With the rapid expansion of cities, urbanization, migration, and economic diversification, the construction activities across the globe are snowballing at an astronomical pace. The developing economies have been focused on the creation of new infrastructure to meet the skyrocketing demand for better housing, work opportunities, and improving the overall stature of the country on the global platform. While the developed economies are supplanting their aging infrastructure according to the evolving geopolitical imperatives. So, these all aspects have catalyzed the spending on construction activities across the globe. It is expected that the global spending in the construction industry would exceed USD35.93 trillion by 2030, rising from USD24.11 trillion in 2019.
Periodical maintenance and high equipment cost paving the way for construction equipment rental market
This massive rise in construction spending is projected to boost the overall market size of construction equipment. However, with the rising cost of equipment on account of improving hydraulics, investments towards better performance and product innovation by OEMs have been a major challenge for the real estate developers and the construction firms. Also, the intermittent maintenance requirement of such equipment adds to the economic woes of such end-users. Therefore, paving a pay to the emergence of construction equipment rental market.
According to the MarkNtel Advisors’ research report, “Global Construction Equipment Rental Market Analysis, 2020”, the global construction equipment rental market is set to grow at a CAGR of around 4.7% during 2021-25. As per the report, the global construction equipment rental market is anticipated to touch the market size of around USD128 billion by 2025. Emerging economies such as China, India, Malaysia, Brazil, in addition to the other developed counterparts in Western European and North America were the major regions with burgeoning spending on construction activities.
The demand for earthmoving equipment, road and building & concrete equipment for rental would continue to outperform other equipment during 2021-25. With the revival of crude oil prices, the investments in construction for economic diversification has rejuvenated in the Middle East region. Therefore, the regional construction equipment rental market has been rising at a considerable pace.
One Belt One Road Initiative to stimulate the Global Construction Equipment Rental Market
As a part of the mega-investment plan for regional connectivity, China has planned to invest more than USD 1 trillion in Asia, Europe, Middle East, and Africa by 2027, across various areas such as roads & highways, railways, ports, manufacturing units, etc. Therefore, this mega investment plan is expected to fuel the construction equipment rental market in Europe, Asia, and Africa.
Intensification of Competition
The major companies operating in construction equipment rental are United Rentals, Akito, Loxam, Kanamoto, Cramo Group, H&E Equipment, Ramirent, Sarens, etc. grabbing considerable market share in 2019.
According to MarkNtel Advisors, with the growth in construction activities, the global construction equipment rental market is increasingly becoming competitive. To expand the geographical coverage, adoption of new technologies, and widening the current product portfolio, the competitors are resorting to mergers and acquisitions. A few of the recent notable acquisitions include H&E Equipment Services completing the acquisition of We-Rent-It (WRI) for USD75 million in 2019. United Rentals acquiring the assets of WesternOne Rentals & Sales LP for USD92 million in 2018. Moreover, the companies have intensified their spending on adopting and acquiring the latest technologies such as autonomous construction equipment, fifth-generation engines for better performance and maneuverability to increase competitiveness.
Global Construction Equipment Rental Market Analysis, 2020 provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decision, hotspots and opportunities available for access control solution providers across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go To Market Strategies and identifying the blue ocean for their offerings.
1. By Type of Equipment (Earthmoving Equipment, Material Handling, Road Building & Concrete)
2. By Type of Product (Excavator, Loader, Grader, Bulldozer, Road roller, Tipper, Forklifts, Cranes, Diesel Generators, Concrete Pumps, Concrete Mixers, Others)
3. By Application (Power & Utilities, Mining, Hospitality, Residential, Healthcare & Residential Institutes, Manufacturing Units, Others)
4. By Geographic Region (North America, South America, Europe, Middle East & Africa, Asia Pacific)
5. By Countries (US, Canada, Mexico, Brazil, Chile, Argentina, Germany, France, UK, Russia & CIS South Africa, Nigeria, UAE, Saudi Arabia, Kuwait, Qatar, China, India, South East Asia, Japan, Others)
6. By Competitors (United Rentals, Herc Holdings, Loxam SaS, H&E Equipment Services, Inc, Aktio, Kanamoto, Others)
Key questions answered in the study:
1. What are the current and future trends of the Global Construction Equipment Rental market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the globe?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Global Construction Equipment Rental market?
6. What are the customer orientation, purchase behavior, and expectations from the Construction Equipment Rental companies across various regions?