Technological Advancements Enhancing Rental Equipment Capabilities
The Rental Equipment Market Industry includes continuously developing technologies that enhance the capabilities of equipment available for rent. Thus, the equipment has become more advanced due to the integration of GPS and telematics, among others. Improved equipment helps rental companies enhance the way they monitor and handle it, and as a result, the companies can increase utilization rates and decrease operating costs. It should also be said that the development of new types of equipment, such as new electric or hybrid models, promotes the ability of customers’ attention to reduce their negative environmental impact. Despite the growing interest in advanced technologies, the rental market is still largely fragmented.
However, it is expected that the development and growth of technologies will make an impact on the growth of the rental market. Rental companies will have to keep up with the progress and invest in new equipment and technologies to be able to attract customers. The improved availability of advanced equipment is expected to lead to the entry of new customers into the rental market.
Government Regulations and Environmental Concerns Shaping the Rental Equipment Market
Government regulations and environmental concerns are some of the factors that are shaping the Rental Equipment Market Industry. Regulating bodies are pushing stricter regulations on emissions and noise. Thus, the equipment to be used must be in accordance. The regulatory pressure is expected to continue, which makes the rental industry grow. Major rental companies are responding to these standards and pressures by investing in new technologies and equipment. Today, one modern aspect that the major companies are embracing is the use of new equipment and technology that meets the new standards. There is also a drive to lower emissions, which is achieved through rental equipment. In effect, rental equipment is thus contributing by delivering sustainable and environmentally friendly equipment.
Rental Equipment Market Segment Insights:
Rental Equipment Market Equipment Type Insights
The Equipment Type segment of the Rental Equipment Market includes Earthmoving Equipment, Aerial Work Platforms, Material Handling Equipment, Construction Equipment, Power Generation Equipment, and Other Equipment. Earthmoving Equipment boasts the largest share of the market, with a valuation of USD 65.97 Billion in 2023. This is related to the upsurge of the construction sector, primarily in developing countries, which strive to make infrastructure development a priority. The activities in mining are also increasing the demand for earthmoving equipment, as these machines are applied to both extraction and transportation purposes by virtue of their shovel, scrapper, and dragline properties. Aerial Work Platforms seem to be another salient area, with a notable growth rate over the forecast period, at a CAGR of 22.18%.
The relative increase in the number of applications and industries piloting these platforms, such as repair, construction, and inspection, is expected to drive the demand. This is also interconnected with safety issues, as the implementation of this apparatus conforms to occupational health and safety standards and may also be associated with the need for better access to high-altitude installations. Material Handling Equipment is another vital sector of the market, which is projected to reach a valuation of USD 294.65 Billion by 2032. This is related to the rise of e-commerce activities and, consequently, the utter proliferation of warehousing and distribution. These machines are of critical importance as they ensure the smooth entry, sorting, and entry of goods and materials into warehouses and from warehouses to various distribution sites.
Construction Equipment also pertains to a critical subject area, as there are numerous machines used in various construction works, such as Caterpillar, Bobcat, and Genie. Naturally, the demand for this equipment will continue to grow as the number of construction works worldwide is growing as well. Power Generation Equipment is a sector of importance as the demand for energy is constantly growing. These machines are particularly applicable to areas that are bereft of general energy sources. The adoption of renewable sources is also increasing the demand. Other Equipment is relatively low-growth as it is only applicable to certain applications and encompasses a broad range of items.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rental Equipment Market Application Insights
The Rental Equipment Market segmentation by Application includes Construction, Mining, Oil and Gas, Power Generation, Industrial, and Other Applications segments. Construction is anticipated to hold the majority share of the market during 2023, attributing to a surge in construction activities across the globe. Moreover, the Mining segment is anticipated to experience substantial growth during the projection period, attributing to an increase in demand for minerals and metals elements. The oil and Gas segment is anticipated to grow steadily owing to a rise in exploration and production activities.
Similarly, the Power Generation segment is also expected to escalate owing to the launch of a specific implementation process; other segments are likely to demonstrate moderate growth during the projected period owing to an increase in demand for rental equipment from industries. Other application segments such as forestry, agriculture, events, and activities are also likely to boost the growth of the Rental Equipment Market.
Rental Equipment Market Rental Period Insights
The Rental Period segment is a crucial aspect of the Rental Equipment Market segmentation, as it categorizes the market based on the duration for which equipment is rented. Short-Term Rental (Less than 30 Days) accounts for a significant portion of the market revenue and is primarily driven by the need for equipment for small-scale projects, emergency situations, and short-term events. Medium-Term Rental (30-90 Days) is gaining traction due to its suitability for projects that require equipment for a longer duration than short-term rentals but less than long-term rentals.
Long-Term Rental (More than 90 Days) caters to large-scale projects and operations where equipment is required for an extended period. The market growth in this segment is attributed to the increasing demand for equipment in industries such as construction, mining, and manufacturing. Overall, understanding the Rental Period segment provides valuable insights into the varying needs and preferences of customers, enabling market players to tailor their offerings and strategies accordingly.
Rental Equipment Market Rental Model Insights
The Rental Equipment Market is segmented by rental model into rent-to-buy, equipment leasing, subscription-based rental, pay-as-you-go rental, and other rental models. Among these, the equipment leasing segment is expected to account for the largest revenue share in 2024, owing to the increasing adoption of long-term rental agreements by businesses seeking to reduce capital expenditures and gain access to the latest equipment. Subscription-based rental is expected to be the fastest-growing segment during the forecast period due to its affordability and flexibility, making it an attractive option for small businesses and individuals. Pay-as-you-go rental is also gaining popularity, particularly in the construction industry, as it allows contractors to rent equipment only when needed, reducing idle time costs.
Rental Equipment Market Regional Insights
The Rental Equipment Market is expected to grow at a CAGR of 21.41% from 2023 to 2032, reaching a valuation of USD 1300.88 Billion by 2032. Regionally, North America held the largest share of the Rental Equipment Market in 2023 and is expected to maintain its dominance throughout the forecast period. The growth in this region can be attributed to the increasing demand for rental equipment from various industries such as construction, manufacturing, and oil gas. Europe is expected to be the second largest market for rental equipment, followed by APAC, South America, and MEA. The growth in APAC is expected to be driven by the increasing construction activities in the region, while the growth in South America and MEA is expected to be driven by the increasing demand for rental equipment from the mining and construction industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Rental Equipment Market Key Players And Competitive Insights:
Players in an emerging Rental Equipment Market industry are driven to keep pace with the competition through their adoption of new technology, and expansion of their product lines through the acquisition of smaller firms. Moreover, the efforts of leading experts and Rental Equipment Market players focus on the development of these and other similar innovations. The interest in the development of the Rental Equipment Market is motivated by the increasing demand for rental equipment in such industries as manufacturing, mining, construction, and others. United Rentals is one of the leading and oldest Rental Equipment Market experts, which offers a variety of rental equipment, such as aerial work platforms, earthmoving equipment, Outdoor Power Equipment etc.
The firm is one of the major carriers of an extensive list of rental products worldwide. The company operates in terms of U.S. rents, emphasizing its operations in North America and Europe. United Rentals is one of the major players in the emerging industry due to its customer focus and its investments in new technology and customer facing services, such as online rental platforms. United Rentals is one of the major players in the industry based on its financial performance and investments in emerging technology. Herc Rentals Inc. is another major player in the Rental Equipment Market, as the firm offers various types of rental equipment, including tools, lighting and heavy machinery.
The company is pursuing its customer-focused strategy through the provision of added-value services and major industry innovations, as well as the provision of quality equipment. The company is relatively new to the emerging industry, but it is one of the leading players in terms of its performance and investments in emerging Rental Equipment Market technologies.
Key Companies in the Rental Equipment Market Include:
- Hune
- Terex Corporation
- United Rentals
- Doosan Bobcat
- JLG Industries
- Boels Rental
- Ashtead Group
- Coates Hire
- Herc Holdings
- Sunbelt Rentals
- Ingersoll Rand
- Atlas Copco
- Kiloutou
- Rameder
- Loxam
Rental Equipment Market Industry Developments
The Rental Equipment Market is projected to grow significantly over the forecast period, driven by increasing construction activities, infrastructure development, and rising demand from various industries. The market is expected to witness a substantial increase in demand for specialized equipment, such as aerial work platforms, earthmoving equipment, and material handling equipment. Technological advancements, including the adoption of IoT and telematics, are further expected to drive market growth. Recent news developments include JLG Industries' launch of a new electric scissor lift and United Rentals' acquisition of Ahern Rentals, expanding its presence in the North American market. These developments indicate the growing focus on sustainability and the consolidation trend within the industry.
Rental Equipment Market Segmentation Insights
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Rental Equipment Market Equipment Type Outlook
- Earthmoving Equipment
- Aerial Work Platforms
- Material Handling Equipment
- Construction Equipment
- Power Generation Equipment
- Other Equipment
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Rental Equipment Market Application Outlook
- Construction
- Mining
- Oil and Gas
- Power Generation
- Industrial
- Other Applications
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Rental Equipment Market Rental Period Outlook
- Short-Term Rental (Less than 30 Days)
- Medium-Term Rental (30-90 Days)
- Long-Term Rental (More than 90 Days)
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Rental Equipment Market Rental Model Outlook
- Rent-to-Buy
- Equipment Leasing
- Subscription-Based Rental
- Pay-as-You-Go Rental
- Other Rental Models
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Rental Equipment Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
