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Construction Equipment Rental Market Trends

Report ID: GMI773
Published Date: Nov 2024
Report Format: PDF

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Construction Equipment Rental Market Trends

The demand for construction equipment rental with advanced technologies is increasing across the globe due to the advantages offered such as enhanced performance and fast operations. Leading rental companies are trying to incorporate the latest advanced technologies in machines to enhance performance and increase operational safety. Telematics incorporated these systems to enable remote communication with the vehicles combining informatics and telecommunication. Incorporating this technology in the equipment enables machine tracking using a combination of cloud computing, GPRS networks, GPS receivers, and GPS satellites.

Companies are focusing on providing certified online and onsite training courses for workers to operate machines with telematics and proximity sensors. This ensures their safety while working at heights. Stringent government rules are making companies focus on manufacturing and renting machines to comply with safety standards and regulations. The technology of virtual reality and platform simulators is gaining momentum for mobile elevating work platforms.

Rental service providers are entering into partnerships & collaborations with telematics service providers to establish telematics network in their rental equipment fleet. For instance, In March 2024, Hitachi Construction Machinery Europe (HCME) has partnered with ShareMat to enhance fleet management for construction equipment in France. This collaboration integrated HCME's telematics-equipped machinery with ShareMat's fleet management platform. The system delivers real-time operational data, improving accuracy and efficiency. Key features include customized solutions for customers, seamless API integration, and technical support from both companies. This initiative aims to elevate equipment performance and management for diverse construction needs.

The construction equipment rental industry is cyclic in nature and a decrease in construction or industrial activities could adversely affect the revenues and operating results of several rental companies by decreasing the demand for the equipment or rental rates or prices. Its revenues are closely tied to general economic conditions and to conditions in the non-residential construction industry. The equipment is primarily used in non-residential construction, oil & gas and end markets and to a lesser extent, in industrial activities and residential construction end markets. These are cyclical businesses that are sensitive to changes in general economic conditions.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The global market for construction equipment rental was reached USD 147.4 billion in 2024 and is estimated to grow at a 6.2% CAGR from 2025 to 2034, driven by high purchasing costs for construction machines.

The backhoes segment held over 50% market share in 2024 and is expected to exceed USD 76.3 billion by 2034, propelled by rapid growth in road-building projects and public infrastructure development.

The bulk material handling equipment segment held a 45% market share in 2024, driven by the need for speedy completion of large infrastructure projects and the construction of large commercial establishments and skyscrapers.

North America dominated the global construction equipment rental market with over 35% share in 2024, led by increasing construction activities and the presence of prominent players like Ahern Rentals, Herc Rentals, and Ashtead Group.

Key players in the construction equipment rental industry include Aktio, Ashtead, Boels Rental, Briggs Equipment, Caterpillar, H&E Equipment Services, Herc Holdings (Herc Rentals), Kanamoto, Kiloutou SAS, Loxam, and United Rentals.