An impetus in the global construction, mining, and agricultural sectors will act as a central driving force behind the growth of the construction equipment rental market. The high cost of procuring next generation construction equipment with features such as lift assist, predictive maintenance systems, and 360 vision cameras, heighten the demand for rental services.
Fact.MR's new report entitled "Construction Equipment Rental Market" finds the global construction equipment rental market will grow 1.6X during the forecast period (2019-2029). Booming infrastructure development in emerging and developed countries will continue to generate demand for construction equipment rental services.
Key Takeaways of Construction Equipment Rental Market Study
Within its report, Fact.MR notes four key drivers of the market:
- Earth Moving Machinery accounts for a majority share of more than 60% of the total market revenues. The versatility of applications of this product type coupled with favorable project developments in infrastructure, oil, gas, and power generation industries propel the demand for earth moving machinery.
- Concrete & Road Construction Machinery hold the second largest market value share of over 22% on the back of increasing need for land connectivity in developing countries.
- North America maintains its stronghold with over 49% share of the total market value. Early adopters in this region are exploring alternative fuel resources which employ construction equipment rental services for cost efficient exploration.
- East Asia and South Asia and Oceania offer the most remunerative opportunities owing to the rampant infrastructure development in emerging economies such as India, China, and Indonesia.
“The construction equipment rental market is consolidated with tier-1 players garnering most of the revenues. Front running organizations are constantly updating their equipment fleets with advanced technologies. Market players stand to benefit from increasing government investments in infrastructure development in emerging economies,” says a Fact.MR analyst who worked on the report.
Onsite Maintenance Services to Offer New Revenue Streams
Onsite service programs with the help of predictive maintenance and monitoring exhibits strong remunerative opportunities. Reducing the loss of time due to breakdowns, onsite maintenance services is a disruptive trend that benefits both parties. Customers can prevent loss of productive man-hours and construction equipment rental companies can garner sustainable revenue opportunities. Skill development of the workforce with the advancements in construction equipment technologies will give market players a competitive edge during the forecast period. Frequent mergers and acquisitions such as the March 2019 announcement of Prime Rentals Ltd. being acquired by Cooper Equipment Rentals Ltd. are projected to continue through 2029.