About This Report

Construction Equipment Rental Market, by Equipment Type (Material Handling Machinery, Earthmoving Machinery, and Road Building & Concrete Machinery), by Product Type (Cranes, Backhoes, Crawler Dozers, Concrete Pumps, Excavators, Loaders, Compactors, Transit Mixers, Concrete Mixers, and Others), by Propulsion System (IC Engine, and Electric), and by Region (North America, South America, Europe, Asia Pacific, The Middle East and Africa) - Size, Share, COVID Impact Analysis, Growth, Outlook, and Opportunity Analysis, 2020 - 2028

Construction equipment rental is the practise of borrowing or renting large machinery, tools, and equipment to builders, contractors, and other industry professionals for an agreed-upon period of term. Construction companies can save money by renting the machinery and tools needed for a particular project rather than investing in costly equipment outright. Construction companies may borrow the necessary machinery and tools for a particular project rather than buying pricey equipment, saving money and ensuring that they only spend money for the equipment they really use. Excavators, bulldozers, cranes, backhoes, and other specialised instruments required for construction projects are frequently available for rent from rental businesses.

In 2020, the Construction Equipment Rental market was valued at US$ YY million, and it is anticipated to be around US$ YY million by 2027. Over the forecast period, the market is expected to grow at a CAGR of YY%.

Rising construction equipment demand and a shift in rental tendencies are drivers, while the construction industry's vulnerability to the economic downturn is a restraint

The market for construction equipment rentals has been fuelled by a number of factors, including a rise in demand for the equipment and a movement in consumer preferences towards renting rather than buying. For instance, the demand for rental equipment has been fuelled by establishing companies' increasing use of rental services, particularly in emerging nations. The rise of the sharing economy and the preference for affordable and adaptable solutions have also aided in the expansion of the rental sector. Governments all across the world have made significant investments in the growth of infrastructure, particularly in emerging economies. For instance, the Belt and Road Initiative of the Chinese government seeks to build infrastructure projects in more than 60 nations, while the Smart Cities Mission of the Indian government intends to build 100 smart cities around the nation. These programmes have significantly increased the demand for construction equipment rentals.

The market is yet significantly constrained by the construction industry's exposure to economic downturns. Due to the COVID-19 pandemic's negative economic effects, numerous projects have been postponed or abandoned, which has had a significant impact on the market for construction equipment rentals. The pandemic has been estimated to cause a 6.5% fall in the worldwide construction industry in 2020, with a slow come back anticipated in the following years.

Governments all over the world are bringing initiatives and grants into effect to aid the building sector during the pandemic. For instance, in order to help small businesses—including contractors—adjust to the pandemic's financial effects, the United States government established the Coronavirus Aid, Relief, and Economic Security (CARES) Act. With an expenditure of $1.4 trillion, the Indian government has started the National Infrastructure Pipeline (NIP), with the goal of accelerating infrastructure growth and expanding the market for construction equipment rentals.

Earthmoving machinery segment is expected to account for significant market share by equipment type segment

The global Construction Equipment Rental market is mainly classified based on Equipment Type, Product Type, and Propulsion Type. By equipment type, the market is segmented into material handling machinery, earthmoving machinery, and road building & concrete machinery. Based on the product type, the market is classified into cranes, backhoes, crawler dozers, concrete pumps, excavators, loaders, compactors, transit mixers, concrete mixers, and others. On the basis of propulsion system, the market is categorized into IC engine, and electric.

Based on the equipment type, earthmoving machinery is expected to hold a major market share globally. Heavy equipment used for digging, excavating, grading, and transporting significant quantities of dirt and rocks is referred to as earthmoving machinery. Bulldozers, excavators, backhoes, and loaders are a few examples of earthmoving equipment. This segment is often in high demand due to the significance of digging in construction projects including the construction of highways, bridges, and tunnels as well as construction work for foundations and landscaping. Major companies are concentrating an introducing the new excavation machineries. For instance, Volvo CE announced the introduction of their EC380E hydraulic excavator in 2021 with a new engine that offers greater efficiency and lower emissions. They also unveiled their newest driverless transporter, the HX02, which utilises artificial intelligence to enhance performance. Similarly, Caterpillar has announced the introduction of their newest line of high-performance, user-comfortable next-generation small hydraulic excavators in 2021. Additionally, they unveiled the D9 dozer, which has new features like advanced automation and efficiency to boost productivity.

Interesting Facts of Construction Equipment Rental Market

• The COVID-19 epidemic had a substantial impact on the market for renting construction equipment, with demand falling as a result of the slowdown in construction operations. The market is anticipated to rebound in the years to come as development activity increases.
• Contractors can increase productivity and stick to project scheduling by renting construction equipment.
• For temporary infrastructure and facilities, the rental of construction equipment is growing in popularity in the healthcare industry.
• Construction work is now more accurate and precise due to developments in equipment technology, such GPS tracking.
• North America will continue to expand due to factors like a surge in construction activity and regional infrastructure development initiatives. United Rentals, Herc Rentals, Sunbelt Rentals, and H&E Equipment Services are some of the major companies in North America's construction equipment rental market. For a variety of consumer demands, these businesses provide a wide range of construction equipment rental services.

Asia Pacific will account for the largest share of the Construction Equipment Rental industry

The Asia-Pacific region is a sizable market for the leasing of construction equipment due to the increased focus on infrastructure and building development by governments in the region. Special Economic Zones, hydroelectric projects, dams, highways, metro construction, and airports, to name a few, have all been developed in order to support high-level industrial activity, fulfil rising energy demand, and enhance connectivity. International businesses have decided to invest in the area by building manufacturing and distribution facilities in order to keep up with the region's growing demand and gain market share. Additionally, regional local governments have disclosed significant investments in infrastructure growth. For instance, the Indian government recently approved a large $1 trillion infrastructure plan that will likely benefit the nation's construction equipment leasing market.

Furthermore, a number of communities in the Asia Pacific region are working to promote the use of advanced technology in the rental of construction equipment. For instance, the Singapore Rental Construction Association (SRCA) has introduced an online rental platform with the goal of enhancing the effectiveness and openness of the rental process for construction machinery. Notably, manufacturers of construction machinery including Sumitomo Corporation, Hitachi, Caterpillar, and Liebherr are in the rental business, competing with a number of domestic and regional companies that provide competitive pricing and cutting-edge machinery.

Global Construction Equipment Rental Market key Players:

Some of the major competitors in the global Construction Equipment Rental market include Ahern Rentals, Inc., Aktio Corporation, Ashtead Group Plc, Boels Rental, Cramo Group, H&E Equipment Services, Inc., Herc Holdings Inc., Kanamoto Co., Ltd., Kiloutou SAS, Loxam SAS, Maxim Crane Works, L.P., Nikken Corporation, Nishio Rent All Co., Ltd., Ramirent Plc, Sarens NV, Sunstate Equipment Company, Taiyokenki Rental Co., Ltd., and United Rentals, Inc.
The Construction Equipment Rental industry is extremely competitive with aggressive market strategies of global and regional companies looking to strengthen market position through new product launches, collaborations, and facility expansions. The following are some recent market developments:

• In March 2021, Caterpillar, one of the top producers of construction equipment, has announced intentions to establish a new manufacturing site in Thailand for increasing its footprint in the region. The factory will likely produce compact track-style tractors and hydraulic mini excavators.
• In January 2021, Volvo Construction Equipment announced a new line of compact excavators that are high-performing, dependable, and more ecologically friendly while using less fuel.
• In 2020, Komatsu introduced the new PC4000-11 hydraulic mining shovel, which provides greater productivity and lower operating costs. They also unveiled the new intelligent machine control 2.0 system, which boosts precision and production, for their excavators and dozers.
• To increase operator comfort, productivity, and fuel efficiency, Hitachi created the ZW220-7-wheel loader, which was unveiled in 2020. They also introduced the ZX490LCH-7 and ZX530LCH-7 excavators, which are more productive and fuel-efficient.
• One of the biggest equipment rental firms in the world, United Rentals, invested $500 million in expanding its fleet, which includes the acquisition of new machinery including aerial work platforms, forklifts, and backhoes.

Frequently asked questions about global Construction Equipment Rental Market

Q: What is the current size of the global Construction Equipment Rental market?
Ans: The Construction Equipment Rental market was valued at YY million US$ in 2020 and is projected to reach YY million US$ by 2027, at a CAGR of YY% during the forecast period.

Q: What are the major opportunities in Construction Equipment Rental industry?
Ans: One major opportunity in the construction equipment rental industry is the growing demand for rental equipment among small and medium-sized contractors.

Q: What is the major driving factor for Construction Equipment Rental industry?
Ans: The expansion of the construction equipment rental market is being driven by the rising demand for equipment rentals in developing nations like China, India, and Brazil.

Q: Which region is expected to have the largest share of the Construction Equipment Rental market?
Ans: North America region is expected to have the largest share of the Construction Equipment Rental market

Q: Which equipment type will dominate the Construction Equipment Rental market?
Ans: Earthmoving machinery segment will dominate the construction equipment rental market.