The machinery and equipment rental market is booming today. What are the key figures, and what does the latest analysis say about its growth?
Following the various economic and health tragedies such as the Covid-19 crisis, it is time to take a look at the equipment rental industry. This market and trends study gathers news and the key figures of the machine and equipment rental market. Let’s take a look at this equipment rental market research and explore why more and more rental companies and fleet managers are turning to equipment rental software features to grow their business.
What is the rental equipment market?
The rental equipment market is made up of the various industry players or construction equipment operators. The equipment rental industry is therefore mainly aimed at public works, construction, and extraction companies. More broadly, construction equipment rental covers all the tools and machinery used by companies on worksites. This includes not only equipment strictly dedicated to construction itself, but also supporting and complementary equipment. The machine rental market also extends beyond professionals. Indeed, it includes individuals looking to rent construction machinery or equipment for personal use. At the same time, the audiovisual industry is also becoming increasingly important in the equipment rental services market.
What are equipment rental market trends?
Equipment rental market trends reveal that more and more emerging players are beginning to challenge the dominance of industry leaders. In fact, most equipment rentals go through the two industry giants, Loxam and Kiloutou, there is a clear growth of independent SMEs in the European equipment rental market. This trend is evident in the rise of acquisitions and increasing investments across the sector. Many equipment rental companies are now diversifying their offerings to better meet evolving customer needs. For example, they increasingly include generators, forklifts, aerial platforms, and various smaller, complementary equipment. Structuring your offer is a key element to be successful in the equipment rental industry. Before starting or expanding your business, make sure you research your regional market.
What does the equipment rental market analysis reveal?
Equipment rental market analysis reveals steady growth driven by increased demand, market consolidation, and ongoing digital transformation. It’s safe to say that the equipment rental market is doing well despite the turbulence. While the global equipment rental market was expected to grow at a 4% CAGR for the next four years due to infrastructure investments, the coronavirus outbreak ultimately slowed that growth. Indeed, the rental equipment market size was logically impacted by Covid-19 due to the sudden halt of construction sites and the closure of agencies. The ensuing recovery made it possible to resist after three years of strong growth.
When we compare the equipment rental market to the option of buying, renting has become one of the most attractive choices for construction companies today—especially in a context of crisis and uncertainty. This has led to a recovery in activity. The revival of the equipment rental industry is largely driven by the construction sector’s growing awareness of digital transformation. Improved fleet turnover and increased asset value are key contributors. As a result, these benefits from management software have significantly supported the growth of the equipment rental market. We’ll explore this in more detail later in the article.
What is the equipment rental market size?
It is estimated that the equipment rental market size is currently worth more than 4 billion euros and includes more than 1,600 companies and 27,500 employees. The increase in second-hand equipment sales (+33%) is a noteworthy trend. However, this growth comes at the expense of equipment rental in the construction industry, which has seen a 12% decline. The distribution of handling equipment is worth nearly 2 billion euros with a 4% growth in rental! The global equipment rental market size is therefore quite solid given the current context and is not expected to decline in the coming years, despite the trade war and import tariffs.
What is the state of the equipment rental software market?
Surrounding yourself with the best partners in the equipment rental software market is important in order to face the acceleration and digitalization of the sector. Backed by its industry experience, hitech supports equipment rental professionals with advanced management software. Hitechsoftware’s solutions offer complete control over rental operations and help drive business growth. From scheduling and invoicing to inventory management and accounting, these powerful tools are already widely adopted by many players in the market. Seamlessly integrating with your existing IT system, hitech’s management software ensures smooth operations. Moreover, it is compatible with tools like the myrentpad inspection app and your website for online booking. This strong ecosystem gives hitech access to a broad range of data, providing valuable insights for this comprehensive equipment rental market report.
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