The Global Construction Equipment Rental Market Size Was Valued At USD 111.6 Billion In 2021. The Market Is Projected To Grow From USD 116.0 Billion In 2022 To USD 164.6 Billion By 2029, Exhibiting A CAGR Of 5.1% During The Forecast Period.

Construction Equipment Rental Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. As a result, demand for renting construction equipment has been lower than expected in all regions compared to levels before the pandemic. According to our research, the global market grew 3.1% in 2020 compared to 2019.

Construction equipment rental is a service that lets the end user rent construction equipment for a certain amount of time based on the terms of a contract. Most of the time, construction equipment is used at mine sites to make heavy work easier. The Construction Equipment Rental Association says that renting construction equipment has gone up a lot and is expected to go up even more in developing countries like China, India, and Mexico.

Local and regional small businesses may prefer rental service businesses because they give them more freedom and help them make money from the contractors who work with them. Also, the rental of construction equipment has grown a lot in countries like the U.S. and Italy where these services have just started to show up.

Market Dynamics:

Latest Trends:

There are a number of new trends on the market thanks to technological advances in the heavy equipment and car industries. Modern safety features like 360-degree camera views, lift assist, and auxiliary work lights are being added to construction equipment to make operations more productive and reduce the need for maintenance.

More technological advances in the automotive and construction machinery industries are making construction equipment more efficient and better at what it does. The main goal of the big players in the equipment market is to make machines smarter by putting in their own technology systems. Telematics systems make it easy to find out where construction vehicles and equipment are and how well they are working. Data sent through the system includes the GPS location, how much fuel was used, and how long the engine was running without doing anything.

But this system costs a lot of money to set up, so many small builders and contractors can't afford it. The problem has been solved by the equipment rental service, which got rid of the total cost and gave rental options. So, the above factors are making the construction equipment market grow even more around the world.

Driving Factors:

Given that the construction industry is cyclical and the economy is unstable, renting construction equipment has a lot of benefits. More and more construction companies, contractors, and companies in other fields are looking into renting. Contractors and builders are renting more equipment instead of buying it, according to the equipment rental platform BigRentz. Many business leaders and economists expect a recession, which could push businesses away from buying or leasing equipment and toward renting it instead.

Costs like these make construction companies wary. Companies have to get the most value out of the equipment they buy because of how unstable the economy is and how much it costs. This makes renting equipment a good option, which is helping the market for renting construction equipment grow.

Restraining Factors:

The building industry can go through slumps and recessions. During its life cycle, the construction equipment leasing market goes through a number of business cycles. These cycles are affected by how busy or slow the economy is. During a recession, consumers may buy less finished goods, which can hurt the construction industry. So, a drop in construction work is likely to have an effect on the equipment rental market.

Segmentation Analysis:

By Equipment Type:

Excavators, wheel loaders, bulldozers, and trenchers are all types of equipment used to move earth. This segment is expected to have the largest share of the market because more bridges, high-rise buildings, and roads are being built, which gives manufacturers a lot of opportunities.

Also, the segment for concrete and road equipment is expected to grow steadily over the next five years. As the way roads connect could have a big impact on the economy of the country in the future, a well-developed infrastructure is important for boosting business. In November 2021, the U.S. government passed the Jobs and Infrastructure Investment Act, which allowed USD 110 billion to be spent over the next five years to rebuild roads, bridges, and other infrastructure.

Also, the material handling equipment segment is expected to grow a lot because of how quickly industrialization is happening and how much more construction equipment is needed for industrial uses. Since businesses are trying to make as much money as possible, they want to spend as little as possible on capital. A lot of this money goes toward buying material-handling equipment. Big companies can increase their profit margins by taking advantage of the same rental advantage.

By Application:

Due to the rising demand for construction equipment, the commercial segment is expected to grow by a factor of 10 over the next five years. Equipment makers can make more money by renting out their products and selling them on commercial properties, which is good for their business. Also, if the governments of developing economies include infrastructure plans in their plans, the growth of the heavy equipment rental market will be more stable because government plans will choose to rent equipment.

Also, the industrial segment is expected to grow a lot because major economies are investing more and becoming more industrialized quickly. For example, there are more multi-family homes being built because nuclear families are becoming more popular. There are also more investments going into the building of highways, bridges, subways, and "smart cities" because of population growth and urbanization. The market is also expected to grow because automation is becoming more popular.

During the forecast period, the residential segment is expected to show a lot of growth. Because more homes are being built, there will be a big increase in the need for construction equipment in this sector. Also, macroeconomic factors help homebuyers a lot because they lower mortgage rates and create more jobs. This is likely to boost the growth of the market.

Regional Insights:

Asia-Pacific has the biggest share of the market right now and is expected to grow the fastest over the next few years. The region is one of the largest markets where infrastructure development and construction have grown quickly. This is because governments are putting more effort into building infrastructure to support a growing economy. The number of Special Economic Zones (SEZs), hydropower projects, dams, and highways, subways, and airports has grown a lot in the region to support the high level of industrial activity, the growing need for energy, and better connections. Because of this, many international companies have started to invest in the area and set up distribution centers and production facilities to meet the growing demand and take over the local market.

Also, the construction equipment rental business in China is growing by leaps and bounds. This country is thought to have the biggest market share because there are so many opportunities for companies that make rental equipment. This is because China's population is growing quickly and the government is investing a lot in public infrastructure and residential construction projects and developments. This also makes the market share grow around the world.

After Asia-Pacific, the market share in North America is expected to grow a lot over the next few years. The growth of the market is helped by the strong presence of the world's top manufacturers. Also, construction companies across North America aren't buying new equipment as often as they used to because of the economy. So, there are a lot of chances for the market to grow during the time frame predicted. North America's growth potential is driven by these things, and North America's market share continues to grow on a global scale.

During the period being looked at, the Europe market is expected to grow a lot. This is mostly because more people want to live in new buildings. Germany also has a lot of factories, especially in the automotive industry, and some of the best machinery and equipment in all of Europe, which helps the market grow even more.

The European Rental Association (ERA) says that companies can be more sustainable if they use services instead of buying things. The growth of the European market is also supported by the fact that these countries are adding more ships to their fleets.

During the forecast period, the Middle East and Africa are expected to show steady growth. The Gulf Cooperation Council (GCC) has the largest market share in the Middle East and Africa. This is because the developed Gulf countries use a lot of automation and other modern techniques in their factories.

Latin America is likely to grow at a slow rate because there aren't many global market players there and there aren't many niches where manufacturing industries can grow. The slow growth of the region is also due to the fact that the market's distribution channels are not as well developed as they could be.

Scope Analysis

Recent Development:

• November 2021 - Herc Holdings Inc. acquired Rapid Equipment Rental Limited, a Toronto-based rental company.
• June 2020 - H&E Equipment Services Inc. announced the move of its Georgetown location to its Texas-based expansion operations.
• April 2021 - General Finance Corp. and United Rentals entered into a definitive agreement for United Rentals to acquire the former. The transaction value is USD 996 million.
• February 2020 - Boels acquired Cramo PLC to increase its customer base. This move was aimed at becoming one of the major players in the European rental market.
• June 2022 - Sunbelt Rentals announces a partnership with Britishvolt to support the development of Britishvolt's first full-scale Cambois-based battery, the Gigaplant. This long-term agreement will also see the companies working closely to support the development of battery solutions for power plants and heavy equipment to help decarbonize the construction and equipment rental sectors.

Market Segmentation

By Equipment Type:

• Earthmoving Equipment
• Material Handling Equipment
• Concrete & Road Construction Equipment
• Others

By Application:

• Residential
• Commercial
• Industrial
• Other

By Companies:

• United Rentals, Inc. (U.S.)
• Loxam (France)
• Sunbelt (U.S.)
• Taiyokenki Rental Co., Ltd. (Japan)
• AKTIO Corporation (Japan)
• Herc Rentals Inc. (U.S.)
• Ahern Rentals. (U.S.)
• H&E Equipment Services, Inc. (U.S.)
• Nikken Corporation (Japan)
• Nishio Rent All Co. Ltd. (Japan)
• Others