Global Construction Equipment Rental Market By Product Type (Loaders, Crawler Dozers, Cranes, Concrete Pumps, Others), By Equipment (Earthmoving, Material Handling, Road Building & Concrete), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032
- Published date: Dec 2023
- Report ID: 40457
- Number of Pages: 395
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Report Overview
The Global Construction Equipment Rental Market size is expected to be worth around USD 222.3 Billion by 2032, From USD 136.5 Billion by 2023, growing at a CAGR of 5% during the forecast period from 2023 to 2032.
The rise in government spending on public infrastructure development has accelerated construction and mining activities across emerging economies. This has led to a large demand for construction machinery on the market. Construction companies and contractors are shifting their focus to renting equipment due to rising prices for new machines.
The market will continue to grow due to the increasing use of automation and advanced technologies. Market growth is expected to be driven by technological advances such as equipment service tracking and mapping, and digital service for automated services improvements.
The market growth in construction equipment rental is influenced by many factors, including the pandemic. The pandemic of 2019-20 has caused disruptions in the global supply chain, closing down many production facilities. This adversely affected the infrastructure sector, and subsequently, the equipment rental market.
Key Takeaways
- Market Growth: The Construction Equipment Rental Market displays substantial growth potential, projected to elevate from US$ 136.5 billion in 2023 to US$ 222.3 billion in 2032, showcasing a notable Compound Annual Growth Rate (CAGR) of 5%.
- Regional Dominance: Asia-Pacific emerges as the dominant market, capturing 31% of the market share, signifying a robust presence and demand for construction equipment rentals within the region.
- Segmentation Insights:
- Equipment Type: Earthmoving Equipment leads the market with a significant 42% share, indicating high demand for these specific types of machinery in construction projects.
- End-User Focus: Construction remains the primary end-user segment, accounting for 38% of the market demand, emphasizing the essential role of construction activities in driving equipment rental services.
Market Dynamics and Industry Analysis:
- Regional Infrastructure Development: Asia-Pacific’s dominance aligns with rapid infrastructure development and construction activities, stimulating the demand for rental equipment in the region.
- Earthmoving Equipment Preference: The dominance of Earthmoving Equipment signifies the significance of machinery like excavators, loaders, and bulldozers in construction projects, reflecting their pivotal role in the market.
- Construction Industry Dependency: The significant share attributed to the Construction end-user segment highlights the industry’s heavy reliance on rental equipment to execute projects efficiently and cost-effectively.
Driving Factors
The Construction Equipment Rental Market thrives due to several driving factors. Cost-effective solutions for short-term projects favor rental options over ownership. Flexibility in accessing specialized machinery without hefty upfront investments attracts construction firms. Rapid technological advancements lead to newer, more efficient equipment, encouraging rentals to access updated inventory.
Market volatility prompts companies to prefer flexible options, adjusting fleet size as projects fluctuate. Environmental concerns and sustainability drive demand for rental services, reducing the ecological impact of equipment turnover. Moreover, increasing infrastructure projects globally and the need for diverse equipment across sectors fuel the steady growth of the construction equipment rental industry.
Restraining Factors
The Construction Equipment Rental Market faces several restraining factors despite growth. Economic uncertainties and fluctuating construction activity impact rental demand. High maintenance costs and stringent regulations for equipment upkeep add financial burdens for rental companies. Equipment misuse or damage during rentals increases repair expenses, impacting profitability. Market saturation and intense competition among rental providers compress margins.
Moreover, logistical challenges in transporting heavy machinery, along with the limited availability of specialized equipment, hinder market scalability. Additionally, hesitance towards renting due to long-term project commitments and concerns about equipment reliability pose hurdles in sustained expansion for the construction equipment rental industry.
Growth Opportunities
The Construction Equipment Rental Market holds promising growth opportunities amidst challenges. Technological advancements in equipment design and telematics offer avenues for enhanced efficiency and safety, attracting renters seeking innovative solutions. Infrastructure developments, including urbanization projects and transportation initiatives, drive increased demand for rental equipment globally. Expansion into emerging markets, fueled by construction activities and urban development, presents untapped potential.
Environmental sustainability initiatives, such as offering eco-friendly equipment options and energy-efficient machinery, resonate with environmentally conscious renters. Moreover, strategic partnerships with construction firms and advancements in online rental platforms unlock avenues for market diversification and enhanced service offerings, shaping the future of the construction equipment rental industry.
Trending Factors
In the Construction Equipment Rental Market, several trends significantly shape industry dynamics. Technological integration and the rise of smart equipment with IoT sensors and telematics drive efficiency and safety, influencing rental preferences. Demand for eco-friendly and low-emission machinery reflects the trend towards sustainability, impacting rental choices. Flexible rental models, including on-demand and short-term options, cater to dynamic project needs and resource optimization.
Customized rental packages and bundled services, such as maintenance and training, gain traction, offering value-added solutions. Additionally, the adoption of digital platforms for easy bookings and real-time equipment monitoring influences renter decisions, significantly impacting the evolving landscape of the construction equipment rental industry.
Product type analysis
The segment crane is expected to see the greatest CAGR over the forecast period. This is due to the growing use of cranes in construction. Equipment rental companies account for 60-65% and 60% respectively of the crane fleet. This is a clear indication of the explosive growth in this segment during the forecast.
Equipment analysis
The global rental market for construction equipment is split into earthmoving, material handling, and concrete & roadway construction machinery segments. A major market share of 52% was held by the earthmoving machine segment in 2021. Segmental growth is due to the increased use of earthmoving excavators in the mining, agriculture, and construction industries.
Other earthmoving equipment like crawler excavators or backhoes, as well as mini excavators, have a greater load capacity and higher engine performance. These properties make Earthmoving Equipment ideal for use in harsh environments. The growing demand for earthmoving equipment by contractors and construction firms has led to a greater interest in leasing it.
Between 2023 and 2032, concrete and road machinery will experience a 6.5% compound annual rate. Because of its importance in improving commerce and trade, road connectivity could be the key to the future economy. The U.S. federal government approved the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act) on November 20, 2021. It allows for $110 billion in investment to repair roads and bridges within five years. Roads and streets will be made safer to reduce traffic deaths and improve connectivity.
Many countries in the Asia Pacific, like India and China, focus on better road connectivity. China’s “One Belt, One Road,” initiative will connect China to European countries. The estimated total cost of the project is US$1.3 trillion. The new budget 2022-22-23 reveals that the Indian government plans to invest $ 529.7 billion to improve road connectivity through new highways. This is why the increasing investments in mega roads and highway construction projects by the Indian government are expected to increase demand for concrete and road construction machinery all over the world.
Кеу Маrkеt Ѕеgmеntѕ
By Product Type
- Loaders
- Cranes
- Concrete Pumps
- Crawler Dozers
- Others
By Equipment
- Earthmoving Equipment
- Material Handling Equipment
- Concrete and Road Construction Equipment
- Others Equipment Type
End-User
- Construction
- Mining
- Oil & Gas
- Other End-Users
Regional Analysis
APAC has a 42% market share in 2022. It is expected to continue its dominance in the future. The availability of highly technologically advanced machinery for specific projects has contributed to the growth of construction equipment companies in the area.
This equipment is highly preferred because it reduces operation time, eliminates idle time, and optimizes overall construction or mining activity. There is a high demand for rental services and solutions from prominent U.S. construction equipment rental companies, including Ashtead Group and Ahern Rentals.
The Asia Pacific region will experience significant growth of 6.2% over the forecast period. To increase connectivity, and trade and boost the overall economy, the governments of the emerging Asian economies are investing heavily in the construction of highways, airports, and dams.
These projects are attracting the attention of global construction equipment companies. They are highly motivated to invest and establish their business in the region. Caterpillar, Hitachi, and Liebherr are global construction equipment companies that provide their products, services, and products in the region.
Key Regions and Countries covered іn thе rероrt:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Spain
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- MEA
- GCC
- South Africa
- Israel
- Rest of MEA
Global Construction Equipment Rental market prominent players Caterpillar Inc. Ashtead Group United Rental, Ahern Rentals Aktio Corp. will dominate the global market by 2021. To expand their market reach, these players implement strategies such as geographical expansion and new product launches.
To be competitive in the market, they concentrate on expanding their product lines and increasing brand awareness. These companies often merge and acquire other companies to broaden their product lines and increase market share. Some prominent players in the construction equipment rental market include:
Маrkеt Кеу Рlауеrѕ:
- Boels Rentals
- H&E Equipment Services Inc.
- Herc Rentals Inc.
- Kanamoto Co. Ltd.
- NESCO Holdings Inc.
- Maxim Crane Works L.P.
- Mtandt Group
- Ramirent AB
- Sarens n.v./s.a.
- United Rentals Inc.
- Other Key Players
Report Scope:
Report Features Description Market Value (2023) USD 136.5 Billion Forecast Revenue (2032) USD 222.3 Billion CAGR (2023-2032) 5% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered Equipment Type(Earthmoving Equipment, Material Handling Equipment, Concrete and Road Construction Equipment, Others Equipment Type), End-User(Construction, Mining, Oil & Gas, Other End-Users) Regional Analysis North America: The US and Canada; Europe: Germany, France, The UK, Italy, Spain, Russia & CIS, and the Rest of Europe; APAC: China, Japan, South Korea, India, ASEAN, and the Rest of APAC; Latin America: Brazil, Mexico, and Rest of Latin America; Middle East & Africa: GCC, South Africa, United Arab Emirates, and Rest of Middle East & Africa. Competitive Landscape Boels Rentals, H&E Equipment Services Inc., Herc Rentals Inc., Kanamoto Co. Ltd., NESCO Holdings Inc., Maxim Crane Works L.P., Mtandt Group, Ramirent AB, Sarens n.v./s.a., United Rentals Inc., Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User license (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
Q: List the segments encompassed in this report on the Construction Equipment Rental market?Market.US has segmented the Construction Equipment Rental market by geographic (North America, Europe, APAC, South America, and Middle East and Africa). By Product Type, market has been segmented into Loaders, Crawler Dozers, Cranes, Concrete Pumps, Others. By Equipments, the market has been further divided into Earthmoving, Material Handling, Road Building & Concrete.
Q: List the key industry players of the Construction Equipment Rental market?Ahern Rentals Inc., AKTIO Corporation, Caterpillar Inc., Byrne Equipment Rental, Cramo Plc, Finning International Inc., Liebherr-International AG, Kanamoto Co., Ltd., and Other Key Players engaged in the Construction Equipment Rental market.
Q: Name the key areas of business for Construction Equipment Rental?The US, Canada, Mexico, and Others., are key areas of operation for Construction Equipment Rental Market.
Construction Equipment Rental MarketPublished date: Dec 2023add_shopping_cartBuy Now get_appDownload Sample - Boels Rentals
- H&E Equipment Services Inc.
- Herc Rentals Inc.
- Kanamoto Co. Ltd.
- NESCO Holdings Inc.
- Maxim Crane Works L.P.
- Mtandt Group
- Ramirent AB
- Sarens n.v./s.a.
- United Rentals Inc.
- Other Key Players
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