The global construction equipment rental market size is expected to reach $105.29 billion by 2030, registering a compound annual growth rate of 4.2 percent during the forecast period according to a new report by Grand View Research.
Rising government investment in the infrastructure sector and increasing foreign direct investment in the construction domain to develop roads, highways, expressways, bridges, skyscrapers and smart cities have created a demand for rental construction equipment. Constant technology advancement to produce cutting-edge project-oriented construction equipment that optimizes the overall construction process is propelling the growth of the construction equipment rental market.
Other key findings from the report include:
- The global market was valued at $73.44 billion in 2021 and is expected to exhibit a CAGR of 3.9 percent from 2022 to 2030.
- The earthmoving machinery segment dominated the market in 2021 and is expected to generate a market revenue of more than $54.01 billion by the end of the forecast period. The increasing application of earthmoving excavators for mining, agriculture, and construction industries significantly contributes to segmental growth.
- Asia Pacific is expected to witness significant growth in construction equipment rental by 2030, owing to governments' investment in the development of the highway, airports, dams and special economic zones.
- The construction equipment rental is witnessing high competition across the globe. Major players are inclining toward enhancing the business and product offering through strategic business acquisition.
Construction Equipment Rental Market Growth And Trends
Higher total cost ownership of new construction equipment and machines encourages small and medium scale construction companies and contractors to adopt rental construction equipment. Additionally, renting reduces the maintenance, repair, insurance and warehousing costs associated with owning; thus, construction equipment rental provides an economical alternative to the construction firms.
The pandemic led to a global lockdown and supply chain disruption which impacted the manufacturing, construction, and mining sectors at large. Post pandemic, issues such as lack of availability of skilled workforce, spiking raw material prices and high EMIs have amplified uncertainties in the construction sector subsequently hampering the growth pace. Thus, to avoid the risk aversion and reduce uncertainty, larger-scale construction companies are switching toward renting the construction equipment's, thereby driving the growth of the construction rental equipment market.