What Fueled The Previous Growth In The Construction Equipment Rental Market?
The construction equipment rental market has seen considerable growth due to a variety of factors.
• The size of the construction equipment rental market has seen a significant surge over the past few years. The market value, which was at $105.1 billion in 2024, is predicted to increase to $110.55 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 5.2%.
This growth during the historic period can be traced back to the rise in demand for construction projects, the growing emphasis on cost efficiency in construction operations, heightened competition amongst construction firms and equipment manufacturers, and the increased requirement for rented equipment due to the cyclical tendencies of the construction sector.
What Is The Expected Growth In The Construction Equipment Rental Market Size?
The construction equipment rental market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations for the construction equipment rental market size indicate robust growth in the coming years. The market is projected to expand to $137.69 billion by 2029, growing at a compound annual growth rate (CAGR) of 5.6%.
This growth during the forecast period can be credited to the escalating use of rental equipment across diverse sectors, increased demand for environmentally-friendly construction tools, rising inclination towards operational adaptability and scalability, as well as businesses opting for financial agility and capital preservation. There's also a surge in the use of telematics and IoT within the construction equipment rental domain. Some major emerging trends within the forecast period are the progression in technology and logistics infrastructure, partnerships developing between rental firms and construction technology providers, the utilization of cutting-edge rental software for fleet administration, ongoing technological upgrades in construction machinery, and the rise of digital platforms facilitating equipment rental transactions.
What Are the Critical Driver Fuelling the Construction Equipment Rental Market's Growth?
The expansion of the construction industry is anticipated to fuel the advancement of the construction equipment rental market. Factors such as urbanization, upcoming infrastructure projects, and population growth are contributing to the upswing of the construction sector. This industry relies heavily on various construction equipment like tower cranes, bulk material handlers, transit mixers, batching plants, and concrete pumps. Leveraging rental options for this machinery alleviates the purchase and upkeep expenses for contractors. As specified by Eurostat, a government organization based in Luxembourg, in February 2024, the average annual construction output in the EU and eurozone reportedly rose by 0.1% and 0.2% respectively compared to 2022. Additionally, the United States Census Bureau, a US governmental agency, reported that in December 2021, the value of construction activities experienced a surge from $1,626.4 billion in 2021 to $1,792.9 billion in 2022, registering a growth of 10.2 percent. Thus, the thriving construction sector is stimulating the growth of the equipment rental market.
How Is the Construction Equipment Rental Market segmented?
The construction equipment rental market covered in this report is segmented –
1) By Equipment: Earthmoving, Material Handling, Road Building And Concrete
2) By Product: Backhoes, Excavators, Loaders, Crawler Dozers, Cranes, Concrete Pumps, Compactors, Transit Mixers, Concrete Mixers
3) By Application: Residential, Commercial, Industrial
Subsegments:
1) By Earthmoving: Excavators, Bulldozers, Backhoe Loaders, Skid Steer Loaders
2) By Material Handling: Forklifts, Telehandlers, Aerial Lifts, Cranes
3) By Road Building And Concrete: Asphalt Pavers, Concrete Mixers, Road Rollers, Concrete Pumps
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What New Trends Are Influencing the Construction Equipment Rental Market?
The trend of swapping traditional machinery with those equipped with telematics is on the rise in the construction equipment market. Telematics is incorporated into construction machines for several purposes including GPS fleet tracking, maximizing machinery usage, equipment theft prevention, enhancing billing, and equipment utilization, among others. For example, Hitachi Construction Machinery, a construction equipment manufacturer based in Japan, introduced a telematics system in February 2022, specifically crafted for mixed construction equipment fleets. Customers of the new CTFleet Link system can monitor the location and performance of their Hitachi and non-Hitachi equipment through real-time web access. The CTFleet Link telematics system leverages a customized API formulated by Hitachi Construction Machinery and the Hitachi Application Programming Interface (API) from Global E Service to facilitate data gathering in nearly real time.
Who Are the Key Players in the Construction Equipment Rental Market?
Major companies operating in the construction equipment rental market include:
• H&E Equipment Services Inc.
• Maxim Crane Works LLP
• Boels Rentals NV
• United Rentals Inc.
• Ashtead Group plc
• Loxam Group
• Herc Holdings Inc.
• Aktio Corporation
• Kanamoto Co Ltd.
• Taiyokenki Rental Co. Ltd.
• Cramo Group
• Ramirent PLC
• Kiloutou SAS
• Speedy Hire plc
• Nishio Rent All Co. Ltd.
• The Hertz Corporation
• Ahern Rentals Inc.
• Nikken Corporation
• Sunstate Equipment Co. LLC
• Neff Rental LLC
• BlueLine Rental Holdings Inc.
• BigRentz Inc.
• Sunbelt Rentals Inc.
• The Home Depot Inc.
• Rentals ProContractor
• Herc Rentals Inc.
• Aggreko plc
• NES Rentals Holdings Inc.
• Romco Equipment Co. LLC
• Mobile Mini Inc.
What Is The Most Dominant Region In The Construction Equipment Rental Market?
North America was the largest region in the construction equipment rental market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the construction equipment rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
