Construction Equipment Rental Market Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Material Handling Machinery, Concrete & Road Construction Machinery), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global construction equipment rental market size was valued at USD 92.9 billion in 2019 and is projected to expand at a CAGR of 4.9% over the forecast period. The surge in the construction and mining activities, mostly in the developing countries is the key factor driving the market for construction equipment rental. The emergence of new technologies including digital services for automated service improvements, equipment service tracking, and mapping features has been an ongoing trend within the market. The adoption rates of construction equipment are increasing in the rental services owing to the technological enhancements provided by the original equipment manufacturers. 

Technological advancements in automotive and heavy machinery sectors have brought many new features to the market for construction equipment rental. Construction equipment manufacturers are not only focusing on incorporating advanced safety features such as lift assist, 360-degree camera visual, and additional work lights but are also focused towards providing systems that improve operational efficiency and require lesser maintenance. However, these features come at a high price, which is not affordable to many small builders and contractors. Thus, these professionals prefer rental construction machinery.

Renting construction equipment not only saves the cost of buying new equipment but reduces the incurrence of expenses such as labor cost, maintenance cost, and operational costs. The cost of timely maintenance, repair, and checking is also avoided. Construction equipment rental companies perform all these tasks regularly, to gain long-term profit from the machinery. These companies are now also focusing on providing onsite services and support for equipment, which further enhances customer experience. Companies such as Caterpillar Inc. offer quick response teams to help customers at remote locations through mobile servicing vans.

The procurement of new construction equipment often requires high down payments and investing a large portion of capital from the operating expenses of the company. Interest on loans, insurance cost, licensing cost, storage cost, and taxes are the overhead costs involved post-purchase of the construction equipment. Equipment owners are also accountable for transportation between job sites. On the other hand, if the company procures the equipment on a rental basis, the responsibility of providing the equipment to new work sites is with the provider and the company using it does not bear the direct overhead cost. Furthermore, the rental companies often upgrade their fleet of equipment and machineries on a regular basis, providing its customers with upgraded and most advanced equipment.

Product Insights

The construction equipment rental market can be segmented on the basis of product into earthmoving machinery, material handling machinery, and concrete and road construction machinery. The earthmoving machinery segment dominated the market for construction equipment rental in 2019. However, the concrete and road construction machinery segment is anticipated to exhibit the highest CAGR of 6.1% from 2020 to 2027.

Earthmoving machinery such as excavators enjoy enormous demand around the world as it has a wide application scope in construction, mining, and agriculture sectors. Other equipments in this category are skid-steer loaders, backhoe loaders, crawler excavators, and mini excavators, which also present attractive market potential. These have high load capacity and engine power, which enable them to work efficiently in harsh conditions.

The material handling machinery segment comprises crawler cranes, trailer-mounted cranes, and truck-mounted cranes. Growing construction of skyscrapers and mega infrastructure projects are anticipated to boost demand for these types of machinery on a rental basis. Truck-mounted cranes hold the majority of shares in the market for construction equipment rental owing to easy mobility. They are used for the construction of buildings, bridges, and dams. On the other hand, traditional crawler cranes are witnessing a steep fall in demand since the last decade. Crawler cranes are difficult to be carried on long distances and they need to be loaded on to other vehicles for transportation. These cranes also have lower material handling capacity.

Demand for concrete and road construction machinery on a rental basis is anticipated to grow over the forecast period. Roads are considered as an indicator of a country’s overall development as better road connectivity aids in improved trade and economic growth. Thus, many developing countries such as China and India are focusing on developing better road connectivity. For instance, China’s ambitious “One Belt, One Road” initiative will connect China with European countries. Similarly, the government of India’s “Bharatmala” project focuses on connecting all prominent cities in the country with a single road.

Such projects are boosting the demand for concrete and road construction machinery around the world. Demand for concrete mixer trucks on a rental basis is rising owing to increased construction projects globally. Construction pumps are anticipated to gain significant market share, especially in Middle East and Africa, wherein the trend of building massive infrastructures is high.

Regional Insights

Asia Pacific is anticipated to witness the highest CAGR of 6.1% from 2020 to 2027 and is likely to continue the dominance in terms of both usage and manufacturing over the forecast period. This region has witnessed growth in the number of highway constructions, metro construction, airports, Special Economic Zones (SEZs), hydroelectric projects, dams in order to sustain better connectivity, high-level industrial activities, and growing energy demand. China is a worldwide leader in construction machinery manufacturing, owing to availability of advanced manufacturing facilities, cheaper labor costs, and high production capacity. China manufacturers export their machinery to many countries in Europe and Asia.

North America accounted for the largest revenue share of over 48% in 2019 and is characterized by the presence of prominent rental players operating in the U.S. as well as Canada. Furthermore, the robust growth in the residential construction sector, coupled with an increase in infrastructural segment owing to the rising investment in Central and Eastern Europe. This, in turn, is projected to contribute towards the growth of the market for construction equipment rental. Countries in the Middle East region such as Saudi Arabia and Qatar have an augmented demand for rental equipment such as loaders and excavators owing to surge in major projects such as FIFA World Cup 2022, Jazan Economic City, King Abdullah Economic City, Vision 2030, and Jeddah Metro.

Construction Equipment Rental Market Share Insights

The market for construction equipment rental is highly competitive and concentrated, with the top five companies accounting for the maximum share of the global revenue in 2019. Ashtead Group; United Rental; Aggreko; Herc Rentals Inc.; and Aktio Corp dominated the market. Addition of new equipment to the existing fleet and mergers and acquisitions are some of the strategies adopted by the key players to maintain their market share. Technologically advanced and fuel-efficient products are expected to be a critical parameter for being competitive in the market for construction equipment rental.

Frequent mergers and acquisitions are being undertaken as an attempt to diversify the product portfolio and gain market share. For instance, in March 2019, Cooper Equipment Rentals Ltd. announced the acquisition of Prime Rentals Ltd., an independent equipment rental company in Canada. In September 2018, United Rentals, Inc. announced the acquisition of BlueLine Rental, which has 114 locations in North America.

Report Scope 

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 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global construction equipment rental market report on the basis of product and region:

• Product Outlook (Revenue, USD Billion, 2016 - 2027)

  • Earth Moving Machinery

  • Material Handling Machinery

  • Concrete & Road Construction Machinery

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa