Construction Equipment Rental Market size worth over $155bn by 2026
Published Date: December 15, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Construction Equipment Rental Market size is set to surpass USD 155 billion by 2026, according to a new research report by Global Market Insights, Inc.
Rapidly evolving technical innovations in construction machinery including the integration of smart & connected technologies and low energy-consuming systems are fueling the industry growth. The amplifying trend of autonomous vehicles and driver assistance technologies is also impacting the construction machine designs.
Increasing construction spending is a major market factor escalating the market expansion of construction equipment rental providers. The high focus of government authorities on infrastructure development coupled with changing consumer lifestyles will provide an impetus to the industry value during the forecast timeline. The rising necessity for residential complexes coupled with investments in the development of modern infrastructure in economically stabilized countries is expected to propel the industry size.
The cyclic instability of application industries is one of the key factors hampering the construction equipment rental market demand. A decline in construction or industrial activities could adversely affect the revenues and operating results of several construction equipment rental companies by decreasing the demand or rental rates. The market revenues are also closely tied to the non-residential construction industry. The equipment is primarily used in non-residential construction activities such as mining, roadbuilding and compaction. The cyclic nature of these application industries might challenge the industry.
The COVID-19 health crisis inflicted severe damages on the construction equipment rental market growth in 2020. The pandemic delayed the completion and commissioning of large construction projects, hampering the market value for construction equipment rental across the globe. Industry revenues witnessed a steep decline in the initial lockdown period during March and May 2020. Financial insecurities encouraged builders and construction companies to halt on-going construction projects, challenging the market for construction equipment rentals. The market is projected to showcase a steady recovery in 2021 with revival of economic conditions.
High demand for advanced concrete equipment in public infrastructure construction
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The concrete equipment segment in the construction equipment rental market valued at over USD 25 billion in 2019 owing to machines including asphalt pavers, transit mixers, crushers, concrete pumps, and batching plants. The high demand for advanced project-specific concrete equipment for completion of large public infrastructure projects, such as construction of highways and dams, is augmenting the market representation of concrete construction equipment rental.
Transit mixers, pavers, and crushers are displaying a high growth potential led by the growing demand at various construction sites such as roads, rails, ports, and waterways, globally. Additionally, the increased government initiatives in several countries including India, Japan, etc., to enhance the public infrastructure are creating new opportunities for the market. The construction companies are moving toward renting options compared to direct purchasing due to huge cost savings and provision of high-quality and legally compliant construction equipment rental by market players.
Browse key industry insights spread across 300 pages with 296 market data tables and 32 figures & charts from the report, “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” in detail along with the table of contents:
Growing trend of mechanization in the construction industry to reduce dependency on labor in APAC region
Asia Pacific construction equipment rental market size is anticipated to reach at around USD 44 billion by 2026. The limited availability of skilled labor and increase in safety demands in countries including India and China are increasing the utilization of technologically advanced construction equipment rental across several construction sites. The introduction of stringent labor safety laws in Japan, South Korea, and Australia is further boosting the adoption of sophisticated construction equipment offered by rental equipment market leaders.
Various government initiatives undertaken by the Indian government for the development of a robust road & transportation infrastructure are spurring the demand for concrete equipment in the country. The South Korean market for construction equipment rental is primarily driven by increasing foreign direct investments in the construction industry and rising infrastructural spending.
Established companies operating in the construction equipment rental market are focusing on investing resources in the expansion of their fleet size and increasing their geographical presence in unserved markets. Strategic alliances and joint ventures are other prominent strategies undertaken by leaders in the market.
Key companies active in the market include Blueline Rental LLC, Ahern Rentals, Inc., Cramo PLC, Ashtead Group, Aktio Corporation, Boes Rental, Loxam Group, United Rentals LLC, and Mtandt Rentals Limited.