Equipment rental market to reach more than $105 billion by 2030
By Don Horne
The global construction equipment rental market size is expected to reach USD 105.29 billion by 2030, registering a CAGR of 4.2 per cent 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.
Key Insights & Findings from the report:
- The global market was valued at USD 73.44 billion in 2021 and is expected to exhibit a CAGR of 3.9 per cent 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.
Read 110-page market research report, “Construction Equipment Rental Market Size, Share & Trends Analysis Report By Product (Earth Moving, Material Handling, Concrete & Road Construction), By Region, And Segment Forecasts, 2022 – 2030“, published by Grand View Research.
Construction Equipment Rental Market Growth & Trends
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.
Construction Equipment Rental Market Segmentation
Grand View Research has segmented the global construction equipment rental market based on product and region:
Construction Equipment Rental Market – Product Outlook (Revenue, USD Billion, 2018 – 2030)
- Earth Moving Machinery
- Material Handling Machinery
- Concrete & Road Construction Machinery