Construction Equipment Rental Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 134.88 Billion |
| Market Size (2029) | USD 170.92 Billion |
| CAGR (2024 - 2029) | 4.85 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Construction Equipment Rental Market Analysis
The Construction Equipment Rental Market size is estimated at USD 134.88 billion in 2024, and is expected to reach USD 170.92 billion by 2029, growing at a CAGR of 4.85% during the forecast period (2024-2029).
Over the medium term, the key factor propelling the market's growth is the expanding construction industry, particularly in developing nations, due to several growth opportunities in residential, non-residential, and infrastructure industries. For instance, there is an increase in the construction of multi-family houses (with the growing trend of nuclear families), along with increasing investments in the construction of expressways, bridges, metros, smart cities, highways, and roads, owing to increasing population and urbanization.
The governments are increasing their spending on construction activities, which will likely drive the demand for construction equipment rental services.
The US government passed the Infrastructure Investment and Jobs Act. This bill costs USD 1.2 trillion, including USD 550 billion for transportation, broadband, and utilities, USD 110 billion for roads, bridges, and other major infrastructure projects, and USD 40 billion for bridge repair and replacement. The bill also includes more than USD 65 billion in funding for power infrastructure, including USD 29 billion for the electricity grid. The bill authorizes federal investments in a variety of infrastructure projects, which are expected to increase demand for construction services, equipment, and materials. As a result, construction spending rose by 5% in 2022 and 5.5% in 2023.
Similarly, the Chinese government invested USD 8,870 million in the Shanghai Chip Manufacturing Plant. In Shanghai, China, a 12-inch wafer manufacturing plant is being built as part of the project. Construction began in the first quarter of 2022, and it is expected to be completed in the third quarter of 2024. The project aims to increase the 12-inch wafer production capacity to meet rising demand.
The rising trend toward automation is anticipated to fuel the market's growth. However, stringent emission regulations for construction machinery are anticipated to hamper the market’s growth during the forecast period.
The growing emphasis on infrastructure, as well as the advancement of automation in construction and manufacturing processes, has significantly impacted construction equipment rental market growth in Asia-Pacific.
Schemes such as the revolutionary Smart City Mission (target 100 cities) are expected to improve quality of life through modernized/technology-driven urban planning, which may result in the growth of the construction equipment rental market.
Construction Equipment Rental Market Trends
ICE Engine is Expected to Hold the Highest Share
Internal combustion engines dominate and are characterized by high power and full mobility. Users can choose between light and simple gasoline engines and durable and powerful diesel engines specially developed for off-road applications. They are perfectly suited to the toughest environmental conditions and are ideal for a large variety of industries and applications.
The most significant advantage of a gasoline engine is its simple design and low weight. This drive type is mainly used in small, portable tools like power cutters. The operating costs of gasoline engines are relatively low, and they reach operating temperature much faster, so they are ready for high-speed operation.
The diesel engine has several huge advantages, as compression-ignition engines generate much higher torque and can work under a much higher load. An additional advantage of the diesel engine is lower fuel consumption than gasoline engines.
With the ongoing technological advancements in internal combustion engines, companies are focusing on making equipment sustainable to achieve the goal of carbon neutrality by 2050.
With the development of fuel cells or batteries, electrics cannot operate efficiently in harsh conditions. Thus, internal combustion engines will remain the primary power train in this sector. As regulations limiting CO2 emissions are getting tighter worldwide, hydrogen combustion plays a better option in decarbonizing these engines, with a relatively minor requirement for further technical innovation.
For instance, in December 2023, the Minister of Road Transport and Highways of India unveiled Asia's first construction machine powered by hydrogen by JCB, which is part of JCB's USD 100 million investment to reduce the carbon footprint in construction.
Thus, IC engines are expected to hold a major share in the market.
Asia-Pacific is Anticipated to Gain a Significant Market Share
Asia-Pacific is one of the largest markets that has perceived a boom in infrastructural and construction development because of the government's increasing emphasis on developing infrastructure for a sustainable economy. This region experienced growth in the number of Special Economic Zones (SEZs), hydroelectric projects, dams, highway constructions, metro construction, airports, etc., to sustain high-level industrial activities, growing energy demand, and better connectivity. As a result, several international players have started commencement to invest. They are setting up regional distribution centers and manufacturing facilities to meet the mounting demand and capture the regional market.
According to government sources, in countries like India, the population is expected to be 1.64 billion by 2047, and an estimated 51% of India’s population is likely to be living in urban centers. With the rise in urban population, urbanization is expected to happen at a faster pace, creating a demand for mid-end and affordable units.
Under the National Project Scheme, India has an investment budget of USD 1.4 trillion for infrastructure by 2025, thus boosting the demand for construction equipment.
Considering the scenario, construction machinery manufacturers, such as Sumitomo Corporation, Hitachi, Caterpillar, and Liebherr, are making huge investments in fleet expansions, mergers, and capacity expansions.
For instance, in November 2023, China’s largest equipment rental company, Horizon Construction Development, began to expand into Southeast Asia with planned rental locations in Indonesia, Thailand, Vietnam, and Singapore.
Thus, such factors are boosting the demand for construction equipment.
Construction Equipment Rental Industry Overview
The automotive battery management system market is consolidated and led by globally and regionally established players. The companies adopt new product launches, collaborations, and mergers to sustain their market positions.
In December 2022, Texas First Rentals®, a division of HOLT, announced that it acquired Rental One, a full-service equipment and storage container rental company offering a complete line of construction equipment and supplies in 15 locations throughout the Dallas-Fort Worth Metroplex and Central Texas regions.
Some of the major players in the market include United Rentals Inc., Ashtead Group PLC, Herc Rentals, H&E Equipment Services, Loxaman, and Kanamoto Co. Ltd.
Construction Equipment Rental Market Leaders
Herc Rentals
H&E Equipment Services
United Rentals Inc.
Ashtead Group PLC
Loxam Group
*Disclaimer: Major Players sorted in no particular order
Construction Equipment Rental Market News
- December 2023: The online crane rental service based in Dubai, MyCrane, started its own operation in the United States. The company stated that it chose to set up its own operations in the United States rather than appointing a franchisee, as it has done in other locations.
- November 2022: Maxim Crane Works LP announced the launch of Maxim MarketplaceTM, a new online marketplace for used equipment sales. With hundreds of fleet-owned cranes and support equipment to sell, the US rental giant is refreshing its fleet via its own cutting-edge online used equipment sales platform developed in collaboration with Krank, the industry's first software developer.
- August 2023: Zeppelin boosted its Zeppelin Rental business by acquiring Bauhof Service GmbH, a Germany-based company that rents pumps and generators and provides logistical services for construction sites.
- June 2023: Renta Group made several acquisitions this year, including purchasing Norwegian general rental company My Lift. The acquisition added eight depots in Norway and NOK 360 million (EUR 30 million) of annual revenue to Renta Group.
Construction Equipment Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growth in Construction Industry
4.2 Market Restraints
4.2.1 High Maintenance Cost of Construction Equipment
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Values in USD million/billion)
5.1 By Vehicle Type
5.1.1 Earthmoving Equipment
5.1.1.1 Backhoe
5.1.1.2 Loaders
5.1.1.3 Excavators
5.1.1.4 Other Earthmoving Equipment
5.1.2 Material Handling
5.1.2.1 Cranes
5.1.2.2 Dump Trucks
5.2 By Drive Type
5.2.1 IC Engine
5.2.2 Hybrid Type
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Spain
5.3.2.5 Italy
5.3.2.6 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 South Korea
5.3.3.6 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 United Arab Emirates
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Herc Rentals Inc.
6.2.2 H&E Equipment Services Inc.
6.2.3 Loxam
6.2.4 United Rentals Inc.
6.2.5 Ashtead Group PLC
6.2.6 Caterpillar
6.2.7 Sumitomo Corp.
6.2.8 Hitachi Construction Machinery (Hitachi Group)
6.2.9 Liebherr International AG
6.2.10 Kanamoto Co. Ltd
6.2.11 CNH Industrial
6.2.12 HSS Hire Group PLC
6.2.13 Cramo Oyj
6.2.14 Nishio Rent All Co.
7. Market Opportunities and Future Trends
Construction Equipment Rental Industry Segmentation
Construction equipment rental means a site for the retrieval and storage of large vehicles or large pieces of machinery usually related to construction that are available for the public's use, which may include complementary and additional retail activities.
The construction equipment rental market is segmented by vehicle type (earth moving equipment and material handling equipment), drive type (IC engine and hybrid drive), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market size and forecasts for the construction equipment rental market in value (USD billion) for all the above segments.
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Construction Equipment Rental Market Research FAQs
How big is the Construction Equipment Rental Market?
The Construction Equipment Rental Market size is expected to reach USD 134.88 billion in 2024 and grow at a CAGR of 4.85% to reach USD 170.92 billion by 2029.
What is the current Construction Equipment Rental Market size?
In 2024, the Construction Equipment Rental Market size is expected to reach USD 134.88 billion.
Who are the key players in Construction Equipment Rental Market?
Herc Rentals, H&E Equipment Services, United Rentals Inc., Ashtead Group PLC and Loxam Group are the major companies operating in the Construction Equipment Rental Market.
Which is the fastest growing region in Construction Equipment Rental Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Construction Equipment Rental Market?
In 2024, the Asia-Pacific accounts for the largest market share in Construction Equipment Rental Market.
What years does this Construction Equipment Rental Market cover, and what was the market size in 2023?
In 2023, the Construction Equipment Rental Market size was estimated at USD 128.34 billion. The report covers the Construction Equipment Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Construction Equipment Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges facing the Construction Equipment Rental Market?
The key challenges in the Construction Equipment Rental Market are: a) Management of a vast inventory b) Maintaining equipment in good working condition c) Adapting to the latest technological advancements to meet customer demands
What types of Construction Equipment are most commonly rented?
Earthmoving equipment, such as excavators and backhoes, along with material handling equipment like forklifts, are among the most rented items due to their wide range of applications in construction.
Construction Equipment Rental Industry Report
The Global Construction Equipment Rental Market is thriving, primarily due to the growing demand for construction across various sectors and the high costs associated with purchasing new machinery. Rentals offer a cost-effective alternative, with the market benefiting from advancements in technology that enhance machine efficiency. Segmented by earthmoving, material handling, and concrete & road construction machinery, the sector sees earthmoving at the forefront due to its broad application in agriculture, mining, and construction. The Asia Pacific region is seeing rapid growth due to a boom in building activities, especially in emerging economies like China and India, backed by significant investments. Meanwhile, North America continues to lead, providing technologically advanced machinery suited for specific projects at reduced costs. The largest equipment rental companies are seizing growth opportunities by broadening their offerings and improving on-site customer support, especially in remote areas, aligning with customers’ needs to reduce ownership, maintenance, and inventory costs. According to Mordor Intelligence™ Industry Reports, market analysis forecasts growth, offering insights into market share, size, and revenue growth rates, available as a free report PDF download for a comprehensive industry overview.
