The construction equipment rental market holds considerable potential for future growth. That is the finding of a new report titled Construction Equipment Rental Market and released by the market research firm Fact.MR.
According to the report, demand for construction machinery rental units will increase by a factor of 1.6 for the 2019-2029 period. Part of the increased demand for rental machines will be due to the high cost of next-generation construction equipment.
The report from Fact.MR points out that coming construction equipment will feature technologies such as lift assist, predictive maintenance systems, and 360° vision cameras, heighten the demand for rental services. Booming infrastructure development in emerging and developed countries will continue to generate demand for construction equipment rental services.
Earth Moving Machinery accounts for more than 60% of the total market revenues. The versatility of applications of this product type coupled with favourable project developments in industries propel the demand for earth moving machinery.
Concrete and road construction machinery hold the second largest market value share of over 22% on the back of increasing need for connectivity in developing countries.
North America maintains its stronghold with over 49% share of the total market value. Early adopters in this region are exploring alternative fuel resources which employ construction equipment rental services for cost efficient exploration.
East Asia and South Asia and Oceania offer the most remunerative opportunities owing to the rampant infrastructure development in emerging economies such as India, China, and Indonesia.
“The construction equipment rental market is consolidated with tier-1 players garnering most of the revenues. Front running organizations are constantly updating their equipment fleets with advanced technologies. Market players stand to benefit from increasing government investments in infrastructure development in emerging economies,” according to an analyst at Fact.MR.
Onsite service programs with the help of predictive maintenance and monitoring exhibits strong remunerative opportunities. Reducing the loss of time due to breakdowns, onsite maintenance services is a disruptive trend that benefits both parties. Customers can prevent loss of productive man-hours and construction equipment rental companies can garner sustainable revenue opportunities. Skill development of the workforce with the advancements in construction equipment technologies will give market players a competitive edge during the forecast period. Frequent mergers and acquisitions are projected to continue through 2029.