ASEAN Construction Equipment Rental Market Size

ASEAN Construction Equipment Rental Market Analysis

The ASEAN construction equipment rental market was valued at USD 1.4 billion and is expected to reach USD 2.97 billion over the next five years, registering a CAGR of more than 7% during the forecast period.

• The Covid-19 pandemic had a negative impact on the ASEAN Construction Equipment Rental market. With worldwide lockdown and social distancing norms implemented everywhere, all non-emergency activities were halted. The construction industry took a significant economic blow owing to the low business due to the pandemic. However, with the cost constraints of the construction companies and better services provided by the equipment rental providers, the ASEAN Construction equipment rental market is expected to revive gradually.
• Construction activities in South Asian countries have increased significantly over the last couple of years owing to the rising government spending for upgrading existing infrastructure combined with new projects, especially in countries such as Indonesia and Malaysia, and budding utility projects (Hydropower & Thermal Power) in Laos, Cambodia, and Thailand have resulted into the growing demand for construction equipment in South-East Asia region.
• The growing construction industry, especially in developing economies, along with the numerous cost benefits, such as reduced maintenance cost of the construction equipment, is driving the demand for rental construction equipment.
• The trend of leasing instead of purchasing heavy machinery has proven beneficial for companies of all sizes across numerous industries, with less administrative overhead and reduced expense and maintenance anticipated to drive the construction equipment rental market. Other trends positively impacting revenue include growing technological advancements ranging from multifunctional machinery to apps for monitoring fuel consumption.