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]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 - 2026

Published Date: Dec 2020  |  Report ID: GMI773  |  Authors: Preeti Wadhwani, Prasenjit Saha

Report Format: PDF   |   Pages: 300   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Construction Equipment Rental Market size crossed USD 120 billion in 2019 and is anticipated to grow at 4.5% CAGR between 2020 and 2026. Increasing government investments in development of smart cities and public infrastructure across the globe is likely to fuel the industry growth.

Construction Equipment Rental Market

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High initial investments involved in the purchase of new construction machines are encouraging a rapid shift of construction companies and contractors toward rental equipment. Market factors, such as high taxes, equipment insurance, and maintenance, entailed by new machines also contribute to the growing demand for renting construction equipment globally. The availability of a wide range of technologically advanced machines for rent is also driving the market.

Changing demand patterns coupled with rising labor costs in countries, such as India and China, are creating a robust market demand for renting equipment. Several benefits, such as reduction in technical and maintenance charges, offered by rental equipment providers are encouraging construction companies to rent equipment for timely completion of projects. The increasing number of casualties during construction activities has forced organizations to replace the traditional construction techniques with IoT, telematics, and AI-integrated machines, providing new market opportunities.

The reluctance of large construction companies with an extensive equipment fleet to adapt to the market trend of renting machines is expected to hamper the construction equipment rental market growth. Rental firms operating globally are subjected to different regulations and laws related to occupational safety of construction workers and environmental protection. Business operations are also adversely affected with increasing costs impelled by changes in laws & regulations across different geographies. High capital investments required by new players to purchase advanced equipment will also hinder the industry growth.

The construction equipment rental industry is hampered by the emergence of COVID-19 pandemic since December 2019. Restrictions on movement and mass quarantines implemented by government authorities are posing several industry challenges including a decline in revenues. The pandemic has resulted into a delay in completion of large government-funded infrastructure projects, further hampering the market growth in 2020. However, the market is expected to witness a steady increase in 2021 with high focus of construction contractors on renting as opposed to purchasing new equipment.

Construction Equipment Rental Market Report Coverage
Report Coverage Details
Base Year:2019
Market Size in 2019:USD 120 Billion
Forecast Period:2020 to 2026
Forecast Period 2020 to 2026 CAGR:4.5%
2026 Value Projection:USD 155 Billion
Historical Data for:2015 to 2019
No. of Pages:300
Tables, Charts & Figures:328
Segments covered:Product
Growth Drivers:
  • High investments in new construction equipment
  • Growing demand for equipment rental in North America
  • Proliferation of technologically advanced construction equipment in Europe
  • Increasing mechanization in Asia Pacific construction industry
  • Growing rate of urbanization in the Latin America
  • Rising investments in development of smart cities in MEA
Pitfalls & Challenges:
  • Cyclic nature of application industries
  • Lack of skilled and qualified operators

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The proliferation of earthmoving & road building equipment rental due to rising infrastructure development activities

A market share of over 60% was held by the earthmoving & road building equipment segment in 2018. The segment includes market revenues from construction equipment rental including compaction machines, loaders, backhoes, and excavators. Increasing government investments in development of public infrastructure including highways, airports, and bridges will positively influence the market statistics through 2026.

The growing inclination of end-users to obtain earthmoving equipment including excavators and loaders on lease is a popular market trend. The increasing accessibility for rent-based systems is encouraging users to use technologically advanced earthmoving equipment offered by equipment rental providers. Rising automation in machines coupled with the growing need for efficient handling of equipment to enhance productivity will drive the market outlook.

The expansion of metal and mining sectors and increasing investments in agriculture, retail, hospitality, infrastructure & transportation sectors, and energy programs worldwide are driving the market demand. The rise in urbanization is a vital factor driving the growth of the construction equipment rental service providers. Rapidly increasing employment opportunities in urban areas and changing consumer lifestyles are creating a high demand for residential buildings in cities, supporting the construction equipment rental services.

Positive outlook of the real estate industry boosting the market growth in North America

North America Construction Equipment Rental Market

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The construction equipment rental market in North America valued at USD 40 billion in 2019. The high demand for real estate in commercial and industrial sectors is positively influencing the regional market statistics. The growing demand for fuel-efficient and advanced construction equipment rental is rapidly gaining popularity in North America owing to their cost-effective performance. Several construction companies in the region prefer using fuel-efficient cranes as they allow fuel savings and emit less carbon. These companies are switching to rental options to cater to the increasing construction activities, further augmenting the market expansion.

The growing influx of immigrants in Canada has created a robust demand for construction of new commercial and residential buildings in the country. This rapid development of the construction industry in Canada is fueling the demand for advanced construction equipment rentals. Moreover, increasing government investments in infrastructure development are favoring the market demand. For instance, the ‘Invest in Canada’ initiative by the government has allocated USD 81.2 billion to develop commercial and public infrastructure to address the growing demand from immigrants in the country.

North America has witnessed a considerable growth in the demand for construction equipment rental propelled by several companies delivering project-specific equipment with enhanced efficiency and reduced costs. The presence of major construction equipment rental companies in the U.S. has led to a rise in the demand for improved rental solutions and services to reduce the time required for completion of construction projects.

Strategic partnerships and mergers are key strategies adopted by industry players

Market players are engaged in acquisition strategies to expand their share. Acquisitions and mergers are a part of aggressive growth strategies acquire by market leaders. For instance, in July 2018, United Rentals announced the acquisition of BakerCorp International Holdings, Inc. for approximately USD 175 million. This acquisition aided the company to expand its construction equipment rental fleet and cater to a larger customer base.

The expansion of fleet size is another prominent strategy adopted by construction equipment rental companies. The availability of a large equipment fleet assists industry participants to cater to several customers simultaneously while increasing their market revenues. For instance, in 2019, Herc Rentals invested a sum of USD 400 million in fleet enhancement and maintenance. The market data suggests that the company’s fleet age improved 45 years due to this investment. Industry players focus on continuous investments in fleet maintenance and improvement to ensure that the equipment is technologically upgraded.

Some of the prominent players in construction equipment rental market include Loxam Group, United Rentals, Inc., Mtandt Rentals Limited, Cramo PLC., Nesco Rentals, The Hertz Corporation, Nesco Rentals, Boels Rentals, Unirent LLC, Caterpillar Inc., Ahern Rentals, Inc., and Aktio Corporation.

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 2015 to 2026 for the following segments:

Market, By Product

  • Earthmoving & Road Building Equipment
    • Backhoe
    • Excavator
    • Loader
    • Compaction Equipment
    • Others
  • Material Handling & Cranes
    • Storage & Handling Equipment
    • Engineered Systems
    • Industrial Trucks
    • Bulk Material Handling Equipment
  • Concrete equipment
    • Concrete Pump
    • Crusher
    • Transit Mixer
    • Asphalt paver
    • Batching plant

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


Frequently Asked Questions (FAQ) :

Construction Equipment Rental market size crossed USD 120 billion in 2019 and is estimated to grow at 4.5% CAGR through 2026, says GMI report.
Earthmoving and road building equipment accounted for more than 60% of construction equipment rental market share in 2019 owing to increased government spending to develop public infrastructure.
The market for construction equipment rental in North America had reached over USD 40 billion in 2019 and will expand with increased focus on deploying fuel-efficient equipment to reduce carbon emissions.
Construction activities slowed down since December 2019 owing to the COVID-19 pandemic, but the market will grow through 2021 as contractors will prefer renting construction equipment to save costs.

Premium Report Details

  • Published Date: Dec 2020
  • Pages: 300
  • Tables: 296
  • Charts / Figures: 32
  • Companies covered: 24
  • Countries covered: 16

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