Global Construction Equipment Rental Market Overview
Equipment rental is a service provided by industries for machinery, equipment and tools of all kinds and sizes from earthmoving to powered access, from power generation to hand-held tools, etc. for short period of time to final users. The practice of renting heavy machinery construction equipment instead of purchasing it has proven to be beneficial for all sizes of companies globally. This is mainly attributed to robust growth of the construction equipment rental market.
Developments in the infrastructure sector, coupled with a varied range of advanced construction equipment in rental fleets is the major factor driving growth of the global construction equipment rentals market globally. According to data published by IBEF in 2019, India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant growth from international investors in the infrastructure space. In addition, huge growth is observed in sectors such as housing, transport, energy and power, which have large scale investments, thus boosting growth of the target market.
Moreover, strict government regulations, increasing financial constraints and ownership cost are some of the key reasons propelling the global construction equipment rental market. However, fluctuating fuel prices and expenditure of picking up and delivering machinery, especially if the contractor is working in remote areas, is expected to hamper growth of the global market over the forecast period. According to data published by International Energy Agency, in 2018, the global average price of gasoline was 0.97 US$ per litre (USD/l), a 14% increase compared to the previous year. Nevertheless, development of advanced machinery with ecofriendly features and low maintenance is anticipated to create lucrative growth opportunities for the global market.
The global construction equipment rental market is segmented based of vehicle type, drive type, and region.
Based on vehicle type, the global construction equipment rental market is segmented into Earthmoving Equipment and Material Handling. Earthmoving equipment is further bifurcated into backhoe, loaders, and excavators. Material Handling is further bifurcated into cranes and dump trucks. Earthmoving vehicle type segment is anticipated to dominate the construction equipment rental market over the forecast period. This is attributed mainly due to the ease of operation, wide acceptability, mobility, and coupled with the high cost of excavators, making rental a more viable option. On the basis of drive type, the global market is segmented into IC engine and hybrid drive.
Based on region the global construction equipment rental market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The North America region is anticipated to be the largest, whereas the Asia Pacific region is projected to grow at the highest CAGR in the construction equipment rental market during the forecast period. Rising population and increasing investments in construction in the Asia Pacific region are expected to boost demand for construction equipment on rental basis over the forecast period. In 2018, Europe accounted for the second-largest market share. However, the Asia Pacific is anticipated to outrank Europe to become the second-largest construction equipment rental market by 2024.
Key players operating in the global construction equipment rental market includes Sarens NV, Ashtead Group Plc, Loxam, Herc Holdings Inc., Aktio Corporation, Nishio Rent All Co. Ltd., Kanamoto Co. Ltd., Nishio Rent All Co. Ltd., Nikken Corporation, and Ahern Rentals. Key players operating in the target market are focusing in new launches. For instamce, iIn November 2018, Sarens NV has launched the largest crane SGC-250 (Sarens Giant Crane - 250) in the world in terms of capacity and size. It is the first 3rd generation ring-based crane with maximum load moment of 250.000Tm which allows lifting 5.000T. The company has captured the extreme heavy lifting segment of the market with the launched of this product.
Detailed Segmentation:
Global Construction Equipment Rental Market, By Vehicle Type:
- Earthmoving Equipment
- Backhoe
- Loaders
- Excavators
- Material Handling
- Cranes
- Dump Trucks
Global Construction Equipment Rental Market, By Drive Type:
- IC Engine
- Hybrid Drive
Global Construction Equipment Rental Market, By Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Company Profile:
- Sarens NV *
- Company Overview
- Product Portfolio
- Key Highlights
- Financial Performance
- Ashtead Group Plc
- Loxam
- Herc Holdings Inc.
- Aktio Corporation
- Nishio Rent All Co. Ltd.
- Kanamoto Co. Ltd.
- Nishio Rent All Co. Ltd.
- Nikken Corporation
- Ahern Rentals
“*” marked represents similar segmentation in other categories in the respective section
FAQs
The Construction Equipment Rental Market is segmented into Vehicle Type, Drive Type, and Region
Various factors, including the increasing construction activities, cost-effectiveness of renting equipment, flexibility in equipment usage, and the growing trend of outsourcing equipment, are driving the growth of the Construction Equipment Rental Market.
The Construction Equipment Rental Market faces challenges such as fluctuations in construction activity levels, high competition among rental service providers, and the impact of economic downturns, which act as restraints on its global expansion.
By region, the target market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The Asia Pacific region is estimated to witness a significantly high revenue share over the forecast period, indicating its dominance in the Construction Equipment Rental Market.
The key players operating in the target market include Ashtead Group Plc, Loxam, Herc Holdings Inc., Aktio Corporation, Nishio Rent All Co. Ltd., Kanamoto Co. Ltd., Nikken Corporation, Ahern Rentals, and Sarens NV.