The construction equipment rental market is expected to cross $140 billion by 2024, according to a report from Global Market Insights.

Increasing residential and commercial construction projects are anticipated to drive the construction equipment rental market. Improving standards of living and increasing disposable income of people across emerging economies have led to increased investments in malls and amusement parks, generating demand for the rental industry.

Rising reconstruction activities in the U.S. due to aging infrastructure are propelling a 3.5% CAGR in U.S. construction equipment rental market. The demand for modernized structures has paved the way for smart buildings and smart cities, compelling various regional governments to heavily invest in infrastructure development.

In addition, large construction projects by various regional governments, such as Al Maktoum Airport in Dubai, South-to-North Water Transfer Project in China, Crossrail Project in the UK and Rashtriya Rajmarg Zila Sanjoyokta Pariyojna in India, are expected to contribute to construction equipment rental market growth.

Owning heavy construction equipment leads to increased maintenance and ownership expenses. Businesses that have budgetary constraints prefer renting equipment since it helps them to reduce overall project expenditure. In addition, renting equipment saves the hassle of transporting machinery to project sites. It also provides the flexibility of renting customized equipment for suitable construction projects under consideration. Renting equipment cushions companies from unpredictable financial downturns in the industry. To reduce overall project expenses, renting is considered a profitable approach.

Global financial crises and economic fluctuations are the key factors that could hamper construction equipment rental market growth. The lack of skilled laborers to operate the machines coupled with fluctuations in fuel price is also expected to have a negative impact on the industry. Rental companies incur increased maintenance costs owing to aging rental fleets, limiting industry demand.

The earthmoving and road building equipment segment dominated the construction equipment rental market with a revenue share of over 65% in 2017. It is a segment expected to continue to grow due to increasing large-scale construction projects globally. Rapid urbanization has led to growth in the demand for such equipment in commercial and residential construction activities.

Global Market Insights identified companies like United Rentals, Caterpillar and Herc Holdings as major players in the construction equipment rental industry. Such companies are incorporating advanced technologies such as GPS, RFID and telematics into their offerings.