North America Construction Equipment Rental Market Outlook, 2028

The North American market share is expected to exhibit substantial growth in the upcoming years. The strong presence of leading global manufacturers is contributing to the growth of the market. Additionally, construction companies across North America are being observed as being hesitant to invest in new equipment in these economic conditions. Hence, there are significant opportunities for the market to push through during the forecast period. These factors drive North America's growth potential and continue to grow the market share at the global level. The growth of the construction equipment companies in the region is due to the availability of project-specific, technologically advanced machinery at a minimal cost. The specialised equipment reduces the operation time, eliminates the idling time, and optimises the overall construction or mining activity, making it widely preferred. The prominent construction equipment rental companies based in the U.S., such as United Rentals, Ahern Rentals, Ashtead Group, and others, have increased demand for enhanced rental services and solutions. In addition, explicit efforts taken by these companies for technological developments, strategic collaborations, acquisitions, and effective aftermarket services are expected to have a positive impact on the growth of the North American market going forward.

According to the research report, North America Construction Equipment Rental Market Outlook, 2028 the market is anticipated to reach USD 31.69 billion by 2028. North America is expected to account for the largest share of the global construction equipment rental market during the forecast period owing to increasing infrastructure development and end-user demand for cost-effective and customised equipment, which are fueling market growth in this region. Furthermore, the presence of prominent service providers in the region drives the growth of the construction equipment rental market. The market is rising during the forecast period due to a rising shift in trend towards rental equipment services in the U.S. and Canada. Construction companies prefer renting the construction equipment due to the high purchase and maintenance costs associated with the new equipment. Furthermore, the presence of key players, such as Cooper Equipment Rentals Ltd., Hinkel Equipment Rental Associates, and Caterpillar Inc., in the region is expected to propel the demand for equipment rental services.

Today, more than 12,000 rental operations do business in the United States and Canada. The largest construction equipment rental firms in the United States and Canada, by total volume of rental and sales revenue, are: United Rentals, Sunbelt Rentals, National Dispatching, RSC Equipment Rental, Hertz Equipment Rental Corp. (HERC), Home Depot Rentals, DOZR, Maxim Crane Works, Neff Rental, H & E Equipment Services, Sunstate Equipment, Ahern Rentals, Aggreko North America, Finning International, All Erection & Crane Rental, Ring Power, Volvo Rents, Powerlifts, ABC Rentals, Neighborly's Equipment & Rental.

Based on product, the North American market is segmented into earthmoving, material handling, concrete and road construction, and others. The earthmoving and roadbuilding segment comprises construction equipment rentals such as backhoes, loaders, excavators, and compaction machines. The earthmoving segment is anticipated to lead the market by 2028. The increasing adoption of loaders to move and lift heavy objects is contributing to the growing demand in the market. The ability of these machines to move materials from one place to another is also increasing the market's size. With the expanding consumer base of earthmoving and roadbuilding equipment in the United States, Canada, and Mexico, loaders will witness bullish demand in the region. The trend for loading materials such as clearing rubble, loading trucks, and digging will bolster product adoption to move and lift heavy objects. The North American construction equipment rental market share from earthmoving is projected to witness a significant rate increase in the next few years, partly attributed to the innate ability of these machines to shift materials from one place to another. End-users will exhibit increased traction for industrial trucks as they can boost productivity and reduce human efforts. Considering the uptake of material handling and cranes, leading companies are poised to increase their investments in industrial trucks.

The American Rental Association (ARA) is the largest international trade association for owners of equipment and event rental operations, as well as manufacturers and suppliers of rental items. As rental continues to evolve, ARA employees and members are working together to build a strong future for our industry. That includes education and training to develop employees and increase safety practices, supporting a sustainable workforce and career development, using technology to increase operational performance, and having the ability to transform business data into actionable insights. Connecticut-based United Rentals ranks as the largest equipment rental company in the United States. United Rentals was also the leading tractor rental carrier in this period, with a fleet size of over 2,000.

Furthermore, the increasing number of construction projects in Canada has boosted the growth potential of the rental construction equipment sector. This is primarily due to increased immigration into the country. In addition, the regional government is also spending heavily on infrastructural development activities that can cater to the requirements of citizens as well as immigrants. For instance, the Canadian government assigned USD 81.2 billion to the initiative Invest in Canada. This initiative will emphasise developing public and commercial infrastructure to address the increasing demand, especially from immigrants. Such government initiatives will boost the requirement for rental construction equipment across the country.

The growing number of immigrants in Canada is driving the growth of the regional construction industry. The growing number of construction activities is propelling the demand for construction equipment rental services in the country. The rapid increase in government spending on infrastructure development is supporting market demand. For instance, the government of Canada allotted USD 81.2 billion to the Invest in Canada initiative. The initiative will focus on the development of commercial and public infrastructure to address the growing demand for residential infrastructure among immigrants in the country. This will accelerate the demand for construction equipment rental services, propelling the market's size. Based on these factors, the residential segment is leading the market in 2022, whereas the non-residential segment is anticipated to witness the highest market growth in the upcoming timeframe.

Key players operating in the North American construction rental equipment industry are Ahern Rentals Inc., Briggs Equipment Inc., Caterpillar Inc., Cooper Equipment Rentals Ltd., H&E Equipment Services, Herc Rentals, Inc., Hinkel Equipment Rental Associates, and United Rentals, Inc. These players are primarily focusing on mergers and acquisitions to enhance their business operations and reach in the market. For instance, in July 2018, Hitachi Construction Machinery (HCM) purchased a 33.3 percent equity interest in Acme Lift Company in order to enter the North American rental market. The joint venture will add Hitachi earthmoving equipment to Acme’s fleet, which will be available through Acme’s proprietary re-rental operations to equipment rental companies across North America. Through its investment in Acme, Hitachi aims to grow its rental business in North America, which is home to the world’s largest rental market. As well, the investment aims to acquire business expertise that can be leveraged to expand the business into other regions in the future.

Recent Developments:

• In March 2019, Cooper Equipment Rentals Ltd. completed the acquisition of Prime Rentals Ltd., an independent renal equipment company based in Canada.
• Ahem Companies announced in June 2020 that Trackunit will be their partner for telematics platforms. In addition, United Rentals acquired BakerCorp International Holdings Inc. in July 2018. Such business activities will open lucrative opportunities for the industry to register significant growth.

Major Companies present in the market:

Nikken Corporation, Caterpillar Inc., Sumitomo Corp., Hitachi Construction Machinery (Hitachi Group), Hyundai Construction Equipment Ltd., Finning International Inc, Maxima Carne Works Lp, Ashtead Group Plc, United Rental Inc, H&E Equipment Services Inc., Sunbelt, Herc Rentals Inc.

Considered in this report

• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• North America Construction Equipment Rental market with its value and forecast along with its segments
• Country-wise Construction Equipment Rental market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• United States of America
• Canada
• Mexico

By Equipment Type:

• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application Type:

• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc)

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Construction Equipment Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.