Construction equipment rental trends driving market to $155 billion by 2026
Increasing focus of government authorities on renovating and maintenance of existing public infrastructure is expected to drive the construction equipment rental market expansion.
According to the Global Market Insights, the construction equipment rental market size is forecasted to exceed USD 155 billion by 2026. This growth is projected to be driven by launch of equipment rental services offered by numerous construction equipment OEMs such as Caterpillar, Inc. and Volvo Group.
Incorporation of technologies including IoT, telematics, and digital twins into construction apparatus could support rental service providers to maintain records of equipment usage and reduce downtime. Some key players operating in the construction equipment rental market include Mtandt Rentals Limited, United Rentals, Aktio Corporation, Unirent LLC, Ahern Rentals, Inc., and Boels Rental.
Some of the major trends impelling industry outlook include:
Emphasis on lowering vehicular emissions
Increasing focus on curbing emissions produced from vehicles and equipment used in the construction sector has resulted in the adoption of electric powered construction systems in recent years.
Construction contractors and companies are targeting on reduction of carbon footprint and working in the best way in which the environment remains safe by gravitating towards zero emission systems.
Material handling equipment & cranes in demand
The rental material handling & cranes equipment business is expected to grow at an escalating rate owing to promising commercial development and collective need for movement of construction materials on site.
The need to offer a safe working environment to construction workers has led to incorporation of wireless technologies in construction equipment. Advent of flexible electronics and robotics could further propel the demand for rental crane equipment
Europe emerging as a lucrative market
The EU’s strategy of construction of over 300 smart cities in the region by 2021 will provide new opportunities for market players. Factors such as strict labour safety laws in several European countries including Germany, France, and the UK, will further strengthen the regional industry share.
Strong presence of construction OEMs like Liebherr Group and Volvo support the expansion of construction equipment rental industry outlook across Europe.
Impact of COVID-19 on construction equipment businesses
The COVID-19 pandemic has severely affected the construction equipment rental industry. Government authorities are now focusing more on tacking the health-crises that has impacted millions of people worldwide.
This shift in focus has affected the spending on the construction sector, leading to postpone of various ongoing projects. Due to the COVID-19 situation, there has been a decline in the demand for residential real estate, this is directly hampering the business of rental construction equipment providers.