Market Summary: The global construction equipment rental market had a size of $190 billion in 2022, and it is projected to reach $349.31 billion by 2032. During the forecast period, it is expected to experience a robust compound annual growth rate (CAGR) of 7%. This growth is attributed to several factors, including increased demand for construction equipment, the cost-effectiveness of rental services, and the growing trend of outsourcing equipment needs.
Construction equipment rental involves leasing machinery and equipment on a temporary basis, offering benefits such as flexibility, reduced capital expenditure, access to a wide range of equipment, and maintenance and support services.
Furthermore, factors like urbanization, infrastructure development, and investments in residential and commercial projects are contributing to the market's revenue growth. Construction companies, contractors, and developers require a variety of equipment, such as excavators, loaders, cranes, bulldozers, and aerial work platforms, to support their projects, leading to a rising demand for rental services.
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Renting construction equipment offers financial advantages by eliminating upfront investments, reducing maintenance and storage costs, and enabling the allocation of capital resources to core activities and projects. Rental services often include maintenance, repairs, and equipment upgrades, alleviating companies of these responsibilities and appealing to businesses seeking efficient and flexible equipment solutions.
However, the market faces challenges, such as intense competition, the presence of counterfeit equipment, and complex rental contracts, which could limit revenue growth. The construction equipment rental market is highly competitive, with many local and global players offering rental services, potentially leading to price pressures and reduced profit margins. Additionally, the availability of counterfeit or subpar equipment poses risks to the reputation and reliability of rental services, necessitating careful selection of trusted and reputable rental providers.
Equipment Type Trends:
- In 2022, the earthmoving equipment segment led the market in terms of revenue share. Excavators, loaders, bulldozers, and backhoes are commonly used in earthmoving tasks on construction sites. Increased global building activity, especially in developing nations focusing on infrastructure development, drives the demand for these machines. Renting such equipment is becoming more popular due to its cost-saving benefits.
- The material handling equipment segment is expected to experience the fastest revenue CAGR during the forecast period. The need for material handling tools like forklifts, cranes, and hoists in construction, warehousing, and manufacturing drives this growth. The adoption of automation and the emphasis on safety regulations further boost demand for material handling equipment rental services.
- In the end-use segments, residential, commercial, industrial, and infrastructure sectors are significant drivers of the global construction equipment rental market's growth.
- The residential sector is expected to contribute significantly to revenue due to the rising demand for affordable housing, especially in emerging economies. Increased urbanization, lifestyle changes, and higher disposable income are fueling construction activity and equipment rentals in residential areas.
- The commercial sector is also poised for growth with an uptick in commercial development projects such as malls, office buildings, and hospitals. The tourism industry's expansion and the construction of hotels and resorts further drive demand for rental construction equipment.
- In the industrial sector, manufacturing, mining, oil and gas, and chemical industries frequently use rental equipment like cranes and forklifts. As these sectors adopt automation and advanced technology, the need for rental equipment is expected to rise.
- The infrastructure sector is anticipated to dominate the market, driven by increasing investments in infrastructure development, especially in developing countries. Infrastructure projects often require equipment like asphalt pavers and concrete mixers, further boosting demand for rental construction equipment.
- North America led the global construction equipment rental market in 2022, driven by the trend of outsourcing construction equipment and the presence of major construction corporations. The region witnessed rising demand for building projects and a shortage of skilled labor.
- Asia-Pacific is expected to experience the highest revenue growth rate during the forecast period, fueled by population growth, urbanization, and increased investment in infrastructure. Government initiatives like the Belt and Road Initiative in China contribute to the expansion of construction equipment rental services.
- Europe is likely to see moderate growth, with a history of construction industry expertise and increasing popularity of construction equipment outsourcing.
- The global construction equipment rental market is fragmented, with several large and medium-sized players competing. These companies employ various strategies to expand their product offerings, increase market share, and gain a competitive edge.
- Key companies in the market include United Rentals, Inc., Ashtead Group Plc, Herc Holdings Inc., Loxam SAS, Sunbelt Rentals, Inc., Ahern Rentals, Inc., H&E Equipment Services, Inc., Blueline Rental LLC, Cramo Group, and Ramirent Plc.
- United Rentals, Inc. acquired General Finance Corporation in 2021, aiming to expand its fleet size and geographic reach.
- Ashtead Group Plc acquired Canadian industrial equipment rental company, CRS Contractors Rental Supply, in 2020 to expand its operations in Canada.
- Herc Holdings Inc. acquired American Equipment Rentals in 2020, enhancing its product offerings in the West Coast region.
- Loxam SAS acquired the Danish equipment rental company, Cramo, in 2020, strengthening its position in Northern Europe and the global construction equipment rental market.
New Product Launches:
- United Rentals, Inc. introduced hybrid power generators in 2021, designed to reduce fuel consumption and emissions.
- Herc Holdings Inc. launched a line of compact track loaders in 2020, offering increased efficiency and productivity.
- Sunbelt Rentals, Inc. introduced a new line of aerial work platforms in 2020, emphasizing safety and productivity.
- H&E Equipment Services, Inc. launched telescopic handlers in 2020, offering efficiency and versatility.
- Blueline Rental LLC released air compressors in 2020, emphasizing efficiency and reliability.
- The report covers historical data and forecasts revenue growth at the global, regional, and country levels. It provides analysis of market trends in segments and sub-segments from 2019 to 2032.
- The global construction equipment rental market is segmented based on equipment type, end-use, and region.
Market Scope Summary:
- Market Size in 2022: $190 billion
- CAGR (2022 - 2032): 7%
- Revenue Forecast in 2032: $349.31 billion
- Base Year for Estimation: 2022
- Historical Data: 2020-2021
- Forecast Period: 2022-2032
- Quantitative Units: Revenue in USD Billion
- Report Coverage: Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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