(MENAFN- Evertise Digital)
-< />
The global Construction Equipment Rental Market value was USD 122.3 Billion in 2023 and is projected to reach USD 182 billion by 2031 with a CAGR of 5.07% During period of 2024-2031, driven by a significant increase in government spending on infrastructure development projects worldwide. This growth is Driven by the need for efficient and cost-effective solutions for construction companies, particularly in the economic uncertainties.
Download Sample Copy of This Report:
Some of the Major Key Players:
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, Boels Rental H&E Equipment Services Inc
Market Growth Driven by Infrastructure Boom
Governments across the globe are prioritizing infrastructure development to bolster economic activity. The U.S. Infrastructure Investment and Jobs Act, a USD 1.17 trillion investment plan, and China's USD 8.86 billion investment in the Shanghai Chip Manufacturing Plant exemplify this trend. These large-scale projects necessitate a Increase in construction equipment usage, propelling the demand for rentals.
The cyclical nature of the construction industry and rising equipment costs incentivize companies to adopt a rental model. Renting equipment offers flexibility, eliminates maintenance burdens, and aligns with project-specific needs. The emergence of advanced technologies and automation in rental equipment further enhances its appeal. Platforms such as BigRentz a growing customer preference for renting over purchasing construction equipment. the construction equipment rental market thrives, economic downturns can pose challenges. Companies become cautious of capital expenditure, potentially leading to a decline in equipment rentals. The construction industry's susceptibility to recessions can also impact the rental market due to reduced construction activity and lower equipment demand.
Recent Developments in the Construction Equipment Rental Market
April 2023: Boels Rental expands its Nordic presence by acquiring Norwegian company BAS Maskinutleie.
June 2023: H&E Equipment Services Inc. strengthens its presence in Texas with a new branch focused on construction and general industrial equipment rentals.
November 2022: Maxim Crane Works launches Maxim MarketplaceTM, an online platform for selling used equipment.
Segment Analysis
By product type , the Earthmoving machinery segment dominates the market, accounting for More than 52% share in 2023. This dominance is attributed to the widespread use of excavators in construction, mining, and agriculture. Their high load capacity, robust engines, and suitability for harsh environments make them ideal for various projects. The rising number of large-scale construction projects fosters the demand for earthmoving equipment rentals. The concrete and road construction machinery segment are anticipated to register a significant growth rate from 2023 to 2030. Governments recognize the importance of well-developed infrastructure for economic growth. The Bipartisan Infrastructure Deal in the U.S., allocating USD 110 billion for road and bridge improvements, exemplifies this commitment. Similarly, developing nations in Asia Pacific are prioritizing road connectivity infrastructure.
Earth Moving Machinery Material Handling Machinery Concrete and Road Construction Machinery
By End User
The commercial segment dominates the market is exponential growth due to the increasing demand for construction equipment in commercial property development. Government infrastructure plans act as a further catalyst, promoting stable growth in the heavy equipment rental market.
Residential Commercial Industrial
The Industrial segment is also expected to witness substantial growth, driven by Increasing investments in industrialization and population growth. The need for building multi-family homes, highways, bridges, and smart cities fuels the demand for rental equipment in this sector. The automation trend in the construction industry is expected to further propel market growth.
Enquiry Before Buy:
Impact of the Russia-Ukraine War
The sanctions imposed on Russia have restricted exports and access to certain resources. These factors can potentially lead to price hikes for construction equipment and rentals.
The war has also caused a surge in energy prices, impacting transportation costs and overall operational expenses for rental companies. These combined factors can potentially reduce the growth of the construction equipment rental market in the short term.
Economic Slowdown
A potential economic slowdown could negatively impact the construction equipment rental market. Construction projects might be delayed or cancelled due to reduced investor confidence and budgetary constraints. This, in turn, could lead to a decline in the demand for rental equipment.
The economic downturns can also present opportunities for the rental market. Companies may be more inclined to rent equipment as a cost-saving measure compared to purchasing new machinery.
Key Regional Developments
Asia Pacific region contributes significant growth in the construction equipment rental market during the forecast period, due to Governments in emerging economies across Asia are increasing investing in infrastructure development projects such as highways, airports, dams, and special economic zones (SEZs) to improve connectivity, trade, and overall economic growth. These projects require a substantial amount of construction equipment, results to increase the demand for rentals. The booming construction sector in Asia Pacific is attracting significant attention from global construction equipment manufacturers Such as Caterpillar, Hitachi, Liebherr, and Sumitomo Corporation. These companies are increasing investing in the region, setting up bases, and offering their equipment and rental services.
North America held a substantial market share of more than 29% in 2023 and is expected to maintain its dominance throughout the forecast period, due to Rental companies in North America offer a wide range of project-specific, technologically advanced construction equipment at competitive rates. This specialized equipment helps optimize construction and mining activities by reducing operation time and eliminating idle equipment costs.
Key Takeaways from the Construction Equipment Rental Market Study
The report identifies the key factors fuelling market growth, such as rising government infrastructure spending, shifting preferences towards equipment rentals, and the emergence of advanced technologies.
The report offers a detailed analysis of the market by product type and application, highlighting the dominant segments and the reasons behind their leadership.
The report explores the key regional developments in the construction equipment rental market, with a particular focus on the dominance of Asia Pacific and the reasons behind it.
Report examines the potential challenges posed by economic downturns and geopolitical conflicts, while also exploring the opportunities presented by these situations.
Buy Complete Report:
About Us:
SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.
Our staff is dedicated to giving our clients reliable information, and with expertise working in the majority of industrial sectors, we're proud to be recognized as one of the world's top market research firms. We can quickly design and implement pertinent research programs, including surveys and focus groups, and we have the resources and competence to deal with clients in practically any company sector.
Contact Us:
Akash Anand – Head of Business Development & Strategy
...
Phone: +1-415-230-0044 (US) | +91-7798602273 (IND)
MENAFN21042024005025011514ID1108119269
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.