Construction equipment rental involves renting or leasing various heavy construction machinery and equipment to end-users for a specific period. It provides flexibility to construction contractors for managing capital expenditure on equipment and aids in cost control.
The global Construction Equipment Rental Market is estimated to be valued at US$ 237.8 Bn in 2023 and is expected to exhibit a CAGR of 5.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the construction equipment rental market is digitalization and technology integration. Equipment rental companies are increasingly integrating digital technologies like IoT, telematics, and sensor technologies to track the equipment location, operating hours, maintenance needs, fuel consumption etc. in real-time. This allows them to optimize asset utilization, reduce downtime, and offer value-added services to customers. Remote monitoring of fleets enables predictive maintenance and improves overall equipment efficiency.
Strength: The construction equipment rental market size provides flexibility to construction companies as they can rent equipment based on project requirements rather than purchasing. Equipment rental services also take care of maintenance and repair costs.
Weakness: Rental prices of sophisticated construction equipment are generally high. Frequent rental of equipment also increases overall project costs for construction firms.
Opportunity: Growth in infrastructure development projects across regions provides major opportunities for construction equipment rental companies. Additionally, rising trend of outsourcing non-core activities among construction businesses boosts demand.
Threats: Economic slowdowns can negatively impact infrastructure spending by governments, reducing rental equipment demand. Stringent emission norms on construction machinery also poses a challenge for older equipment.
The global construction equipment rental market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing infrastructure development activities worldwide. Governments of emerging economies are allocating large funds for roads, railways, and buildings construction, driving equipment rental demand.
Asia Pacific is expected to dominate the construction equipment rental market, owing to significant infrastructure investments by China and India. China’s 14th Five Year Plan outlines heavy investments in transportation, energy and utility projects. Meanwhile, the Indian government’s National Infrastructure Pipeline envisions ~$1.5 trillion investments by 2024-25 across sectors.
Europe is also anticipated to register sizable growth in the construction equipment rental market. This is attributed to the European Commission’s plan to allocate 30% of its €1.8 trillion budget for 2021–2027 to climate objectives like clean energy and renovating buildings.
Key players operating in the construction equipment rental market are Ramirent, AKTIO Corporation, NISHIO RENT ALL Co., Ltd., AB2000, Cramo Oyj, Ahern Rentals Inc., Byrne Equipment Rental, American Equipment Company, Inc., United Rentals, Inc. (acquired BlueLine Rental), and Ashtead Group plc. The market is fragmented with large multinational and several regional contractors. Strategic acquisitions and expansion of service networks are common in this industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it