Construction Equipment Rental Market Size By Product (Earthmoving Machinery, Material Handling Machinery, Concrete & Road Construction), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Russia, Japan, India, China, Brazil, Mexico, Saudi Arabia), Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024
Published Date: September 2016 | 110 Pages | Report ID: GMI773 Report Format: PDF
Construction Equipment Rental Market size in 2015 was worth more than US$34 billion, and is anticipated to grow at 9.1% CAGR from 2016 to 2024.
U.S. Construction Equipment Rental Market size, by product, 2013-2024 (USD Billion)
Increasing affinity by end-users in order to obtain earthmoving machinery on rent or lease is an emerging trend in the construction equipment rental market. Increasing accessibility for lease based systems would encourage consumers to use these advanced material handling devices. Rising automation need for efficient flow of goods will positively impact the material handling equipment demand over the forecast timeline.
Increasing natural gas drilling activities coupled with highway network augmentation as well as smart city formation across several developing countries such as India may surge product demand significantly over the forecast timeframe. Increasing consumer disposable income resulting in growing adoption will drive demand. Rising new construction and infrastructure renovation activities are also anticipated to positively impact the global market size through 2024.
Developed countries such as the U.S. will carry out infrastructure reconstruction frequently while emerging economies build new infrastructure in order to prolong development. Growing demand for raw materials in order to accomplish construction activities will impact earthmoving equipment market demand from 2016 to 2024.
Advancements in technology to offer greater efficiency and accuracy in material handling may increase emphasis on workplace safety and productivity. For instance, the advent of automatic height-adjusting carts enables operators to work at optimal heights without any support from hydraulic, electrical or pneumatic hook-ups. These technology developments optimize workplace safety, and hence positively impact the construction equipment rental industry share over the forecast timeline.
Construction Equipment Rental Market, By Product
Earthmoving machinery segment accounted for 55% of the construction equipment rental market share in 2015 and will grow at over 9% over the next eight years. Surging demand for heavy equipment will propel growth over the forecast timeline. Material handling sector will grow at 9.9% CAGR from 2016 to 2024 owing to escalating need for automated production processes in order to achieve optimal raw material usage, resource and energy consumption.
The industry is grappling with fluctuating fuel prices and other expenses associated with renting. Pick-up as well as delivery service offered by industry participants adds an additional expense to the company and will be charged in the initial fee which further can increase the cost of the project. In addition, leasing any machine does not provide any equity to the company, and hence is considered to be an unrecoverable expense.
Construction Equipment Rental Market, By Region
China construction equipment rental market size was valued at USD 3 billion in 2015. Regional growth can be attributed to commercialization, rapid urbanization, burgeoning population, increasing government initiatives, and robust fiscal growth. In addition, continued privatization across construction sector, increased health & safety regulation and surging labor. Germany market share will grow at over 6.5% CAGR. Rising construction across residential sector due to new building start-ups accompanied by volatile energy pricing & favorable regulatory norms will fuel growth.
Economic conditions have lowered the number of infrastructure acitivities, and led a reduction in the overall purchase trend. Large portion of company capital is diverted in buying any equipment and often requires large down payments. Companies operating in the industry offer machines with advanced technology with approval from latest EPA emissions norms. Technological advancements from new multifunctional models to apps for tracking fuel consumption are among major industry trends.
Competitive Market Share
Key industry participants are United Rentals, Sunbelt, Ahern, Hertz, and Neff Rentals. The industry is characterized by frequent joint ventures, mergers and acquisitions, and strategic alliances in order to achieve global presence.
Government-aided development in priority business will represent massive growth avenues for manufacturers. Projects backed by funding including Mexico’s National Infrastructure Program & Colombia’s National Development Plan will boost construction equipment rental market size through 2024. Companies have been looking at multifunctional devices and machinery to increase productivity. Several firms also offer GPS-equipped devices which can be easily tracked on sites, products with other high-tech functions making the fleet management more effective.
Construction Equipment Rental Industry Background
Procurement of raw materials by the OEMs is exposed to cause fluctuations in energy and commodity prices. Leasing heavy machinery rather than buying is proven to be more beneficial to companies across various industries. Less paperwork, lower expenses and less maintenance associated with these products is likely to contribute to growth.
Leasing further reduces the time and hidden costs involved in buying, which include labor costs, surface area costs depending on fleet size. Furthermore, difficult to anticipate the product usage and type of returns that will be generated in order to financially benefit the company is catapult industry demand. Operational, financial and logistical advantages associated will positively impact revenue.
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