The Construction Equipment Rental Report is Segmented by Equipment Type (Earthmoving Equipment (Backhoe Loaders and More), and More), Drive Type (IC Engine and More), Application (Residential Construction and More), Rental Channel (Offline and Online), Service Type (Short-Term Rental, and More), and Geography (North America and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Companies in the tool and equipment rental industry rent out various tools, from contractor equipment to home repair and gardening tools. Construction markets have experienced significant volatility over the past five years. In 2020, residential construction strengthened significantly, while commercial construction suffered amid the onset of COVID-19. Industry revenue has fallen as elevated interest rates have curbed construction activity recently. Overall, industry revenue dipped at a CAGR of 1.4% to $4.7 billion through the end of 2024, including an estimated 1.4% drop in 2024 alone. The consumer market has been a bright spot for lessors, as households have borrowed more small DIY (do-it-yourself) and gardening tools to touch up their homes. Most of these projects stemmed from excessive leisure time during the pandemic. While many consumers have gone back to work, the ease of renting a tool for short-term use remains more attractive than purchasing a product they might only use once or twice. For larger projects, contractors continue to rent tools for the same reason: it is more cost-effective. Industry profit has stagnated amid uneven demand from downstream markets. Construction activity is set to renew through the end of 2029 as economic uncertainty wanes and interest rates drop. More investors and businesses will start projects they had put off amid high interest rates. Homeowners will continue calling contractors or renting equipment to touch up their homes to strengthen their values. Overall, revenue for the tool and equipment rental industry is set to climb at a CAGR of 2.6% to $5.3 billion in 2029.

United Rentals, Sunbelt, and Herc Rentals were the leading three companies for equipment rental services in the United States in 2022. United Rentals controlled about ** percent of the market, while Sunbelt held ** percent of the total market. With a strong presence in the U.S., Sunbelt Rentals also operate in Canada and the UK.

After declining to 34 billion U.S. dollars in 2020, the construction and industrial equipment rental market in the United States is not expected to reach its 2019 levels until 2023. The total equipment rental market was sized at 48.5 billion U.S. dollars in 2020.

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Construction Equipment Rental Market Size 2025-2029

The construction equipment rental market size is forecast to increase by USD 39.95 billion, at a CAGR of 5.9% between 2024 and 2029.

The market is experiencing significant growth, driven by increased investment in infrastructure projects worldwide. This trend is expected to continue as governments and private entities prioritize infrastructure development to boost economic growth and improve public services. Another key driver is the increasing adoption of automation in the construction industry. Automated equipment rental solutions offer numerous benefits, including increased efficiency, improved safety, and reduced labor costs. However, the market faces a notable challenge: the lack of a skilled workforce in the construction industry. As the demand for construction equipment rental services grows, ensuring a sufficient workforce to operate and maintain the equipment is becoming a significant concern for market players.
To capitalize on the market's opportunities and navigate these challenges effectively, companies must focus on workforce training and development programs, as well as explore partnerships and collaborations to address the labor shortage. Additionally, investing in research and development to create more automated and user-friendly equipment rental solutions can help companies stay competitive and meet the evolving needs of their customers.

What will be the Size of the Construction Equipment Rental Market during the forecast period?

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The market continues to evolve, with dynamic market activities unfolding across various sectors. Light equipment, telehandlers, backhoes, and excavators are in high demand for infrastructure projects, while generators and industrial equipment are essential for utility services and industrial applications. Safety standards, a critical aspect of the rental industry, are continually evolving, with civil engineering projects requiring operator certification, safety training, and adherence to OSHA regulations. Rental agreements come in various forms, including long-term and short-term, with operational costs including equipment availability, maintenance, cleaning, and fuel. Equipment damage and rental contract terms are significant considerations, with insurance coverage and liability insurance playing crucial roles in mitigating risks.

Bulldozers, skid steers, and rollers are integral to heavy construction projects, while cranes and forklifts are essential for commercial and residential construction. Fuel efficiency and environmental compliance are increasingly important factors, with digital platforms and mobile app integration streamlining equipment rental processes. Equipment financing, fleet management, and data analytics are also key areas of focus, with rental rates varying from daily to weekly to monthly. Delivery and pickup, equipment inspection, and customer service are essential components of a successful rental experience. Market trends include the growing popularity of online rental booking, equipment repair, and equipment tracking, as well as the integration of specialty equipment, such as boom and scissor lifts, into rental offerings.The market's continuous dynamism is driven by the evolving needs of various sectors, from infrastructure and industrial projects to commercial and residential construction, and disaster relief operations.

How is this Construction Equipment Rental Industry segmented?

The construction equipment rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  ECRCE
  MHE


Type

  ICE
  Electric


Product Type

  Backhoes
  Excavators
  Loaders
  Crawler dozers
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

.

By Application Insights

The ecrce segment is estimated to witness significant growth during the forecast period.

The earthmoving concrete and road construction equipment (ECRCE) rental market encompasses power-propelled vehicles designed for carrying, digging, spreading, or moving materials. This segment includes excavators, loaders, dozers, and Motor Graders. The infrastructure industry's growing investments, driven by the public and private sectors, present significant expansion opportunities for earthmoving equipment rental companies. Urbanization's rapid expansion, particularly in developing countries, will result in an increase in megacities throughout the forecast period. Equipmen

Revenue from the global construction equipment rental market is estimated to reach US$ 131.2 billion in 2024. The market has been projected to climb to a value of US$ 201.81 billion by the end of 2034, expanding at a CAGR of 4.4% between 2024 and 2034.

Report Attribute	Detail
Construction Equipment Rental Market Size (2024E)	US$ 131.2 Billion
Forecasted Market Value (2034F)	US$ 201.81 Billion
Global Market Growth Rate (2024 to 2034)	4.4% CAGR
North America Market Share (2024E)	27.6%
East Asia Market Value (2024E)	US$ 26.63 Billion
Earth Moving Machinery Segment Value (2034F)	US$ 110.39 Billion
Residential Construction Segment Value (2034F)	US$ 73.66 Billion
Key Companies Profiled	Titan Machinery Inc.; Associated Equipment Rentals Pvt. Ltd.; HSS ProService Ltd.; Kanamoto Co. Ltd.; United Rentals Inc.; Finning International Inc.; Herc Holdings Inc.; Aktio Corp.; Komatsu Ltd.; Sunstate Equipment Co., LLC; Cramo; Texas First Rentals.

Country-wise Insights

Attribute	United States
Market Value (2024E)	US$ 28.57 Billion
Growth Rate (2024 to 2034)	4.4% CAGR
Projected Value (2034F)	US$ 43.98 Billion

Attribute	Japan
Market Value (2024E)	US$ 5.89 Billion
Growth Rate (2024 to 2034)	4.8% CAGR
Projected Value (2034F)	US$ 9.45 Billion

Category-wise Insights

Attribute	Earth-Moving Machinery
Segment Value (2024E)	US$ 71.64 Billion
Growth Rate (2024 to 2034)	4.4% CAGR
Projected Value (2034F)	US$ 110.39 Billion

Attribute	Commercial Construction
Segment Value (2024E)	US$ 48.41 Billion
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 73.66 Billion

After suffering a big dip in 2020 due to reduced operations during the coronavirus pandemic, the equipment rental market size in the United States recovered in 2021, growing by ***** percent to **** billion U.S. dollars. By 2024, the U.S. equipment rental market is expected to exceed the peak level recorded in 2019.

Expert industry market research on the Heavy Equipment Rental in the US (2025-2030). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

Global Construction Equipment Rental market size is expected to reach $137.69 billion by 2029 at 5.6%, booming construction industry fuels growth in equipment rental market

The global construction equipment rental market size reached USD 122.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 200.8 Billion by 2033, exhibiting a growth rate (CAGR) of 5.04% during 2025-2033. The market is experiencing steady growth driven by the growing demand for flexible rental agreements, rising focus on cost-efficiency in construction projects, and integration of advanced technologies to enable real-time monitoring of machinery while providing data on performance.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 122.9 Billion
Market Forecast in 2033	USD 200.8 Billion
Market Growth Rate 2025-2033	5.04%

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on equipment type, propulsion system, and application.

The report covers GCC Heavy Equipment Rental Companies and the market is segmented by vehicle type (earthmoving equipment and material handling), propulsion type (IC engine and hybrid drive), and Country (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates). The report offers the size and forecast for the GCC Construction Equipment/Machinery Rental Market in value (USD) for all the above segments.

The U.S. construction equipment rental market is expected to reach USD 54.17 billion by 2029, growing at a CAGR of 4.73%.

The Heavy Equipment Rental industry has grown with rising demand from key downstream markets, including the construction and mining sectors. However, high interest rates and a slow-paced commercial construction recovery acted as dampeners. The market leans significantly on the construction industry, as evidenced by United Rentals, where 42.0% of its fleet comprised construction and industrial equipment, contributing 46.0% to its rental revenue. Government spending schemes like the CHIPS Act are expected to add over 100,000 jobs in construction and manufacturing, stimulating demand for heavy machinery and equipment. As a result, rental companies are expanding to include a wider variety of specialized equipment. Furthermore, the aircraft leasing segment experienced a surge as airlines globally have begun switching from owning to leasing aircraft. The resurgence of air travel post-2020 has contributed to a renewed demand for aircraft lessors and the sector's growth. Overall industry revenue will climb at a CAGR of 2.3% to reach $54.0 billion in 2025, including a gain of 2.3% in 2025 alone. Elevated interest rates pose a challenge, but the Federal Reserve cut rates three times in 2024 and hints at further reductions in 2025. Lower interest rates are likely to stimulate more construction activity, pushing growth in the equipment rental sector. This follows a steady recovery in the housing market, with plans to construct nearly 1.1 million homes in 2025, a 13.8% climb from the previous year. Profit has climbed to reach 16.3% of revenue in 2025, as heightened demand for specialized rental equipment enables rental providers to charge a premium. Within industry dynamics, acquisitions have been high on the agenda for rental providers as large-scale projects drive the need for rentals. United Rentals’ $4.8 billion acquisition of H&E Equipment Services and Sunbelt Rentals' acquisition of 26 rental businesses are examples. Technology upgrades and a regulatory environment that favors larger entities actively define the transformation in the sector. Against this backdrop, the industry stands to gain further with a projected gain in crude oil production in 2025-2026, which is expected to strengthen demand for heavy equipment rentals. Industry revenue will climb through the end of 2030, driven by a rebound from vital downstream markets. The Federal Reserve will cut interest rates over the next five years, stimulating demand from the construction and manufacturing markets. Industry revenue will expand at a CAGR of 2.1% to reach $59.8 billion in 2030.

The North America construction equipment rental market was estimated at USD 42.64 billion in 2022 and is expected to reach USD 58.49 billion by 2029, growing at a CAGR of 4.62%.

Updated quarterly, benchmarked financial data from 50+ anonymized rental equipment companies in the US. Proactive indicator of equipment rental market trends, and more abstractly construction overall, with a focused indicator on the construction equipment subsegment, including publicly traded equipment manufacturers, rental companies and construction companies.

The global compact power equipment rental market is anticipated to observe notable growth during the period of 2025 till 2035 owing to surging requirement for cost-efficient and versatile equipment solutions across construction, landscaping, and industrial sectors. Businesses and individuals alike find good value in renting compact power equipment as opposed to purchasing it because it allows them to have access to top quality machinery without the high ownership costs.

The market is forecast to grow USD 223.0 Billion by 2035, at a compound annual growth rate (CAGR) of 6.9% during the forecast period.

Metric	Value
Market Size in 2025	USD 125.7 Billion
Projected Market Size in 2035	USD 223.0 Billion
CAGR (2025 to 2035)	5.9%

Country-Wise Analysis

Country	CAGR (2025 to 2035)
USA	5.4%

Country	CAGR (2025 to 2035)
UK	5.2%

Country	CAGR (2025 to 2035)
European Union (EU)	5.6%

Country	CAGR (2025 to 2035)
Japan	5.3%

Country	CAGR (2025 to 2035)
South Korea	5.4%

Market Share Analysis by Company

Company Name	Estimated Market Share (%)
United Rentals, Inc.	20-25%
Sunbelt Rentals, Inc.	15-20%
Herc Rentals Inc.	10-14%
Home Depot Rental (Compact Power Equipment, Inc.)	8-12%
Loxam Group	5-9%
Other Companies (combined)	30-40%

Equipment Rental Market Outlook

The global equipment rental market size was valued at approximately $145 billion in 2023 and is projected to reach around $250 billion by 2032, growing at a CAGR of 6.1%. This growth is driven by several factors, including increased infrastructure development, a rise in construction activities, and economic development in emerging markets. The preference for rental equipment over purchasing due to cost-efficiency is a critical growth driver for the market.

One of the primary growth factors for the equipment rental market is the increasing inclination towards infrastructure development across the globe. Many governments are investing heavily in the development of public infrastructure, including roads, bridges, and public buildings. This surge in infrastructure projects has necessitated the use of heavy equipment, which is often rented rather than purchased, to keep costs manageable. The flexibility provided by rental services is attractive to contractors who can opt for the latest equipment without the long-term financial commitment of purchase.

Another significant growth factor is the rapid urbanization and industrialization in emerging economies. Countries in the Asia Pacific and Latin America are witnessing a boom in construction activities owing to the rise in urban population and the need for residential and commercial spaces. This has led to a higher demand for construction equipment, where rental services play a crucial role in providing necessary machinery without the burden of high upfront costs. Moreover, the industrial sector's expansion is contributing to the demand for various equipment, facilitating market growth.

The trend towards technological advancements and automation in equipment is also a driving factor. Equipment rental companies are increasingly offering technologically advanced machinery equipped with features like GPS, telematics, and IoT capabilities. This not only enhances operational efficiency but also attracts more customers. Advanced equipment provides better performance and reduced downtime, which is crucial for large-scale projects. Additionally, the integration of AI and machine learning in equipment maintenance predicts potential failures and reduces operational disruptions, making rental services more appealing.

Construction Equipment Rental Services have become an integral part of the construction industry, offering a flexible and cost-effective solution for contractors worldwide. These services allow construction companies to access a wide range of machinery without the need for significant capital investment. By renting equipment, companies can manage their cash flow more efficiently and allocate resources to other critical areas of their projects. Additionally, rental services provide access to the latest technology and equipment, ensuring that construction projects are completed with high efficiency and quality. This approach not only reduces the financial burden of ownership but also minimizes maintenance and storage costs, making it a preferred choice for many construction firms.

Regionally, the equipment rental market shows significant variance. North America and Europe are mature markets with substantial demand for rental services driven by well-established construction and industrial sectors. Asia Pacific, however, is expected to witness the highest growth rate due to rapid urbanization and infrastructure development. Furthermore, the Middle East & Africa region is showing promising growth due to investments in oil and gas infrastructure and the need for modern construction equipment.

Equipment Type Analysis

The equipment rental market can be segmented by equipment type into heavy equipment, light equipment, and tools. Heavy equipment includes machinery such as excavators, bulldozers, cranes, and loaders, which are essential for large-scale construction and mining projects. The demand for heavy equipment is particularly high in regions with extensive infrastructure development activities. Renting heavy equipment is a cost-effective solution for many businesses, as it allows them to access necessary machinery without the significant capital expenditure associated with purchasing.

Light equipment, on the other hand, encompasses smaller machinery such as mini-excavators, compactors, and light towers. These are typically used in smaller construction projects, landscaping, and municipal works. The rental ma

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Compact Power Equipment Rental Market Size 2024-2028

The compact power equipment rental market size is forecast to increase by USD 2.09 billion at a CAGR of 6.3% between 2023 and 2028.

The market in North America is witnessing significant growth due to the expansion of the construction industry. The integration of advanced technologies such as telematics, fuel cells, batteries, and transformers in compact power equipment like pumps, generators, compressors, bulldozers, and power tools is driving the market growth. These technologies enhance equipment efficiency, reduce operational costs, and improve safety. However, operational challenges associated with compact power equipment rentals, including maintenance, transportation, and fuel management, continue to pose challenges for market growth. Influencers like HVAC, lighting, and HVACR industries are also adopting compact power equipment to meet their energy needs. The market is expected to witness further growth with the increasing demand for eco-friendly and cost-effective power solutions.

What will be the Size of the Market During the Forecast Period?

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The market encompasses a diverse range of machinery and tools, including engine-driven and electric power tools such as drills, polishers, woodwork routers, and screw drivers. This market plays a vital role in infrastructure development and maintenance by providing lightweight, efficient solutions for construction projects and various industries. The market's size is significant, with continuous growth driven by the increasing demand for specialized equipment that offers improved performance, lower emissions, and enhanced functionality. Rental services for generators, compressors, and other power equipment are increasingly popular due to their cost-effectiveness and convenience. Equipment tracking systems and online platforms, along with mobile applications, facilitate seamless rental processes and efficient inventory management.
The transition towards electric equipment, such as those powered by batteries, electricity, and fuel cells, is gaining momentum due to their environmental benefits and the advancements in electric motors, transformers, and battery technology. Overall, the market is a dynamic and evolving landscape that caters to the ever-changing needs of various industries and construction projects.

How is this Compact Power Equipment Rental Industry segmented and which is the largest segment?

The compact power equipment rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Product

  Electric power tools rental
  Engine-driven power tools rental
  Pneumatic power tools


Type

  Period rental
  Rent to own
  On-demand rental


Geography

  North America

    US


  Europe

    Germany
    France


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Product Insights

The electric power tools rental segment is estimated to witness significant growth during the forecast period.

The market has experienced significant growth due to the increasing focus on environmental sustainability and the reduction of carbon emissions. Electric power tools, a key segment of this market, offer lower emissions and reduced noise levels compared to engine-driven alternatives. This makes them an attractive option for urban and noise-sensitive environments, driving demand, particularly in residential and commercial settings. Electric power tools are also lighter, easier to handle, and require less maintenance, making them suitable for a wide range of users, including DIY enthusiasts, contractors, and professionals. Rental services provide an accessible solution for end-users to utilize eco-friendly equipment without the long-term commitment of ownership.

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The electric power tools rental segment was valued at USD 2.24 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 31% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The North American market is driven by the growth In the construction industry, particularly In the US. Despite federal spending cuts, the industry is projected to expand due to low housing loan interest rates and a pipeline of infrastructure projects. In Canada and Mexico, similar positive trends are anticipated. Infrastructure development is a

The Industrial Equipment Rental and Leasing industry has expanded through the end of 2025, mainly driven by the increasing cost of equipment ownership and businesses prioritizing flexibility and cost-effectiveness. The penetration rate in the construction and industrial equipment rental sector has risen to 57.0% in 2024, surpassing pre-pandemic peaks. This growing preference for rentals has particularly boosted demand in the agriculture, construction, audiovisual and healthcare sectors. Notably, rental companies like Sunbelt Rentals increasingly adopt digital platforms and IoT technologies to optimize fleet management, indicating an industry-wide shift toward digitalization and equipment efficiency. Industry revenue will climb at a CAGR of 6.0% to $54.7 billion through the end of 2025 and is set to gain 3.4% in 2025 alone. Several external factors stimulate rental demand, such as the surge in equipment requirement because of cleanup efforts after multiple hurricanes and large construction projects. Companies with larger, diverse fleets, such as United Rentals and Ashtead Group, have particularly benefited from mega-projects. At the same time, merger and acquisition activities have seen a significant gain. The recent bidding war for H&E Equipment Services demonstrates the intense competition among top players to gain market share through acquiring competitors. Consistently high profits have encouraged new entrants, especially since the industry remains relatively fragmented with low market share concentration. By the end of 2030, the industrial equipment rental industry is expected to strengthen. The anticipated climb in raw material and other input costs, the shift toward smart manufacturing and Industry 4.0 demanding advanced machinery and the high costs associated with equipment ownership are all likely to drive more companies to turn to rental services as a cost-effective alternative. The aging US population is expected to strengthen demand for home healthcare equipment. Meanwhile, the focus on expansion through acquisitions, technological upgrades and entrance into new markets is expected to continue. Despite the promising outlook, future expansion may be limited because of market consolidation, particularly for mid-sized companies. Industrial equipment rental and leasing revenue will climb at a CAGR of 2.9% through the end of 2030 to $63.1 billion.

Over the last decade, the global market for equipment rental (measured by the 100 best performing companies) grew continuously and reached its apex by 2023. Companies performing in the market for equipment rental worldwide generated over ** billion euros in revenue during 2023.