Construction Equipment Rental Market Analysis

Global Construction Equipment Rental Market Overview

Construction Equipment Rental Market Size was valued at USD 95.1 Billion in 2023. The Construction Equipment Rental industry is projected to grow from USD 99.76 Billion in 2024 to USD 144.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.74% during the forecast period (2024 - 2032).

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Construction Equipment Rental Market Trends

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  Proliferating Construction Industry

  
  

The increasing construction industry globally will rise the market demand for construction equipment rental during the forecast period. According to the recent report published by Construction Products Association (CPA) in May 2022, the construction output rises by 2.8% in 2022 and expected to rise by 2.2% in 2023 and Infrastructure output has increased by 8.8% in 2022 and is expected to rise by 4.6% in 2023. This will increase the demand for more construction equipment in the industry. Hence, increase the need for rental equipment over the projected timeline. Modern Construction equipment plays a vital role in the construction industry where business objectives are strictly time and margin driven. The modern construction equipment is very swift and reliable with high-quality control measures embedded into them as they have evolved over the years. One of the main reasons construction companies rent construction equipment is to keep expenses low. Renting a piece of heavy equipment costs significantly less than buying that equipment outright. The reduced cost of equipment rental means companies can get the machinery they need without compromising on the features that matter. In addition, new construction equipment often features built-in technology to improve safety, performance, and efficiency. This technology helps operators’ complete tasks faster and with less effort. The high price of new machinery pushes these improvements out of reach for many construction teams and contractors. However, rental companies increase the accessibility of the latest construction technology by making it available on a temporary, affordable basis. Such factors will further boost the adoption of rental equipment over the forecast period.

Shifting Trend Towards Rental Services

The factors such as increasing infrastructure development, rising construction activities, and growing demand for advanced equipment and machinery in various end-used industries such as agriculture, residential, oil & gas, mining, manufacturing, forestry, entertainment sector, commercial space, municipal & government project, transportation & logistics, will shift the trend towards rental services. Various types of construction equipment are used in the mining sector such as hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump trucks, tippers, graders, pavers, asphalt drum/wet mix plants, breakers, vibratory compactors, cranes, forklifts, dozers, off-highway dumpers, drills, scrapers, motor graders, rope shovels etc. This equipment performs a variety of functions like preparation of ground, excavation, haulage of material, dumping/laying in specified manner, earth moving, material handling, road construction etc. Among all the equipment employed in the mining sector, earth-moving equipment are most widely used. Earth moving equipment in any mining project are used to move earth and minerals. While giant machines such as drills, electric shovels, and giant draglines, some of which have buckets that can move 160 cubic yards of material in one scoop are used for surface mining, complex equipment which can move material in a very headroom and limited space are used in underground mining.

Construction Equipment Rental Market Platform Segment Insights

Construction Equipment Rental Market Type Insights

Based on Type, the Construction Equipment Rental Market segmentation includes Earthmoving, Material Handeling, Heavy Vehicles, and Concrete & Road Construction. Earthmoving Type dominated the Construction Equipment Rental market in 2022 and is expected to grow at a highest CAGR during the forecast period. Among earthmoving equipment, Excavators are versatile earth-moving machines commonly rented in the construction equipment market. With their hydraulic systems and digging capabilities, they are used for various tasks like digging trenches, excavating foundations, demolishing structures, and moving heavy materials. Excavators offer different attachments such as buckets, breakers, and grapples, making them adaptable to different construction needs. Their ability to rotate 360 degrees and their various attachments make them valuable assets in the construction industry.

Among Concrete & Road Construction, Concrete pumps are crucial equipment in the construction industry for efficiently transferring liquid concrete. They are used to transport concrete from the mixer to the desired location, such as high-rise buildings or inaccessible areas. Concrete pumps provide precise and controlled delivery, ensuring that concrete is placed accurately and with minimal waste. They increase construction productivity by reducing manual labor and offer versatility in reaching various distances and heights. Concrete pumps enable faster construction and ensure a smooth and continuous flow of concrete, resulting in improved construction quality and reduced project timelines.

Figure1: Construction Equipment Rental Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Construction Equipment Rental Market Application Insights

The Application segment of the Construction Equipment Rental market is segmented into  Residential, Infrastructure, Oil and Gas, Mining, Manufacturing, Municipal and Government Projects, Transportation and Logistics, Agriculture, Forestry, Entertainment Sector, and Commercial Space. Transportation and Logistics industry dominated the Construction Equipment Rental market in 2022. The transportation and logistics sector benefits from the construction equipment rental market in various ways. Construction equipment rental services offer a range of machinery that supports infrastructure development, maintenance, and expansion in transportation and logistics. Road construction projects often require equipment such as pavers, crushers, and motors graders. These machines are crucial for constructing and maintaining roads, highways, and bridges. By utilizing construction equipment rental, transportation and logistics companies can access specialized equipment specifically designed for road construction, enabling them to complete projects efficiently and on schedule.

Construction equipment rental services accommodate the diverse needs of residential construction projects, ranging from single-family homes to apartment complexes and housing developments. Contractors and homeowners often rely on equipment rental to access a wide range of specialized machinery without the need for long-term ownership. Construction equipment such as excavators, loaders, bulldozers, and concrete pumps are commonly rented for residential construction. These machines facilitate various tasks, including site preparation, foundation excavation, material handling, concrete pouring, and landscaping. Equipment rental offers cost-effective solutions, allowing residential construction projects to access modern, well-maintained machinery without substantial upfront investments. Rental services also provide flexibility, allowing contractors to scale their equipment needs based on project requirements.

Construction Equipment Rental Market Regional Insights

By Region, the Construction Equipment Rental market is segmented into North America, South America, Europe, Asia Pacific, and Middle East and Africa. The China Construction Equipment Rental market held the highest market share in 2022 and is expected to exhibit a significant CAGR growth during the forecast period. The construction equipment rental market in China has experienced significant growth in recent years. The country's rapid urbanization, infrastructure development, and increasing construction activities have contributed to the rising demand for construction equipment. The market is characterized by a wide range of rental equipment, including excavators, loaders, cranes, bulldozers, and more. One key factor driving the growth of the rental market is cost-effectiveness. Renting equipment eliminates the need for large upfront investments, reduces maintenance costs, and provides flexibility in terms of equipment selection and usage duration. This has made rental services popular among construction companies, especially smaller and medium-sized enterprises.

The construction equipment rental market in North America has witnessed significant growth in recent years. The market is driven by several factors, including the increasing demand for construction equipment, cost-effective rental options, and the rising trend of outsourcing equipment needs. The region's robust construction industry, particularly in the United States and Canada, has created a favorable environment for equipment rental services. For instance, in 2021, the United States dominated the North American equipment rental market. Moreover, the growing adoption of advanced construction equipment and technologies has further fueled market growth. The market is highly competitive, with key players offering a wide range of equipment and value-added services.

The construction equipment rental market in South America has observed substantial growth in modern years. The region's expanding construction industry, coupled with the advantages of renting equipment over purchasing, has fueled the demand for rental services. Infrastructure development projects, urbanization, and a growing focus on renewable energy have been key drivers of the market. South American countries, such as Brazil, Argentina, and Chile, have been at the forefront of this market growth, with a rising number of construction projects and investments. Rental companies have capitalized on this opportunity by offering a wide range of equipment.

Figure4: Construction Equipment Rental Market Size By Region 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The construction equipment rental market in Europe is a dynamic and thriving sector that caters to the diverse needs of the construction industry. Factors such as increasing infrastructure development, urbanization, and the need for cost-effective solutions have contributed to the expansion of the rental market. Europe is witnessing a surge in construction activities, including residential, commercial, and industrial projects. This has created a demand for various construction equipment such as excavators, loaders, cranes, and concrete pumps. Renting construction equipment provides companies with flexibility, allowing them to scale their operations based on project requirements while minimizing capital investment.

The construction equipment rental market in the Middle East has been experiencing notable growth. With the region witnessing a surge in construction and infrastructure development projects, the demand for construction equipment has soared. The rental market has emerged as a viable solution for contractors and construction companies, offering flexibility, cost-effectiveness, and access to a wide range of equipment. The Middle East's rapid urbanization, expanding transportation networks, and ambitious mega-projects, such as Expo 2020 Dubai and FIFA World Cup 2022 in Qatar, have stimulated the demand for construction equipment.

The continent's rental market provides a cost-effective solution for contractors and developers who prefer to rent equipment rather than invest in purchasing it. Several factors contribute to the growth of the construction equipment rental market in Africa. Firstly, the lack of financial resources and limited access to capital in many African countries make renting equipment a viable option. Additionally, the flexibility offered by rental services allows businesses to scale their operations as per project requirements. The market is witnessing the emergence of both local and international rental companies, providing a wide range of equipment such as excavators, loaders, bulldozers, cranes, dumpers, and concrete pumps.

Construction Equipment Rental Market Key Players & Competitive Insights

The competitive landscape of the Construction Equipment Rental market report is characterized by the presence of both global and regional players. The Construction Equipment Rental market has witnessed consolidation through mergers and acquisitions, with larger companies acquiring smaller players to strengthen their market position and expand their capabilities. This trend has led to the formation of major players with diversified offerings and extensive geographic reach. In the Construction Equipment Rental market, Construction Equipment Rental companies are increasingly adopting advanced technologies to improve project efficiency, safety, and environmental sustainability.

The major Construction Equipment Rental companies in the Construction Equipment Rental market report include United Rentals, Inc, Herc Rentals Inc., Ashtead Group Plc, Aktio Corporation, Kanamoto Co., Ltd., Nishio Rent All Co., Ltd, H&E Equipment Services, Inc, Nikken Corporation, Cramo Group, Ramirent Plc, among others. Companies with a broad geographic presence have an advantage in accessing diverse markets and opportunities. They can leverage their global or regional footprint to expand their market share and diversify their project portfolio. Local and regional Construction Equipment Rental companies have a competitive advantage in their respective markets due to their understanding of local regulations, cultural nuances, and specific project requirements.

Key Companies in the Construction Equipment Rental Market include

• United Rentals, Inc


• Herc Rentals Inc.


• Ashtead Group Plc


• Aktio Corporation


• Kanamoto Co., Ltd.


• Nishio Rent All Co., Ltd


• H&E Equipment Services, Inc


• Nikken Corporation


• Cramo Group


• Ramirent Plc

Construction Equipment Rental Market Industry Developments

Construction Equipment Rental Market Segmentation

Construction Equipment Rental Market Type Outlook

• Earthmoving
  
  
  
  • Excavators
  
  
  • Loaders
  
  
  • Backhoe
  
  
  • Motor Graders
  
  
  • Others (Bulldozer, Trenchers etc.)
  
  
  
  


• Material Handling
  
  
  
  • Cranes
  
  
  • Telecscopic Handlers
  
  
  • Others (Forklift,Pallet Jacks, etc)
  
  
  
  


• Heavy Vehicles
  
  
  
  • Dumpers
  
  
  • Tippers
  
  
  
  


• Concrete & Road Construction
  
  
  
  • Concrete Pumpsr
  
  
  • Crushers
  
  
  • Batching Plant
  
  
  • Pavers
  
  
  • Others (Road rollers, Cold Planers, etc)
  
  
  
  

Construction Equipment Rental Market Application Outlook

• Residential


• Infrastructure


• Oil and Gas


• Mining


• Manufacturing


• Municipal and Government Projects


• Transportation and Logistics


• Agriculture


• Forestry


• Entertainment Sector


• Commercial Space

Construction Equipment Rental Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Chile
  
  
  • Peru
  
  
  • Rest of South America
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• China
  
  
  
  • Middle East
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • Qatar
  
  
  • Kuwait
  
  
  • Bahrain
  
  
  • Oman
  
  
  • Rest of Middle East
  
  
  
  


• Africa
  
  
  
  • South Africa
  
  
  • Nigeria
  
  
  • Ghana
  
  
  • Morocco
  
  
  • Libya
  
  
  • Rest of Africa