Construction Equipment Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Vehicle Type (Earth Moving Equipment and Material Handling Equipment), by Drive Type (IC Engine and Hybrid Drive), and by Geography.

Market Snapshot

Construction Equipment Rental Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 4.78 %

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Market Overview

The construction equipment rental market was valued at USD 103 billion in 2020, and it is expected to reach USD 137 billion by 2026, and is anticipated to register a CAGR of 4.78 % during the forecast period (2021 - 2026).

The outbreak of pandemic COVID-19, impacted the demand for construction equipment rental market globally, as the construction activities were halted during the lockown period in order to maintain the social distancing norms and contain the spread of virus. However, with the gradual opening of economied the demand is gaining back momentum as inorder to get the growth in GDP back on track the governments are increasing their spending in construction activities which will increase the demand during the forecast period.

One of the major factors driving the growth of the market is the growing construction industry, especially in developing countries, owing to numerous growth opportunities in infrastructure, residential, and non-residential sectors. For instance, the rise in construction of multi-family houses (with the growing trend of nuclear families), and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.

The growing trend toward automation is expected to drive the growth of the market. However, factors, such as stringent emission regulations for construction machinery, are expected to hinder the growth of the market.

Scope of the Report

The study offers the market size for equipment rental by considering both short term rental and long term rental/leasing timeframes. The service offered by equipment manufacturers and rental service providers are considered in the study, 

By Vehicle Type
Earth Moving Equipment
Other Earthmoving Equipment
Material Handling
Dump Trucks
By Drive Type
IC Engine
Hybrid Type
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
United Arab Emirates
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Increasing Investments in the ASEAN Construction Industry

The construction industry is highly dynamic, and numerous factors, such as overall economy, budgets, and global economic scenario, are influencing the market’s growth. Volatility in these aspects affects the businesses of construction equipment OEMs, as well as construction rental equipment. This, in turn, is leading to price fluctuations of new, used, and rental equipment.

The ASEAN region holds significant opportunities for the growth in demand for construction machinery. With the prospects of large infrastructure projects and shifting labor dynamics, the construction equipment rental market is expected to witness growth post-2020 during the forecast period. With a sudden outbreak of COVID-19 pandemic across the world, many economic sectors, including the construction industry, have been under lockdown for a few weeks/months in the first quarter of 2020.

Thus, construction equipment rental in these scenarios proves to be the preferable and effective choices for the construction companies, primarily to reduce or minimize the impact of unexpected financial downturns.

Construction Equipment Rental Market Key Trends

Asia-Pacific is Expected to Dominate the Construction Equipment Rental Market

In 2020, the sudden outbreak of COVID-19 pandemic across the world resulted in the lockdown of many economic sectors, including the construction industry, for a few weeks/months during the first quarter of 2020.

However, during this time, critical government construction projects, such as hospital builds, key utilities, and infrastructure, continued working but at a slower pace with less labor force at the job site to prevent the spread of coronavirus. Thus, during 2020, the construction equipment rental market value fell due to a fall in the global economic growth, which, in turn, is resulting in a slow down of construction work timelines.

Currently, the construction equipment rental companies and construction contractors have slowly started to resume their construction works as governments have started giving approvals for commercial construction projects across the cities in many countries, like the United States, India, the United Kingdom, and China.

The Asia-Pacific is one of the largest markets that has witnessed a boom in the construction and infrastructural development, because of the growing emphasis by the governments on developing infrastructure for a sustainable economy. This region witnessed growth in the number of Special Economic Zones (SEZs), airports, metro construction, highway constructions, dams, hydroelectric projects, etc., in order to sustain high-level industrial activities, better connectivity, and growing energy demand. As a result, many international players are beginning to invest and are setting up manufacturing facilities and distribution centers in the region to meet the growing demand and to capture the regional market. Construction machinery manufacturers, such as Liebherr, Caterpillar, Hitachi, and Sumitomo Corporation, are offering rental services that face intense competition from numerous domestic and regional players, owing to the competitive pricing and technologically advanced equipment availability.

In order to ramp up the efficiency of work and reduce the maintenance cost of the machinery, equipment rental software solutions provide a base to the construction machinery rental companies. The majority ofthe international companies already started using these software solutions to track the precise working hours, parts replacement cycle, and operation efficiency.

Construction Equipment Rental Market Growth Rate

Competitive Landscape

The global construction equipment rental market is characterized by the presence of numerous domestic and regional players, resulting in a highly fragmented market environment.

The five key players, namely United Rentals Inc., Ashtead Group PLC, Herc Rentals, H&E Equipment Services, Loxaman, and Kanamoto Co. Ltd, in the market account for 18% of the market share, and the remaining 82% of the market share is held by other players (domestic or regional players).

The market is highly driven by mergers and acquisitions and joint venture activities

Recent Developments

  • In June 2020, H&E Equipment Services Inc. relocated its Georgetown branch to an expanded facility in Temple, Texas.
  • United Rental Inc., the top player in the North American market, has acquired nearly 14 organizations so far. In 2018, the acquisition of BlueLine increased United Rentals’ capacity in many of the largest metropolitan areas in North America, including both US coasts, the Gulf South and Ontario.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Vehicle Type

      1. 5.1.1 Earth Moving Equipment

        1. Backhoe

        2. Loaders

        3. Excavators

        4. Other Earthmoving Equipment

      2. 5.1.2 Material Handling

        1. Cranes

        2. Dump Trucks

    2. 5.2 By Drive Type

      1. 5.2.1 IC Engine

      2. 5.2.2 Hybrid Type

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Italy

        6. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. South Korea

        6. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. United Arab Emirates

        2. South Africa

        3. Rest of Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Cramo Oyj

      2. 6.2.2 HSS Hire Group Plc

      3. 6.2.3 Herc Rentals Inc.

      4. 6.2.4 CNH Industrial

      5. 6.2.5 Liebherr International AG

      6. 6.2.6 Caterpillar

      7. 6.2.7 Sumitomo Corp.

      8. 6.2.8 Hitachi Construction Machinery (Hitachi Group)

      9. 6.2.9 Ashtead Group Plc

      10. 6.2.10 Kanamoto Co. Ltd

      11. 6.2.11 H&E Equipment Services Inc.

      12. 6.2.12 Loxam

      13. 6.2.13 United Rentals Inc.

      14. 6.2.14 Nishio Rent All Co.

  7. 7. Market Opportunities and Future Trends

  8. 8. Disclaimer

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Frequently Asked Questions

The Construction Equipment Rental Market market is studied from 2018 - 2026.

The Construction Equipment Rental Market is growing at a CAGR of 4.78% over the next 5 years.

The Construction Equipment Rental Market is valued at 85 Billion USD in 2018.

The Construction Equipment Rental Market is valued at 137 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

United Rentals Inc., Herc Rentals, H&E Equipment Services, Loxam, Ashtead Group PLC are the major companies operating in Construction Equipment Rental Market.

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