Equipment Rental Market Size, Share, Growth, and Industry Analysis, By Type (Heavy Equipment, Light Equipment, & Others), By Application (Construction, Industrial, & Others) and Regional Forecast to 2032

Updated On: 04 November 2024

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EQUIPMENT RENTAL MARKET REPORT OVERVIEW

The Equipment Rental Market Size was Valued at US$ 46060 Million in 2023. The Market is likely to Surpass US$ 53507.36 Million by 2032 at a CAGR of 4.1% During the Forecast period [2024-2032].

A number of factors drive the growth of the equipment rental market towards a positive trend throughout the forecast period. Increasing focus on cost-effective and flexible options is identified as one of the key factors driving demand for rental equipment among businesses. As companies strive to maximize operations and keep a tab on capital expenditure, rental markets witness a surge in demand for versatile, cost-effective solutions. This is another important factor influencing the growth of this market: outsourcing the needs for equipment makes rental options practical and customizable.

In addition, the development of technology and digital platforms will also continue to see innovations in the rental markets for equipment. Companies invest in research and development to provide contemporary, user-friendly rental solutions with respect to varied industry tastes. Technological changes in improved tracking systems and online renting tools support a more effective and efficient way of renting. Another factor would be the forthcoming eco-friendly and sustainable approach where renting rather than buying reduces equipment wastage. Evolving business needs and technological developments are coming together to drive growth across the global market.

COVID-19 Impact: Supply Chain Disruptions during Pandemic Restrain Market Growth

The COVID-19 pandemic has been unprecedented and staggering; the market has witnessed lower-than-expected demand in all regions compared to pre-pandemic levels. The sudden growth of the market, reflected by the increase in CAGR, is due to the value and demand of the market reverting back to pre-pandemic levels.

As the pandemic rolled out, supply chain disruptions, manufacturing activities, and industrial operations naturally came to a near-halt, impinging on business spending and dampening demand for non-essential goods, such as rental equipment. Lockdowns and social distancing restrained construction and industrial activities, further negatively affecting sales and distribution channels. Therefore, with the lockdown, the equipment rental market experienced a decline in demand and the amount of revenue generated during the pandemic. Although the market may recover as soon as the situation improves, the short-term impact of COVID-19 on the global market was largely negative.

LATEST TREND

"Digital Platforms and Smart Technologies to Drive Market Growth"

One of the trends that characterize the global equipment rental market at the moment is the incorporation of digital platforms and smart technologies, touting them as innovative enablers of modern businesses. Since digital disruption, companies have started incorporating online booking, real-time tracking, and automated maintenance alerts, among other smart features, into the modern rental system. These smart features bring along convenience and efficiency by enabling users to easily manage and monitor their rental equipment. Further, some of them are connected to mobile applications that allow customers to rent and can even track in real-time the availability of the rented equipment. This adoption of digital platforms and smart technologies clearly shows the drive of the industry toward matching business demand for cutting-edge, technologically advanced, rental solutions that make it the most preferred trend in the global market.

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EQUIPMENT RENTAL MARKET SEGMENTATION

By Type

The global market, based on its type, can be segmented into:

• Heavy Equipment: It includes cranes, excavators, bulldozers, and other such heavy machinery. Widely used in the construction and large industrial project industries

• Light Equipment: It includes generators, compressors, power tools, and smaller machinery. Favoured due to its portability and user-friendliness in many different applications

• Others: This includes specialized equipment and other niche equipment rentals. Covers specific industries based on needs or requirements.

By Application

The global market, based on application segmentation, can be classified into:

• Construction: Stable demand for rental equipment derived from building and infrastructure projects. Used in excavation, material handling, and site preparation, among others

• Industrial: Increasing demand for rental equipment in manufacturing, warehousing, and logistics. Offers forklifts, conveyors, and other industrial equipment that facilitate operations

• Others: Takes into account usage in agriculture, mining, and others. Applied across a wide array of tasks that require special equipment

DRIVING FACTORS

"Growing Urbanization and Infrastructure Development to Boost the Market"

Growing urbanization and infrastructure development within city limits act as major driving force for the global equipment rental market. Increasing urbanization is leading to the development of more and more cities, hence the growing demand for construction and industrial equipment. Equipment renting offers companies engaged in large-scale projects an effective versatile and cost-efficient solution to optimize operations effectively. One of the prime reasons to opt for this policy is that rental equipment offers a great deal of flexibility to urban developers who are looking for scalable solutions.

"Cost-Efficiency and Flexibility to Drive the Market Growth"

The other prominent factor contributing to the growth of the global equipment rental market is the cost-efficiency and flexibility that rental solutions provide. This would always attract all kinds of companies, from startups to SMEs and large-scale businesses. Furthermore, these are available on rent in different types, sizes, and durations, thus allowing businesses to select those that match their project requirements. The personalization of the renting agreements to accommodate various needs in operation is another major factor that has recently surged the demand for equipment rental services and boosted market growth all across the globe.

RESTRAINING FACTORS

"Low Availability and Reliability Likely to Hinder Market Growth"

One major restraint in the global equipment rental market growth is that rental equipment is not always readily available or reliable. Although these alternatives come in at a better cost and are more flexible, they are certainly not always available during the times when demand reaches its peak. Besides, the condition and performance of rental equipment are not up to mark, which ultimately affects project timelines and efficiency. With time, the wear and tear reduces reliability, hence reducing the overall life expectancy of rental equipment. This may restrain the growth of the market to some extent as businesses that seek long-term solutions may look for more reliable alternatives. However, in order to rectify this restraining factor and improvise on the availability and reliability of rental equipment in the market, frequent advancements in rental management and maintenance practices are explored.

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EQUIPMENT RENTAL MARKET REGIONAL INSIGHTS

The market is mainly divided into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Asia Pacific Region to Dominate the Market Due to Large Consumer Base"

Asia Pacific has emerged as the most dominant region in the global equipment rental market share due to several factors. Dominance in the region can be attributed to its large population and rapid urbanization, resulting in huge demand for construction and industrial equipment. Rentals provide convenience and affordability for companies operating in thickly populated cities where populations are growing in urban areas and the number of infrastructure projects increases. Also, various rental solutions available have been welcomed by regional businesses, catering to different project requirements and industry needs. In addition, growing e-commerce industries and rise in disposable incomes have facilitated access to the rentals market in Asia Pacific, thereby supplementing growth in this region and ultimately dominating the global market share.

KEY INDUSTRY PLAYERS

"Key Players in the Industry—Innovating and Expanding to Shape the Market"

One of the major forces driving the equipment rental market includes key industry players who can contribute to market dynamics and preference for any particular industry. These key players have large distribution networks and online platforms, allowing access to a diversity of rentals to be convenient for businesses. Their robust presence worldwide and brand recognition have created more trust and loyalty from industries toward this product adoption. Furthermore, these key market players are continuously investing in research and development, bringing new technologies, materials, and services in rental equipment, matching the changing business needs and preferences. This combined effort by such major players has a far-reaching impact on the competitive landscape and thus on the future trajectory of the market.

LIST OF MARKET PLAYERS PROFILED

• United Rentals (U.S)
• Sunbelt Rentals (U.S)
• Ashtead Group (U.K)
• Herc Rentals (U.S)
• Loxam (France)
• Aktio Corporation (Japan)
• Nishio Rent All Co., Ltd. (Japan)
• Kanamoto Co., Ltd. (Japan)
• H&E Equipment Services (U.S)
• Maxim Crane Works (U.S)

INDUSTRIAL DEVELOPMENT

October 2023: United Rentals Introduces Next Generation Online Rental Platform, United Rentals has launched a new, full-featured online rental platform with real-time tracking, automated maintenance alerts, and seamless booking processes. This will be a much more convenient and efficient digital platform for customers to meet the growing demand for digital and smart rental solutions in the construction and industrial markets.

REPORT COVERAGE

The scope of the research has, in particular, protected a SWOT analysis and gives readers an insight into future developments in the market. It discusses the factors that boost the rate of growth, and the market also studies a wide scope of market categories and applications that might influence it within the future. Considering the current trends and historical turning points, it provides an exact and holistic understanding of the constituents of the market and ascertains the areas of potential growth.

The research report contains the depth of market segmentation, the qualitative and quantitative research methodologies for an in-depth analysis. It further measures the market impact of financial and strategic perspectives. The country and regional assessment takes into account the leading forces of demand and supply that drives market growth. It shows a competitive landscape and details the market share of the key players. Inherent in the report are novel research methodologies and strategies of players, tailored for the period expected. It, in all, provides valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.