A surge in the mining and construction activities, particularly in the developing parts of the world is likely to fuel growth of the global construction equipment rental market in the years to come. With the advent of various new technologies, such as mapping features, equipment service tracking, and automated service improvements, the global construction equipment rental market is likely to witness considerable growth in the years to come. Technological upgradation or enhancements provided by the manufacturers of original equipment are further expected to drive the renting services for construction equipment in the market.
Technological progress made in the heavy machinery and automotive sectors has ushered in several new features in the market, which is likely to play a catalytic role in driving the demand for rented construction equipment in the years to come. Manufacturers are emphasizing on the integration of high-end safety features, such as additional work lights, 360-degree camera visual, and lift assist. They are also focused toward offering systems that need less maintenance and better operational efficiency. However, features such as these do not come cheap and are not affordable to many of the small contractors and builders. Some builders who cannot afford such high-end machines opt for rental services for construction equipment, which is likely to trigger expansion of the global construction equipment rental market in the years to come.
Product, and region are the two important parameters based on which the global construction equipment rental market has been categorized. Such dissection of the market comes with the purpose to offer stakeholders with a detailed and clear analysis of the global construction equipment rental market.
One of the developments that offer a glimpse of the market dynamics about the global construction equipment rental market is mentioned below:
The global construction equipment rental market is marked with the prevalence of the following restraints, drivers, and opportunities.
The growth of the global construction equipment rental market is estimated to be driven by the rapid growth of the construction sector, particularly in the developing nations. Much of the growth in the developing countries is ascribed to the augmented expenditure in the development of non-residential, residential, and infrastructure sectors. For instance, growing investments in the making of expressways, bridges, metros, smart cities, highways, and roads is likely to drive the demand for rented construction equipment. In addition, with the rising number of nuclear families, there is a need for construction of more houses, which also calls for rental services of construction equipment. All these factors are estimated to propel growth of the global construction equipment rental market in the years to come.
Furthermore, the rising trend toward automation is estimated to play an important role in driving the demand for rental of construction equipment. Renting out of construction equipment saves the cost of purchasing a new one and at the same time it also lessens operational cost, maintenance cost, and cost of labor. The cost saving factor is likely to work in favor of the growth of the global construction equipment rental market over the tenure of analysis. However, strict regulations pertaining to the emissions are likely to impede the development of the global construction equipment rental market in the near future.
North America is estimated to account for a sizeable chunk of the global construction equipment rental market and is expected to retain its territorial dominance over the period of assessment. Such growth of the North America market is ascribed to the rise in expenditure toward infrastructural constructions and sound growth of the residential construction sector. Despite such bright outlook, the present ongoing global pandemic paints a bleak picture for the region in the present times. Covid-19 has brought all activities, including construction, to a standstill and many have lost job. Hence, the market in North America is likely to suffer a setback temporarily.