New York, United States, Nov. 30, 2023 (GLOBE NEWSWIRE) -- Construction equipment rental is the service of renting construction equipment to end users for a specified period under contracts containing usage terms and conditions. A rise in construction and mining activities in developing nations of Latin America and Africa drives the expansion of the market for construction equipment rentals. In addition, renting equipment for the necessary time reduces costs associated with equipment maintenance, high operational costs, and high wages of skilled operators, which contributes to the expansion of the market.
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A Rise in Construction Activities in Developing Countries Drives the Market Growth
In the developing nations of Asia, Africa, and Latin America, ongoing construction projects for malls and offices have been observed. Since 2017, approximately 100 malls have been constructed in Latin America. In addition, the rapid industrialization of developing nations has resulted in the construction of new, abundant office spaces in major cities. For instance, over 17 major IT parks have been constructed in India's major cities, such as Mumbai, Delhi, Pune, Bangalore, and Hyderabad, over the past few years. Several housing developments are also under construction in Africa.
IoT Technology Creates Opportunities
According to Staits Research, “The global construction equipment rental market is projected to reach USD 149.07 billion by 2031, growing with a CAGR of 4.2% during the forecast period (2023–2031).” Technologies like the Internet of Things (IoT) installed in construction equipment have made it easier for rental companies to track the equipment's location and operations. IoT aids in overcoming skilled labour shortages by enhancing work precision, ensuring on-time delivery within budget, and resolving equipment safety issues. Consequently, the introduction of new internet-connected equipment is anticipated to stimulate the growth of the construction equipment rental market over the forecast period.
Regional Analysis
North America is the largest contributor to the global construction equipment rental market and is anticipated to grow with a 4.2% CAGR. The market is expanding due to increased commercial infrastructure construction, mining, and remodelling in the United States and Canada. In addition, the United States is a major manufacturing center for construction equipment for many companies, including Caterpillar, Volvo, and John Deere, which is advantageous for rental companies because manufacturers also offer services and maintenance for the equipment.
Europe is the second largest market and is growing with a CAGR of 3.7%. The major players, including Volvo Construction Equipment, Liebherr, and JCB, have their headquarters in Europe and a strong regional presence. Countries such as Germany, the United Kingdom, France, and others are major centres of development for the manufacturing and energy industries, which increases the demand for rented construction equipment in these nations. This is expected to stimulate the growth of the construction equipment rental market.
Key Highlights
- By applications, the market is segmented into excavation & mining, material handling, earthmoving, and concrete. The earthmoving segment holds the highest revenue share, registering a CAGR of 5.1%.
- Based on product, the market is divided into backhoes & excavators, loaders, crawler dozers, cranes, forklifts, and others. The loaders segment holds the highest revenue share and is growing with a CAGR of 3.5%.
Competitive Players
The most prominent players operating in the construction equipment rental market include Boels Rentals, H&E Equipment Services, Herc Rentals Inc., Kanamoto Co., Ltd., Nesco Holdings, Inc., Maxim Crane Works, L.P., Mtandt Group, Ramirent, Sarens n.v./s.a., and United Rentals, Inc.
Market News
- In October 2022, H&E Equipment Services Inc. announced that its acquisition of One Source Equipment Rentals Inc. had been completed. With the completion of the transaction, H&E expanded its branch network by ten equipment rental locations, including initial locations in Illinois, Indiana, and Kentucky.
- In November 2021, Rapid Equipment Rental Limited was acquired by Herc Holdings Inc., a North American equipment rental supplier operating through Herc Rentals Inc. Rapid is a full-service equipment rental company with seven locations serving the Greater Toronto Area's construction and industrial clients.
Global Construction Equipment Rental Market: Segmentation
By Application
- Excavation & Mining
- Material Handling
- Earthmoving
- Concrete
By Product
- Backhoes & Excavators
- Loaders
- Crawler Dozers
- Cranes
- Forklift
- Other
By Propulsion System
- Electric
- ICE
By Region
- North America
- Europe
- Asia Pacific
- LAMEA
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