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: Feb 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 exceeded USD 120 billion in 2019 and is estimated to grow at a CAGR of over 4.5% between 2020 and 2026. Increasing government spending on smart city projects across Asia Pacific and Europe will create huge market opportunities for construction equipment rental services.
 

The increasing number of infrastructure development projects across the globe will drive the construction equipment rental industry growth. Contractors and construction companies are shifting their preferences toward equipment rental services to avoid the high initial purchase cost of construction machines. Furthermore, the efficient selection, transportation, and installation services offered by rental providers will propel the market size.
 

Construction Equipment Rental Market

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The availability of project-specific rental services is further driving the market growth. Construction equipment rental companies are offering a wide range of equipment leasing plans based on the requirements of construction companies to enhance their flexibility, which is anticipated to support the industry expansion over the forecast timeline.
 

Additionally, construction equipment rental service providers are also deploying new machines with advanced technologies, such as IoT and telematics, to cater to the increasing market demand for advanced equipment.
 

The latest industry trend includes RFID and GPS connected machines. These technologies allow construction equipment rental companies to gain real-time equipment data and transparency of their fleet size. Furthermore, GPS aids in tracking the exact location of equipment, mitigating the chances of theft activities, augmenting the market outlook.
 

Construction equipment rental service providers are integrating RFID to check rental supplies in inventories and manage time logs of rentals, further supporting industry growth.
 

Several market factors, such as predicting the demand in advance and optimizing fleet utilization, will pose significant challenges to the construction equipment rental industry. The requirement for high capital investments on modern equipment and fleet expansion is further expected to hamper the market growth.
 

Construction Equipment Rental Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 120 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 4.5% 2026 Value Projection: 170 Billion (USD)
Pages: 300 Tables, Charts & Figures: 329
Geographies covered (16): U.S., Canada, U.K., Germany, France, Italy, Russia, China, India, Japan, South Korea, Brazil, Mexico, UAE, Saudi Arabia, South Africa
Segments covered: Product
Companies covered (23): Ahern Rentals, Inc., AJ Networks Co., Ltd., Aktio Corporation, Ashtead Group, Boels Rental, Caterpillar Inc., Cramo PLC, Fortrent, H&E Equipment Services, Herc Holdings, Inc. (Herc Rentals, Inc.), Hinkel Equipment Rental Associates, Kiloutou, Loxam Group, LTech, Mtandt Rentals Limited, Nesco Rentals (Nesco, LLC), Pekkaniska Oy, Ramirent, Riwal, Shanghai Hongxin Equipment Engineering Co., Ltd., Sunstate Equipment Company, Unirent LLC, United Rentals, Inc.
Growth Drivers:
  • High initial costs of construction equipment
  • Implementation of advanced technologies in construction machinery
  • Increasing infrastructure investments across the globe
  • Rapidly developing Asia Pacific construction industry
  • Rising equipment rental demand in North America
  • Increasing rate of urbanization in the U.S.
  • Increasing infrastructure and industrial projects in Russia
  • Growing urbanization and safety concerns in India
  • Rapid infrastructure development in BRIC countries
  • Growing reconstruction and maintenance activities in Japan
Pitfalls & Challenges:
  • Cyclic instability of application industries
  • Lack of skilled and qualified operators
  • Optimizing fleet utilization
  • Lack of awareness

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Increasing investments in public infrastructure development to create demand for earthmoving & road building equipment

Earthmoving & Roadbuilding Equipment Rental Market

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In terms of product segment, the market is categorized into earthmoving & road building equipment, material handling & cranes, and concrete equipment. The earthmoving & road building equipment segment held around 60% of the market share in 2018.
 

The increasing market demand for these machines is attributed to the rising government initiatives to enhance public infrastructures in countries including India, China, and Brazil. Governments in these regions are making large investments in the development of highways, urban transports, and renewable energy, providing market opportunities.
 

Several construction equipment manufacturers including Volvo and Caterpillar are offering backhoe loaders on a rental basis to help construction companies avoid initial purchase and high maintenance costs. Backhoe loaders are designed to operate easily over rough terrains to perform several tasks such as planting underground cables, laying pipes, and digging ditches.
 

Furthermore, the increasing market trend of multipurpose backhoe loaders is contributing to the construction equipment rental market growth. These machines are integrated with multipurpose buckets that allow operators to utilize the equipment for loading and grading applications.
 

The demand for digging equipment including compact excavators is increasing significantly due to their versatility, better maneuverability, and easier operation. Several construction equipment rental companies are offering compact excavators from multiple brands with wide operating weights to enhance their market offerings.
 

For instance, United Rentals, Inc. offers mini excavators from operating weight of 1,000lbs. to 19,999lbs. Such offerings by the construction equipment rental service providers will provide a positive outlook on the industry.
 

Rapid development in the Asia Pacific construction industry due to rising urbanization

APAC Construction Equipment Rental Market

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The construction industry in Asia Pacific countries including India, China, and Japan is experiencing rapid development due to increasing infrastructure transformation projects across all industry verticals. Government plans and strategies to enhance public infrastructures, such as schools, parks, and shopping complexes in urban areas along with the provision of water supply, sanitation, transportation in rural areas, are driving the regional construction equipment rental market growth.
 

The Indian government has launched a series of flagship initiatives, such as Housing for All, Make in India, Smart Cities Mission, and the Atal Mission for Urban Rejuvenation & Transformation (AMRUT), which will add up to the growing demand for construction equipment rental services. According to the National Investment Promotion and Facilitation Agency in India, the construction industry is expected to reach USD 738.5 billion by 2022, providing opportunities for market expansion.
 

The government of China is making huge investments in the refurbishment of large infrastructures such as airports and metro stations. For instance, according to the State Council of China, the state planner of China has announced an investment of around USD 6.1 billion for the expansion of the airport in Urumqi.
 

The above-mentioned factor will create a huge demand for construction equipment rental services in the country. Furthermore, the Chinese government is planning the development and refurbishment of roads & highways under its ‘Belt & Road’ initiative, contributing to the construction equipment rental market demand.
 

M&A and strategic partnership remains as key strategies to enhance market share

Companies operating the construction equipment rental industry are adopting several strategies such as mergers & acquisitions and partnerships & collaborations to expand their market shares. For instance, in January 2019, Loxam Group completed the acquisition of UK Platforms, a specialized construction equipment rental provider of access equipment with a fleet size of over 3,000 units. This aided Loxam to expand its geographical presence in Europe.
 

Similarly, in March 2018, Cramo Group announced the acquisition of KBS Infra GmbH, a German construction site logistics company. This aided Cramo to strengthen its position in the Central European market.
 

Market leaders are focusing on expanding their fleet size to cater to the increasing consumer demand for construction equipment rental services. Contractors across the globe are opting for rental services due to their lower market price compared to the purchasing cost of new equipment, attributing to the market demand.
 

Furthermore, construction equipment rental companies operating in this market are providing online courses & certified training to operators, ensuring maximum safety while operating potentially dangerous construction machines, attributing to the market size in 2019.
 

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

The construction equipment rental market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

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) :

According to this GMI report, the market from construction equipment rental is likely to register a CAGR of 4.5% through 2026, with an anticipated valuation of USD 170 billion by the end of the same year.
The increasing number of infrastructure development projects across the globe along with construction companies are shifting their preferences toward equipment rental services to avoid the high initial purchase cost of construction machines will drive equipment rental business.
Some of the market players include United Rentals, Inc., Cramo PLC., The Hertz Corporation, Loxam Group, Mtandt Rentals Limited, Nesco Rentals, Unirent LLC, Boels Rental, Caterpillar Inc., Aktio Corporation, and Ahern Rentals, Inc.
Increasing investments in public infrastructure development is creating demand for earthmoving & road building equipment which held around 60% of the market share in 2018.

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Premium Report Details

  • Published Date: Feb 2020
  • Pages: 300
  • Tables: 297
  • Charts / Figures: 32
  • Companies covered: 23
  • Countries covered: 16

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