Construction Equipment Market to Surpass $100B by 2027



According to a report from Allied Market Research, the global construction equipment rental industry was pegged at $90.99 billion in 2019 and is expected to reach $106.42 billion by 2027, growing at a CAGR of 4.2% from 2020 to 2027.

The reduction of expenses, including maintenance costs, operational costs and labor costs, a growing construction market in developing countries, and no high ownership costs and financial constraints have boosted the growth of the global construction equipment rental market. However, a lack of skilled and qualified operators and a decrease in new construction activities in developed nations is hampering the market. On the contrary, easy relocation and fuel efficiency along with new IoT technology are expected to create new opportunities for market players in the coming years.

The demand for construction equipment has decreased as construction activities in various countries have temporarily suspended due to the COVID-19 outbreak. Lockdown measures in various countries, a shortage of labor and a disrupted supply chain have hampered the demand for rental construction equipment.

By application, the earthmoving segment held the largest share in 2019, accounting for nearly two-fifths of the global construction equipment rental market, owing to the large number of earthmoving activities on construction and mining sites. However, the excavation and mining segment is expected to register the highest CAGR of 5.1% during the forecast period due to a rise in construction and mining activities in developing nations.

By propulsion system, the electric segment is expected to register the highest CAGR of 7.3% during the study period, owing to a rise in awareness about using electric operated machines to reduce carbon emissions. However, the ICE segment held the largest share in 2019, contributing to around 94% of the global construction equipment rental market due to its higher operating power and stability in operations.

By region, the market across North America held the largest share in 2019, accounting for more than two-fifths of the global construction equipment rental market due to higher usage of rental equipment compared with owning equipment. However, the market across Asia-Pacific is expected to register the highest CAGR of 5.9% during the forecast period due to rising awareness regarding the benefits of renting and leasing of construction equipment.

According to Allied Market Research, the major players in the construction equipment rental space are Boels Rentals, Herc Rentals, H&E Equipment Services, Nesco Holdings, Kanamoto, Mtandt Group, Maxim Crane Works, Sarens, Ramirent and United Rentals.


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