Published Date : 03 Mar 2023
The global construction equipment rental market size is projected to hit around USD 153.19 billion by 2030 and is expected to expand at a CAGR of 4.8% during the forecast period from 2022 to 2030.
Equipment rental, also known as plant hiring in some countries, is a service industry that rents out machinery, equipment, and tools of all types and sizes to end users, primarily construction companies, but also industry and individual consumers, for a fixed length of time. Renting is defined as receiving equipment for a limited period of time to assist individuals who are unable to purchase it.
The construction equipment rental market growth is expected to be fueled by increased government spending on public infrastructure and smart cities. The construction organizations and contractors are shifting to construction equipment leasing due to the high initial purchase cost of modern construction equipment.
The major players use a variety of strategies to maintain their market position in the global construction equipment rental market, including collaboration, mergers and acquisition, new joint venture, forming a partnership, developing a new product line, and innovation in existing products to expand their customer base in the untapped construction equipment rental market.
Construction Equipment Rental Market Report Scope
|Market Size in 2023||USD 109.75 Billion|
|Projected Forecast Value in 2030||USD 153.19 Billion|
|Growth Rate||4.8% from 2022 to 2030|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Forecast Period||2022 To 2030|
|Segments Covered||By Product Type|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Asia-Pacific is the largest segment for construction equipment rental market in terms of region. To support increased connectivity, high level industrial activity, and growing energy consumption, this region has seen an increase in the number of highways, metros, airports, and dams.
North America region is the fastest growing region in the construction equipment rental market. The residential construction sector’s strong growth, combined with an increase in the infrastructural segment as a result of increased investment in the North America region.
Drivers: Rising government initiatives
Many developing nations’ governments have constantly emphasized the need to address their countries’ infrastructure deficits in order to enhance living standards and boost economic competitiveness. The global infrastructure sector is currently expanding. The money for this strategy is expected to come from a combination of federal, state, and local government spending.
As construction equipment plays such an important part in the construction industry, manufacturers of construction equipment stand to gain a lot of money from the development of the infrastructure plan. The use of construction equipment is expected to expand significantly, resulting in lucrative prospects. Thus, the rising government initiatives driving the construction equipment rental market during the forecast period.
Restraints: Shortage of labor
The construction equipment rental market is significantly impacted by a labor shortage. For numerous operations, this industry utilizes a variety of people, including service technicians, certified mechanics, and delivery drivers. However, in construction equipment rental market, such employees are hard to get in the market.
Due to the labor scarcity, the construction equipment sector is moving toward more automation, such as autonomous vehicles. The construction equipment rental market is confronting a shortage of experienced technicians and is looking for public policy measures to encourage more young people to join the profession. Thus, the shortage of labor is hindering the growth of the construction equipment rental market during the forecast period.
Opportunities: Minimum maintenance costs
The high initial investment necessary to purchase construction equipment, as well as the high maintenance expenses of such equipment, are driving the construction equipment rental market’s expansion, which is likely to continue during the forecast period. For efficient functioning, construction equipment needs ongoing technical support and maintenance. In the construction and manufacturing industries, the expense of maintaining industrial trucks such as forklifts and pallet trucks is significant since they are frequently exposed to extreme conditions that increase wear and tear and cause serious damage.
The expense of maintenance is further increased by the necessity for experienced employees to maintain construction equipment. Renting construction equipment allows to avoid making large investments. In addition, maintenance expenditures are low as compared to the cost of owing the equipment.
Challenges: Uncertain economic conditions:
The construction industry is particularly vulnerable to the effects of a recession or a downturn in the economy. The construction equipment rental market is influenced by an economy’s business cycles, which occur multiple times over its duration and are marked by low and high economic activity. The expansion, trough, recession, and recovery are the four stages of an economic shift. As a result, uncertain economic conditions is a major challenge to the growth of the construction equipment rental market.
Major Key Players:
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