Construction equipment rentals can be explained as the process of renting out construction equipment for a particular time frame under terms and conditions about their usage by signing a contract. They are used to carry out heavy operations at construction mining sites. The market for construction equipment rentals is well poised and is estimated to reach $ 106,422.0 million by 2027, globally, with growth in CAGR of 4.2% from 2020 to 2027.
A major factor for the growth of the Equipment rental market is due to the demand in the construction & mining activities of developing countries in the Latin America and African regions. When you rent the equipment you are free from costs that otherwise arise like for maintenance when you are not using the equipment and also the high initial investment required to buy the equipment contributing to the growth of the global market.
Some factors that contribute to the stagnation of the Equipment market rental size globally are the lack of skilled labor, mining and construction work reaching a point of saturation, and to add to that the entry of the pandemic.
The pandemic resulted in a complete halt or decrease in the number of construction activities due to the lockdown rules. As a result of which, end-users of the rental equipment canceled their contracts with rental companies. However, the construction sector is bound to pick up the pace and go back to its full potential once the sites are reopened post-pandemic. This will lead to the functioning of the equipment rental companies with a renewed pace and also to their growth in the global market.
The development of innovative and advanced equipment that can function through the internet will contribute to eliminating the shortage of skilled laborers and also improve the safety of operators and end-users. These elements are predicted to add more value to the global construction equipment rental market and also play a role in its expansion.
Globally, the construction equipment rental market is divided into application, product, propulsion system, and region. Excavation & mining, material handling, earthmoving, and concrete are the applications covered in the study. From the product perspective, the market is segmented into backhoes & excavators, loaders, crawler dozers, cranes, forklift, and others. Electric and Ice are the two categories under the propulsion type. North America, Europe, Asia Pacific, and LAMEA (Latin America, Middle East, and Africa) are the regions into which the market is divided for analysis.
Construction Equipment Rental Market
By Application
Excavation & Mining segment is projected to grow at a significant 5.1% CAGR
Based on application, the earthmoving division pioneered the market with respect to revenue but it is predicted that the excavation & mining division is sure to undergo growth with the highest CAGR (Compound Annual Growth Rate) in the forecast period. When it comes to the product category, the loaders segment remained on top in 2019 with regard to revenue. Meanwhile, the other segment is likely to hit the highest CAGR for the forecast period. Coming to the propulsion system, the highest revenue in 2019 was generated by the ICE segment but the electric segment is all set to generate the highest CAGR in the forecast period. On a regional basis, North America took away most of the equipment rental market share while the Asia Pacific is likely to get the highest position in the forecast period.
Construction Equipment Rental Market
By Propulsion System
Electric segment is expected to grow at a significant rate during the forecast period.
In the construction equipment rental market, some major players have identified the market opportunity and seized the moment through business expansions, acquisitions, and product launches to serve customers better. These players include Boels Rentals, H&E Equipment Services, Herc Rentals Inc, Kanamoto Co Ltd, Nesco Holdings Inc, Maxim Crane Works, L.P. Mtandt group, Ramirent, Sarens n.v./s.a and United Rentals Inc.
The report puts light on the current and emerging equipment rental market behavior. The analysis is derived by taking note of the estimations of the important segments between 2020 and 2027, Key product positioning and top competitors inside the market area are observed. The different regions are closely analyzed to recognize business opportunities. The in-depth analysis helps in understanding the growth that the construction equipment rental market is likely to go through from 2020 to 2027 and how rental business owners can choose their rental business model.
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