Luton, Bedfordshire, United Kingdom, Jan. 10, 2023 (GLOBE NEWSWIRE) -- Exactitude Consultancy, the market research and consulting wing of Ameliorate Digital Consultancy Private Limited has completed and published the final copy of the detailed research report on the Construction Equipment Rental Market.
Construction Equipment Rental Market Overview
Construction equipment rental is the practice of renting construction equipment for a set period of time by signing contracts outlining the equipment's usage terms and conditions. Leasing heavy machinery construction equipment rather than purchasing it has proven advantageous for businesses of all sizes worldwide. As a result, the rental market for construction equipment has grown rapidly.
Because many industries require such equipment on a seasonal basis, it is costly and unaffordable. Rental equipment is preferred by businesses due to its flexibility and ability to meet customized needs without the need for maintenance or insurance.
Because of such high levels of investment, construction firms prefer to rent equipment to reduce project costs. This is a cost effective strategy because it reduces maintenance costs and technical fees. Furthermore, the requirements for transportation, operation, and servicing are greatly reduced. Both of these factors will drive future construction equipment rental demand.
Advanced machinery with eco friendly features and low maintenance is expected to displace traditional equipment during the forecast period. Large down payments are required when purchasing construction equipment, diverting a significant amount of capital away from critical operating expenses. It also incurs additional costs such as tax, insurance, licensing, loan interest, and storage.
In the coming years, the global construction equipment rental market is expected to grow due to an increase in mining and construction activity, particularly in developing countries. The global construction equipment rental market is expected to grow significantly in the coming years, thanks to the introduction of new technologies such as mapping features, equipment service tracking, and automated service improvements.
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| Report Coverage | Details |
| Forecast Period | 2022-2029 |
| Forecast Period 2022-2029 CAGR | 4.2% |
| 2029 Value Projection | 133.74 billion |
| Base Year | 2021 |
| Construction Equipment Rental Market Size in 2021 | 92.36 billion |
| Historical Data For | 2019-2021 |
| Segments Covered | By Product Type, By Application, By Production system. |
Drivers
- The Economic Cycle's Fluctuations
The advantages of leasing power generation equipment are enhanced in today's economic structure, taking into consideration the cyclicality of emerging businesses. Contractors and construction companies have shifted from purchasing new equipment to leasing it across multiple production sites. Leasing is an appealing option, especially as some businesses prepare for the possibility of an economic downturn and slowed operations. Such factors are to blame for the increase in demand during the forecast period.
- Increased technological advancements to increase demand
The rapid advancement of technology in the automobile and heavy equipment industries has improved the performance and efficiency of construction equipment. The major equipment manufacturers are focusing their efforts on developing smarter machines by combining proprietary technological systems.
- Solve Transportation Logistics
- Project Specific Rentals
- Lower Maintenance Expenses
Restraints
- Economic Downturn can hamper the market growth
The construction industry is vulnerable to economic downturns and recessions. The construction machinery rental market is influenced by an economy's business cycle, which has gone through several economic cycles and shows high or low economic growth over its life cycle. The construction industry may experience a recession as a result of lower final production as a result of declining consumer demand. As a result, a drop in construction activity is expected to have an impact on the equipment rental market.
- Fuel price fluctuations
- Picking up and delivering machinery costs money.
- Required Skilled Personnel
Opportunities
- Rental penetration is low in developing countries.
Rental saturation is a critical metric for comparing potential markets to the current market. A low level of rental penetration presents a significant market opportunity for rental companies to expand their operations. A high level of rental penetration, on the other hand, indicates that the market is saturated and that growth will be limited to the rate of total fleet development.
Challenges
- Plugging revenue leaks
- Lacking in-depth visibility of assets
- Dealing with supply chain issues
- Maintaining and servicing assets
- Adopting technology
Construction Equipment Rental: Segmentation
Based on Product Type:
- Earth Moving Machinery: Earth Moving Machinery will dominate worldwide by 2029
Earthmoving equipment is heavy machinery, typically heavy duty vehicles designed for earthwork construction operations. They are used to move large amounts of earth, dig landscaping foundations, and so on. Earthmoving equipment has a large share of this segment, accounting for up to 60% of the global market by 2022.
- Material Handling Machinery
Material handling equipment is mechanical equipment used to move, store, control, and protect materials, goods, and products during the manufacturing, distribution, consumption, and disposal processes. Material handling equipment includes tower cranes, bulk material handling, and mobile and hydra cranes.
- Concrete & Road Construction Machinery: Concrete and Road Construction Machinery will gain the dominant share of the market
The segment of concrete and road construction machinery is expected to grow at a compound annual growth rate of 5.5%. Because existing infrastructure is critical to boosting trade and commerce operations, road connectivity has the potential to determine the country's future economy.
Based On Applications
Commercial Segment to Grow Significantly Due to Rising Demand in Infrastructural Activities
- Residential
- Commercial
- Industrial
Due to rising demand for construction equipment, the commercial segment is expected to grow exponentially over the forecast period. Commercial properties provide profitable opportunities for equipment manufacturers to expand their business through rental services and product sales.
During the forecast period, the residential segment is expected to grow significantly. The rise in residential building construction will significantly increase demand for construction equipment in this sector.
Furthermore, rising investment and rapid industrialization in major economies are expected to drive significant growth in the industrial sector.
Based on the Production system
- Electric
- ICE
Regional Insights: China is likely to have the largest increase in sales revenue.
North America is expected to have the largest share of the global construction equipment rental market during the forecast period. Increasing infrastructure development and end-user demand for cost-effective and customized equipment are boosting market growth in this region. Furthermore, the presence of prominent service providers in the region drives the growth of the construction equipment rental market.
China is the world's leading producer of construction equipment. It sells machinery in a number of European and Asian countries. In terms of potential, demand for construction equipment rental in China is expected to increase at a CAGR of more than 3.5% during the evaluation period.
Asia Pacific currently has the largest market share and is expected to grow at the fastest rate during the forecast period. As governments increasingly focus on developing infrastructure for a growing economy, the region is one of the largest markets that has seen a boom in infrastructure development and construction.
During the forecast period, the Europe market is expected to grow significantly. This is primarily due to increased demand for new residential construction. Furthermore, Germany has a large number of manufacturing plants, particularly in the automotive sector, as well as the best-performing machinery and equipment in Europe, which is accelerating market growth.
Prominent Players in Construction Equipment Rental Market
The major players profiled in the construction equipment rental market include United Rentals, Inc. (U.S.), Loxam (France), Sunbelt (U.S.), Taiyokenki Rental Co., Ltd. (Japan), AKTIO Corporation (Japan), Herc Rentals Inc. (U.S.), Ahern Rentals. (U.S.), H&E Equipment Services, Inc. (U.S.), Nikken Corporation (Japan), Nishio Rent All Co. Ltd. (Japan), Kanamoto Co. Ltd., H&E Equipment Services, Inc, Maxim Crane Works, L.P., Nishio Rent All Co. Ltd, Ashtead Group Plc, Cramo Group, Ramirent Plc, KiloutouSarens Nv, Taiyokenki Rental Co. Ltd., Boels Rental, Speedy Hire Plc.
Recent Developments
- Jul 19, 2022: United Rentals, Inc. today announced it will provide sustainable solutions to Turner Construction that include all-electric trucks and zero-emission power systems. Turner will use the rental equipment for construction of a hyper-scale data center in Kansas City, Missouri for Meta, formerly the Facebook company, to reduce the environmental impact of the job site.
- March 11, 2022: Sunbelt Rentals has announced the availability of the Sunbelt Rentals Mobile App to allow customers to manage all aspects of their rental experience.
- 12 May 2022: GIKEN and AKTIO Corporation enter Rental Business Alliance
FAQS
- What is the Projected CAGR value of the Construction Equipment Rental Market?
- Which segment held the largest market share in the global rental construction equipment market?
- Which region will have the largest revenue share?
- Who are the key players in Construction Equipment Rental Market?
- What are the key market driver?
- What are key trends in the market?
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