The high cost of procuring next generation construction equipment with features such as lift assist, predictive maintenance systems and 360 vision cameras heightens the demand for rental services. Consequently, a Fact.MR report predicts, the global construction equipment rental market will grow 1.6X during the forecast period from 2019 to 2029. Booming infrastructure development in emerging and developed countries will continue to generate demand for construction equipment rental services.
Key takeaways of the market study include:
- Earthmoving Machinery accounts for a majority share of more than 60% of the total market revenues. The versatility of applications of this product type coupled with favorable project developments in infrastructure, oil, gas and power generation industries propel the demand for this equipment.
- Concrete & Road Construction Machinery hold the second largest market value share of over 22% due to increasing need for land connectivity in developing countries.
- North America maintains its stronghold with over 49% share of the total market value. Early adopters in this region are exploring alternative fuel resources and employing construction equipment rental services for cost-efficient exploration.
- East Asia, South Asia and Oceania offer the most opportunities due to the rampant infrastructure development in emerging economies such as India, China and Indonesia.
According to the Fact.MR analyst, “Market players stand to benefit from increasing government investments in infrastructure development in emerging economies.”
Major rental industry players are likely to see the biggest gains. “The construction equipment rental market is consolidated with Tier 1 players garnering most of the revenues,” the analyst stated. “Front-running organizations are constantly updating their equipment fleets with advanced technologies.”
Frequent mergers and acquisitions such as the March 2019 announcement of the acquisition of Prime Rentals Ltd. by Cooper Equipment Rentals Ltd. are also projected to continue through 2029.
Maintenance Services Offer New Revenue Streams
On-site service programs using predictive maintenance and monitoring show strong revenue opportunities. Reducing the loss of time due to breakdowns, such services are a trend that benefits both parties. Customers can prevent loss of productive work hours and construction equipment rental companies can garner sustainable revenue opportunities.
Skills development of the workforce with the advancements in construction equipment technologies will give market players a competitive edge during the forecast period.
These insights are based on the Construction Equipment Rental Market report.
