The market for renting heavy construction equipment is necessary because it allows the manufacturing, infrastructure, oil and gas, construction, and mining sectors to have the tools they need without having to buy them outright. These industries have access to the newest models of equipment and can avoid the expense of purchasing and maintaining it thanks to the rental market.
COVID-19 Impact and Market Status
The COVID-19 pandemic outbreak has had a significant negative influence on the market for renting heavy construction machinery. Construction activity, one of the main end-users of heavy construction equipment, has been halted as a result of the lockdown imposed by various governments around the world. Renting heavy construction equipment has become less popular as a result of this. The market is anticipated to experience a slight rebound in the upcoming years, though, as a result of the gradual relaxation of lockdown restrictions and the restart of construction activities.
The Earth-moving Equipment to Emerge as the Most Lucrative Segment
The increasing adoption from construction companies is among the main drivers behind the market's rise in renting heavy construction equipment. Because it is so widely used in construction, mining, and other applications including landscaping, beach nourishment, and agricultural work, earth-moving equipment is predicted to expand at the highest CAGR during the projected timeframe.
The Construction followed by Oil & Gas Industries appears as the most emerging End-User
The market for renting heavy construction equipment is divided into construction, oil and gas, mining, infrastructure, and manufacturing based on end-user. As this industry frequently rents out heavy construction equipment because of its affordability, the construction end-user segment is anticipated to be the largest among them in terms of value. But due to the demand for specialized heavy equipment for drilling, the oil and gas industry is also predicted to develop at the greatest CAGR during the forecast period.
The Most Popular Application Segment is Recycling & Waste Management
The major application-based sectors of the heavy construction equipment rental market are material handling, recycling & waste management, heavy lifting, and tunnelling & excavation and demolition. Due to a demand for efficient processing technologies that can be met by large construction equipment, the recycling and waste management segment is anticipated to develop at a significant CAGR among these applications over the forecast years.
The Asia Pacific (APAC) region to render Adequate Financing Avenues
The six principal regions addressed by the regional study are North America, Asia Pacific (APAC), the Middle East & Africa (MEA), Europe, and South America. Because of the increasing industrialization and economic expansion of developing nations like China and India, APAC is predicted to experience the fastest increase in terms of valuation. Due to the area's growing population and urbanization, there have also been more construction projects in the area.
Heavy construction equipment rental is becoming more and more popular among construction organizations due to its many advantages, including affordability and accessibility. Further lowering the overall cost is the fact that renting out equipment eliminates the need for storage and upkeep. During the projected period, the market for renting heavy construction equipment is anticipated to rise due to the rising demand for infrastructure development around the world.
Rental of heavy construction equipment refers to the renting of such equipment by businesses, individuals, or contractors for a variety of purposes. There is a growing market for renting heavy construction equipment as a result of the construction industry's increasing demand. Additionally, it is anticipated that during the projection period, the market for renting heavy construction equipment would be driven by the growing demand for infrastructure development as well as the growing demand for energy and resources.
Heavy construction equipment rental has several benefits, including lower ownership costs, simple maintenance, and improved operational effectiveness. The requirement for a significant upfront expenditure is also removed when renting equipment, which is a significant benefit for small and medium-sized businesses.
The increasing adoption from construction companies is among the main drivers behind the market's rise in renting heavy construction equipment. Due to the increased infrastructure building operations, the construction industry is expanding quickly in developing countries like China, Asia, and South America. The need for renting heavy construction equipment in these areas is anticipated to increase as a result.
The market for renting heavy construction equipment is anticipated to increase from USD 70.52 billion in 2019 to USD 112.8 billion in 2029, at a CAGR of 5.2%.
This expansion can be ascribed to the rise in demand for heavy construction equipment leasing from the infrastructure, manufacturing, mining, oil & gas, and construction sectors.
The lack of competent operators is the market's biggest problem with renting heavy construction equipment. One of the key barriers to market growth is the lack of competent labour. Moreover, other difficulties faced by market participants include costly initial investment and unstable raw material costs. Although, it is anticipated that in the upcoming years, market participants will have growth prospects due to the development of technologically sophisticated equipment and the surge in public-private collaborations.
Hitachi Construction Machinery (Japan), Zoomlion Heavy Industry Science & Technology (China), Sany Group (China), JCB (UK), and Caterpillar (US) are the leading companies in the heavy construction equipment rental sector. In North America, Asia Pacific, Europe, Africa, and South America, these businesses are well-established. These businesses provide a wide variety of products to meet the demands of the manufacturing, infrastructure, mining, oil & gas, and construction industries.
Recent Developments in the Heavy Construction Equipment Rental Market
- Lewis Energy Group acquired the entire oil and gas equipment rental business of United Rentals, Inc. in March 2019. The corporation was able to concentrate on its core activities and strategically invest in new sectors as a result of the strategic move.
- In February 2019, sniffex technologies inc., a Canadian maker of methane detection tools for the mining industry, was bought by Finning International Inc., a top North American supplier of construction equipment and services. With the acquisition, Finning will be able to offer its clients state-of-the-art technological solutions that are supported by first-rate support and assistance.
Heavy Construction Equipment Rental Market Scope
|Revenue forecast in 2029
|USD 112.8 billion.
|CAGR of 5.2% during 2019-2029
|Equipment, End- User, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Hitachi Construction Machinery (Japan), Zoomlion Heavy Industry Science & Technology (China), Sany Group (China), JCB (UK), and Caterpillar (US)
Key Segments of the Global Heavy Construction Equipment Rental Market
Equipment Overview (USD Billion)
- Material Handling Equipment
- Earth-moving Equipment
- Heavy Construction Vehicle
End User Overview (USD Billion)
- Oil & Gas
- Mining, Infrastructure
Application Overview (USD Billion)
- Heavy Lifting
- Excavation & Demolition
- Recycling & Waste Management
- Material Handling
Regional Overview (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa