Feb 20, 2023   SOURCE: BusinessWire

Global Construction Equipment Rental Market Overview, 2023-28: Demand for Telematics Integrated Machinery Presents Opportunities - ResearchAndMarkets.com

The "Global Construction Equipment Rental Market Overview, 2023-28" report has been added to ResearchAndMarkets.com's offering.

Construction equipment rental is a service that concludes a contract with terms of use and rents construction equipment to the end user for a certain period of time. Construction machinery is mainly used to facilitate heavy labour at mine construction sites. According to the Construction Equipment Rental Association, construction equipment rentals have increased significantly and are expected to see a substantial rise in developing countries such as China, India, and Mexico.

Local and regional small businesses may prefer rental service businesses to achieve flexibility and generate revenue from their local and regional contractor customer bases. In addition, markets where these rental services have started to emerge have seen significant growth in construction equipment rental, with similar results in the U.S. and Italy. Construction equipment is increasingly being adopted by end users for a wide range of construction activities.

Adoption of upgraded and technologically advanced equipment reduces the need for labour and associated costs over a prolonged period of time, as a manual or human workforce would take longer to complete digging, excavation, or trench refilling tasks, among others, while heavy-duty machinery and earth-moving equipment will take a fraction of that time for the same.

According to the research report, Global Construction Equipment Rental Market Overview, 2023-28 the market is projected to reach a size of USD 111.70 billion by 2028, up from USD 82.43 billion in 2022. Furthermore, the market is expected to grow at a 5.30% CAGR between 2023 and 2028.

Renting construction equipment not only saves money and investments, but it also eliminates the need for dock or parking space when machinery is not in use. Preventative maintenance, repair, and inspection costs can also be avoided because construction equipment rental companies perform these tasks on a regular basis in order to profit from the machinery in the long run.

These businesses are currently focusing on providing onsite services and equipment support, which is improving the customer experience. Caterpillar Inc., for example, dispatches rapid response teams to assist customers in remote locations using mobile service vans.

The purchase of new construction equipment necessitates significant down payments as well as a significant investment from the company's operating expenses. Post-purchase overhead costs for construction equipment include loan interest, insurance, licencing, storage, and taxes.

Furthermore, equipment owners are responsible for transporting their equipment between job sites. When a company chooses to rent equipment, the provider is responsible for delivering it to new work locations, allowing the company to avoid direct overhead costs. Furthermore, rental companies refresh their fleets of equipment and machinery on a regular basis to ensure that their customers have access to the most up-to-date equipment.

Technological advancements in heavy machinery and the automotive industry have resulted in numerous novel features in the construction equipment rental market. Construction equipment manufacturers are focusing heavily on incorporating cutting-edge safety features such as 360-degree camera visual, lift assist, and supplementary work lights, as well as striving to provide systems that increase operational productivity while requiring minimal maintenance. However, these features come at a high cost, which is prohibitively expensive for many small contractors and builders. Because of these factors, professionals are more inclined to rent construction equipment.

Prominent market players are deploying advanced technologies such as the Internet of Things (IoT) and others to develop and provide consumers with more innovative products and solutions. Moreover, major market players are developing technologies that are not only more advanced than the conventional ones but also solutions that can help overcome social and environmental challenges.

This is attracting more end users, and advanced machinery is being extensively utilised for excavation, construction, and other associated processes. However, integrating advanced technologies into construction equipment entails additional costs, which make such equipment unaffordable for many small builders and contractors, who in turn may prefer to use rented construction equipment.

Replacing conventional equipment with telematics-integrated machinery is a rising trend in the construction equipment market. Telematics is integrated into the construction equipment for GPS fleet tracking, maximising fleet utilization, safeguarding equipment from theft, improving billing, increasing equipment utilization, and others.

For instance, in 2020, Appareo, a US-based manufacturer of electronic and software solutions, launched a cellular asset tracking device for off-highway equipment called the AT-130 (IP69K). The device is embedded with GPS and cellular capabilities, has a high battery life, and can withstand high pressure. The high-performance positioning and motion-sensing capabilities ensure that motion-based reporting is done based on true machinery repositioning, which helps to extend the battery life of the equipment and reduce false alarms. It has been crucial in incorporating the current government's laser-sharp focus on infrastructure projects, as well as a broad financial and economic push bolstered by the order to pursue a favourable regulatory authoritarian rule, which has resulted in India becoming one of the world's greatest connectivity underdeveloped countries, with nearly 27 km of motorways being built throughout the country these days.

United Rentals, Inc. (US) is the leading player in the construction equipment rental market and has adopted organic and inorganic strategies to sustain its market position. Ashtead Group plc (UK) is another major company in the construction equipment rental market. It has adopted organic and inorganic strategies to sustain its position in the construction equipment rental market.

Considered in this report

  • Geography: Global
  • Historic year: 2017
  • Base year: 2022
  • Estimated year: 2023
  • Forecast year: 2028

Aspects covered in this report

  • Global Construction Equipment Rental market with its value and forecast along with its segments
  • Region-wise Construction Equipment Rental market analysis
  • Various drivers and challenges
  • On-going trends and developments
  • Top profiled companies
  • Strategic recommendation

Regions covered in the report:

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle-East & Africa

By Equipment Type:

  • Earthmoving
  • Material Handling
  • Concrete & Road Construction
  • Others

By Application Type:

  • Residential
  • Non-Residential
  • Others (Infrastructure, industrial, real estate, etc)

By Propulsion Type:

  • ICE
  • Electric

For more information about this report visit https://www.researchandmarkets.com/r/su7n7a

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.