As per a recent industry report put forward by Global Market Insights, Inc. Construction Equipment Rental Market is forecast to register its name in the billion-dollar fraternity down the line of seven years, by exceeding revenue of USD 225 billion by 2032 with a projected CAGR of 4% over 2023-2032.
The market growth is driven by the rising demand for tech innovations in construction equipment for implementing the latest smart city technologies such as IoT, AI & ML, and electromobility into infrastructures.
Besides, increasing mining and construction initiatives in Latin America are driving the adoption of construction equipment. Organizations in this industry lease out or rent construction equipment such as cranes, scaffolding, crane lorries, work platforms, graders, bulldozers, and excavators to carry out building activities. In addition, growing mineral consumption throughout Peru, Chile, and Argentina will prompt the demand for mining trucks, excavators, loaders, and dozers throughout the region.
Key providers in the construction equipment rental market are engaging in strategic initiatives such as partnerships, mergers and acquisitions, R&D investments, and new product launches to gain a competitive edge in the industry. For instance, in January 2023, Al Faris Group recently extended its portfolio with the addition of 24 Liebherr mobile cranes to its fleet. The delivery includes a range of models with lifting capacities from 110 to 700 tonnes, including four LTM 1500-8.1s with a lifting capacity of 500 tonnes.
Overall, the construction equipment rental market is segmented in terms of product and region.
Based on product, the concrete equipment product segment is anticipated to depict over 5% CAGR during the forecast timespan. The rising preference for high-capacity, innovative batching plants will drive the demand for such equipment. The mounting use of rental concrete equipment in the construction industry has evolved owing to the production requirements. Modern concrete construction equipment producers use cutting-edge technologies to eliminate raw material waste and storage space. In addition, the constantly rising construction projects, reduction in completion times, and end-user’s needs for customized solutions are some of the key factors slated to assist the segment in growing.
Regionally, the North American construction equipment rental market was valued at over USD 45 billion in 2022. The regional market growth can be credited to the rise in construction, mining, and agricultural activities in the American economies. According to the Government of Canada, the value of Canada’s mineral production reached USD 55.5 billion in 2021, depicting a 20% year-over-year surge.
Purchasing new construction equipment with features such as lift assistance, preventive maintenance systems, and 360-degree cameras is expensive. This has resulted in rising demand for rental services, especially in North America, which is estimated to positively influence the overall regional outlook.
Source: https://www.gminsights.com/industry-analysis/construction-equipment-rental-market