Equipment rental market to hit $75bn by 2024

The value of the construction equipment rental market is expected to pass $75bn by 2024, according to a report published by Global Market Insights

Factors such as lower administrative overheads and reduced maintenance costs are expected to drive growth in the global equipment rental market.
Factors such as lower administrative overheads and reduced maintenance costs are expected to drive growth in the global equipment rental market.

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The value of the global construction equipment rental market is expected to pass $75bn by 2024.

A report published by Global Market Insights predicts that the sector will hit $75.18bn within the next eight years.

Factors such as lower administrative overheads, reduced maintenance costs, and the need to comply with stricter regulations are expected to drive growth within the market.

Improved leasing options have also served to enhance overall customer service by ensuring high product quality, shorter response periods, timely delivery, and scheduled pickups, the researchers added.

According to the Global Market Insights report: “The industry is characterised by increasing natural gas drilling activities, coupled with augmentation of the highway network and formation of smart cities. This will lead to a corresponding demand in the construction equipment market, and also give impetus to the rental sector.

“Commercial and residential real estate has also driven construction equipment market size,” the report continues. “Developing technology with greater efficiency and accuracy in material handling has placed high emphasis on safety and productivity at the workplace.”

The earthmoving machinery market, which includes products like excavators and wheel loaders, is expected to be worth more than $40bn by 2024. The value of the concrete and road construction equipment segment, meanwhile, is likely to grow to more than $10bn during the same period, according to Global Market Insights.

As original equipment manufacturers (OEMs) continue to develop autonomous and semi-autonomous machines, large rental companies, such as United Rentals, Hertz, Neff, Sunbelt, and Ahern, are expected to offer these technologies in a bid to improve onsite performance and safety, and to reduce energy consumption.

In turn, end users may choose to rent rather than buy equipment in order to keep pace with technological advancements.

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