Global Construction Equipment Rental Market Size, Share, Growth Analysis, By Product(Earthmoving machinery, material handling machinery), By Application(Real estate, transport) - Industry Forecast 2024-2031

Construction Equipment Rental Market size was valued at USD 176.65 billion in 2019 and is poised to grow from USD 187.46 billion in 2023 to USD 301.5 billion by 2031, growing at a CAGR of 6.2% in the forecast period (2024-2031).

Equipment rental, also known as plant hire in some countries (such as the United Kingdom), is a service industry that rents out machinery, equipment, and tools of various types and sizes (ranging from earthmoving to motorized access, power generation to hand-held tools, and so on) to final users, usually construction companies but also industry and individual customers, for a defined length of time. Renting is the temporary receipt of equipment to help those who cannot purchase the equipment outright. Leasing rather than purchasing large construction equipment has proven to be beneficial for businesses of all sizes around the world. The Construction Equipment Rental Market has exploded as a result. Power, housing, energy and transportation are the major investment-based industries that have seen significant expansion. Due to the high level of investment, construction organizations prefer to hire equipment to reduce project costs. This method is economical as it reduces maintenance cost and technical charges. This technique is cost-effective considering the low maintenance cost and low technical charges. Construction equipment is expensive and challenging to maintain, so renting or leasing it has become popular. There are also additional benefits to renting construction equipment outside of just the cost. Rental companies include the use of the machinery as well as the necessarily qualified machine operators and drivers in the rent. The recession and general economic downturn have had no impact on the construction industry.

The Construction Equipment Rental Market has adopted new technologies more frequently, such as digital services for automatically upgrading services, equipment tracking services, and mapping features. The original equipment manufacturers' technological advancements have led to a rise in the adoption rates of construction equipment in rental services. The market for construction equipment rentals has seen the introduction of numerous new features as a result of technological developments in the automobile and heavy machinery industries. Construction equipment manufacturers are working to offer enhanced safety features like lift assistance, 360-degree camera vision, and additional work lights, as well as advancements that boost operational efficiency and demand less maintenance. However, due to the expensive cost of these technologies, many small builders and contractors are unable to use them. Because of this, many experts choose to hire construction equipment. In addition to the price of purchasing new equipment, renting construction equipment can reduce operating, maintenance, and labor costs. Also, the cost of timely repair, inspection, and upkeep is avoided. Construction equipment rental businesses continuously carry out all of these operations in order to generate a long-term profit from the equipment. These businesses place a greater emphasis on onsite services and equipment maintenance, which improves the client experience. For instance, Caterpillar Inc. has quick response teams that use mobile maintenance vans to assist clients in remote locations.

New construction equipment usually requires significant down payments as well as a large expenditure of money from the business's operating costs. Interest on loans, insurance, licensing, storage, and taxes are some of the overhead expenses related to the use of construction equipment after it has been purchased. Owners of the equipment are also responsible for transportation between job sites. However, if the business rents the equipment, the supplier is in charge of transporting it to new work locations, and the business employing it is not accountable for the equipment's direct operating expenses. Additionally, rental companies frequently upgrade their fleets of tools and machines, guaranteeing that their clients have access to the most recent tools.

The cyclical stages of economic transition are expansion, recession, bottoming out, and recovery. The construction business has grown quickly against a backdrop of an economic boom, and leasing and profitability of construction equipment have surged. Given the cyclical nature of the construction industry and the current economic climate, the benefits of renting construction equipment have increased. A growing number of contractors, construction companies, and companies from many industries are considering renting options. According to Keith Homes, Vice President of Operations at the equipment rental website BigRentz, a significant shift from buying new equipment to renting it has taken place among the contractors and construction firms who use the platform.

US Construction Equipment Rental Market is poised to grow at a sustainable CAGR for the next forecast year.