Construction Equipment Rental Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Construction Equipment Rental Market Trends and Insights

Infrastructure-Stimulus Megaproject Pipeline

Large public spending programs turn speculative demand into firm, multi-year rental contracts. The United States has already committed significant investment to over 60,000 infrastructure projects under the Infrastructure Investment and Jobs Act. In 2024, China significantly increased its deployment of provincial bonds, focusing primarily on transport corridors and urban renewal projects. India budgeted INR 11.11 lakh crore (USD 133 billion) for fiscal 2024-25 infrastructure ^{[1]“National Infrastructure Pipeline,” Ministry of Finance, India, indiabudget.gov.in} . Saudi Arabia’s Vision 2030 includes multiple giga-projects (e.g., NEOM, Qiddiya) that are sustaining construction demand and equipment utilization. Preliminary damage assessments for Türkiye indicate needs above USD 100 billion, supporting sustained reconstruction activity. These pipelines feed directly into medium-term rentals, already generating notable revenue.

Shift from CAPEX-to-OPEX Among Contractors

In a bid to preserve liquidity, construction firms are increasingly turning to rentals instead of relying on owned fleets. United Rentals maintained a significant annual capex program in 2024, with a focus on minority-financing specialty and electric assets for rental purposes. Sunbelt Rentals committed substantial resources in fiscal 2025 for fleet expansion, simultaneously inaugurating numerous new outlets across the United States. Herc Rentals, in 2024, enhanced its fleet value significantly, honing in on specialty niches. As tighter credit markets emerge in North America and Europe, there's a noticeable shift towards operating leases over capital purchases. This financial strategy is now making its way to contractors in the Asia-Pacific region.

Stringent ESG Targets Accelerating Electric Rentals

Rental agencies, driven by environmental mandates, are electrifying their inventories even before contractors demand it. California has identified several models of zero-emission equipment. Boels has set a long-term target to transition the majority of its fleet to electric. Sunbelt reports that a growing portion of its clients are now willing to pay a premium for zero-emission equipment. Volvo’s L120 and L90 electric loaders deliver diesel-parity performance without tailpipe emissions^{[2]“L120 Electric Loader Factsheet,” Volvo Construction Equipment, volvoce.com} . Europe and California anchor this trend, which is spreading into Asian megacities adopting low-emission zones.

Digital Rental-Platform Explosion in Emerging Markets

Online marketplaces are reducing discovery times and improving equipment utilization. EquipmentShare, operating numerous sites, utilizes its T3 platform to provide real-time utilization and maintenance alerts. United Rentals enhances asset efficiency through its Total Control portal, which integrates booking, invoicing, and predictive maintenance. Digital channels are growing significantly faster than the overall market, driven by their convenience and efficiency. In the Asia-Pacific region, where branch networks are limited, there is a strong preference for app-based ordering. Consequently, rental firms are making substantial investments in user-friendly interfaces and telematics to meet the needs of a younger, digitally-savvy customer base.

Skilled-Operator Scarcity Elevates Downtime Risk

Rental equipment often sits idle because trained operators are unavailable when projects surge in demand. In 2026, the U.S. Bureau of Labor Statistics projects continued annual openings for construction equipment operators over the next decade, driven mainly by replacement needs. This gap becomes more pronounced during peak construction months, as retirements outpace new certifications. Similar shortages are also evident in Germany and Japan, where aging workforces drive up wage premiums and lengthen recruitment cycles, thereby inflating project costs and extending schedules. Rental firms attempt to mitigate the risk by bundling operator training into contracts and partnering with vocational schools; however, class backlogs still mean contractors wait weeks for certified personnel. Idle machinery erodes utilization metrics, forcing rental companies to maintain larger fleets to meet service-level guarantees, thereby tying up capital that could be used to fund electrification or digital upgrades. Unless training pipelines expand materially, operator scarcity will continue to depress adequate fleet availability and place downward pressure on rental margins through at least the medium term.

High Multi-Brand Maintenance Complexity

Rental fleets span Caterpillar, Komatsu, Volvo, and JCB, each with proprietary diagnostics. Trackunit and similar telematics can cut unplanned downtime, yet full integration remains elusive. Cross-trained technicians are scarce, especially in Europe, where fleets draw from many OEMs and operations cross borders. Rental firms accept higher service costs to maintain brand diversity demanded by clients. Until unified diagnostics gain traction, maintenance complexity continues to weigh on profitability.

Segment Analysis

By Equipment Type: Earthmoving Dominates Infrastructure Buildout

Earthmoving equipment secured 41.05% of the construction equipment rental market share in 2025, and its 7.61% CAGR through 2031 exceeds the overall market pace. Excavators, loaders, and bulldozers remain indispensable for road, rail, and mining projects. Backhoe loaders serve utilities and residential work where versatility matters. Excavators, especially tracked units, lead demand for heavy soil removal, while wheeled variants gain ground in urban sites where mobility is prized.

Material-handling gear forms the next-largest slice, driven by cranes and telehandlers used in high-rise and logistics developments. Concrete and road machinery rise with highway spending, and power equipment—such as generators and compressors—meets intermittent site needs. Telematics-enabled earthmovers differentiate rental fleets on uptime rather than price, reinforcing their central role in the construction equipment rental market.

Note: Segment shares of all individual segments available upon report purchase

By Drive Type: Hydrogen Fuel Cells Emerge From Niche

Internal Combustion (IC) engine machines accounted for 86.13% of the mix in 2025, as diesel refueling networks remain ubiquitous. Hybrid models blend diesel and electric to navigate low-emission zones. Battery electric equipment gains momentum, helped by a significant number of zero-emission models listed in California.

Hydrogen fuel-cell units, such as Hyundai’s HW155H excavator unveiled at Bauma 2025, are growing at 15.88% CAGR by 2031 and attract projects that need zero emissions without battery-range limits. JCB’s hydrogen-combustion engines offer a drop-in diesel alternative. IC dominance will persist this decade; however, regulatory pressure and falling total cost of ownership will tilt the longer-term curve toward electric and hydrogen technologies.

By Application: Mining and Quarrying Outpace Traditional Construction

Infrastructure works accounted for 36.24% of 2025 revenue, driven by sovereign stimulus in the Asia-Pacific and Middle East regions. Residential builders rent compact machines to avoid idle capital, while commercial developers rely on cranes and concrete gear for multi-story timelines. 

Mining and quarrying exhibit the fastest growth rate of 5.94% to 2031, as commodity price volatility encourages operators to shift fixed equipment costs into variable rental outlays. Epiroc noted that mining represented a notable share of its 2024 orders, underscoring the opportunity. Oil and gas contractors similarly prefer rentals for specialized, high-capex machines needed only episodically.

By Rental Channel: Online Platforms Gain Share

Offline branches retained an 80.22% hold in 2025 because many contractors still value face-to-face service and instant availability. Same-day delivery and on-site maintenance remain decisive for complex gear. 

Online platforms, however, are projected to grow at a 9.84% CAGR by 2031, significantly outpacing the overall construction equipment rental market. EquipmentShare’s T3 and United Rentals’ Total Control platforms illustrate how telematics and real-time availability enhance customer ROI. Adoption is fastest in the Asia-Pacific and Middle East regions, where mobile-first users are bypassing legacy branch models.

By Service Type: Short-Term Rentals Accelerate

Medium-term contracts (1–12 months) accounted for 48.26% of 2025 revenue, as they align with typical infrastructure project lengths. Long-term rentals underpin predictable mining and industrial operations that secure volume discounts. 

Short-term rentals under one month exhibit the steepest 7.13% CAGR from 2021 to 2031. Project volatility, tighter credit, and the rise of gig-economy builders make daily and weekly rentals attractive. Operators counter higher logistics costs by utilizing telematics to maximize asset utilization and pricing premiums to protect their margins.

Geography Analysis

Asia-Pacific captured a 40.11% share in 2025 and is tracking a notable CAGR to 2031. China’s local infrastructure bonds, India’s significant pipeline, and Japan’s construction budget anchor demand. South Korea’s significant program and Australia’s mining-plus-renewables mix likewise favor rentals. The region’s mix of urbanization and mega-projects sustains the construction equipment rental market. 

The Middle East and Africa log the fastest 6.72% CAGR, led by Saudi Vision 2030’s USD 1.3 trillion slate that spans NEOM, the Red Sea, and Qiddiya. Projects in the United Arab Emirates, such as Etihad Rail Phase 2, require continuous rotations ^{[3]“Phase 2 Milestones,” Etihad Rail, etihadrail.ae}. Turkey’s USD 100 billion reconstruction and South Africa’s renewable-energy program add depth.

North America and Europe experience a steady, albeit slow, growth. The United States continues its strong infrastructure push with significant investments. While Canada prioritizes transit and power lines, Germany channels its construction efforts towards electric fleets, aligning with urban low-emission mandates. The United Kingdom construction sector also leans into specialty rentals to ensure compliance.