Crane Rental Market size is set to be over USD 16.5 billion by 2026, according to a new research report by Global Market Insights Inc.
The industry is driven by emerging players providing technologically advanced high-quality rental equipment to their customers. The surge in demand from the construction & industrial sectors is encouraging crane rental service providers to continuously enhance their fleet with low-emission and feature-rich cranes.
The proliferation of the internet & mobile connectivity in several countries across the globe is one of the key factors promoting the crane rental industry growth. Government initiatives to provide telecommunication facilities in small towns are driving the demand for cranes across the telecom sector. Internet connectivity, a prerequisite for smart homes and internet of things (IoT) applications, will provide a positive outlook to the market.
Industry challenges include recurring maintenance & repair costs associated with the crane rental equipment. Long operating hours and continuous leasing of cranes to different customers require timely maintenance. Maintenance costs of construction companies include tire lifecycle, fuel usage & periodical repair, and inspection & testing costs. The high expenditure incurred by crane rental service providers to cover these costs is hampering the industry growth. However, companies operating in the market have long-standing relationships and strategic collaborations with OEMs that aid them to reduce this expenditure with attractive financing programs and extended warranties.
Analyst view: “The crane rental industry will witness high growth over the forecast timeframe owing to the rising costs of new equipment. High demand for advanced crane models with automation technologies is expected to support the market growth.”
Escalating loss of life and rising economic instabilities due to the rapid spread of COVID-19 pandemic have led to a decline in the construction, mining, and manufacturing industries. The crane rental market is highly dependent on these industries for its sustenance. However, crane rental service providers are witnessing a decline in their revenues owing to the gradually decreasing demand from these markets. According to the market forecast, the crane rental industry is expected to witness steady growth in the post-COVID scenario.
Browse key industry insights spread across 205 pages with 255 market data tables & 27 figures & charts from the report, “Cranes Rental Market Size By Product (Mobile Crane [All-terrain Crane, Crawler Crane, Rough Terrain Crane, Truck Loader Crane], Fixed Crane [Monorail Crane, Tower Crane, Stiffleg Crane, Gantry Crane]), By Application (Construction & Mining, Manufacturing, Utility, Transportation, Oil & Gas), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026” in detail along with the table of contents:
Increasing adoption of fixed cranes augmenting the market revenues
The Asia Pacific fixed crane rental market held more than 30% revenue share in 2019 and is expected to see 7% growth up to 2026. The increasing demand for tower cranes and gantry cranes in the shipbuilding, manufacturing, and utility sectors is providing robust growth opportunities for the market. The adoption of advanced technologies, such as IoT and telematics, in these cranes has contributed to their growing demand in 2019.
The ability of tower cranes to lift heavy materials to abnormally high locations is proliferating their adoption in the construction of tall skyscrapers. Crane rental service providers are adding new tower cranes to their fleet to cater to the high market demand. For instance, in June 2018, Sims Crane & Equipment, a Florida-based crane rental and rigging service company, invested USD 14 million to add eleven new cranes to its fleet. This aided the company to reduce the carbon footprint of its business operations and increase its market representation in the U.S.
Rising demand for crane rentals in construction & mining applications
The construction & mining segment dominate the industry with around 50% market share and is set to grow at a high CAGR by 2026. The amplifying trend of deploying technologically advanced cranes in the mining sector for improved worker safety and high operating efficiency will contribute to the segment growth. OEMs are offering features such as real-time tracking with proximity sensors on modern cranes to enhance the safety of mine workers & crane operators.
Rapid urbanization and growing demand for residential buildings in North America
North America market was valued at over USD 4.5 billion in 2019 and is anticipated to grow at 3.5% CAGR through 2026. The adoption of mobile and fixed cranes for construction activities will accelerate market demand. Rapid urbanization in countries including the U.S. and Canada has led to escalating demand for residential real estate in these markets.
Leading industry players are laying emphasis on forming collaborations and partnerships with OEM providers to add new crane models to their fleet. For instance, in May 2018, ALL Erection & Crane Rental partnered with Maeda Mini Cranes to rent and distribute its new models in the U.S. These models consist of new crawler cranes with telescopic boom including the CC1485-1 MC285-2, MC405, and MC305-2 cranes. Business expansion is also one of the key strategies adopted by crane rental service providers.
Key players in the market include ALL Erection & Crane Rental, Ameco, Deep South Crane and Rigging, Mammoet, Liebherr-Mietpartner Gmbh, Mediaco Group, Sarens NV, Sarilar Group, Maxim Crane Works, L.P., and Tiong Woon Corporation Holding Ltd.