Equipment Rental Market on the Rise

The next several years appear prosperous for the construction equipment rental market, which is expected to reach $84.6 billion by 2022, according to a new study by Grand View Research Inc.

Factors driving the projected market demand include the availability of a wider range of modern, productive machinery in rental fleets coupled with infrastructure development occurring at brisk pace. Significant factors such as the cost of inflation associated with the replacement of equipment and the technical changes pertaining to machinery requirements also have positively favored rental demand.

Additionally, environmental and safety issues make rental more economical, the report notes. Further, a considerable shift toward renting over buying due to less immobilized capital, low maintenance, improved cost control and reduction in transportation costs are expected to boost revenue growth throughout the forecast period.

Stringent regulations, financial constraints and increasing cost of ownership make equipment rental a beneficial alternative for various government authorities, contractors and other users. Equipment manufacturers are aggressively focused on providing tailored solutions and financial packages in order to meet the requirements of individual customers, which is further projected to drive growth over the forecast period.

Reduced burden of upfront investment, and eliminated risk of expensive breakdown repairs, is expected to offer lucrative growth opportunities.

Further key findings from the study suggest:

  • The earthmoving machinery rental market accounted for more than 55% of overall rental revenue in 2014. Growing demand for heavy machinery from developing countries is estimated to drive the segment growth
  • The emergence of advanced products with low maintenance and eco-friendly features are projected to outcast traditional products throughout the forecast period
  • The North American construction equipment rental industry is estimated to grow at a CAGR (compound annual growth rate) of more than 10% from 2015 to 2022. Strong economic recovery coupled with increasing investments is projected to compliment demand across this region
  • Increasing investments in Eastern Europe combined with volatile energy pricing and regulations are forecast to offer prominent opportunities across the European region. The residential sector is estimated to grow substantially across the central Europe owing to new building start-ups and improved consumer confidence.

Related Articles