Construction Equipment Rental Market Outlook - 2027
The global construction equipment rental market size was valued at
$90,997.4 million in 2019, and is expected to reach $106,422.0 million by 2027,
registering a CAGR of 4.2% from 2020 to 2027. The construction equipment rental
is the service to rent out construction equipment to end users for a certain
period of time by signing contracts with terms and condition about their usage.
Construction equipment are majorly used at construction mining sites to
facilitate heavy operations.
The construction & mining activities
either declined rapidly or came to complete halt, which directly hampered the
rental revenues from the construction equipment.
Construction equipment rental market growth is driven by increase in
construction & mining activities in developing nations of Latin America and
Africa regions. In addition, additional expenses incurred due to maintenance of
the equipment, excessive operational cost, and high wages of skilled operators
can be saved by renting equipment for the required time, which significantly
contributes toward the growth of the global market. Moreover, high initial
investment required to buy equipment and financial constraints can be avoided
by opting for the rental equipment, thereby augmenting the market growth.
However, dearth of skilled labors is a major factor restraining
the growth of the global market. Moreover, saturation in construction and
mining industry in developed nations is another factor that hampers the growth
of the market. Furthermore, lockdown implemented due to the outbreak of
COVID-19 has led to either decline in construction activities or have come to a
complete halt. This led to cancellation of equipment contracts by end users
with rental companies, thereby declining the business during the lockdown
period. However, reopening of construction sites and introduction of vaccines
for COVID-19 are anticipated to lead to re-initiation of construction equipment
rental market companies and construction industry at their full-scale
capacities.
On the contrary, manufacturers are developing advanced
equipment, which can be operated by connecting them through internet. Moreover,
integration of IoT will help to overcome the shortage of skilled labors and
enhanced safety of operators and end users. These factors are anticipated to
offer remunerative opportunities for the expansion of the global market during
the forecast period.
The global construction equipment rental
market is segmented into application, product, propulsion
system, and region. The applications covered in the study include excavation
& mining, material handling, earthmoving, and concrete. On the basis of
product, is the market is divided into backhoes & excavators, loaders,
crawler dozers, cranes, forklift, and others. By propulsion type, it is differentiated
into electric and ICE. Region wise, the market is analyzed across North
America, Europe, Asia-Pacific, and LAMEA.
Depending on application, in 2019, the earthmoving segment
dominated the market, in terms of revenue; however, the excavation & mining
segment is expected to witness growth at the highest CAGR during the forecast
period. On the basis of product, the loaders segment led the market in 2019, in
terms of revenue, while the others segment is anticipated to register the
highest CAGR during the forecast period. By propulsion system, the ICE segment
registered the highest growth in 2019, in terms of revenue, however, the
electric segment is anticipated to exhibit the highest CAGR during the forecast
period. Region wise, in 2019, North America garnered the largest construction
equipment rental market share, while Asia-Pacific is anticipated to secure a
leading position during the forecast period.
