The global construction equipment rental market size was valued at USD 187.46 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.12% from 2023 to 2030. Construction and mining operations have been sparked in emerging economies around the world by the increase in government spending on the development of public infrastructure. Due to this factor, there is a significant market demand for construction equipment. The rise in prices for new construction machines is encouraging construction companies and contractor to shift their interest toward renting construction equipment. Further, the emergence of advanced technologies and increasing level of automation is expected to propel the growth.
Advancements such as equipment service tracking & mapping and digital service for automated service improvements are anticipated to drive the industry growth during the forecast period. The pandemic has posed a severe challenge that resulted in global supply chain disruptions, shutting down several production facilities, which harshly affected the infrastructure industry, subsequently affecting the construction equipment rental industry.
In 2021, the market witnessed higher growth, as many rental companies benefit from the uncertainty caused due to pandemics. The construction activities have been active at an irregular pace after being hit with each COVID-19 wave, which is motivating small and medium scale construction companies to rent the machine than purchase them. The uncertainty is expected to be amplified in the construction sector due to higher inflation in raw material prices, scarcity of skilled workforce, and high interest charged by the construction companies, therefore, the factors mentioned above are expected to increase the adoption of rental construction equipment in the market.
Rapid technological advancements in the automobile and heavy equipment sector has increased the efficiency and performance of construction machines. The prominent players are majorly focusing on developing smarter machines by incorporating propriety technology systems. The Telematics system provides brief information about the location and level of the performance of construction equipment as well as the vehicle. Data relayed through the system includes engine hours idling, GPS location, and fuel consumption; however, the systems require huge investment which makes them unaffordable for many small builders and contractors. Thus, the construction equipment rental service has overcome the issue by removing the total cost of ownership and providing them with rental options.
The costs of initial equipment purchase, maintenance, and inventory can be avoided by renting construction equipment. To make long-term earnings from their products, the rental businesses make greater investments in their upkeep and repair. Rental firms have been offering customers in remote places on-site support services as a way to further diversify their product and service offerings.
Based on product, the 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 55.76 % in 2022. The agricultural, mining, and construction industries, increased use of earthmoving excavators significantly supports in industry expansion. 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, construction firms and contractors are now more likely to lease earthmoving equipment due to the increase in the number of large-scale commercial and residential civil projects being built. Hence propelling the demand for construction equipment rental market.
The concrete and road construction machinery segment is anticipated to register a compound annual growth rate of 6.8% from 2023 to 2030. A well-developed infrastructure is essential to enhance trade and commerce operations, road connection has the capacity to determine the country's economic future. In November 2021, The Bipartisan Infrastructure Deal (Infrastructure Investment and Jobs Act) was passed by the federal government of the United States, allowing investment of $110 billion to replace the roads, bridges, and other infrastructure 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 1.3 trillion. Similarly, according to the new budget 2022-23 Indian government has planned to invest $529.7 billion to improve road connectivity by developing new highways. Thus, the demand for concrete and road construction equipment is anticipated to be driven by the government's growing investment in mega-road and highway construction projects.
Asia Pacific is expected to witness significant growth of 6.3% 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 held a market share of 31.3 % in 2022. The region has maintained its dominance in 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.
The key players have adopted strategies such as geographic expansion and new product launches to strengthen their market presence. Moreover, they focus on enhancing their existing product offerings and brand awareness to gain a competitive edge in the market. The companies are undertaking frequent mergers and acquisitions to diversify their product portfolio and gain market share. For instance, In April 2021, General Finance Corporation's assets were fully acquired by United Rental Inc., as part of the company's strategic efforts to diversify its current product offering. Some of the prominent players in the global construction equipment rental market include:
Ahern Rentals Inc.
Byrne Equipment Rental
Finning International Inc.
Kanamoto Co., Ltd.
Maxim Crane Works, L.P.
United Rentals, Inc.
Market size value in 2023
USD 195.35 billion
Revenue forecast in 2030
USD 280.13 billion
CAGR of 6.12% from 2023 to 2030
Base year for estimation
2018 - 2021
2023 - 2030
Revenue in USD billion and CAGR from 2023 to 2030
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
North America; Europe; Asia Pacific; Latin America; MEA
U.S.; Canada; U.K.; Germany, Italy; France; Spain; Russia; Rest of Europe; China; India; Japan; Rest of APAC; Brazil; Mexico; Rest of Latin America; South Africa; Saudi; Kenya; Algeria; Rest of MEA
Key companies profiled
Caterpillar; CNH Industrial N.V.; Doosan Corporation; Escorts Limited; Hitachi Construction Machinery Co., Ltd.; Hyundai Construction Equipment Co., Ltd.; J C Bamford Excavators Ltd.; Deere & Company.; Kobelco Construction Machinery Co., Ltd.; Komatsu Ltd.; Liebherr-International AG; Manitou BF; HÄ°DROMEK; Sany Heavy Industry Co., Ltd.; Sumitomo Heavy Industries, Ltd.; Terex Corporation; Volvo AB; Zoomlion Heavy Industry Science; Technology Co., Ltd
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The 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 2018 to 2030. For this study, Grand View Research has segmented the global construction equipment rental market report based on product and region:
Product Outlook (Revenue, USD Billion, 2018 - 2030)
Earth Moving Machinery
Material Handling Machinery
Concrete and Road Construction Machinery
Regional Outlook (Revenue, USD Billion, 2018 - 2030)
Rest of Europe
Rest of Latin America
Rest of Latin America
Middle East & Africa
Rest of MEA
b. The global construction equipment rental market size was estimated at USD 187.46 billion in 2022 and is expected to reach USD 195.35 billion in 2023.
b. The global construction equipment rental market is expected to grow at a compound annual growth rate of 5% from 2023 to 2030 to reach USD 280.13 billion by 2030.
b. Asia Pacific dominated the construction equipment rental market with a share of 48.3% in 2022. This is attributable to growth in the number of highway constructions, metro construction, airports, Special Economic Zones (SEZs) in the region.
b. Some key players operating in the construction equipment rental market include Ashtead Group; United Rental; Aggreko; Herc Rentals Inc.; and Aktio Corp.
b. Key factors that are driving the construction equipment rental market growth include growing access to advanced and updated technology, and improved customer service.
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