The market for renting construction equipment is predicted to reach US$ 115 billion in 2021 and increase at a CAGR of 4.3% from 2021 to 2031. According to the report, the valuation would be around US$ 176 Bn by the end of 2031.
The industry has historically grown at a moderate rate, clocking a CAGR of over 3% from 2016 to 2020 and reaching a value of US$ 110 Bn. Prospects did significantly shrink as the COVID-19 outbreak hit. However, the market for renting construction equipment was supported by the governments of the major construction hubs’ constant financial assistance.
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Construction has experienced significant growth in the context of economic expansion, with construction equipment leasing and profitability expanding tremendously. Strong consumer demand and easy access to both public and private investment are the causes of this expansion. In comparison to 2019, there were more than 2,000 public infrastructure projects announced as of 2020, a 5% increase. Large construction companies consequently started looking for ways to cut procurement costs, which led to an increase in the use of construction equipment leasing services.
Key Takeaways from the Market Study
- By 2031, the market for earth moving equipment is projected to reach US$ 75.9 billion, or 3/5 of the demand.
- The United States is a promising market, with a 6% value CAGR, and is predicted to generate US$ 40 Bn in sales by the end of 2021.
- One of the most attractive markets is China, which is anticipated to develop at a rate of 5% until 2031. India is also anticipated to show considerable increases, with a CAGR of 4% through 2031.
Key Points Addressed in Construction Equipment Rental Industry Analysis
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on construction equipment rental market and How to Navigate
- Recommendation on Key Winning Strategies
The US market is predicted by FactMR study to be worth US$ 65 billion in 2022, with a CAGR of 4.5% during the projected period. Residential industry investment is likely to support a robust US economy. Construction equipment with cutting-edge and fuel-efficient technology, as well as regular safety precautions, are driving this industry.
To support the booming construction industry, many organisations are using rental alternatives. The market is expected to adopt new technology as a result of increased government spending on public utilities and infrastructure.
Competitive Landscape
The market for construction equipment rental is dominated by the top 5 service providers, who account for the majority of the market. During the forecast period, the competitive landscape is expected to be shaped by acquisitions, strategic partnerships, and equipment procurements.
- In May 2021, for instance, United Rentals Inc. completed the acquisition of General Finance Corporation. The acquisition, comprising of strong strategic and financial merits, was timed in order to enable the company to fulfil increasing demand across end markets, by expanding mobile store and modular office solutions
- Likewise, in August 2021, Herc Holdings Inc. completed the acquisition of all assets of CBS Rentals, a Texas-based construction equipment rental service provider. This addition has expanded the formers presence across the state to 38 physical locations to better provide general and specialty equipment rental solutions
Key Companies Profiled
- United Rentals Inc.
- Herc Holdings Inc.
- Ashtead Group Plc
- Aktio Corporation
- Loxam Sas
- Kanamoto Co. Ltd.
- Nishio Rent All Co. Ltd.
- H&E Equipment Services Inc.
- Nikken Corporation
- Cramo Group
- Ramirent Plc
- Maxim Crane Works L.P.
- KiloutouSarens Nv
- Taiyokenki Rental Co. Ltd.
- Ahern Rentals Inc.
- Boels Rental
- Speedy Hire Plc.
Category-wise Insights
Which Product Type is forecast to gain the Maximum Market Share?
In 2022, the earthmoving equipment rental category is anticipated to dominate the market for construction equipment rentals, and this dominance is anticipated to last the entire forecast period. By 2022, this industry is anticipated to control 60% of the global market.
Earthmoving excavators are increasingly used in agriculture, mining, and construction, which significantly boosts category growth. The load capacity and engine performance of crawler excavators, backhoe loaders, micro excavators, and skid-steer loaders are higher, though.
Because of these qualities, earthmoving machinery can be used in challenging working environments. Additionally, the desire for renting earthmoving equipment among construction companies and contractors has increased with the expansion of home and significant commercial civil projects. Such changes will accelerate segmental growth.
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Key Segments Covered
Product Type
- Earth Moving Machinery Rental
- Material Handling Machinery Rental
- Concrete & Road Construction Machinery Rental
How Opportunistic is the Market in the U.S?
A market size of US$ 40 Bn is expected for construction equipment rental in U.S. by 2021. A robust U.S. economy is expected to be driven by investments in the residential sector. Construction equipment with advanced and fuel-efficient technology, as well as standard safety features, is driving the growth of the market.
To cater to the growing construction activities, several companies are utilizing rental options. The market is expected to adopt new technologies as a result of increasing government spending on building public infrastructure and government utilities. For instance, Alberta’s government allocated more than US$ 10 Bn in infrastructure projects to strengthen the province’s economy, according to a report published in 2021.
Why is Earth Moving Machinery Rental Surging in Popularity?
According to Fact.MR, earth moving machinery rental is expected to tower over other equipment, given the increasing need to curtail excavation costs, especially across the oil & gas industry.
These types of equipment have high load capacity and engine power, which allows them to function effectively in harsh environments. Approximately 60% of the market value will be held by earth moving machinery from 2021 to 2031.
What are the Growth Prospects for Material Handling Machinery Rental?
By product type, scope for material handling machinery rental is immense, expected to surge at a CAGR of 6% from 2021 to 2031. As factories look to curtail manufacturing costs, they are increasingly seeking out rental services.
With increased emphasis on maximizing output, industries are looking for ways to minimize their capital expenditure, a large part of which is directed towards procuring material handling machinery. Availing the same on rent permits businesses to widen profit margins.
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