Tiếng Việt
Construction Equipment Rental Market Analysis
The Construction Equipment Rental Market size is estimated to reach USD 134.88 billion by 2024 and is expected to reach USD 170.92 billion by 2029, growing at a CAGR of 4.85% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020, as construction activities were halted during the lockdown to contain the spread of the virus and maintain social distancing regulations. However, with the steady reopening of economies, demand is gaining momentum to bring the GDP growth rate back on track. Governments are increasing spending on construction activities, which is likely to boost the demand for construction equipment rental services.
The US government has passed the Jobs and Infrastructure Investment Act. The $1.2 trillion bill includes $550 billion for transportation, broadband, and utilities, $110 billion for roads, bridges, and other major infrastructure projects, and $40 billion for bridge repair and replacement. The bill also includes more than $65 billion in funding for electric infrastructure, including $29 billion for the electric grid. The bill authorizes federal investment in a variety of infrastructure projects, which is expected to increase demand for construction services, equipment, and materials. As a result, construction spending will increase by 5% in 2022 and 5.5% in 2023.
Similarly, the Chinese government is investing $8.87 billion in the Shanghai Chip Factory. In Shanghai, China, a 12-inch wafer fab is being built as part of the project. Construction is expected to commence in Q1 2022 and is expected to be completed in Q3 2024. The project aims to increase the production capacity of 12-inch wafers to meet the growing demand.
In the medium term, the key factor driving the growth of the market is the expanding construction industry, especially in developing countries, due to several growth opportunities in the residential, non-residential, and infrastructure sectors. For example, the increase in multi-family housing construction (with an increasing trend of nuclear families) and increased investment in the construction of highways, bridges, metros, smart cities, expressways, and roads due to increasing population and urbanization.
Furthermore, the growing trend of automation is expected to drive the growth of the market. However, factors such as stringent emission regulations for construction machinery are expected to hamper the market growth over the forecast period.
Increasing emphasis on infrastructure as well as advancements in automation in construction and manufacturing processes have had a significant impact on the growth of the construction equipment rental market in Asia Pacific. Companies are launching their products in the Asia Pacific market, which is also expected to boost the market. For example,.
In May 2022, MYCRane, a Dubai-based crane and construction equipment provider, announced its plans to launch the world’s first online crane rental platform in key Asia Pacific (APAC) markets such as Singapore, Thailand, and Indonesia.
Construction Equipment Rental Market Trends
High cost of construction equipment is driving market growth
High cost of purchasing equipment, increasing economic uncertainty, lack of capital, technological advancements, unpredictable growth in infrastructure and construction, depreciation, costly breakdowns, and lack of available space are all factors that are driving the demand for construction equipment rentals.
Due to the high cost of purchasing motor graders, many small businesses prefer to rent them. Excavators are versatile and come with a variety of attachments that increase productivity, which is the main reason for the growth of the industry. Third-party e-commerce websites offer low-quality machines at low prices, enticing customers to buy the products. This low-quality equipment may fail in a short period of time, increasing the demand in the construction equipment rental market.
There are many companies in the market that provide construction equipment sales and rental services. For example,.
- In December 2022, UMT (United Mobility Technology AG), a German technology company, launched Smart Rental, an online rental marketplace based on a mobile phone app. According to the company, customers will be able to rent excavators, vibratory plates, loaders and other construction equipment using the ‘Car-2-Go’ concept, meaning that they will be close to their location at any time and without contact.
Major developed countries are focusing on expanding ports, railway tunnels and underwater tunnels and are seeing an increasing demand for cranes, thus boosting the construction equipment rental market.
Asia-Pacific is expected to gain significant market share
Asia-Pacific is one of the largest markets witnessing a boom in infrastructure and construction development due to the increasing focus of governments on infrastructure development for a sustainable economy. The region has seen growth in the number of Special Economic Zones (SEZs), hydropower projects, dams, highway construction, metro construction, airports, etc. to sustain high-level industrial activities, increasing energy demand, and better connectivity. As a result, several international companies have started investing and establishing distribution centers and manufacturing facilities in the region to meet the growing demand and capture the regional market. Construction machinery manufacturers such as Sumitomo Corporation, Hitachi, Caterpillar, and Liebherr, which are providing rental services, are facing strong competition from several domestic and regional companies due to competitive pricing and availability of technologically advanced equipment.
However, during the COVID-19 pandemic, important government construction projects such as critical utilities, hospital construction and infrastructure projects continued to work but at a slower pace with fewer workers on site to avoid the spread of COVID-19. As a result, the value of the construction equipment rental market declined in 2020 due to the slowdown in global economic growth, which in turn slowed construction progress.
Overview of the construction equipment rental industry
The construction equipment rental market is characterized by the presence of many domestic and regional players, resulting in a highly fragmented market environment. The five key players in the market are United Rentals Inc., Ashtead Group PLC, Herc Rentals, HE Equipment Services, Loxaman and Kanamoto Co. Ltd. The market is strongly driven by mergers, acquisitions and joint ventures.
- August 2022 Atlas Crane Service, LLC, a full-service crane rental company primarily serving the wind power industry, announced that a fund managed by Ares Management’s Infrastructure Opportunities strategy has acquired a controlling interest in the Company.
Construction equipment rental market news
- December 2022 Dubai-based online crane rental service MyCrane has its own operations in the United States. The company announced that it chose to set up its own operations in the United States rather than appoint a franchisee as it has done in other locations.
- November 2022 Maxim Crane Works LP announced the launch of Maxim MarketplaceTM, a new online marketplace for used equipment sales. With hundreds of fleet-owned cranes and support equipment for sale, the US rental giant is refreshing its fleet through its own advanced online used equipment sales platform developed in collaboration with Krank, an industry-first software developer.
- October 2022 The 50-ton 653 E battery electric is Sennebogen’s first battery-powered telescopic crawler crane. It was created in collaboration with Van den Heuvel for the Dutch crane rental and construction market, and it features the same coordinated battery technology and charge management.
- In March 2022, MyCrane released a free selection tool to help users determine the best crane for their lift, as well as the optimal crane capacity and configuration. The company has perfected its digital crane rental tool and improved customer workflow.
