Construction Equipment Rental Market Size

Construction Equipment Rental Market Analysis

The Construction Equipment Rental Market size is estimated at USD 134.88 billion in 2024, and is expected to reach USD 170.92 billion by 2029, growing at a CAGR of 4.85% during the forecast period (2024-2029).

Over the medium term, the key factor propelling the market's growth is the expanding construction industry, particularly in developing nations, due to several growth opportunities in residential, non-residential, and infrastructure industries. For instance, there is an increase in the construction of multi-family houses (with the growing trend of nuclear families), along with increasing investments in the construction of expressways, bridges, metros, smart cities, highways, and roads, owing to increasing population and urbanization.

The governments are increasing their spending on construction activities, which will likely drive the demand for construction equipment rental services.

The US government passed the Infrastructure Investment and Jobs Act. This bill costs USD 1.2 trillion, including USD 550 billion for transportation, broadband, and utilities, USD 110 billion for roads, bridges, and other major infrastructure projects, and USD 40 billion for bridge repair and replacement. The bill also includes more than USD 65 billion in funding for power infrastructure, including USD 29 billion for the electricity grid. The bill authorizes federal investments in a variety of infrastructure projects, which are expected to increase demand for construction services, equipment, and materials. As a result, construction spending rose by 5% in 2022 and 5.5% in 2023.

Similarly, the Chinese government invested USD 8,870 million in the Shanghai Chip Manufacturing Plant. In Shanghai, China, a 12-inch wafer manufacturing plant is being built as part of the project. Construction began in the first quarter of 2022, and it is expected to be completed in the third quarter of 2024. The project aims to increase the 12-inch wafer production capacity to meet rising demand.

The rising trend toward automation is anticipated to fuel the market's growth. However, stringent emission regulations for construction machinery are anticipated to hamper the market’s growth during the forecast period.

The growing emphasis on infrastructure, as well as the advancement of automation in construction and manufacturing processes, has significantly impacted construction equipment rental market growth in Asia-Pacific.

Schemes such as the revolutionary Smart City Mission (target 100 cities) are expected to improve quality of life through modernized/technology-driven urban planning, which may result in the growth of the construction equipment rental market.