Construction Equipment Rental Market

REPORT SCOPE & OVERVIEW

The Construction Equipment Rental Market size was estimated at USD 187.46 Billion in 2022 and is expected to reach USD 301.9 Billion by 2030 at a CAGR of 6.14% during the forecast period of 2023-2030. 

The growth in government investment in the construction of public infrastructure has encouraged construction and mining operations in rising economies all over the world. Dieses explains why there is a huge market need for construction machinery. Construction firms and contractors are becoming more interested in renting construction equipment, as a result of the increase in the cost of new construction machinery. Additionally, the development of cutting-edge technology and an increase in automation are anticipated to fuel growth.

MARKET DYNAMICS

DRIVERS

• Project adaptability, technological progress, compliance with regulations, urbanization, and infrastructure development.

Construction companies benefit from flexibility from equipment leasing since it enables them to scale up or down depending on project demands. The risk of equipment sitting idle during sluggish times is reduced by this flexibility. Construction businesses are encouraged to rent equipment rather than buy it since renting gives them access to the most recent developments without having to make a large upfront commitment. Construction organizations are required to employ contemporary, compatible equipment due to strict emissions and safety laws.

RESTRAIN 

• Initial capital expenses, ongoing operating expenses, and ownership advantages:

Although renting equipment might ultimately save money, the upfront fees can be substantial, particularly when hiring big or specialized equipment. Maintenance, transportation, and running expenses are frequently the responsibility of the renter, which can pile up and lessen the overall cost benefit of renting. For long-term projects, some construction companies choose to own their own equipment, to build equity and obtain tax advantages.

OPPORTUNITY

• Emerging Markets, Diverse Inventory of Equipment.

To accommodate various consumer demands, rental firms might broaden their product offers to include a variety of construction tools, including specialized and cutting-edge versions. For rental enterprises, diversifying in developing nations with booming construction industries, may open up new consumer bases. 

CHALLENGES

• Competition, upkeep and safety, and reliance on the construction sector.

The market for renting construction equipment is extremely competitive, with several firms fighting for market share. Price pressure and smaller profit margins may result from this rivalry. The state of the rental market is directly correlated with that of the building sector. Demand may be impacted by economic downturns or changes in building activity. Due to wear and tear from numerous users, ensuring adequate maintenance and safety of rental equipment is a considerable problem for rental organizations.

IMPACT OF RUSSIA-UKRAINE WAR

It is understandable, that a year into the battle, the effects of the Russia-Ukraine War on the building have not abated. On February 24, 2022, the Russian President dispatched roughly 200,000 soldiers in Ukraine. The largest invasion of Europe since the conclusion of World War 2 resulted from it. Supply chains between the two nations were shattered by the conflict and the sanctions that followed against Russia. Affected were also indirect supply lines from Russia to Asia prices for raw materials, oil and gas, and transportation services all increased as soon as the battle started. Over the last year, the construction industry in the MENA area has been impacted by several macroeconomic factors. The early shock to product marketplaces has considerably diminished with the passage of time. But in 2023, the region's project markets will continue to be significantly impacted by the ongoing conflict.

IMPACT OF ONGOING RECESSION

In a downturn, the construction sector suffers, as final production is reduced due to a lack of consumer demand. The market for renting construction equipment is impacted as a result of the decline in construction activity, which will hinder the sector's growth pace.

KEY SEGMENTS

By Product

• Earth Moving Machinery

• Material Handling Machinery

• Concrete and Road Construction Machinery

REGIONAL COVERAGE

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of the Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

REGIONAL ANALYSES

6.3% considerable expansion is anticipated in Asia Pacific throughout the predicted period. Governments in emerging countries in Asia are heavily investing in the development of highways, airports, dams, and special economic zones (SEZs), in order to expand connectivity, improve commerce, and strengthen the general economy. These measures have caught the attention of major manufacturers of construction equipment, who are now eager to spend heavily and establish a presence in the area. Manufacturers of construction machinery from across the world, including Caterpillar, Hitachi, Liebherr, and Sumitomo Corporation, provide their goods and services in the area.

In 2022, North America had a 31.3% Market Share. During the duration of the prediction, the area has remained dominant. Due to the low cost of project-specific, cutting edge technical technology, the region's construction equipment businesses are expanding. Specialized machinery is chosen because it shortens operation times, eliminates idle time, and maximizes total mining or building activity. The need for improved rental services and solutions has developed as a result of the popularity of the major construction equipment rental firms with U.S. bases, like United Rentals, Ahern Rentals, Ashtead Group, and others.

Key Players

The major key players are Ahern Rentals Inc., AKTIO Corporation, Caterpillar Inc, Byrne Equipment Rental, Cramo Plc, Finning International Inc., Liebherr-International AG, Kanamoto Co., Ltd, Maxim Crane Works, L.P., United Rentals, Inc, Boels Rental, H&E Equipment Services Inc, and others

RECENT DEVELOPMENT

Boels Rental: In April 2023, the Nordic subsidiary Cramo after purchasing the Norwegian business BAS Maskinutleie. Diese purchase allows it to increase the scope of its rental services throughout the Nordic area.

H&E Equipment Services Inc: In June 2023, The 22nd rental facility for H&E Equipment Services Inc. (H&E) in the state of Texas has grown into a new branch in Houston South. It is managing a variety of construction and general industrial equipment thanks to its expansion.