Market Overview:
The construction equipment rental market provides a range of equipment such as earthmoving machinery, material handling machinery, and construction vehicles on rent. These equipment are widely used in various industries including construction, mining, and oil & gas, among others. Renting construction equipment offers cost benefits and flexibility to companies as they don’t have to invest heavily in purchasing and maintaining the equipment. Additionally, rental services ensure that the latest and technologically advanced equipment is available to construction companies, further enhancing efficiency and productivity.
Market Dynamics:
The construction equipment rental market is primarily driven by the rising infrastructure development across the globe. Rapid urbanization and the need for efficient and advanced equipment in construction activities are driving the demand for equipment rental services. Furthermore, the increasing demand for construction equipment from emerging economies is expected to boost market growth. Additionally, stringent government regulations, such as emission norms and safety standards, are encouraging construction companies to opt for rental services rather than investing in expensive equipment. These factors are expected to drive the growth of the construction equipment rental market over the forecast period.
The global Construction Equipment Rental Market Share 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Segment Analysis:
In the construction equipment rental market, one dominant segment is the earthmoving equipment segment. Earthmoving equipment includes machinery such as excavators, loaders, and bulldozers, which are widely used in construction projects. The dominance of this segment can be attributed to the increasing demand for infrastructure development and urbanization worldwide. These machines are crucial for excavation, leveling, and moving large quantities of earth, making them essential in construction activities. Additionally, advancements in technology have led to the development of more efficient and versatile earthmoving equipment, further driving the growth of this segment.
PEST Analysis:
Political: The construction equipment rental market is subject to various political factors, such as government regulations and policies regarding infrastructure development. Changes in political leadership and stability can also impact the industry.
Economic: The economic factors affecting the market include GDP growth, construction industry investments, and disposable income levels. Economic downturns may lead to a decrease in construction activities and result in a decline in the demand for rental equipment.
Social: Changing demographics, urbanization, and increasing population contribute to the growth of the construction equipment rental market. The demand for more residential and commercial spaces drives the need for construction projects, leading to rental equipment requirements.
Technological: Technological advancements in construction equipment, such as automation and telematics, have improved efficiency and productivity. These advancements also enable better monitoring and maintenance of rental equipment.
Key Takeaways:
The global construction equipment rental market is expected to witness high growth, exhibiting a CAGR of 5.1% over the forecast period (2023-2030), due to increasing infrastructure development and urbanization worldwide. The earthmoving equipment segment dominates the market, driven by its essential role in construction activities and advancements in technology.
Regionally, Asia Pacific is the fastest-growing and dominating region in the construction equipment rental market. The region’s rapid urbanization, increasing investments in infrastructure, and favorable government initiatives are contributing to the growth. Additionally, North America and Europe have significant market shares due to ongoing construction projects and the need for rental equipment.
Key players operating in the construction equipment rental market include 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. These companies offer a wide range of rental equipment and have a strong presence in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it