Global Market Insights is estimating construction equipment rental market worldwide could reach 75.2 billion in revenue by 2024, with the U.S. share of the market reaching $23 billion.
“The practice of leasing instead of purchasing heavy machinery has proven to be beneficial for companies of all sizes across numerous industries,” the company states in its latest report on the rental market. “Lower administrative overhead coupled with reduced expense and maintenance will drive construction equipment rental market size. Since industry vendors need to comply with the pervasive regulatory landscape, buyers benefit from elimination of replacement costs and associated expenditure. Other trends positively impacting revenue include growing technological advancements ranging from multifunctional machinery to apps for monitoring fuel consumption.”
Leading the way by category is earthmoving machinery. Global Market Insights expects equipment in this category, including excavators and loaders will “witness considerable demand on a global scale,” and reach at least $40 billion in revenue by 2024. This segment of the market accounted for 55 percent of the global rental sales in 2015, and is expected to grow at more than 9 percent through 2024.
The company also forecasts the road construction and concrete segment to increase significantly from the $10 billion mark reached in 2015. Material handling equipment will increase at a 9.9-percent compound annual growth rate (CAGR) from 2016 to 2024 “owing to escalating need for automated production processes in order to achieve optimal raw material usage, resource and energy consumption.”
The U.S. construction rental market will account for nearly one-third of the worldwide market. “Developed countries such as the U.S. will carry out infrastructure reconstruction frequently while emerging economies build new infrastructure in order to prolong development,” the company reports.
As a side note on the U.S. market, Global Markets Insights believes equipment here will see a spike in smart sensors placed on safety equipment such as rooftop harnesses, in addition to hard hats, boots and wristwatches. “Boot sensors helps in tracking the time duration between breaks, whereas wristwatch sensors monitor workers body temperature.
The construction equipment rental market in China reached $3 billion in 2015, and Global Market Insights expects growth there will be due to “commercialization, rapid urbanization, burgeoning population, increasing government initiatives, and robust fiscal growth.” Germany’s rental market is expected to grow by at least 6.5 percent CAGR due to “Rising construction across residential sector due to new building start-ups accompanied by volatile energy pricing & favorable regulatory norms.”
The company cites “key players” in the rental market, including United Rentals, Herc, Neff, Sunbelt, Ahern, Gemini Equipment and Rentals, Aggreko, Terex, Maxim Crane Works, Komatsu, Liebherr and Weldex International Offshore.
More details on the global construction equipment rental report are available here.