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Construction Equipment Rental Market

Construction Equipment Rental Market

Construction Equipment Rental Market Analysis by Product Type (Earth Moving Machinery Rental, Material Handling Machinery Rental, Concrete & Road Construction Machinery Rental), by Region - Global Forecast 2022-2032

Construction Equipment Rental Market
FACT4643MR

Construction Equipment Rental Industry Outlook (2022-2032)

The global construction equipment rental market is likely to be valued at US$ 121 Billion in FY 2022, up from US$ 115 Billion in 2021. During the past year, the industry registered a Y-o-Y increase worth 4.3%. From 2022 to 2032, the industry is poised to flourish at a CAGR of 4.3% to reach a value of US$ 184.3 Billion by the end of 2032.

Report Attributes

Details

Anticipated Base Year Value (2021)

US$ 115 Billion

Expected Market Value (2022)

US$ 121 Billion

Projected Forecast Value (2032)

US$ 184.3 Billion

Global Growth Rate (2022-2032)

4.3% CAGR

Growth Rate of the U.S Market (2022-2032)

4.5% CAGR

Expected Market Value of China (2032)

US$ 90 Billion

U.K Market Expansion Rate (2022-2032)

~4% CAGR

Key Companies Profiled

  • United Rentals Inc.
  • Herc Holdings Inc.
  • Ashtead Group Plc
  • Aktio Corporation
  • Loxam Sas
  • Kanamoto Co. Ltd.
  • Nishio Rent All Co. Ltd.
  • H&E Equipment Services Inc.
  • Nikken Corporation
  • Cramo Group
  • Ramirent Plc
  • Maxim Crane Works L.P.
  • KiloutouSarens Nv
  • Taiyokenki Rental Co. Ltd.
  • Ahern Rentals Inc.
  • Boels Rental
  • Speedy Hire Plc.

Demand for earth moving material will continue to thrive, with a documented CAGR of 5% during the 2015-2022 historical period of assessment, while demand for Material Handling Machinery proliferated at a rate of 5.1% during the same period. China will dominate the global market, registering a growth opportunity worth US$ 90 Billion from 2022 to 2032.

2015 to 2022 Revenue Analysis of Construction Equipment Rental vs. Market Outlook 2022-2032

According to market research and competitive intelligence provider Fact.MR, construction equipment rental services flourished at a CAGR of 4.7% from 2015 to 2021. Curtailing operational costs of construction equipment and additional investments in the residential sector are some prominent factors which have fueled market demand in the past.

Exorbitant construction equipment costs, combined with the high cost of equipment maintenance services are expected to boost demand for construction equipment rental services. In spite of a downward spiral amidst the COVID-19 pandemic, prospects for construction equipment rental remained elevated, as consistent financial support from governments for numerous construction projects remained unceasing.

Moreover, the development industry is dynamic and highly influenced by market fluctuations. Renting construction equipment protects the corporate from unpredictable financial downturns which will arise. The provision of a good range of technologically advanced equipment on rent is additionally boosting the market revenue. From 2022 to 2032, the market is poised to flourish 1.5x.

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Key Drivers Stimulating Construction Equipment Rental Industry Expansion

Frequent Economic Cycle Fluctuations Stimulate the Construction Equipment Rental Services-Demand

In today's economic system, the benefits of leasing power generation equipment are magnified, taking into account the cyclicality of developing industries. According to BigRentz, contractors and construction companies have shifted from purchasing new equipment to renting the same across manufacturing sites.

Anticipating a prolonged recession in response to the pandemic crisis, many economists and business leaders believe that demand for rental services and equipment leasing will surge manifold. Purchasing new equipment will incur a variety of costs- encompassing ownership, purchase price, and maintenance and repair, which may add to their overheads, thus slowing down recovery prospects.

In addition to this cost factor, cyclical and economic fluctuations in the construction industry make it difficult for companies to make full use of the equipment they purchase and obtain the maximum value possible, especially when the equipment is idle in a slow business state. In this case, leasing is an attractive option, especially when some companies are preparing for the potential impact of economic recession and stunted operations.

Key Challenges to Construction Equipment Rental Industry Expansion

Economic Downturn to Impede Growth of Construction Equipment Rental Industry

The construction industry is vulnerable to recession and economic downturn. The construction machinery leasing market is affected by the economic cycle of an economy, which has experienced multiple economic cycles in its life cycle and exhibits high or low economic activity in the economy.

Economic transformation can be divided into cyclical phases of expansion, recession, bottoming out, and recovery. In the context of economic expansion, the construction industry has also shown strong growth, as the construction equipment leasing, and profitability have increased exponentially.

This growth is due to strong consumer demand and easy access to public and private investment or the construction industry is suffering from an economic recession due to a reduction in final output due to tightening consumer demand. The resulting decline in construction activities in turn has an impact on the construction machinery rental market.

An Adaptive Approach to Modern-day Research Needs

Country-wise Analysis

How Opportunistic are Growth Prospects across the U.S Market?

Mounting Investment in Residential Construction Projects to Widen Growth Prospects

Fact.MR’s report forecasts that the U.S market in 2022 is likely to be valued at US$ 65 Billion, following a CAGR of 4.5% throughout the forecast period. A robust U.S. economy is expected to be driven by investments in the residential sector. Construction equipment with advanced and fuel-efficient technology, as well as standard safety features, is driving the growth of the market.

To cater to the growing construction activities, several companies are utilizing rental options. The market is expected to adopt new technologies as a result of increased government spending on building public infrastructure and government utilities. For instance, Alberta's government allocated more than US$ 10 Billion in infrastructure projects to strengthen the province's economy, according to a report published in 2022.

Why are Construction Equipment Rental Providers Venturing into China?

China Likely to Spectate Biggest Hike in the Sales Revenue

In terms of opportunity, the demand for construction equipment rental is likely to spur at a CAGR of over 5% over the assessment period in China. Based on the Fact.MR analysis, the market valuation is estimated to rise to US$ 110 Billion from US$ 67 Billion in 2022.

This market growth is backed by several advantageous factors such as cheaper labor costs, advanced manufacturing facilities, and high production capacity, China is the world's leading manufacturer of construction machinery. It exports its machinery to many countries in Europe and Asia. As the population and urbanization of China rise, along with growth in the IT sector, 2022 is set to benefit in the forecast period.

What are the Factors Driving Sales of Construction Rental Equipment in India?

Flourishing Construction Industry Likely to Act as a Prominent Driver

Booming infrastructure development in India acts as one of the main drivers of demand for construction equipment rental services in India, slated to grow at 4% CAGR until 2032. Attributed to a boom within the construction and infrastructural development industry, India has yielded credible growth opportunities.

As a result, many international earth-moving machinery rental companies have invested in establishing manufacturing facilities and distribution centers. Besides prominent Rental Material Handling Machinery Suppliers & manufacturers, such as Liebherr, Caterpillar, Hitachi, and Sumitomo Corporation, numerous domestic players are also offering construction equipment rental services, attributable to the competitive pricing and technologically advanced equipment availability.

Country-wise Value CAGRs for Construction Equipment Rental (2022-2032)

U.S

4.5%

U.K

4.3%

China

5%

India

4%

Category-wise Insights

Which Product Type is Most Preferred in 2022?

Ever-increasing Need for Reducing Operation Costs Has Reinforced the demand for Earth Moving Machinery

According to Fact.MR’s Construction Equipment Rental analysis, earthmoving machinery rental is expected to tower over other equipment, given the increasing need to curtail excavation costs, especially across the oil & gas industry.

These types of equipment have high load capacity and engine power, which allows them to function effectively in harsh environments. Approximately 60% of the market value will be held by earthmoving from 2022 to 2032.

What are the Growth Prospects for Material Handling Machinery Rental?

Material Handling Machinery Rental Market Boosted by Swelling Emphasis on Output Maximizing

By product type, the scope for material handling machinery rental is immense, expected to surge at a CAGR of 6% from 2022 to 2032. As factories look to curtail manufacturing costs, they are increasingly seeking out rental services.

With increased emphasis on maximizing output, industries are looking for ways to minimize their capital expenditure, a large part of which is directed towards procuring material handling machinery. Availing the same on rent permits businesses to widen profit margins.

Competitive Landscape

Prominent Construction Equipment Rental providers are reliant on partnerships, collaborations, acquisitions, and new software launches to stay afloat in the global market. Constant innovations to ensure a seamless client-customer relationship are the main focus of prominent market players.

  • In August 2021, Herc Holdings Inc., a leading North American equipment rental supplier operating as Herc Rentals Inc., announced that it has completed the acquisition of substantially all the assets of Texas-based CBS Rentals (CBS).
  • In April 2021, United Rentals and General Finance Corp. signed a definitive agreement for United Rentals to acquire General Finance for approximately $996 million. Under the agreement, United Rentals acquire General Finance for $19 per share in cash as well as the assumption of $400 million of net debt.

Key Segments Covered in the Construction Equipment Rental Industry Survey

  • Construction Equipment Rental by Product Type

    • Earth Moving Machinery Rental
    • Material Handling Machinery Rental
    • Concrete & Road Construction Machinery Rental
  • Construction Equipment Rental by Region

    • Construction Equipment Rental in North America
    • Construction Equipment Rental in Latin America
    • Construction Equipment Rental in Europe
    • Construction Equipment Rental in Asia Pacific
    • Construction Equipment Rental in Middle East & Africa

- FAQs -

As of 2021, Fact.MR estimated the construction equipment rental market to have reached US$ 115 Billion
By 2022, Fact.MR expects demand for construction equipment rental to reach US$ 121 Billion
From 2015-2021, the construction equipment rental grew at a 4.7% value CAGR
From 2022-2032, Construction Equipment Rental demand is likely to surge at a 4.3% CAGR
By 2032, the market for construction equipment rental is likely to be valued at US$ 184.3 Billion
By 2022, Fact.MR expects the U.S market for Construction Equipment Rental to reach US$ 65 Billion
China is expected to register a 5% CAGR in the construction equipment rental industry
Earth Moving Machinery Rental will be maximum, expanding at a 5.1% CAGR

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