The global construction equipment rental market was valued at $93.54 Billion in 2022, and is estimated to reach $220.64 Billion by 2032, registering a CAGR of 6.6% from 2023 to 2032. Construction equipment rental offers renting or leasing heavy machinery, tools, and equipment to individuals, contractors, or companies for a specific period. In addition, it offers flexibility and affordability for building projects by enabling access to and use of a variety of equipment without the requirement for outright purchase.
Owing to the high cost of heavy construction equipment, consumers who do not require the equipment continuously or temporarily need to choose to rent it rather than buy it. In addition, not all consumers have the ability to afford to spend on such expensive equipment. Furthermore, many clients may not have sufficient funds to obtain a loan with a higher interest rate to purchase equipment. Moreover, due to financial restrictions, not all machines can be bought by clients. However, renting one, when necessary, might cut costs for the equipment and allow funds to be redirected to other projects, which spurs the expansion of the global market.
However, in developed countries in North America and Europe, there is a saturation of new construction activity due to the already constructed infrastructure, the recent industrial collapse, and the high cost of development. As a result, substantial investments in brand-new building projects have declined, which is anticipated to eventually constrain expansion of the market for renting heavy construction equipment in developed countries.
On the contrary, large cranes are affordable for rent instead of buying, simple to disassemble, and convenient to move to new construction sites. In addition, rental businesses can now easily follow the locations and operations of equipment, thanks to modern technologies such as IoT embedded in heavy construction equipment. The Internet of Things (IoT) assists in addressing a lack of qualified labor, Increases work accuracy, ensures on-time & budget delivery, and addresses equipment safety concerns. As a result, during the projection period, the introduction of new internet-connected equipment is anticipated to spur market growth for the rental of heavy construction equipment.
The construction equipment rental market is segmented into application, product, propulsion system, and region. By application, the market is classified into excavation & mining, material handling, earthmoving, and concrete. The earthmoving segment dominated the market in 2022. By product, the market is divided into backhoes & excavators, loaders, crawler dozers, cranes, forklift, and others. The loaders segment dominated the market in 2022. By propulsion system, it is bifurcated into electric and ICE. The ic engine segment dominated the market in 2022.
Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). In 2022, Asia-Pacific was the key shareholder, however, LAMEA is anticipated to secure a leading position during the forecast period.
Owing to the high cost of heavy construction equipment, consumers who do not require the equipment continuously or temporarily need to choose to rent it rather than buy it. In addition, not all consumers have the ability to afford to spend on such expensive equipment. Furthermore, many clients may not have sufficient funds to obtain a loan with a higher interest rate to purchase equipment. Moreover, due to financial restrictions, not all machines can be bought by clients. However, renting one, when necessary, might cut costs for the equipment and allow funds to be redirected to other projects, which spurs the expansion of the global market.
However, in developed countries in North America and Europe, there is a saturation of new construction activity due to the already constructed infrastructure, the recent industrial collapse, and the high cost of development. As a result, substantial investments in brand-new building projects have declined, which is anticipated to eventually constrain expansion of the market for renting heavy construction equipment in developed countries.
On the contrary, large cranes are affordable for rent instead of buying, simple to disassemble, and convenient to move to new construction sites. In addition, rental businesses can now easily follow the locations and operations of equipment, thanks to modern technologies such as IoT embedded in heavy construction equipment. The Internet of Things (IoT) assists in addressing a lack of qualified labor, Increases work accuracy, ensures on-time & budget delivery, and addresses equipment safety concerns. As a result, during the projection period, the introduction of new internet-connected equipment is anticipated to spur market growth for the rental of heavy construction equipment.
The construction equipment rental market is segmented into application, product, propulsion system, and region. By application, the market is classified into excavation & mining, material handling, earthmoving, and concrete. The earthmoving segment dominated the market in 2022. By product, the market is divided into backhoes & excavators, loaders, crawler dozers, cranes, forklift, and others. The loaders segment dominated the market in 2022. By propulsion system, it is bifurcated into electric and ICE. The ic engine segment dominated the market in 2022.
Region wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). In 2022, Asia-Pacific was the key shareholder, however, LAMEA is anticipated to secure a leading position during the forecast period.
Competition Analysis
Key companies profiled in the construction equipment rental market report Include Boels Rentals, H&E Equipment Services Inc., Herc Rentals Inc., Kanamoto Co., Ltd., NESCO Holdings, Inc., Maxim Crane Works, L.P., Mtandt Group, Ramirent AB, Sarens n.v./s.a. and United Rentals, Inc.Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the construction equipment rental market analysis from 2018 to 2032 to identify the prevailing construction equipment rental market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the construction equipment rental market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global construction equipment rental market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Application
- Earthmoving
- Concrete
- Excavation and Mining
- Material Handling
By Product
- Backhoes and Excavators
- Loaders
- Crawler Dozers
- Cranes
- Forklift
- Other
By Propulsion System
- IC Engine
- Electric
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Boels Rentals
- H&E Equipment Services Inc.
- Herc Rentals Inc.
- Kanamoto Co., Ltd.
- Maxim Crane Works, L.P.
- Mtandt Group
- NESCO Holdings, Inc.
- Ramirent AB
- Sarens n.v./s.a.
- United Rentals, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: CONSTRUCTION EQUIPMENT RENTAL MARKET, BY APPLICATION
CHAPTER 5: CONSTRUCTION EQUIPMENT RENTAL MARKET, BY PRODUCT
CHAPTER 6: CONSTRUCTION EQUIPMENT RENTAL MARKET, BY PROPULSION SYSTEM
CHAPTER 7: CONSTRUCTION EQUIPMENT RENTAL MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The Construction Equipment Rental Market is likely to experience a significant growth rate of 4.5% from 2022-2031 owing to increasing market demand from the Construction and Mining sector.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 conditions about their usage. Construction equipment is majorly used at construction mining sites to facilitate heavy operations.
Construction equipment rental market growth is driven by an 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, the high initial investment required to buy equipment and financial constraints can be avoided by opting for rental equipment, thereby augmenting the market growth.
However, the dearth of skilled laborers is a major factor that restrains the growth of the global market. Moreover, saturation in the construction and mining industry in developed nations is another factor that hampers the growth of the market.
In addition, the outbreak of COVID-19 led to halting in logistic and manufacturing activities across the globe which has led to the interruption of the supply chain, which hinders the growth of the heavy construction equipment rental market. However, this situation is expected to improve as governments are relaxing norms around the world to resume business activities.
On the contrary, manufacturers are developing advanced equipment, which is economical and sustainable. For instance, in March 2021, Doosan Infracore launched a 100-ton excavator, which uses smart power control and an electronic integrated hydraulic system. It has an in-house designed fuel optimization system to improve fuel efficiency and deliver ideal job performance with loss-free power and speed. Moreover, the integration of IoT is expected to help to overcome the shortage of skilled laborers and enhanced the 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 global construction equipment rental market is segmented into application, product, propulsion system, and region. The applications covered in the study include excavation & mining, material handling, earthmoving, and concrete. On the basis of product, the market is divided into backhoes & excavators, loaders, crawler dozers, cranes, forklifts, and others. By propulsion system, it is differentiated into electric and ICE. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, South Korea, India, and the rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa).
The major market participants profiled in this report include Ashtead Group plc. (Sunbelt Rentals Ltd), Boels Rental, H&E Equipment Services, Haulotte Group, Herc Rentals Inc., Kanamoto Co., Ltd., Loxam (Ramirent), Sarens n.v./s.a., Sumitomo Corporation (Sunstate Equipment Company), and United Rentals, Inc. The players in the market have been actively engaged in the adoption of various strategies such as acquisition, product launch, and expansion to remain competitive and gain an advantage over the competitors in the market
Key Market Insights
- By application, the earthmoving segment was the highest revenue contributor to the market and is estimated to reach $63.3 billion by 2031. In addition, the excavation and mining segment is estimated to be the fastest-growing segment with a CAGR of 5.2% during the forecast period.
- By product, the loaders segment dominated the global market, and the other is expected to be the fastest-growing segment with a CAGR of 6.1% during the forecast period.
- Based on the propulsion system, the ICE segment was the highest revenue contributor to the market with a CAGR of 4.3% during the forecast period.
- Based on region, North America garnered the largest revenue share in 2020, whereas Asia-Pacific is anticipated to grow at the highest CAGR of 5.8% during the forecast period.
Companies Mentioned
- Boels Rentals
- H&E Equipment Services Inc.
- Herc Rentals Inc.
- Kanamoto Co., Ltd.
- Maxim Crane Works, L.P.
- Mtandt Group
- NESCO Holdings, Inc.
- Ramirent AB
- Sarens n.v./s.a.
- United Rentals, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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