The global construction equipment rental sector is poised for solid growth over the next five years with its market value likely to surge to more than $155 billion by 2026 from its present $120 billion, gaining remarkable traction over the 2020 to 2026 period, according to a recent study from market research firm Global Market Insights.
The market for renting equipment has surged over the recent years with some construction firms buying as well as maintaining large fleets of equipment. Other firms select to lease these assets and, in some instances, they buy select pieces at the end of the arrangement.
Renting equipment has become one of the feasible options for numerous companies and gives them the capability to reduce costs and operate a more financially settled construction business, said the Global Market Insights report.
The construction rental equipment market is likely to witness rapid growth over the coming time period owing to rising government focus on development of robust public infrastructure, high product demand from small and medium scale construction contractors, and increasing adoption of concrete equipment, material handling and cranes, and earthmoving equipment on a rental basis, it stated.
Renting construction equipment offers numerous advantages to business. It usually features the newest technology. In order to stay ahead of others, the rental companies provide its new models with latest technology.
This provides the benefit of working with new equipment having new features as well as benefits, thus saving more money and time, said the report.
Rental equipment is reliable as well as well maintained. In fact, the items available for rent are thoroughly inspected and the usage hours are also well tracked. Service and maintenance costs are also eliminated while renting a construction equipment.
Here, the renting companies are responsible for any sort of repairs, and maintenance of its equipment. Renting also gives an opportunity to try out new models before making a final decision of buying.
According to the report, the construction equipment rental market is bifurcated in terms of product and regional landscape.
In terms of application, the overall construction equipment rental market is categorized into concrete equipment, material handling and cranes, and earth moving and roadbuilding. Earth moving and roadbuilding application segment is further classified into loaders, compaction equipment, backhoes, excavators, and others.
Among these, demand for excavators segment on a rental basis is expected to grow tremendously over the forecast time period.
An excavator is considered as one of the essential tools required in construction activities, but it is also one that might not always be useful for a longer period. Hence, renting this equipment is beneficial rather than buying, said the report.
High product demand is likely to come from small and medium scale construction contractors owing to high cost of buying a new equipment, it added.
TradeArabia News Service