The global construction equipment rental market size is predicted to hit around USD 140 billion by 2030 from USD 95.29 billion in 2020, growing a CAGR of 5.1% from 2021 to 2030.
The construction equipment rental is the service to rent out construction equipment to end users for a certain period of time by signing contracts with terms and condition about their usage. Construction equipment are majorly used at construction mining sites to facilitate heavy operations.
Construction equipment rental market growth is driven by increase in construction & mining activities in developing nations of Latin America and Africa regions. In addition, additional expenses incurred due to maintenance of the equipment, excessive operational cost, and high wages of skilled operators can be saved by renting equipment for the required time, which significantly contributes toward the growth of the global market. Moreover, high initial investment required to buy equipment and financial constraints can be avoided by opting for the rental equipment, thereby augmenting the market growth.
However, dearth of skilled labors is a major factor restraining the growth of the global market. Moreover, saturation in construction and mining industry in developed nations is another factor that hampers the growth of the market. Furthermore, lockdown implemented due to the outbreak of COVID-19 has led to either decline in construction activities or have come to a complete halt. This led to cancellation of equipment contracts by end users with rental companies, thereby declining the business during the lockdown period. However, reopening of construction sites and introduction of vaccines for COVID-19 are anticipated to lead to re-initiation of construction equipment rental market companies and construction industry at their full-scale capacities.
On the contrary, manufacturers are developing advanced equipment, which can be operated by connecting them through internet. Moreover, integration of IoT will help to overcome the shortage of skilled labors and enhanced safety of operators and end users. These factors are anticipated to offer remunerative opportunities for the expansion of the global market during the forecast period.
The earthmoving machinery segment dominated the market for construction equipment rental in 2019. However, the concrete and road construction machinery segment is anticipated to exhibit the highest CAGR of 6.9% from 2021 to 2030.
Earthmoving machinery such as excavators enjoy enormous demand around the world as it has a wide application scope in construction, mining, and agriculture sectors. Other equipments in this category are skid-steer loaders, backhoe loaders, crawler excavators, and mini excavators, which also present attractive market potential. These have high load capacity and engine power, which enable them to work efficiently in harsh conditions.
The material handling machinery segment comprises crawler cranes, trailer-mounted cranes, and truck-mounted cranes. Growing construction of skyscrapers and mega infrastructure projects are anticipated to boost demand for these types of machinery on a rental basis. Truck-mounted cranes hold the majority of shares in the market for construction equipment rental owing to easy mobility. They are used for the construction of buildings, bridges, and dams. On the other hand, traditional crawler cranes are witnessing a steep fall in demand since the last decade. Crawler cranes are difficult to be carried on long distances and they need to be loaded on to other vehicles for transportation. These cranes also have lower material handling capacity.
Demand for concrete and road construction machinery on a rental basis is anticipated to grow over the forecast period. Roads are considered as an indicator of a country’s overall development as better road connectivity aids in improved trade and economic growth. Thus, many developing countries such as China and India are focusing on developing better road connectivity. For instance, China’s ambitious “One Belt, One Road” initiative will connect China with European countries. Similarly, the government of India’s “Bharatmala” project focuses on connecting all prominent cities in the country with a single road.
The cranes sub-segment in the product segment is projected to witness the highest CAGR during the forecast period
The cranes segment is expected to register the highest CAGR during the forecast period. This is due to the increasing use of various types of cranes by contractors for building and construction purposes. Additionally, 60–65% of the crane fleet is currently owned by equipment rental companies. This is indicative of the explosive growth this segment is poised to witness during the forecast period.
Depending on propulsion system, the ICE segment generated the highest revenue in 2020.
Asia Pacific is anticipated to witness the highest CAGR of 6.5% from 2021 to 2030 and is likely to continue the dominance in terms of both usage and manufacturing over the forecast period. This region has witnessed growth in the number of highway constructions, metro construction, airports, Special Economic Zones (SEZs), hydroelectric projects, dams in order to sustain better connectivity, high-level industrial activities, and growing energy demand. China is a worldwide leader in construction machinery manufacturing, owing to availability of advanced manufacturing facilities, cheaper labor costs, and high production capacity. China manufacturers export their machinery to many countries in Europe and Asia.
North America accounted for the largest revenue share of over 49% in 2020 and is characterized by the presence of prominent rental players operating in the U.S. as well as Canada. Furthermore, the robust growth in the residential construction sector, coupled with an increase in infrastructural segment owing to the rising investment in Central and Eastern Europe. This, in turn, is projected to contribute towards the growth of the market for construction equipment rental. Countries in the Middle East region such as Saudi Arabia and Qatar have an augmented demand for rental equipment such as loaders and excavators owing to surge in major projects such as FIFA World Cup 2022, Jazan Economic City, King Abdullah Economic City, Vision 2030, and Jeddah Metro.
|Market Size||USD 140 Billion by 2030|
|Growth Rate||CAGR of 5.1% from 2021 to 2030|
|Forecast Period||2021 to 2030|
|Segments Covered||Product, Application, Propulsion System, Region|
|Companies Mentioned||Boels Rentals, H&E Equipment Services, Herc Rentals Inc., Kanamoto Co., Ltd., Nesco Holdings, Inc., Maxim Crane Works, L.P., Mtandt Group, Ramirent, Sarens n.v./s.a.|
The major players profiled in the market include Boels Rentals, H&E Equipment Services, Herc Rentals Inc., Kanamoto Co., Ltd., Nesco Holdings, Inc., Maxim Crane Works, L.P., Mtandt Group, Ramirent, Sarens n.v./s.a., and United Rentals, Inc.
By Propulsion System
The report provides revenue of the global Construction Equipment Rental market for the period 2017–2030, considering 2021 as the base year and 2030 as the forecast year. The report also provides the compound annual growth rate (CAGR) for the global market during the forecast period. The global Construction Equipment Rental market studies past as well as current growth trends and opportunities to gain valuable insights of these indicators of the market during the forecast period from 2021 to 2030.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Construction Equipment Rental market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
The report includes an elaborate executive summary, along with a snapshot of the growth behavior of various segments included in the scope of the study. Furthermore, the report sheds light on the changing competitive dynamics in the global Construction Equipment Rental market. These indices serve as valuable tools for existing market players as well as for entities interested in entering the global Construction Equipment Rental market.
The report delves into the competitive landscape of the global Construction Equipment Rental market. Key players operating in the global Construction Equipment Rental market have been identified, and each one of these has been profiled for distinguishing business attributes. Company overview, financial standings, recent developments, and SWOT are some of the attributes of players in the global Construction Equipment Rental market that have been profiled in this report.
The Construction Equipment Rental market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Construction Equipment Rental market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Construction Equipment Rental market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Construction Equipment Rental market. These factors have benefited the growth of the global market for Construction Equipment Rental. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Construction Equipment Rental.
In this study, the years considered to estimate the market size of Construction Equipment Rental are as follows:
• History Year: 2016-2020
• Base Year: 2020
• Estimated Year: 2021
• Forecast Year 2021 to 2030
Major highlights of report:
• Figures related to sales volume, market remuneration, and segmental shares
• Featuring market dynamics
• Growth prospects and expansion graph
• PROCON study of direct & indirect sales channels
• Profiles of prominent traders, dealer, and distributors in the industry
Geographical landscape: North America, Europe, Asia-Pacific, South America, Middle East and Africa
• Industry forecasts based on region and at country level
• Data about sales volume recorded, industry share held, and profit margins amassed
• Overall remuneration and estimated growth rate for each regional market
Major Key Points Covered in Report:
Executive Summary: It includes key trends of the research department explosive market related to products, applications, and other crucial factors. It also provides analysis of the competitive landscape and CAGR and market size of the research department explosive market based on production and revenue.
Production and Consumption by Region: It covers all regional markets to which the research study relates. Prices and key players in addition to production and consumption in each regional market are discussed.
Key Players: Here, the report throws light on financial ratios, pricing structure, production cost, gross profit, sales volume, revenue, and gross margin of leading and prominent companies competing in the Research department explosive market.
Market Segments: This part of the report discusses about product, application and other segments of the research department explosive market based on market share, CAGR, market size, and various other factors.
Research Methodology: This section discusses about the research methodology and approach used to prepare the report. It covers data triangulation, market breakdown, market size estimation, and research design and/or programs.
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