U.S. Equipment Rental Market: Booming Demand in Construction and Healthcare Industries, But Challenges Ahead

The US equipment rental market is a sizable and expanding industry that offers businesses and individuals the ability to hire machinery and equipment for short- or long-term periods of time. The market includes a wide range of equipment types, including construction equipment, industrial machinery, office equipment, and event equipment. Growth of the construction sector in the United States is driving the equipment rental business. The number of people using rental services is significantly increasing as contractors and dealers choose rentals to condense their fleets and reduce organizational complexity, which could otherwise have an impact on activities like asset disposals, logistics, maintenance, and procurement. The acceptance rate of rental services is increasing as there are more infrastructure projects being undertaken, which is speeding the expansion of the equipment rental market in the United States.

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According to a report by Makreo Research, the US equipment rental market size was valued at USD 46.95 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.02% from 2023 to 2028. The market has shown a steady single digit growth in the past and in coming years not a major shift is expected however with rising adoption rate industry showcase a positive growth outlook.
 

Demand Spurring in Construction Equipment Rental Business

The growth of the construction and Industrial sectors in the US is driving the equipment rental business. The acceptance rate of rental services is increasing as there are more infrastructure projects being undertaken, which is speeding the expansion of the equipment rental market in the US. Road Building including Earth moving accounts for the major market share in the US Construction equipment rental market
 

Medical Equipment Rental Industry is on Growth Trajectory

The medical equipment rental market will benefit throughout the five years leading up to 2022 as more healthcare providers adopt cost-cutting measures like renting rather than buying equipment. Particularly, many healthcare organizations have chosen to rent rather than buy medical gear that is subject to quick technological development. For instance, the need for rental equipment with shorter product life cycles is sparked by the fact that laboratory equipment, such as chemical immunoassay analysers, is routinely changed every three to five years. Some of the major players in the medical equipment rental industry include Hill-Rom Holdings Inc., Medline Industries Inc., Getinge AB, Agiliti Inc., and Universal Hospital Services Inc.
 

Challenging Period

However, by the end of 2022, the rental industry started to experience difficulties in terms of new equipment shortage and availability of labour force; these issues are expected to exacerbate in 2023. Rental companies are retaining older equipment that they would have probably sold when new machinery wasn't so hard to come by since OEM backlogs are expected to last until mid of 2023.
 

Rapid Market Resurgence After COVID-19

The market for renting construction and industrial equipment saw substantial increase in 2021 after a large drop in sales the year before. The market's revenue rose, rising from USD 36.06 billion in 2018 to USD 38.68 billion in 2021. The building and mining industries have proliferated across the country as a result of the increase in government expenditure in the development of public infrastructure.
 

Find Out More:- United States Equipment Rental Market Outlook 2028: Analysis of Construction, Industrial and Other Equipment by Market Share, Size, Growth Opportunities, and Competition
 

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