The practice of leasing heavy machinery construction equipment instead of purchasing it has proven to be beneficial for all sizes of companies across the world. This has resulted in the robust growth of the construction equipment rental market. Major growth is observed in sectors such as transport, housing, energy, and power, which have large scale investments.
With such a high level of investments, construction companies prefer to rent equipment so as to reduce their project costs. This is a cost-effective approach as in doing so they face lower maintenance costs and fewer technical charges. Adding to that, transportation, operation and servicing requirements are reduced many folds. Both these factors fuel demand for the construction equipment rental market in the coming future.
The development of advanced machinery with ecofriendly features and low maintenance is expected to castaway conventional equipment in the forecast period. Purchasing construction equipment requires heavy down payments that divert a large amount of capital from key operating expenses. It also attracts additional expenditures such as tax, insurance, licensing, interest on the loan amount, and storage cost, among others. By opting to rent construction equipment, companies evade the costs associated with depreciation and inflation while replacing it. Such problems are easily overcome by renting construction equipment instead. Rental houses upgrade their inventories on a regular basis, hence offering access to new and advanced construction equipment; hence making it easier for the leaser to act in accordance with EPA (Environment Protection Agency) standards.
Construction Equipment Rental Market: Drivers and restraints
Developments in the infrastructure sector clubbed with a varied range of advanced construction equipment in rental fleets are expected to drive demand for the construction equipment rentals market. Companies in the construction equipment rental market are skillful in identifying customers; they relocate construction equipment to different locations to monopolize on increasing demand from real estate industries in commercial and residential sectors. Strict regulations, increasing ownership cost and financial constraints are some of the key reasons fueling the construction equipment rental market.
On the other hand, fluctuating fuel prices and expenditure of picking up and delivering machinery, especially if the contractor is working in remote areas, is expected to obstruct demand in the construction equipment rental market over the forecast period.
Construction Equipment Rental Market: Segmentation
The construction equipment rental market can be segmented on the basis of product type.
- Earthmoving machinery (loading shovels, excavators, site dumpers and dump trucks)
- Material handling machinery (shelves, frames, sliding racks, bulk containers, bins, silos, conveyors, pallet trucks, fork lifts, platform trucks, hand trucks, cranes, etc.)
- Concrete & road construction (trenchers, planers, pavers, rollers, hot boxes, etc.)
Construction Equipment Rental Market: Region-wise outlook
The construction equipment rental market can be segmented by geographies like North America, Latin America, Eastern Europe, Western Europe, the Asia Pacific excluding Japan, Middle East & Africa, and Japan. Among these regions, Asia Pacific is expected to dominate the construction equipment rental market over the forecast period. Developing countries like India and China are expected to offer better opportunities owing to rising population and urbanization, along with growth in the IT sector that propels the demand for the construction equipment rental market over the forecast period.
North America is expected to show robust progression due to increasing investments in the residential sector. European countries like Spain, Germany, Poland, and France are expected to drive the construction equipment rental market. In the Middle East, countries like Saudi Arabia focus extensively on sustainable practices and promote eco-friendly construction of buildings. Rising capital investments in transportation, hospitality, infrastructure, and energy, coupled with easy availability of machinery have led to a boost in the construction equipment rental market.
Construction Equipment Rental Market: players
Some examples of recognized players in the construction equipment rental market are listed below:
- Zahid Group.
- Industrial Supplies Development Co. Ltd
- Ahern Equipment Rentals
- Caterpillar Inc.
- Gemini Equipment and Rentals (GEAR)
- Hertz Equipment
- John Deere
- KOMATSU EQUIPMENT
- Maxim Crane Works
- Neff Rental
Source: Persistence Market Research