After an unprecedented year behind us, the construction market as a whole is looking towards the future with anticipation of growth, including the global crane rental market.
According to a report by Graphical Research, a business research firm that provides industry insights, market forecasts and strategic inputs, the crane rental market is forecasted to grow significantly over the next five years.
This spike in growth is largely due to preferring rental cranes — opposed to buying new or used equipment. Businesses are finding that crane rentals are a solution to avoiding costly investments on purchasing new cranes, while receiving the benefits of rental services. These services include repair, technical maintenance, and pick-up and drop-off.
The remainder of this article outlines seven key trends propelling growth within the global crane rental market.
1. Expansion of the telecommunication sector across North America
Currently, countries such as Canada and the U.S. are expanding their telecommunication facilities — investing in the development for a strong telecommunications infrastructure. This focus elicits the demand for cranes and crane rental services across North America.
According to Graphical Research, the U.S. government is investing six billion dollars to develop 5G and other wireless technologies. This substantial project, as well as others are already paving the way for regional market growth in the future.
2. Favorable financial situation
The rental crane market has an edge on other markets due to the low operating costs of renting cranes. In addition, renting cranes is more flexible, making it more feasible than other options available in the industry.
3. Rapid industrialization throughout Canada
In North America, specifically Canada, the demand for cranes is growing based on the wide variety of applicable jobs cranes can complete. The main industry currently benefiting from the use of crane is the oil and gas industry, which requires cranes for safe operations.
In the next couple years, the Canadian construction and mining sectors are forecasted to stabilize – leading to a substantial increase in the demand for cranes and other equipment in the area.
In order to anticipate this increase in demand, rental companies in the area are expanding their rental fleets, further complimenting the regional market growth.
4. Crane affordability and innovative advancement in Europe
In the past to current times — and beyond, cranes are constantly evolving, providing new innovative technology that streamlines processes, improves safety and efficiency, as well as alleviating any downtime. Although cranes are constantly evolving, the equipment remains relatively affordable.
Now-a-days, there are flexible down payments or monthly leasing options available, creating an environment for crane rental to thrive.
5. Increased adoption of mobile rental cranes across Europe
Throughout Europe, Graphical Research anticipates for the crane rental industry to see its own spike in sales. This is due to the ongoing infrastructure projects throughout the country as well as expansion of cement plants.
However, those aren’t the only markets seeing an increase, the transportation and construction sectors are increasing productivity. These specific markets are the key to the surge in the use of mobile cranes for ongoing infrastructure development.
6. Infrastructure development by regional governments in Asia Pacific
In the Asia Pacific area, regional governments are initiating development in rural and isolated areas. These plans include providing electric facilities, power and other utilities to these locations.
This facilitates the demand for cranes as they are needed to provide continuous maintenance and upkeep of water, telecom and other electrical needs. This initiative paired with the construction of transportation networks and utility distribution facilities in the region lead to a prosperous market for the crane rental industry.
7. Increased demand for crawler cranes in Asia Pacific
Crawler cranes offer a unique and valuable skillset. The machines operate proficiently on off-road conditions and are utilized for debris removal, cargo loading, construction of bridges, demolition sites and more.
According to Graphical Research, due to cranes' vast ability to be used across different industries, there is an increased demand for the machines globally, specifically in Asia Pacific. Businesses are finding that renting a crane comes with efficient rental, installation, maintenance services and technical assistance for part replacement — an asset in the industry.
Information provided by Graphical Research and edited by Chantal Zimmermann.