Asia Pacific Construction Equipment Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Construction Equipment Rental Market is expected to exhibit a CAGR of over 7% during the forecast period (2020-2025).

Key Highlights

• The renting or leasing of construction equipment has been on the rise, owing to the equipment cost (more feasible for short duration construction activities) and the cost of the maintenance process. Apart from the cost, there are also other benefits associated with renting the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, included in the rent.
• The rise in global construction activities is a major driver of growth for construction equipment rental market. Spending on infrastructure development is seen in both developed and developing nations. Emerging economies such as India, Taiwan, China, etc. are speeding up their residential and transportation infrastructure development to counter the problem of traffic congestion and growing population.
• The growing trend toward automation is expected to drive the growth of the market. Automation brings down the operational cost by improving the efficiency and functional capacity of an equipment. Automation helps in fleet management for equipment rental services to timely replace the aging equipment and replace them with new ones to meet latest customer requirements.

Key Market Trends

Electrification of Construction Equipment

Increase in construction activities across the globe has resulted in increased consumption of diesel. Although diesel has high energy content compared to gasoline but its combustion releases dangerous exhausts into the environment. Governments and pollution regulatory bodies across the globe has established norms and regulations that requires diesel engines to produce almost negligible NOx and SOx emissions. This has opened the doors for OEMs to switch to hybrid and complete electric vehicles in the future. Electric construction equipment are not only zero emission machines but also produces very less heat, noise and vibrations.

Construction equipment rental companies use fleet management system to replace their old and aging fleet with new and upgraded fleet that meets the standards and norms set by the government and fulfils the need of customers. This type of fleet management can increase the demand for electric construction equipment in future.

Rise of Construction Industry in China

Asia pacific countries exhibits the fastest economic growth rates in the entire world. The Asia-Pacific region is expected to be a major market propelling the global construction industry, with augment construction activities in countries, such as China, India and ASEAN countries.

Ongoing mega projects in China needs a lot of machinery and materials to be displaced from one part of the country to the other. Projects like Tianhuangping hydroelectric project, South North water transfer project, Belt and Road Initiative and Beijing airport are some of the many projects that will deploy many construction equipment. China recorded an average monthly growth of 5.3% in fixed asset infrastruture development in 2019. China also recorded a 25% increase in excavator sales in 2019, indicating growth in construction activities. In 2018, market value of consstruction industry in China was valued at nearly USD 900 billion which is expected to grow more than 1.1 trillion by 2021.

Competitive Landscape

The Asia Pacific Construction Machinery Rental Market is characterized by the presence of numerous domestic and regional players, resulting in a highly fragmented market environment.

The rivalry among various machinery/equipment rental firms is high, as major players are trying to establish their footprint in developing countries, in order to grab a share in the growing market in Asia-Pacific region. The industry is highly competitive, because of limited diversity in the services offered under the construction equipment category.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support