Onshore Crane Rental Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Onshore Crane Rental Category Overview

The onshore crane rental category is anticipated to grow at a CAGR of 4.6% from 2024 to 2030. The rising construction activity levels, infrastructure projects, and industrial expansion are driving the demand for the category. Crane rental services comprise renting out various types of cranes, such as onshore, offshore, marine, mobile, and other cranes. They are increasingly being used for complex activities such as ship loading, and material handling. The rising need for rental services, specifically from the oil and gas and construction industry, is expected to drive the demand for the category over the forecast period.

Technological integration, such as crane rental software, smart derricks, IoT, remote monitoring, and rental platforms, are revolutionizing rental services. New derricks come equipped with smart service panels as a standard feature, streamlining the process for operators to identify and address issues. These crane service panels possess the ability to autonomously detect their status and alert the operator which in turn helps them in enhancing efficiency and ease of maintenance. Companies with the help of modern equipment can remotely monitor and collect information on usage and condition.

Service providers also adopt rental software to help clients enhance productivity, increase asset utilization, reduce downtime, and enhance profitability. Through this software, clients can increase productivity hours by 10% and boost asset utilization by around 5% - 6%. Crane manufacturers and rental suppliers are also partnering with software companies to provide advanced solutions. For instance:

• In January 2023, Tadano, a crane producer based out of Japan, entered a partnership agreement with HeavyGoods. The latter is a software developer specializing in swept path simulation, axle load calculation, and load-securing solutions. With the help of the latter’s application platform, companies can overcome the challenge of tight spaces as they can simulate crane driving operations using a mix of survey or Google maps, aerial footage and site drawings.

• In January 2023, MyCrane, a digital rental platform headquartered in Dubai, introduced a new inspection application. With the help of this free application, customers can easily rent lifting equipment.

The category is fragmented in nature. Prominent players in the North American region account for a significant share of the market. As crane rental is a niche industry, rental service providers are either collaborating or partnering with technology providers and prioritizing the consolidation of equipment manufacturers’ fleets onto a single platform. Through this platform, clients seeking cranes can easily access and place inquiries online.

Buyers of the category, such as oil and gas drilling or construction companies, have some bargaining power due to the presence of various rental service providers. However, distinguishing factors such as rental rates, equipment specialization, and technological integration may restrict buyers’ power to negotiate aggressively on pricing.

Labor, equipment buying/rental/leasing costs, land or facilities, repair and maintenance, permits and licensing, fuel and transportation are some of the costs involved in providing rental services. The price of renting a derrick depends on the size, duration, and type of crane the client needs. Fuel price fluctuations have a direct impact on the transportation cost thereby impacting the final service cost. For instance, in January 2023 the price of diesel in the U.S. was around USD 4.58 per gallon, whereas in December 2023, it was around USD 3.9 per gallon. Fuel prices witnessed a bearish momentum at the end of 2023 due to a fall in crude oil supplies amid low demand. Further, a delay in import shipments and a seasonal dull period in the transportation industry also weakened prices.

The price of renting a standard crane can be around USD 200 to USD 1,000 each day. A bigger tower crane price can be around USD 15,000 each month for large-scale projects. However, in most cases, clients can expect to pay around USD 1,000 for a crane for a single day of work. For example, the average rate of a 110-ton crawler crane offered on rent by Bigge Crane and Rigging Co. can be around USD 480 per hour. Similarly, the rate of a 200-ton crawler crane can be around USD 520 per hour. The rate of a hydraulic crane 100-ton (1 man) and 100-ton (2 man) can be around USD 390 and USD 545 per hour respectively. Owning an equipment can be costly for the clients, specifically for temporary projects.

Under sourcing intelligence, end-use companies, or clients such as oil and gas or construction companies prefer renting cranes from rental service companies rather than owning them. Clients get their cranes on rent based on their requirements and project size. Companies generally select an approved service provider complying with the rules and regulations of various authorities such as OSHA, ANSI, ASME, API, BSEE, and others. Choosing the best supplier depends on many factors, including rental rates, available equipment types and conditions, end-to-end solutions, including the selection of cranes to transportation to the client's site, maintenance, and loading capability of the equipment. 

Onshore Crane Rental Procurement Intelligence Report Scope