Construction Equipment Rental Market is Estimated To Witness High Growth Owing To Trend of Equipment Renting Over Buying
The construction equipment rental market consists of equipment that is rented for various construction activities such as earthmoving, material handling, road building, and material handling activities. Common types of construction equipment available on rent include backhoes, loaders, excavators, dump trucks, dozers, graders, cranes, concrete pumps, and others. Renting construction equipment reduces upfront capital costs and offers flexibility to contractors and construction firms.
The construction equipment rental market 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.
Market Dynamics:
The rapidly expanding construction industry across both residential and non-residential sectors is the primary driver for growth of construction equipment rental market. According to estimates, the global construction industry is expected to grow at 4-5% annually between 2023-2030. Another driver is the reduced operating costs associated with renting equipment. Renting alleviates equipment owners from maintenance costs and risks associated with technological obsolescence. Also, rental companies ensure equipment is in optimized working condition through regular servicing and repairs. This in turn boosts productivity and efficiency at construction sites.
SWOT Analysis
Strength: The construction equipment rental market size provides flexibility and reduces upfront capital costs for construction companies. Renting equipment allows companies to access the latest technology without large investments. It also helps optimize equipment utilization.
Weakness: Frequent technology changes require continuous upgrading of fleets. This increases operating costs. Dependency on rental equipment also poses risks as they may not be always available during peak demand seasons.
Opportunity: Growth in infrastructure projects globally due to urbanization is driving demand for construction equipment. Governments are increasingly outsourcing infrastructure building to reduce budget burdens. This increases reliance on rental services.
Threats: Economic fluctuations can negatively impact construction spending and potentially rental demand. Strict emission norms on equipment are forcing replacements, increasing costs for rental companies.
Key Takeaways
The global Construction Equipment Rental Market is expected to witness high growth, exhibiting CAGR of 5.1% over the forecast period, due to increasing infrastructure development activities across the globe. Mega infrastructure projects in developing nations such as China, India are major demand drivers.
Regional analysis: Asia Pacific dominates the market, accounting for over 35% share in 2023. China, India, and Southeast Asian countries are witnessing increased infrastructure investments that stimulate equipment rentals. North America follows Asia Pacific owing to reviving construction in the US.
Key players: Key players operating in the construction equipment rental market are 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. The market is witnessing increasing consolidation as major players pursue mergers and acquisitions for geographic expansion.
Get more insights on this topic: https://www.trendingwebwire.com/construction-equipment-rental-market-size-and-outlook-2023-2030/
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