USD 130 billion
Construction Equipment Rental Market Size, Share, Growth Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment), By Application, By Propulsion Type, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG20C2067 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
64
|Figures:
75
Construction Equipment Rental Market Insights
Construction Equipment Rental Market size was valued at USD 187.46 Billion in 2023 and is poised to grow from USD 199.08 Billion in 2024 to USD 320.19 Billion by 2032, growing at a CAGR of 6.2% during the forecast period (2025-2032).
Equipment rental, also known as plant hire in some countries (such as the United Kingdom), is a service industry that rents out machinery, equipment, and tools of various types and sizes (ranging from earthmoving to motorized access, power generation to hand-held tools, and so on) to final users, usually construction companies but also industry and individual customers, for a defined length of time. Renting is the temporary receipt of equipment to help those who cannot purchase the equipment outright. Leasing rather than purchasing large construction equipment has proven to be beneficial for businesses of all sizes around the world. The Construction Equipment Rental Market has exploded as a result. Power, housing, energy and transportation are the major investment-based industries that have seen significant expansion. Due to the high level of investment, construction organizations prefer to hire equipment to reduce project costs. This method is economical as it reduces maintenance cost and technical charges. This technique is cost-effective considering the low maintenance cost and low technical charges. Construction equipment is expensive and challenging to maintain, so renting or leasing it has become popular. There are also additional benefits to renting construction equipment outside of just the cost. Rental companies include the use of the machinery as well as the necessarily qualified machine operators and drivers in the rent. The recession and general economic downturn have had no impact on the construction industry.
The Construction Equipment Rental Market has adopted new technologies more frequently, such as digital services for automatically upgrading services, equipment tracking services, and mapping features. The original equipment manufacturers' technological advancements have led to a rise in the adoption rates of construction equipment in rental services. The market for construction equipment rentals has seen the introduction of numerous new features as a result of technological developments in the automobile and heavy machinery industries. Construction equipment manufacturers are working to offer enhanced safety features like lift assistance, 360-degree camera vision, and additional work lights, as well as advancements that boost operational efficiency and demand less maintenance. However, due to the expensive cost of these technologies, many small builders and contractors are unable to use them. Because of this, many experts choose to hire construction equipment. In addition to the price of purchasing new equipment, renting construction equipment can reduce operating, maintenance, and labor costs. Also, the cost of timely repair, inspection, and upkeep is avoided. Construction equipment rental businesses continuously carry out all of these operations in order to generate a long-term profit from the equipment. These businesses place a greater emphasis on onsite services and equipment maintenance, which improves the client experience. For instance, Caterpillar Inc. has quick response teams that use mobile maintenance vans to assist clients in remote locations.
New construction equipment usually requires significant down payments as well as a large expenditure of money from the business's operating costs. Interest on loans, insurance, licensing, storage, and taxes are some of the overhead expenses related to the use of construction equipment after it has been purchased. Owners of the equipment are also responsible for transportation between job sites. However, if the business rents the equipment, the supplier is in charge of transporting it to new work locations, and the business employing it is not accountable for the equipment's direct operating expenses. Additionally, rental companies frequently upgrade their fleets of tools and machines, guaranteeing that their clients have access to the most recent tools.
The cyclical stages of economic transition are expansion, recession, bottoming out, and recovery. The construction business has grown quickly against a backdrop of an economic boom, and leasing and profitability of construction equipment have surged. Given the cyclical nature of the construction industry and the current economic climate, the benefits of renting construction equipment have increased. A growing number of contractors, construction companies, and companies from many industries are considering renting options. According to Keith Homes, Vice President of Operations at the equipment rental website BigRentz, a significant shift from buying new equipment to renting it has taken place among the contractors and construction firms who use the platform.
US Construction Equipment Rental Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Earthmoving machinery
Fastest Growth
Earthmoving machinery
Growth Rate
5.2% CAGR
Global Construction Equipment Rental Market ($ Bn)
Country Share for North America Region (%)
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Construction Equipment Rental Market Segmental Analysis
Global Construction Equipment Rental Market is segmented by equipment type, application, propulsion type and region. Based on equipment type, the market is segmented into earthmoving equipment (excavators, loaders, bulldozers, backhoes), material handling equipment (cranes, forklifts, telehandlers), concrete & road construction equipment (concrete mixers, pavers, road rollers) and others (compactors, aerial work platforms). Based on application, the market is segmented into residential, commercial, and industrial. Based on propulsion type, the market is segmented into diesel, electric and hybrid. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Construction Equipment Rental Market Analysis by Product
The market sector for earthmoving equipment had a significant Construction Equipment Rental Market share of more than 50% in 2021. The mining, agricultural, and construction industries' expanding use of earthmoving excavators considerably contributes to segment growth. The many types of earthmoving machinery, including backhoe loaders, crawler excavators, skid-steer loaders, and micro excavators, have improved engine performance and higher weight capacities. Because of these characteristics, earthmoving machinery can be used under hazardous working conditions. The growing number of major residential and commercial civil projects has also increased the demand for renting earthmoving equipment among construction companies and contractors.
The concrete and road construction equipment segment is expected to increase at a compound annual growth rate of 6.5%. Due to the critical role that a well-developed infrastructure plays in enhancing trade and commerce operations, road connectivity has the ability to shape the country's future economic landscape. The Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act), passed by the federal government of the United States in November 2021, allows for investments totaling $110 billion to be made over a five-year period to construct roads, bridges, and other infrastructure. To lower traffic fatalities and increase connectivity, safe streets, and roads will be built. In addition, many developing nations in the Asia-Pacific region, including China and India, concentrate on improving road connectivity. For instance, the "One Belt, One Road" programme by China will link China to European nations. The project is expected to cost USD 1.3 trillion in total. Similar to this, the Indian government has budgeted $529.7 billion for 2022–2023 in order to build new highways and increase road connectivity. As a result, there will likely be a global demand for concrete and road construction equipment as a result of the government's rising investment in large-scale road and highway construction projects.
Construction Equipment Rental Market Analysis by Application
The Energy Infrastructure segment accounted for the largest revenue share in 2021. Energy infrastructure is the administrative framework that enables the large-scale transit of energy from producer to consumer as well as the management and direction of energy flow. Energy infrastructure includes conventional utilities like gas and oil pipelines, electricity transmission lines, and coal trains as well as cutting-edge electrical metering and distribution systems, smart building systems, and power plant control systems. Because it requires the utilization of labor and money to produce energy, the energy sector has a direct impact on the economy. This impact is particularly significant at this time when economic growth and job creation are top goals globally. Energy-related companies do not have high labor requirements, but because the personnel employed are generally highly qualified and paid well, they make a greater absolute per capita economic contribution to the economy than the ordinary worker.
Global Construction Equipment Rental Market By Product
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Construction Equipment Rental Market Regional Insights
In 2021, North America will control 44.8% of the global market. The region is expected to maintain its dominance during the forecast period. The availability of project-specific technologically advanced machinery at a low cost has fueled the rise of construction equipment companies in the region. The use of specialist equipment is highly recommended because it shortens operation times, eliminates idle time, and enhances overall mining or construction operations. The popularity of the main construction equipment rental companies with U.S. bases, like United Rentals, Ahern Rentals, Ashtead Group, and others, has increased the demand for better rental services and solutions.
During the forecast period, growth in the Asia-Pacific region is expected to climb at a rate of 6.3%. In order to enhance connectivity, facilitate commerce, and strengthen the general economy of the region, governments of developing nations in Asia are investing extensively in the construction of highways, airports, dams, and special economic zones (SEZs). Major producers of construction equipment have taken notice of these initiatives and are now willing to invest massively and establish a presence in the region. Worldwide producers of construction equipment, including as Caterpillar, Hitachi, Liebherr, and Sumitomo Corporation, offer their products and services in the region.
Global Construction Equipment Rental Market By Region
- Largest
- Fastest
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Construction Equipment Rental Market Dynamics
Construction Equipment Rental Market Drivers
Increasing the use of rental equipment in a variety of industries
- Given the cyclical nature of the construction industry and the current state of the economy, renting construction equipment has a number of advantages. More and more sectors, building companies, and contractors are looking into rental solutions. Contractors and builders have reportedly made a significant switch from purchasing new equipment to renting it, according to the equipment rental platform BigRentz. While many business executives and economists anticipate a recession, this could result in a surge in the demand for equipment rentals, driving enterprises away from ownership and leasing. Construction firms are wary of these expenses. Companies must make the most of the equipment they buy to achieve the most value because of economic unpredictability and cost considerations. This makes renting equipment a tempting substitute and is helping to the construction equipment rental market growth.
Construction Equipment Rental Market Restraints
The economic downturn in the construction equipment rental market
- Recessions and slumps can affect the building business. The market for leasing construction equipment has several business cycles throughout the course of its existence and is affected by those in countries with both high and low levels of economic activity. Due to decreasing final production as a result of declining consumer demand, the construction industry may experience a recession. As a result, a decline in building activity is expected to have an impact on the equipment rental market.
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Construction Equipment Rental Market Competitive Landscape
The global construction equipment rental market is fragmented and highly competitive. Key industry players are focused on product developments, new product launches, and geographical expansions to gain a significant amount of market share.
Construction Equipment Rental Market Top Player’s Company Profiles
- United Rentals, Inc.
- Ashtead Group plc
- Loxam Group
- Herc Holdings Inc.
- Aktio Corporation
- Nishio Rent All Co., Ltd.
- Kanamoto Co., Ltd.
- H&E Equipment Services, Inc.
- Ahern Rentals, Inc.
- Ramirent
- Speedy Hire plc
- Sunstate Equipment Co., LLC
- Maxim Crane Works, L.P.
- Nesco Holdings, Inc.
- Boels Rental
- Cramo Group
- Mateco GmbH
- Kiloutou
- Riwal
- Al Faris Equipment Rentals
Construction Equipment Rental Market Recent Developments
- In December 2022, UMT (United Mobility Technology AG), a German technology startup launched Smart Rental, an online rental marketplace based on a mobile phone App. According to the company, customers will be able to rent excavators, vibratory plates, loaders, and other construction equipment close to their locations, at any time, and without contact.
- In August 2022, Atlas Crane Service, LLC, a full-service crane rental company primarily serving the wind industry, announced that a fund managed by Ares Management's Infrastructure Opportunities strategy had acquired a majority position in the company.
- In June 2021, Loxam Group announced its acquisition of JM Trykluft A/S from its ultimate shareholders. The deal was primarily concerned with bolstering Loxam's infrastructure in Denmark's western region. Additionally, it added to the company's network of 21 general plant branches and six specialty branches, enabling the establishment of a best-in-class service network for its clientele.
Construction Equipment Rental Key Market Trends
- Technological advancements in the heavy equipment and automotive industries have resulted in a number of new market trends. To increase productivity and decrease maintenance requirements, producers of construction equipment are concentrating on integrating cutting-edge safety features like 360-degree video views, lift help, and auxiliary work lighting. Construction equipment's productivity and efficiency are rising as a result of expanding technological developments in the automobile and construction machinery industry. The main goals of major players in the equipment business are to create smarter machines by integrating their own proprietary technological systems. Telematics systems give basic information about the location and status of construction equipment and vehicles. The technology transmits information about GPS location, fuel usage, and engine idle time. However, this technology necessitates a substantial investment, making many small contractors and builders unable to afford it. By lowering the overall cost and offering rental possibilities, the equipment rental firm has found a solution. As a result, the aforementioned reasons are fueling even faster global market expansion for construction equipment.
Construction Equipment Rental Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global construction equipment rental market analysis, the earthmoving equipment segment had a significant market share of more than 50% in 2021. The rising use of earthmoving excavators in the mining, agricultural, and construction sectors significantly contributes to segment growth. The growing number of major residential and commercial civil projects has also increased the demand for renting earthmoving equipment among construction companies and contractors. Equipment used in the construction of roads and concrete is anticipated to rise at a compound annual growth rate of 6.5%. In terms of revenue share, the Energy Infrastructure sector led in 2021. Energy infrastructure is the legal framework that permits both the control and planning of energy flow as well as the large-scale transit of energy from producer to consumer. In 2021, North America will control 44.8% of the global market. The region is expected to maintain its dominance during the forecast period. The Asia Pacific region is expected to increase at a rate of 6.3% during the forecast period. Technological advancements in the heavy equipment and automotive industries have resulted in a number of new market trends.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 130 billion |
| Market size value in 2031 | USD 204.28 billion |
| Growth Rate | 5.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Construction Equipment Rental Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Construction Equipment Rental Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Construction Equipment Rental Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Construction Equipment Rental Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Construction Equipment Rental Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Construction Equipment Rental Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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