Construction Equipment Rental Market projected to reach $150 billion by 2027
The size of construction equipment rental market was anticipated as $110 billion in the year 2020 and is predicted to touch $150 billion till 2027, rising with a CAGR of 4.5% between the years 2021 to 2027 as per the research done by Global Market Insights, Inc.
Construction equipment rental market share from the segment of material handling & cranes is expected to grow at a remarkable pace on account of escalating demand for loading, unloading, and lifting materials at the construction sites. Stringent labour laws are pushing employers to provide a safe working environment for workers, driving the deployment of lifting and material handling equipment and across industrial sites.
In an effort to ensure enhanced safety of heavy construction equipment operators and maximize the output, numerous construction companies are increasingly incorporating advanced technologies such as safe load indicators, angle sensors, and anti-collision devices.
The construction equipment rental market is forecast to expand exponentially owing to soaring public expenditure for infrastructure development projects, especially in developed economies, including the U.S., UK, and others. As per the U.S. Council for Foreign Relations, in March 2021, the government approved a US$2 trillion infrastructure plan, which includes an unprecedented investment of US$600 billion for the upgradation of physical infrastructures, such as airports, railways, and roads & bridges, among others.
From a regional reference frame, Europe is slated to make a remarkable contribution to the global construction equipment rental market owing to soaring government expenditure for the development of smart city infrastructures. In fact back in 2019 itself, the European Commission, as part of its extensive Horizon 2020 Program, had allocated nearly US$94 million for the development of smart cities and communities.
Moreover, as per the European Construction Industry Federation (FIEC), the total construction expenditure across the EU27 countries was recorded around €1,324 billion in 2019, representing 9.5% of its GDP. A substantial rise in construction activities owing to the accelerating urban population, and rising number of immigrants, is projected to drive the adoption of advanced construction equipment across European countries.
Mtandt Rentals Limited, Caterpillar Inc., Ashtead Group, United Rentals LLC, Aktio Corporation, AI Faris Group, Ahern Rentals, Inc., Loxam Group, and Boels Rental are some notable global construction equipment rental companies.
These construction equipment manufacturers are eyeing strategic alliances and partnerships to expand their product portfolio and also increase their investment towards upgrading their existing rental fleet to meet the changing consumer demand. For instance, in June 2021, AI Faris Group, one of the leading industry players in the Middle East region, integrated Liebherr mobile cranes; with lifting capacities ranging between 110 tons and 500 tons. The company also added Liebherr LR 1500, a crawler crane, in its construction equipment rental fleet.