Forklift Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The forklift rental market is expected to reach USD 8.17 billion, registering a CAGR of 4.78% over the next five years.

The COVID-19 pandemic is likely to have a positive impact on the forklift rental industry for the foreseeable future. Renting equipment can provide several long-term benefits for dealers and users. A key takeaway is that, in the long run, renting will be far more profitable than owning. When an equipment dealership offers rentals, it is investing in future revenue streams with the potential for extremely high returns. Furthermore, by renting a forklift, the company gains some monetary benefit that can be used for other purposes.

Over the long term, renting forklifts is becoming more popular among contractors and e-commerce firms due to the high initial purchase cost of a new forklift. The demand for forklift rentals has increased as a result of market factors such as high taxes, maintenance costs, high depreciation costs, and equipment insurance requirements for new machines. Industries are also dynamic and heavily influenced by changes in the market. Renting equipment helps protect the company from unexpected financial instability. The rental of a wide variety of cutting-edge equipment is also helping to boost market revenue. Several emerging trends in the automation sector have led to an increase in forklift rental market share following the pandemic. Moreover, with more people shopping online, there is a greater need for warehouse and logistics specialists, such as forklift operators and mechanics. The trajectory of e-commerce is increasing demand for forklift operators and other logistics personnel in two ways: higher volumes of online orders necessitate more staff to fulfill them, and as the e-commerce sector becomes more competitive, consumers pressurize retailers to increase delivery speed and efficiency.

Along with forklift operators, the rise in e-commerce will most likely benefit forklift suppliers, manufacturers, and engineers. In 2021, retail e-commerce sales in the United States surpassed USD 900 billion, including digital services. However, a significant constraint to growth in the global market is a lack of trained labor.

In the coming years, the Asia-Pacific region is anticipated to experience significant growth. Governments of emerging economies in Asia are heavily investing in the construction of roads, airports, dams, and special economic zones to improve trade, increase connectivity, and strengthen the region's economy. These initiatives have caught the attention of major manufacturers of construction equipment, who are now motivated to invest heavily and establish a presence in the area.

For instance, GIKEN and AKTIO Corporation work together in the rental business. AKTIO Corporation is one of the industry's leading construction equipment rental companies. The company recognizes this business alliance as a significant step toward reaching JPY 100 billion (around USD 739 Million) in sales in 10 years as a 2024 Mid-term Management Plan. To meet rising demand, the company will use AKTIO's extensive network to accelerate the development of new customers and establish the supply structure for press-in machinery.

Through a proposal-based construction equipment rental service called 'RensultingR,' AKTIO works with various construction companies and specialty contractors. AKTIO will be a strong partner for GIKEN in customer development. By utilizing AKTIO's various channels, GIKEN hopes to increase its user base, and AKTIO hopes to increase its revenue by adding SILENT PILERTM to its line of products. The 'Construction Revolution' will continue to advance thanks to the synergistic effects of this business partnership, ushering in a new era of construction.

Forklift Rental Market Trends

Forklift Rental is Expected to Witness a Considerable Market Growth Over the Forecast Period

Due to the increased demand for contemporary material handling equipment, there has been significant growth recently. The increasing use of vehicles in warehouses and distribution centers for load placement and removal from storage racks, trailer loading and unloading, and safely delivering components to the delivery line is one factor driving the target market's growth. Forklift truck demand is expected to rise in the coming years across industries such as consumer goods, automotive, aerospace, food and beverage, retail, and construction. Forklifts are manufactured all over the world.

Forklift trucks are extremely cost-effective, user-friendly, powerful, and simple to maintain, with a wide range of applications in the wood, steel, and mortar industries. Forklift trucks have an advantage over other industrial equipment because of this quality. It is preferred globally, owing primarily to its ease of operation, whether in a developing or developed country.

Meanwhile, the logistics survey report shows a 14.1% increase in total online orders, reflecting the shift toward online shopping. Consequently, the expansion of the e-commerce sector is boosting overall industry growth. Moreover, the growth of the warehouse industry as a service sector, as well as implicit efforts, investments, and research and development activities by manufacturers, contribute to an increase in the forklift rental market. With rising consumer spending and expanding economies, it is predicted that industrial output, fixed investment spending, power production, and mining activity will grow. Manufacturing and other sectors place a strong emphasis on luring large amounts of foreign capital. The government is expanding the building of power plants, railroads, and airports, which will positively impact the target market growth. Similar shifts in forklift rental market trends are seen in the usage of more expensive, high-tech equipment at the expense of traditional models.

North America is Expected to Hold a Considerable Share in Target Market

The key factor driving the market has been the rise in demand for high-performance forklifts. As forklifts typically have service lives of 10 to 12 years, a constant need to replace outdated forklifts is the main driver of the North American market. Many businesses in developed nations have begun to replace their outdated forklift trucks with more powerful, energy-efficient machinery in response to the growing demand for forklifts that are faster and of higher quality. The increased adoption of fuel-efficient vehicles is predicted to lead to an increase in demand for forklift trucks in North America. Engine and hydraulic system changes are made by manufacturers to improve vehicle efficiency. In the coming years, the United States is expected to expand its global print market.

For instance, Sunstate Equipment intends to expand its business outside nine states in the South and West (including Texas and California), where it is currently active to pursue sustained growth. The United States has seen an increase in demand for construction equipment rentals, driven in part by the demand for improvements to the aging public infrastructure of the nation. Sunstate Equipment will work in collaboration with Sumitomo Corporation to elevate customer service standards. This will enable it to establish itself as a key player in the construction equipment rental industry in the United States.

Future developments in other markets are anticipated to experience increased economic growth. This innovative project will use the integrated corporate power of Sumitomo Corporation to expand business operations globally. This operational expertise was developed in Japan at firms acquired in the United States.

Forklift Rental Market Competitor Analysis

The forklift rental market is fragmented, with the presence of several domestic and international players operating in the market. Partnerships, mergers, and acquisitions happen in the forklift rental industry. To install the newest features and technologies that will make the vehicle suitable for the needs of customers right now, OEMs are producing white-label vehicles for technology companies. For example,

• In October 2022, H&E Equipment Services Inc. acquired One Source Equipment Rentals Inc. With the completion of the transaction, H&E expanded its branch network by 10 equipment rental locations. These locations include initial locations in Illinois, Indiana, and Kentucky. Furthermore, the company will expand its operational presence in the southern United States while investing approximately USD 138 million in the fleet, as measured by the original equipment cost.
• In June 2022, to assist in the decarbonization of the construction and equipment rental industries, Sunbelt Rentals, a rental company for forklifts, and Britishvolt will collaborate closely to support the development of heavy plant and equipment battery solutions. Britishvolt, a leader in battery technology, has begun a strategic partnership with the largest equipment rental company in the United Kingdom to support the construction of the business's first fully operational 38 GWh battery Gigaplant in Northumberland and to foster 'economies of carbon.'

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• The market estimate (ME) sheet in Excel format
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