The global
construction equipment rental market size is expected to reach USD 105.29
billion by 2030, registering a CAGR of 4.2% during the forecast period according
to a new report by Grand View Research, Inc. Rising government investment in
the infrastructure sector and increasing Foreign Direct Investment (FDI) in the
construction domain to develop roads, highways, expressways, bridges,
skyscrapers, and smart cities have created a demand for rental construction
equipment. Constant technology advancement to produce cutting-edge
project-oriented construction equipment that optimizes the overall construction
process is propelling the growth of the construction equipment rental market.
Key Insights & Findings from the
report:
Construction Equipment Rental Market Growth & Trends
Higher total cost ownership of new construction equipment &
machines encourages small & medium scale construction companies and
contractors to adopt rental construction equipment. Additionally, renting
reduces the maintenance, repair, insurance, and warehousing costs associated
with owning; thus, construction equipment rental provides an economical
alternative to the construction firms.
The pandemic led to a global lockdown and supply chain
disruption which impacted the manufacturing, construction, and mining sectors
at large. Post pandemic, issues such as lack of availability of skilled
workforce, spiking raw material prices, and high EMIs have amplified
uncertainties in the construction sector subsequently hampering the growth
pace. Thus, to avoid the risk aversion and reduce uncertainty, larger-scale
construction companies are switching towards renting the construction
equipment's, thereby driving the growth of the construction rental equipment
market.
The Asia Pacific region
is expected to witness a high pace of growth during the forecast period. The
prominent players in the construction equipment rental market, based in China, are focusing on developing advanced equipment
that reduces machine downtime, requires lesser fuel, and provides high output.
Besides, the Indian government is heavily investing in massive infrastructural
projects to boost the country's economy; thus, these factors are expected to
leverage the growth of the construction equipment market in the region.