CONSTRUCTION EQUIPMENT RENTAL MARKET ANALYSIS

Market Challenges And Opportunities

Global Construction Equipment Rental Market Drivers:

High cost of purchasing construction equipment to boost the market growth

The initial cost involved in purchasing construction equipment can range from US$ 5,000 to over US$ 10,000,000 varying from smaller lifting equipment to larger cranes. Furthermore, the cost of essential accessories and attachments increases the overall cost of equipment. Along with this, after purchasing, the owner has to invest in regular maintenance of the equipment as it is used in major wear and tear environments. Furthermore, owner also has to hire maintenance teams, mechanics, and consultants to maintain their fleets. Thus, all these factors make procurement of construction equipment expensive, due to which demand for rental services of these equipment is increasing. This factor in turn is expected to fuel growth of the global construction equipment rental market over the forecast period.

Rise in advancement of rental equipment technology to boost the market growth

Advancing technologies such as infotainment and ADAS are contributing significantly in enhancement of driving experience and increasing safety as well as security of operations of construction equipment. Many rental service providers have upgraded their fleet and offer features such as latest telematics solutions for improved productivity, fleet management, and use of available manpower and equipment. Telematics systems offer connected onboard sensors and diagnostics with the GPS systems for tracking equipment. Thus, such various benefits of advanced rental equipment technology are expected to boost growth of the global construction equipment rental market over the forecast period.

Global Construction Equipment Rental Market Opportunities:

Low penetration of rental services in developing countries to create ample opportunities in the global construction equipment rental market during the forecast period. Rental penetration is important for assessing the opportunity in terms of current market versus potential market. The low level of penetration indicates significant opportunities for expansion of rental service businesses for the companies, in such regions. Thus, this factor is likely to offer lucrative business opportunities in the market over the forecast future.

Technological advancements in heavy machinery to create growth opportunities in the global construction equipment rental market over the forecast period. With increasing technological developments in automotive and heavy equipment industries, various new openings are created in the construction equipment rental market. Manufacturers of construction equipment are focusing on assimilation of cutting-edge safety aspects such as lift assist, 360-degree camera views, and auxiliary work lights for improving the productivity of their operations and reducing the need for maintenance. As a result, the market is witnessing multiple opportunities in the global construction equipment rental market.

Global Construction Equipment Rental Market Restraints:

Unstable demand of construction industry to hamper the market growth

Several non-residential and residential construction projects are major source of revenue for the market. The market clearly relies significantly on construction activities in special region. Thus, declining construction activities create challenge for the global construction equipment rental market. For instance, according to Coherent Market Insights, during 2006 to 2013, the construction sector exhibited a decline of 37%, which further impacted the market for heavy construction equipment. Thus, such factors are expected to hinder growth of the global construction equipment rental market over the forecast period.

Lack of qualified and skilled professionals to hinder the market pace

Heavy machinery for construction can be highly complicated due to which it requires qualified and skilled operators, as they can prevent accidents as well as enhance the overall productivity and performance of the machinery. With unqualified operators, there can be fatal accidents at construction site. Several emerging countries are facing lack of such qualified and skilled operators, which is further impacting adoption of these equipment. As a result, this factor is anticipated to impede growth of the global construction equipment rental market in the near future.