NEW YORK, May 6, 2024 /PRNewswire/ — The global construction equipment rental market size is estimated to grow by USD 31.46 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of over 5.17% during the forecast period.
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Technavio has announced its latest market research report titled Global Construction Equipment Rental Market 2023-2027
|
Report Attribute |
Details |
|
Base Year |
2022 |
|
Forecast period |
2023-2027 |
|
Historic Data for |
2017 – 2021 |
|
Segments Covered |
Application (ECRCE and MHE) and Type (ICE and Electric) |
|
Key Companies Covered |
Aktio Corp., Associated Equipment Rentals Pvt. Ltd., Briggs Equipment, Byrne Equipment Rental, Caterpillar Inc., Cramo Oy, Finning International Inc., Herc Rentals Inc., HSS ProService Ltd., Kanamoto Co. Ltd., Kwipped Inc., LGH, Loxam, Nishio Rent All Co. Ltd., Sarens NV, Sunstate Equipment Co. LLC, Titan Machinery, United Rentals Inc., Liebherr International Deutschland GmbH, and Komatsu Ltd. |
|
Regions Covered |
North America, Europe, APAC, Middle East and Africa, and South America |
Key Trends Fueling Growth
Increasing in adoption of automation:
The construction industry is seeing a big change with the introduction of automated machines and self-driving vehicles. These machines work better than manual ones and are becoming more popular. Automated guided vehicles (AGVs) are especially liked because they can figure out the best route to move goods efficiently.
Although traffic controllers still assign tasks and manage load movement, AGVs now use computer-aided design (CAD) systems to guide them. This helps them find the quickest path for delivering or collecting goods.
AGVs also help with navigating around obstacles and adjusting routes in real-time. CAD-based software programs in AGVs map out all possible paths and show where to pick up and drop off goods. With more automation, the market for rental equipment is expected to grow in the coming years.
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Major Challenges:
Lack of workforce in construction industry
Industries like construction are facing a workforce shortage, particularly skilled workers like technicians and site managers. This shortage, noted globally including regions like APAC, Europe, and South America, leads to missed opportunities and growth risks. Companies struggle to fulfill orders due to the lack of skilled personnel, hindering the industry’s progress.
Attempts to address this, such as hiring immigrants, encounter challenges like language barriers and skill mismatches. Some firms invest in training programs for migrants, but regulatory uncertainties delay their recruitment.
Small and medium-sized enterprises (SMEs) are especially affected as they await approvals for migrant employment. These factors are anticipated to impede the expansion of the global construction equipment rental market in the coming years.
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Segmentation Overview
Application
1.1 ECRCE
1.2 MHE
Type
2.1 ICE
2.2 Electric
Geography
3.1 North America
3.2 Europe
3.3 APAC
3.4 Middle East and Africa
3.5 South America
1.1 ECRCE- The ECRCE segment is set to experience significant market share growth in the forecast period. This segment deals with earthmoving, concrete, and road construction equipment, which are crucial for carrying, digging, spreading, or moving materials. These machines, such as excavators, loaders, dozers, and motor graders, are vital for tasks like excavating land, laying foundations, and landscaping.
The infrastructure sector, both government and private, is witnessing increased investment, offering ample growth opportunities for companies in earthmoving equipment rental. Valued at USD 77.01 billion in 2017, the ECRCE segment has shown continuous growth until 2021. Urbanization, particularly in developing nations, is rapidly increasing, leading to the emergence of megacities—urban areas with over 10 million inhabitants.
This migration from rural to urban areas indicates rising disposable incomes. Consequently, cities are expanding to accommodate the growing populace, necessitating construction of roads, railways, residential complexes, hospitals, and hotels. Such developments drive construction activities and boost infrastructure demand, fueling the need for construction machinery in the forecast period.
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Analyst Review
The Construction Equipment Rental Market is a significant segment of the machinery industry, experiencing robust demand and growth due to the increasing number of infrastructure projects and construction contracts. Contractors and suppliers rely on leasing companies to provide them with essential equipment such as excavators, cranes, bulldozers, loaders, scaffolding, boom lifts, forklifts, generators, compressors, and various earthmoving tools.
The rental market for these machines offers flexibility, cost savings, and access to the latest technology, making it an indispensable part of the construction industry. The market’s growth is driven by the infrastructure sector’s expansion, with an increasing focus on public-private partnerships and government investments in infrastructure projects.
Market Overview
The Construction Equipment Rental Market is a significant sector that caters to the needs of the construction industry. With projects requiring diverse machinery and equipment, rental services offer flexibility and cost-effectiveness. The market consists of various types of equipment such as cranes, bulldozers, backhoes, and excavators. Technologies like IoT and GPS tracking enable efficient management and monitoring of rental equipment.
Renewed focus on infrastructure development and smart cities projects is expected to boost the market. Producers and rental companies employ various strategies like product innovation, strategic partnerships, and competitive pricing to gain market share. The market is projected to grow at a steady pace in the coming years.
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Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
Application
Type
ICE
Electric
Geography
North America
Europe
APAC
Middle East And Africa
South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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Website: www.technavio.com/
SOURCE Technavio