Rental Construction Equipment Market: Introduction
Renting can be defined as procuring equipment for a temporary purpose in order to help those who are not willing to buy that equipment. Several construction projects are executed by hiring construction equipment from equipment rental companies.
Key Drivers of Rental Construction Equipment Market
- Using rental equipment in construction projects is likely to help construction companies to focus on the construction project rather than on equipment. Furthermore, it also reduces the financial burden, since purchasing construction equipment often requires significant down payments and diverting large portions of capital from operating expenses. Additional expenses include insurance, taxes, licensing, interest on loans, and storage costs. Therefore, these factors are driving the rental construction industry.
Challenges in Rental Construction Equipment Market
- In mid-March, as countries across the globe initiated stay-at-home mandates, numerous companies halted ongoing or soon-to-start construction projects to mitigate the spread of coronavirus among workers. As of early June, most nations restarted construction in progress that was stalled prior to the pandemic, or broken ground on new projects with few restrictions. Some countries still have tighter restrictions in place. For projects that had broken ground and were actively being built, there have been some delays; however, these projects have mostly commenced unhindered since mid-June unless they experienced county-level restrictions or issues related to building material delivery. New projects are still being planned, bid out, and started. Reopening the economy is contributing to the recovery of the construction industry.
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Opportunities in Rental Construction Equipment Market
- Expansion of the rental market is in line with the rise of the sharing economy, a shift in mindset from ownership to access, and increasing environmental awareness. Contractors are likely to be less inclined to purchase new construction equipment in the near future and would be more likely to access it via the sharing business model, of which rental is an example. In light of the COVID-19 pandemic, rental would become even more valuable to the construction industry, as it recovers from economic downturn, by offering customers peace of mind with minimal financial risk, flexible contract conditions, and fixed costs. Customers can pay as they earn, returning machines when a project ends, or taking payment holidays when required. Therefore, the shared economy trend and COVID crises is estimated to propel more number of construction operators toward rental construction equipment and subsequently, provide significant opportunity for the rental equipment market.
Rental construction equipment market in Asia Pacific to expand at a notable growth rate
- Asia Pacific is a major market for the rental construction industry, owing to a rise in urbanization, industrialization, and infrastructure spending by countries in the region in order to boost the rental construction sector in the region. The economy of China has recovered relatively well from the COVID crisis as compared to other nations. The government is once again looking at infrastructure investment as a pillar for economic growth; hence the government is shifting focus on urbanization and major transportation and water conservancy projects. Nearly all of China’s 31 provinces, municipalities, and autonomous regions have announced key infrastructure investment plans for the next 5-7 years, covering 24,515 projects at RMB 43 trillion, of which around 25% would be spent on transportation projects. Moreover, the central government has so far shown its support for regional and local governments in this challenge. It plans to transfer RMB 2 trillion in funding directly to local governments to support economic recovery, and has increased its quota for special purpose bonds used to fund infrastructure investment by RMB1.6 trillion to RMB 3.75 trillion. Likewise, the infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have sustainable development of the country. The government has suggested an investment US$ 750 billion for railways infrastructure from 2018-30.
Key Players Operating in Rental Construction Equipment Market
The global rental construction equipment market is fragmented. A few of the key players operating in the global rental construction equipment market are:
- Loxam Group
- United Rentals, Inc.
- Mtandt Rentals Limited
- Cramo PLC
- Nesco Rental
- The Hertz Corporation s
- Boels Rentals
- Unirent LLC
- Caterpillar Inc
- Ahern Rentals, Inc
- Aktio Corporation
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Global Automotive Perception Sensor Mark: Research Scope
Global Rental Construction Equipment Market, by Type
- Earth Moving Equipment
- Construction Vehicle
- Material Handling Equipment
- Construction Equipment
Global Rental Construction Equipment Market, by Lease Type
- Capital Lease
- Operating Lease
Global Rental Construction Equipment Market, by Region
- North America
- Nordic Region
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.