Construction Equipment Rental market COVID-19 Impact, Trends & Business Statistics By 2030

Posted by Mrudula Karmarkar on September 22nd, 2022

The global construction equipment rental market size is expected to reach USD 105.29 billion by 2030, registering a CAGR of 4.2% during the forecast period according to a new report by Grand View Research, Inc. Rising government investment in the infrastructure sector and increasing Foreign Direct Investment (FDI) in the construction domain to develop roads, highways, expressways, bridges, skyscrapers, and smart cities have created a demand for rental construction equipment. Constant technology advancement to produce cutting-edge project-oriented construction equipment that optimizes the overall construction process is propelling the growth of the construction equipment rental market.

Higher total cost ownership of new construction equipment & machines encourages small & medium scale construction companies and contractors to adopt rental construction equipment. Additionally, renting reduces the maintenance, repair, insurance, and warehousing costs associated with owning; thus, construction equipment rental provides an economical alternative to the construction firms.

The pandemic led to a global lockdown and supply chain disruption which impacted the manufacturing, construction, and mining sectors at large. Post pandemic, issues such as lack of availability of skilled workforce, spiking raw material prices, and high EMIs have amplified uncertainties in the construction sector subsequently hampering the growth pace. Thus, to avoid the risk aversion and reduce uncertainty, larger-scale construction companies are switching towards renting the construction equipment's, thereby driving the growth of the construction rental equipment market.

The Asia Pacific region is expected to witness a high pace of growth during the forecast period. The prominent players in the construction equipment rental market, based in China, are focusing on developing advanced equipment that reduces machine downtime, requires lesser fuel, and provides high output. Besides, the Indian government is heavily investing in massive infrastructural projects to boost the country's economy; thus, these factors are expected to leverage the growth of the construction equipment market in the region.

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The increase in governments’ spending on the development of public infrastructure has catalyzed the construction and mining activities in emerging economies of the world. This factor has created a high demand for construction equipment in the market. Rising 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 market's growth. Advancements such as equipment service tracking & mapping and digital service for automated service improvements are anticipated to drive market growth during the forecast period. However, many factors are driving the growth of the construction equipment rental market, and the pandemic has posed a severe challenge to its market. The 2022-20 pandemic has resulted in global supply chain disruptions, shutting down several production facilities, which harshly affected the infrastructure industry, subsequently affecting the equipment rental industry.

Construction Equipment Rental Market Report Highlights

• The global market was valued at USD 73.44 billion in 2021 and is expected to exhibit a CAGR of 3.9% from 2022 to 2030.
• The earthmoving machinery segment dominated the market in 2021 and is expected to generate a market revenue of over USD 54.01 billion by the end of the forecast period. The increasing application of earthmoving excavators for mining, agriculture, and construction industries significantly contributes to segmental growth.
• Asia Pacific is expected to witness significant growth in construction equipment rental by 2030, owing to governments’ investment in the development of the highway, airports, dams, and special economic zones(SEZs).
• The construction equipment rental is witnessing high competition across the globe. Major players are inclining towards enhancing the business and product offering through strategic business acquisition. For instance, in April 2021, United Rental Inc., a global equipment rental company announced the acquisition of General Finance Corporation, a specialty rental service company. United Rental Inc. acquired complete assets of General Finance Corporation which helped the company to enhance its product portfolio.

Rapid technological advancement in the automobile and heavy equipment sector has increased the efficiency and performance of construction machines. The prominent players in the equipment market 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.

Renting construction equipment saves the initial purchasing, maintenance, and inventory costs of the equipment and machinery. The rental companies invest more in repairing and maintaining their products to gain long-term profits from them. Further to expand the product and service offering, the rental companies have started providing onsite supporting services for customers at remote locations.

Some prominent players in the construction equipment rental market include     

• Ahern Rentals Inc.
• AKTIO Corporation
• Caterpillar Inc.
• Byrne Equipment Rental
• Cramo Plc
• Finning International Inc.
• Liebherr-International AG
• Kanamoto Co., Ltd.
• Maxim Crane Works, L.P.
• United Rentals, Inc.