Southern Africa Construction Equipment Rental Market Size

Southern Africa Construction Equipment Rental Market Size

Southern Africa Construction Equipment Rental Market size was valued at around USD 3 billion in 2017 and will grow at CAGR of over 3% from 2018 to 2024.
 

 

Several construction companies are renting heavy machinery instead of purchasing. This method is proving to be advantageous for SMBs and large enterprises across several industrial sectors in the region, leading to the robust growth of Southern Africa construction equipment rental market. Steady growth has been witnessed in transportation, mining, and oil & gas industries which have large scale investments. With such high level of investments, several construction companies are preferring to lease or rent the heavy equipment, that will help them lower the project costs. This approach is assisting construction companies to save maintenance costs and incur lesser technical charges. In addition, reduced operation, maintenance and transportation requirements are also driving the Southern Africa construction machinery rental market revenue.
 

Rise in urbanization is a vital factor driving the growth of the earthmoving & road building equipment to over USD 2.4 billion by 2024. Urbanization in developing economies such as Zambia, Mozambique, Namibia and Zimbabwe, is taking place at a speedy rate and aiding towards the construction industry growth which is expected to increase the demand for earth moving equipment. Every growing population coupled with the growing demand for residential construction activities will support the demand for earthmoving & road building equipment such as backhoe, excavators, loaders and compaction equipment thereby driving the Southern Africa construction equipment rental market. This equipment is majorly used in construction, agriculture, and other industries.