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

Overview

Executive Summary

The United States Equipment Rental Market is experiencing significant growth, largely driven by the expansion of the construction and industrial sectors. A notable increase in the adoption of rental services is observed as contractors and dealers opt to reduce the size of their fleets and simplify their organizations. This shift helps mitigate asset disposals, logistics, maintenance, and procurement challenges. As infrastructure projects proliferate, the US Equipment Rental Market is being propelled forward by this rising acceptance of rental services.

The equipment rental market in the US faced a downturn in 2020 due to the COVID-19 pandemic and the subsequent lockdown, which limited industrial operations and halted major economic activities. However, with restrictions easing, the market has stabilized and is on a growth trajectory.

Additionally, the surge in popularity of ready-to-assemble (RTA) furniture in the US has fueled the DIY movement. The demand for innovative RTA furniture designs has led key vendors to create custom-designed options for personalized interiors. This trend has attracted a growing number of DIY enthusiasts, further driving the need for rented equipment as they explore various market offerings.

By the end of 2022, the US Equipment Rental Market began to encounter challenges such as a shortage of new equipment and labor shortages. These issues are expected to persist into 2023, exacerbated by OEM backlogs that are likely to extend until mid-2023. Rental companies are thus holding onto older equipment that would have been sold under normal circumstances.

Despite these challenges, the rental market is projected to remain stable. Increased sales and rental prices are likely to contribute to higher revenue, even as utilization rates stabilize. Rental firms might expand their fleets to boost income, though they may face limitations in raising rental rates and a potential decline in utilization rates.

Contribution by Construction Equipment Rental Market in US
The US Equipment Rental Market construction equipment rental was dominated by road building, including earth moving in 2021, with a revenue share of over 60%. The mining, agricultural, and construction industries' expanding use of earthmoving excavators considerably contributes to segment growth. Backhoe loaders, crawler excavators, skid-steer loaders, and micro excavators are examples of various earthmoving machinery that have higher load capacities and superior engine performance. These characteristics of earthmoving machinery make them suited for use in challenging working conditions.

Contribution by Sectors
Construction or Industrial Market accounts for the major market share of more than 40% in 2021. The growth of the construction and Industrial sectors in the US 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.

Makreo Research has published a study on the equipment rental market titled “United States Equipment Rental Market Outlook 2028: Analysis of Construction, Industrial and Other Equipment by Market Share, Size, Growth Opportunities, and Competition”. Market assessment has been carried out using qualitative and quantitative methods and has combined the impact of macroeconomic and microeconomic scenarios. The market has witnessed many shifts in the recent past after the COVID-19 outburst, which has given the market a suggestive push; therefore, we have studied the impact of the pre-COVID and post-COVID scenario. The future outlook has been assessed, taking various influencing factors into consideration and also to assess the expected opportunities in the market.

Period of Study:

• Historical Period: 2017-2020
• Base Period: 2021
• Future Forecast Period: 2022-2028

Segmentation Covered:

• By Sectors
  • Construction
  • Industrial
  • Construction
  • Mining
  • Forestry equipment
  • Transportation Equipment
  • Others
• By Construction Equipment Rental
  • Road Building including Earth Moving
  • Concrete Mixing
  • Material Handing
  • Others

Company’s Assessed 

• The Home Depot
• United Rentals
• Ashtead Group (Sunbelt Rentals)
• Herc Holdings
• H&E Equipment Services

Key Questions Answered

• How Equipment rental market is coping up with the economy set back led by COVID-19?
• At what rate Equipment Rental market revenue grew in the past and what is the present state of the industry?
• What are the major driving factors accounted for a push to the industry in the past?
• What is the expected future of the US Equipment Rental market?
• Who are the major players operating in the Equipment Rental market and how these players are contributing to the industry?
• Which industry plays a dominant role in terms of generating maximum demand for Equipment Rental in the US?
• Identify the major challenges present in US Equipment Rental market?
• How the United States economy has performed in the past and what is the future expected growth outlook?