The global construction equipment rental market size was valued at $90,997.4 million in 2019, and is expected to reach $106,422.0 million by 2027, registering a CAGR of 4.2% from 2020 to 2027. The construction equipment rental is the service to rent out construction equipment to end users for a certain period of time by signing contracts with terms and condition about their usage. Construction equipment are majorly used at construction mining sites to facilitate heavy operations.
The construction & mining activities either declined rapidly or came to complete halt, which directly hampered the rental revenues from the construction equipment.
Construction equipment rental market growth is driven by increase in construction & mining activities in developing nations of Latin America and Africa regions. In addition, additional expenses incurred due to maintenance of the equipment, excessive operational cost, and high wages of skilled operators can be saved by renting equipment for the required time, which significantly contributes toward the growth of the global market. Moreover, high initial investment required to buy equipment and financial constraints can be avoided by opting for the rental equipment, thereby augmenting the market growth.
However, dearth of skilled labors is a major factor restraining the growth of the global market. Moreover, saturation in construction and mining industry in developed nations is another factor that hampers the growth of the market. Furthermore, lockdown implemented due to the outbreak of COVID-19 has led to either decline in construction activities or have come to a complete halt. This led to cancellation of equipment contracts by end users with rental companies, thereby declining the business during the lockdown period. However, reopening of construction sites and introduction of vaccines for COVID-19 are anticipated to lead to re-initiation of construction equipment rental market companies and construction industry at their full-scale capacities.
The global construction equipment rental market is segmented into application, product, propulsion system, and region. The applications covered in the study include excavation & mining, material handling, earthmoving, and concrete. On the basis of product, is the market is divided into backhoes & excavators, loaders, crawler dozers, cranes, forklift, and others. By propulsion type, it is differentiated into electric and ICE. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.