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Construction Equipment Rental Market Size By Product (Earthmoving & Road Building Equipment [Backhoes, Excavators, Loaders, Compaction Equipment], Material Handling & Cranes [Storage & Handling Equipment, Engineered Systems, Industrial Trucks, Bulk Material Handling Equipment], Concrete Equipment [Concrete Pumps, Crushers, Transit Mixers, Asphalt Pavers, Batching Plants]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021-2027

  • Report ID: GMI773
  • Published Date: Aug 2021
  • Report Format: PDF

Industry Trends

Construction Equipment Rental Market size valued at USD 110 billion in 2020 and is poised to register over 4.5% CAGR from 2021 to 2027. Increasing government expenditure in the development of public infrastructure and smart cities is anticipated to propel industry growth.

The high initial purchase cost of new construction machines is encouraging contractors and construction companies to shift toward construction equipment rental. Market factors including high taxes, maintenance, high depreciation costs, equipment insurance entailed by new machines have contributed to the rising demand for equipment rentals. Moreover, the construction industry is dynamic and highly influenced by market fluctuations. Renting construction equipment protects the company from unpredictable financial downturns that may arise. The availability of a wide range of technologically advanced equipment on rent is also boosting the market revenue.

Construction Equipment Rental Market

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Increasing labor costs along with changing demand patterns in countries including the U.S, China, the UK, and India are creating robust market growth opportunities. According to the U.S. Bureau of Labor Statistics, wages and salaries surged by 0.9% in March 2021 compared to the previous month. Construction equipment rental offers several benefits including a reduction in maintenance and technical charges. Growing number of fatalities on construction sites has led organizations to replace conventional construction equipment with AI, telematics & IoT integrated machines, supporting the industry statistics.

The construction equipment rental industry demand was adversely impacted by the COVID-19 pandemic. The global lockdown caused hindrance in performing contractual obligations, resulting in a sharp decline in market revenues. The pandemic has led to a delay in the completion of public infrastructure projects and private housing construction projects. With the reopening of economies, the market is likely to witness a steady recovery in 2021.

Rising infrastructure development projects will positively influence earthmoving & road building equipment rental

Earthmoving & road building equipment held a market share of around 60% in 2020. Increasing government expenditure in infrastructure development, such as the construction of buildings, airports, railways, highways, bridges, telecom, and dams, will augment the industry outlook.

Positive outlook of the construction industry to spur the North American market demand

North America Construction Equipment Rental Market Share By Region

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North America construction equipment rental market size exceeded USD 40 billion in 2020. Growing popularity of advanced and fuel-efficient construction equipment due to their cost-effectiveness and standard safety features is driving the regional market growth. Several construction companies are switching to rental options to cater to the rising construction activities.

Increasing government initiatives for building public infrastructure and government utilities in the region is projected to fuel the adoption of material handling equipment and cranes. According to a report by the state government of Alberta, Canada published in 2021, the province has been allocated more than USD 10 billion in infrastructure projects to strengthen the economy. Out of the allocation, USD 200 million will be spent on water infrastructure and strategic infrastructure projects.

Strategic acquisitions by key players to strengthen their market position

Industry participants are focusing on acquisition strategies to expand their fleet size and market share. Companies are emphasizing on fleet maintenance and improvement to ensure that the equipment is technologically upgraded. For instance, in February 2020, Boels acquired Cramo PLC to enhance its customer base and become one of the leading players in the European rental market. The acquisition helped Boels to expand the scale of business, improve customer & logistic services, and strengthen its position in the market.

Prominent players in the construction equipment rental market include AKTIO Corporation, Loxam Group, Caterpillar Inc., United Rentals, Inc., Mtandt Rentals Limited, Ahern Rentals, Inc., Nesco Rentals, The Hertz Corporation, Boels Rentals, and Unirent LLC.

This market research report on construction equipment rental includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

Market, By Product

  • Earthmoving & Road Building Equipment
    • Backhoes
    • Excavators
    • Loaders
    • Compaction Equipment
    • Others
  • Material Handling & Cranes
    • Storage & Handling Equipment
    • Engineered Systems
    • Industrial Trucks
    • Bulk Material Handling Equipment
  • Concrete Equipment
    • Concrete Pumps
    • Crushers
    • Transit Mixers
    • Asphalt Pavers
    • Batching Plants

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The construction equipment rental market crossed USD 110 billion in 2020 and will grow at a CAGR of 4.5% between 2021 and 2027, says this GMI report.

Earthmoving & roadbuilding equipment rental market accounted for 60% of the revenue share in 2020 and will expand due to the soaring government expenditure in infrastructure development.

The North American market surpassed USD 40 billion in 2020 and will grow with rising popularity of fuel-efficient and advanced equipment.

Major market participants comprise United Rentals, Inc., Nesco Rentals, Caterpillar, Inc., The Hertz Corporation, Unirent LLC, AKTIO Corporation, Loxam Group, Boels Rentals, and others.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 20
  • Tables & Figures: 247
  • Countries covered: 16
  • Pages: 250

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