The size of the construction equipment rental market is expected to reach $75.18 billion by 2024, according to a new research report by Global Market Insights.

The practice of leasing instead of purchasing heavy machinery has proven to be beneficial for companies of all sizes across numerous industries. Lower administrative overhead coupled with reduced expense and maintenance will drive construction equipment rental market size. Since industry vendors need to comply with the pervasive regulatory landscape, buyers benefit from elimination of replacement costs and associated expenditure. Other trends positively impacting revenue include growing technological advancements ranging from multifunctional machinery to apps for monitoring fuel consumption.

Key product development and innovation features include remote monitoring, ergonomic controls and quick-change attachment couplers. GPS-equipped machines that can be tracked with ease on site have significantly improved fleet management.

The industry is characterized by increasing natural gas drilling activities coupled with augmentation of the highway network and formation of smart cities. This will lead to a corresponding demand in the construction equipment market, and also give impetus to the rental sector.

Key insights from the report include:

• Earthmoving machinery market contributed considerably to the global construction equipment rental market share in 2015, with the segment set to surpass $40 billion in revenue by 2024. This mainly includes products such as excavators and loaders, which witness considerable demand on a global scale.
• Concrete and road construction segment was valued at over $10 billion in 2015 and the industry is forecasted to grow due to new infrastructure projects.
• U.S. construction equipment rental market size is set to exceed $23 billion by 2024. Rising safety and security concerns are likely to drive installation of smart sensors in workers’ hard hats, boots, wristwatches and other safety equipment such as rooftop harnesses.
• Key construction equipment rental market players are United Rentals, Hertz, Neff, Sunbelt and Ahern. United Rentals acquired RSC Holdings in 2012 to accelerate the combined company’s potential for growth with industrial customers and provide a lower cost base. Hertz entered into a joint venture with Dayim Holdings and Phoenix Project development in 2014 to improve the overall service offering.
• Other notable participants are Gemini Equipment and Rentals (GEAR), Aggreko, Terex, Maxim Crane Works, Komatsu, Liebherr and Weldex International Offshore.