Heavy equipment rental market has indeed received commendable stimulus in recent times, driven by the rise in the practice of leasing and renting heavy equipment. Indeed, this convention of avoiding the entire purchase of such equipment and renting the same has proven beneficial for both renters and leasing companies. Reduced expenses and maintenance costs have added to the incentive of renting equipment, indirectly stimulating heavy equipment rental market. With a huge surge in equipment demand from the industrial, commercial and residential sectors, construction equipment rental market has observed substantial expansion. This growth has been specifically prominent across emerging economies such as India and China, that have been witnessing the advent of smart cities and modern technology. Governmental backing for the upgradation of the construction and infrastructure development domain, in conjunction with the increasing disposable incomes will further drive heavy equipment rental market.
In 2015, earthmoving machinery accounted for around 55% of construction equipment rental market share, driven by extensive demand for components such as loaders and excavators. Attesting to the same, heavy equipment rental industry size from earthmoving machinery is projected to grow at a CAGR of 9% over 2016-2014. To optimize raw material usage with greater resource and energy efficiency, automated production processes are being deployed lately, increasing the demand for material handling equipment. It is prudent to note that this segment will also contribute toward the growth of construction equipment rental market, owing to the ongoing requirement for reduced energy consumption. As per estimates, heavy equipment rental market share from material handling is expected to grow at a CAGR of 9.9% over 2016-2024.
The report titled “Construction Equipment Rental Market Size By Product, Industry Analysis Report, Regional Outlook, Application Potential, Price Trends, Competitive Market Share & Forecast, 2016 – 2024” has been published in September 2016. To understand the industry better, request a sample of this report @ https://www.gminsights.com/request-sample/detail/773
Rapid urbanization, an exponential increase in population, and favorable government initiatives can be segregated as some of the factors fueling global construction industry. With this thriving business space expanding by the day, heavy equipment rental market has been witnessing tremendous growth across numerous geographies. This growth has been especially perceptible in countries like China – as per estimates, this regional space was valued at $3 billion in 2015. Increased privatization across various sectors coupled with surging labor and rising safety concerns at construction sites are certain to propel the regional heavy equipment rental industry. While emerging and developing countries are focusing on building new infrastructure, developed countries like the U.S. and Germany are directing their resources towards reconstruction of existing infrastructure. Thereby, driven by extensive construction across the residential sector and favorable norms set by the government, Germany construction equipment rental market is projected to witness a CAGR of 6.5% between 2016 and 2024.
Advancement in technology involving heavy machinery not only offers greater efficiency, but also greater workplace safety, positively impacting heavy equipment rental market. Buying heavy equipment often involves large down payments, leading to companies divesting a major portion of their capital toward such purchases. Heavy equipment rental industry thus, thrives on the concept of avoiding such capital investments and choosing an affordable option.
Companies specializing in heavy equipment rentals focus on providing equipment that are approved by latest EPA emission guidelines and come with advanced technology. Heavy equipment rental industry is thus, strictly regulatory-driven, with participating firms working in cooperation to adhere to stringent laws. Additional costs such as pickup and delivery of equipment and variations in rental rates due to fluctuating fuel prices may be some of the factors hindering the growth of this market. Furthermore, rented equipment does not provide any equity to the company, which has been termed as another restraint for heavy equipment rental industry. Nonetheless, the advantages of renting heavy equipment far outweighs such drawbacks. Not to mention, companies have also been striving to eliminate the constraints of this business space. As per estimates, heavy equipment rental market size is projected to exceed a stupendous USD 75 billion by 2024.