Construction Equipment Rental Market (By Product Type: Material Handling Machinery, Earth Moving Machinery, Concrete and Road Construction Machinery) - Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

According to Nova one advisor, the global Construction Equipment Rental market was valued at USD 100.09 billion in 2021 and it is expected to hit around USD 153.30 billion by 2030 with a CAGR of 4.15% during the forecast period 2022 to 2030.

Key Takeaways:

• The earthmoving machinery segment dominated the market in 2021 and is expected to generate a market revenue of over USD 54.11 billion by the end of the forecast period. The increasing application of earthmoving excavators for mining, agriculture, and construction industries significantly contributes to segmental growth.
• Asia Pacific is expected to witness significant growth in construction equipment rental by 2030, owing to governments’ investment in the development of the highway, airports, dams, and special economic zones(SEZs).
• The construction equipment rental is witnessing high competition across the globe. Major players are inclining towards enhancing the business and product offering through strategic business acquisition. For instance, in April 2021, United Rental Inc., a global equipment rental company announced the acquisition of General Finance Corporation, a specialty rental service company. United Rental Inc. acquired complete assets of General Finance Corporation which helped the company to enhance its product portfolio.

Rising government investment in the infrastructure sector and increasing Foreign Direct Investment (FDI) in the construction domain to develop roads, highways, expressways, bridges, skyscrapers, and smart cities have created a demand for rental construction equipment. Constant technology advancement to produce cutting-edge project-oriented construction equipment that optimizes the overall construction process is propelling the growth of the construction equipment rental market. 

Higher total cost ownership of new construction equipment & machines encourages small & medium scale construction companies and contractors to adopt rental construction equipment. Additionally, renting reduces the maintenance, repair, insurance, and warehousing costs associated with owning; thus, construction equipment rental provides an economical alternative to the construction firms.

The pandemic led to a global lockdown and supply chain disruption which impacted the manufacturing, construction, and mining sectors at large. Post pandemic, issues such as lack of availability of skilled workforce, spiking raw material prices, and high EMIs have amplified uncertainties in the construction sector subsequently hampering the growth pace. Thus, to avoid the risk aversion and reduce uncertainty, larger-scale construction companies are switching towards renting the construction equipment's, thereby driving the growth of the construction rental equipment market.

The Asia Pacific region is expected to witness a high pace of growth during the forecast period. The prominent players in the construction equipment rental market, based in China, are focusing on developing advanced equipment that reduces machine downtime, requires lesser fuel, and provides high output. Besides, the Indian government is heavily investing in massive infrastructural projects to boost the country's economy; thus, these factors are expected to leverage the growth of the construction equipment market in the region.

Report Scope of the Construction Equipment Rental Market

Product Insights

The global construction equipment rental market is segmented into earthmoving machinery, material handling machinery, and concrete & road construction machinery. The earthmoving machinery segment accounted for a major market share of over 50.9% in 2021. The increasing application of earthmoving excavators for mining, agriculture, and construction industries significantly contributes to segmental growth. The other earthmoving equipment such as backhoe loaders, crawler excavators, skid-steer loaders, and mini excavators, have high load capacity and better engine performance. These features of earthmoving equipment make them suitable to be used in harsh working environments. Moreover, the growing construction of residential and large-scale commercial civil projects has increased the inclination of construction companies and contractors toward leasing earthmoving equipment.

The concrete and road construction machinery segment is anticipated to register a compound annual growth rate of 6.9% from 2022 to 2030. Road connectivity has the potential to define the future economy of the country, as an established infrastructure plays a crucial role in improving trade and commerce activities. In November 2021, the U.S. federal government passed the Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act), which enables investment worth $110 billion to rebuild the roads, bridges, and others in five years. Safe streets and roads will be developed to reduce traffic fatalities and improve connectivity. Moreover, many developing countries in the Asia Pacific, such as China and India, focus on creating better road connectivity. For instance, China's "One Belt, One Road" initiative will connect China with European countries. The total estimated cost for the overall project is USD 1.4 trillion. Similarly, according to the new budget 2022-23 Indian government has planned to invest $530.7 billion to improve road connectivity by developing new highways. Thus, the government's increasing investment in mega road and highway construction projects is expected to create a demand for concrete and road construction machinery across the world.

Regional Insights

The Asia Pacific region is expected to witness significant growth of 6.49% during the forecast period. To increase the connectivity, improve trade, and boost the overall economy governments of emerging economies of Asia are majorly investing in the development of the highway, airports, dams, and special economic zones (SEZs). These initiatives are gaining global construction equipment companies’ attention; they are motivated are hugely investing and set up their company based in the region. Global construction equipment manufacturers such as Caterpillar, Hitachi, Liebherr, and Sumitomo Corporation provide their products and services in the region.

North America holds a market share of 45.1% in 2021. The region is anticipated to maintain its dominance over the forecast period. 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 specialized equipment reduces the operation time, eliminates the idling time, and optimizes the overall construction or mining activity, thus 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.

Some of the prominent players in the Construction Equipment Rental Market include:

• JCB
• Zahid Group
• Industrial Supplies Development Co. Ltd
• Ahern Equipment Rentals
• John Deere
• Caterpillar Inc.
• Gemini Equipment and Rentals (GEAR)
• Hertz Equipment
• Komatsu Equipment
• Maxim Crane Works
• Neff Rental

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Construction Equipment Rental market

By Product

• Material Handling Machinery
• Shelves
• Bins
• Silos
• Conveyors
• Pallet trucks
• Fork lifts
• Frames
• Sliding racks
• Bulk containers
• Platform trucks
• Hand trucks
• Cranes
• Others
• Earth Moving Machinery Concrete
• Excavators
• Loading shovels
• Site dumpers
• Dump trucks
• Others
• Concrete and Road Construction Machinery
• Pavers
• Trenchers
• Planers
• Rollers
• Hot boxes
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the global Construction Equipment Rental industry analysis from 2022 to 2030 to identify the prevailing Construction Equipment Rental industry opportunity.
• 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 global Construction Equipment Rental industry 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 industry trends, key players, market segments, application areas, and market growth strategies.