Global Construction Equipment Rental Market Size, Share, Forecast Report, 2020-2027
The report provides rational insights along with historical and forecast data to aid in better understanding of the Global Construction Equipment Rental Market. The report provides a comprehensive analysis of key factors that are expected to drive the growth of the Construction Equipment Rental market. This study also provides a detailed overview of the opportunities along with the current trends observed in the target market.
The global construction equipment rental market size was valued at USD 92.9 billion in 2019 and is projected to expand at a CAGR of 4.9% over the forecast period. The surge in the construction and mining activities, mostly in the developing countries is the key factor driving the market for construction equipment rental. The emergence of new technologies including digital services for automated service improvements, equipment service tracking, and mapping features has been an ongoing trend within the market. The adoption rates of construction equipment are increasing in the rental services owing to the technological enhancements provided by the original equipment manufacturers.
Technological advancements in automotive and heavy machinery sectors has brought many new features to the market for construction equipment rental. Construction equipment manufacturers are not only focusing on incorporating advanced safety features such as lift assist, 360-degree camera visual, and additional work lights, but are also focused towards providing systems that improve the operational efficiency and require lesser maintenance. However, these features come at a high price, which is not affordable to many small builders and contractors. Thus, these professionals prefer rental construction machinery.
Renting construction equipment not only saves the cost of buying new equipment but reduces the incurrence of expenses such as labor cost, maintenance cost, and operational costs. The cost of timely maintenance, repair, and checking is also avoided. Construction equipment rental companies perform all these tasks regularly, to gain long-term profit from the machinery. These companies are now also focusing on providing onsite services and support for equipment, which further enhances customer experience. Companies such as Caterpillar Inc. offer quick response teams to help customers at remote locations through mobile servicing vans.
Procurement of new construction equipment often requires high down payments and investing a large portion of capital from the operating expenses of the company. Interest on loans, insurance cost, licensing cost, storage cost, and taxes are the overhead costs involved post purchase of the construction equipment. Equipment owners are also accountable for transportation between job sites. On the other hand, if the company procures the equipment on a rental basis, the responsibility of providing the equipment to new work sites is with the provider and the company using it does not bear the direct overhead cost. Furthermore, the rental companies often upgrade their fleet of equipment and machineries on regular basis, providing its customers with upgraded and most advanced equipment
The report covers major players operating in the market along with the key strategies implemented to achieve a competitive edge against a majority of the vendors which provides a competitive outlook of the industry. The competitive landscape further includes details about different players and their position on a global and a local level is also explained in detail in this compiled study. These insights were prepared through mapping business strategies and products that offer high revenue generation capacities. Key players of the global Construction Equipment Rental market are included as given below:
The market for construction equipment rental is highly competitive and concentrated, with the top five companies accounting for the maximum share of the global revenue in 2019. Ashtead Group; United Rental; Aggreko; Herc Rentals Inc.; and Aktio Corp dominated the market. Addition of new equipment to the existing fleet, and mergers and acquisitions are some of the strategies adopted by the key players to maintain their market share. Technologically advanced and fuel-efficient products are expected to be a critical parameter for being competitive in the market for construction equipment rental.
Frequent mergers and acquisitions are being undertaken as an attempt to diversify product portfolio and gain market share. For instance, in March 2019, Cooper Equipment Rentals Ltd. announced the acquisition of Prime Rentals Ltd., an independent equipment rental company in Canada. In September 2018, United Rentals, Inc. announced the acquisition of BlueLine Rental, having 114 locations in North America
The global Construction Equipment Rental market has been segmented as below:
Product Outlook (Revenue, USD Billion, 2016 - 2027)
Earth Moving Machinery
Material Handling Machinery
Concrete & Road Construction Machinery
- Global Construction Equipment Rental Market by Region
- North America
- Asia Pacific
- Rest of the World
Reasons to Purchase this Report:
Estimates Construction Equipment Rental development trends with SWOT analysis
- Detailed business profiles including product offerings, recent developments, key financial information, and strategies employed by main market players
- Analysis of various regions and countries that includes the demand and supply based actions, which consequently have a major influence on the market’s expansion
- Market dynamics scenario, along with growth opportunities for players in the years to come
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the mentioned forecast period
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects