A Good Time To Be In The Construction Equipment Rental Market

Currently, the construction equipment rental market is flourishing all over the world, and that trend is expected to continue going forward. In fact, this market is expected to have a compound annual growth rate (CAGR) of 4.3% between now and 2024. Notably, this growth will occur in both developed and emerging nations.

Renting equipment

Why is the construction equipment rental market so hot? For starters, there are enormous infrastructure projects planned in both the United States and Europe, and this driving the market around the entire world. Furthermore, the general preference will be on rental of construction equipment rather than buying it because this is generally more cost-effective for the projects in question.

Earthmoving equipment

Earthmoving – as opposed to material handling, road building and concrete – is expected to be the segment of the construction industry where there will be the highest demand for equipment. This is largely because excavators and other earthmoving equipment are very expensive to buy, so renting makes better sense. Furthermore, earthmoving equipment is popular with virtually all project managers because of its ease of use, versatility and effectiveness.

In general, earthmoving equipment can be defined as machinery that moves and grades soil and gravel. Earthmoving equipment is almost always necessary for any type of major construction or demolition project.

The planned construction of airports, highways and subways around the world will create a strong need for earthmoving equipment of all types. Moreover, it is also expected that there will be a strong need for earthmoving equipment for renovation and refurbishment projects of existing residential and commercial structures.

Within the category of earthmoving equipment, there will be the greatest demand for excavators. The demand will be for both wheeled excavators such as backhoes and tracked excavators such as bulldozers. They will be used for foundation work, trench building, rough grading, pipe-laying and many other tasks. Because there are so many road and highway projects planned around the world, there will be a great need for motor graders to do the fine grading necessary to preparing concrete or asphalt.

Market Shares

The largest share of the market is expected to be in North America. Europe is projected to have the second-largest share, but by 2014 Asia will have caught up due to the growing population of that continent. There are many companies poised to take advantage of these construction trends.

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