  • Concrete & Road Construction Machinery

• By End Use :

  • Residential Construction
  • Commercial Construction
  • Industrial Construction

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa