In its latest five-year forecast, the American Rental Association (ARA) projected equipment rental industry revenue to grow consistently with a compound annual growth rate (CAGR) between 2017 and 2021 of 4.7% in the U.S., resulting in total revenue of $59.3 billion in 2021.

According to the ARA Rental Market Monitor five-year forecast updated in early November, total rental revenue in the U.S. is expected to grow by 4.5% in 2018 to reach $51.5 billion, 5.5% in 2019, 4.9% in 2020 and 4.1% in 2021. The November forecast is almost exactly the same as the last forecast in August, with only minor fluctuations up or down in expected growth rates each year.

In Canada, equipment rental revenue also is expected to show consistent growth, reaching $5.3 billion in 2018 with growth rates of 4.1% in 2019, 5% in 2020 and 4.8% in 2021 to total $6.11 billion.

“This is a strong forecast, showing the equipment rental industry will continue to consistently grow over the next five years, without factoring in any possible impact from tax reform or infrastructure spending,” said John McClelland, ARA’s vice president for government affairs and chief economist. “People continue to realize the benefits of renting and how it can positively impact the bottom line. As a result, the equipment rental industry continues to outperform the general economy as well as the industries it serves.”

According to the ARA Rental Market Monitor, which features data and analysis from IHS Markit, construction/industrial equipment rental revenue is expected to show a 4.1% CAGR over from 2017 to 2021, reaching $40.4 billion in 2021.

General tool is expected to post a 5.7% CAGR during the forecast period, reaching $15 billion in 2021, while party and event is expected to have a 6.3% CAGR and surpass $3.9 billion in revenue in 2021.

Investment in rental equipment is projected to increase by 4% in 2018, 8.4% in 2019, 2.6% in 2020 and 1.2% in 2021, surpassing $15 billion that year.