Machinery Rental And Leasing Market Size
| Study Period | 2019-2028 |
| Market Size (2023) | USD 123.07 Billion |
| Market Size (2028) | USD 158.35 Billion |
| CAGR (2023 - 2028) | 5.17 % |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Machinery Rental And Leasing Market Analysis
The Machinery Rental And Leasing Market size is expected to grow from USD 123.07 billion in 2023 to USD 158.35 billion by 2028, at a CAGR of 5.17% during the forecast period (2023-2028).
The COVID-19 pandemic hindered the growth of the global machinery and equipment market due to the shutdown of manufacturing facilities and the halt of investments in the infrastructure sector. However, as economic activities resumed post-pandemic, the market is expected to gain momentum during the forecast period.
The increasing focus on infrastructure and the development of automation in the construction and manufacturing processes significantly impacted market growth. The road construction machinery rental market witnessed significant growth recently, owing to the increased road development programs undertaken by the central and state governments, especially in Asia-Pacific.
The demand for cost-effective machines, coupled with regulatory pressures for lower emissions, is pressuring construction equipment manufacturers to opt for electric and hybrid vehicles over the traditional hydraulic and mechanical ones.
The renting or leasing of equipment has been on the rise, owing to the equipment's cost and the cost of the maintenance process. Apart from the cost, other benefits are associated with renting the equipment. Rental companies provide the machinery, with the required professional operator and driver included in the rent.
The construction industry is getting smarter. Digitalization, connectivity, and automation are driving development forward, substantially impacting construction projects. Moreover, rental companies are gearing up to invest in new technologies to cope with the growing demand for advanced construction machinery and replace the older ones with new or upgraded fleets.
Machinery Rental And Leasing Market Trends
Rising Growth of Heavy Construction Equipment Rental Market
Heavy Equipment Rental refers to a location where huge pieces of machinery or large vehicles, typically related to construction, can be stored and retrieved for public use and may also feature extra and related retail activities. The heavy construction equipment rental market is classified into equipment, end users, and applications. By equipment, the market is classified into earthmoving equipment, material handling equipment, heavy construction vehicles, and others. Based on equipment, earthmoving equipment dominated the market in terms of revenue, whereas the others are expected to witness growth in the forecasted period. As per the end user, the construction segment led the heavy construction equipment rental market. However, other segments are expected to exhibit the highest growth.
Furthermore, large construction projects worldwide are expected to drive the crane and construction machinery rental market. Europe is planning various construction projects. Due to the construction projects, Germany, France, and Italy witnessed the highest growth rates.
Asia-Pacific is Expected to Dominate The Machinery Rental And Leasing Market
Asia-Pacific is one of the largest markets that has perceived a boom in infrastructural and construction development because of the increasing emphasis by governments on developing infrastructure for a sustainable economy. This region experienced growth in Special Economic Zones (SEZs), hydroelectric projects, dams, highway construction, metro construction, airports, etc., to sustain high-level industrial activities, growing energy demand, and better connectivity. As a result, several international players have started to invest. They are setting up regional distribution centers and manufacturing facilities to meet the mounting demand and capture the regional market. Construction machinery manufacturers, such as Sumitomo Corporation, Hitachi, Caterpillar, and Liebherr, offer rental services that face powerful competition from several regional and domestic players due to their competitive pricing and technologically advanced equipment availability.
However, during the COVID-19 pandemic, critical government construction projects, such as key utilities, hospital builds, and infrastructure, sustained work but at a slower pace with a smaller labor force at the job site to avoid the spread of COVID-19. Therefore, in 2020, the value of the construction equipment rental market fell owing to a fall in global economic growth, which, in turn, led to a slowdown in construction work timelines.
The construction contractors and equipment rental companies have gradually started to continue their construction works as governments have begun giving approvals for commercial construction projects across the cities in many countries, like China, the United Kingdom, India, and the United States. To ramp up the efficiency of work and decrease the maintenance cost of the machinery, equipment rental software solutions provide a base for construction machinery rental companies. Most international companies have begun using these software solutions to track operation efficiency, parts replacement cycles, and precise working hours.
Machinery Rental And Leasing Industry Overview
The machinery rental and leasing market is characterized by numerous international and regional players, resulting in a highly competitive market environment. Apart from the top players, small-scale or domestic players account for a significant market share. Some of the major companies that dominated the market studied are General Electric Company, United Rentals Inc., Tokyo Century Corporation, Berkshire Hathaway Inc., Ashtead Group plc, AerCap Holdings N.V., Fuyo General Lease Co., Ltd., NetJets, Nissan Motor Co., Ltd., and Air Lease Corporation, which captured a major share of the market.
Machinery Rental And Leasing Market Leaders
General Electric Company
United Rentals Inc.
Berkshire Hathaway Inc.
Ashtead Group PLC
Tokyo Century Corporation.
*Disclaimer: Major Players sorted in no particular order
Machinery Rental And Leasing Market News
- November 2022: United Rentals, Inc. announced that the company entered into a definitive agreement to acquire the assets of family-owned Ahern Rentals, Inc., as the equipment rental firm looked to expand its U.S. presence.
- November 2022: GE Renewable Energy announced that it selected Mammoet UK, based in Thornaby, Teesside, to supply onshore heavy lifting and transport for the staging and assembly of turbine components for the Dogger Bank Wind Farm.
- May 2022: Case Construction Equipment launched its new D-Series mini excavators for the European market. The line comprises 20 models, including two zero-emission electric machines. D-Series machines can be used with the Case SiteWitch fleet management tool by customers managing large equipment fleets, such as those in the rental industry.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Surge in Awareness About the Benefits of Leasing
4.2.2 Shift in Trends Towards Rental
4.3 Market Restraints
4.3.1 Labor Shortage may obstruct the market growth
4.3.2 The economic downturn in the equipment leasing sector will impede market expansion
4.4 Market Opportunities
4.4.1 Low Rental Penetration in Emerging Nations
4.4.2 Rise in the adoption of management software, and innovations in mobility technologies act as an opportunity for the market investments.
4.5 Insights on impact of technology in the Market
4.6 Industry Value Chain Analysis
4.7 Industry Attractiveness - Porters's Five Forces Analysis
4.7.1 Bargaining Power of Buyers/Consumers
4.7.2 Bargaining Power of Suppliers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes
4.7.5 Intensity of Competitive Rivalry
5. THE IMPACT OF COVID-19 ON THE MARKET
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Mining
6.1.2 Oil and Gas
6.1.3 Forestry Machinery and Equipment Rental
6.1.4 Commercial Air
6.1.5 Rail
6.1.6 Water Transportation Equipment Rental
6.1.7 Heavy Construction Machinery Rental
6.1.8 Office Machinery and Equipment Rental
6.1.9 Other Commercial and Industrial Machinery and Equipment Rental
6.2 By Mode
6.2.1 Online
6.2.2 Offline
6.3 By Region
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.1.3 Mexico
6.3.1.4 Rest of North America
6.3.2 Europe
6.3.2.1 Germany
6.3.2.2 United Kingdom
6.3.2.3 France
6.3.2.4 Russia
6.3.2.5 Spain
6.3.2.6 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 India
6.3.3.2 China
6.3.3.3 Japan
6.3.3.4 South Korea
6.3.3.5 Rest of Asia-Pacific
6.3.4 South America
6.3.4.1 Brazil
6.3.4.2 Argentina
6.3.5 Middle East
6.3.5.1 United Arab Emirates
6.3.5.2 Saudi Arabia
6.3.5.3 Rest of Middle East
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 General Electric Company
7.2.2 United Rentals Inc.
7.2.3 Berkshire Hathaway Inc.
7.2.4 Ashtead Group PLC
7.2.5 Tokyo Century Corporation.
7.2.6 AerCap Holdings N.V.
7.2.7 Fuyo General Lease Co., Ltd.
7.2.8 NetJets
7.2.9 Nissan Motor Co Ltd.
7.2.10 Loxam Group
7.2.11 Case Construction Equipment
7.2.12 Air Lease Corporation*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. DISCLAIMER AND ABOUT US
Machinery Rental And Leasing Industry Segmentation
The machinery rental and leasing market covers the latest equipment rental and leasing demand trends, technological development, government policies, manufacturer developments, etc. The report covers a complete background analysis of the market. It includes an assessment of the market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. Machinery rental and leasing markets are segmented by type (mining, oil and gas, forestry machinery and equipment rentals, commercial air, rail, and water transportation equipment rentals, heavy construction machinery rentals, office machinery and equipment rentals, and other commercial and industrial machinery and equipment rentals), by mode (offline, online), and by region (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). The report offers market size and forecasts for the machinery rental and leasing market in value (USD billion) for all the above segments.
| By Type | |
| Mining | |
| Oil and Gas | |
| Forestry Machinery and Equipment Rental | |
| Commercial Air | |
| Rail | |
| Water Transportation Equipment Rental | |
| Heavy Construction Machinery Rental | |
| Office Machinery and Equipment Rental | |
| Other Commercial and Industrial Machinery and Equipment Rental |
| By Mode | |
| Online | |
| Offline |
| By Region | ||||||||
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Frequently Asked Questions
How big is the Machinery Rental And Leasing Market?
The Machinery Rental And Leasing Market size is expected to reach USD 123.07 billion in 2023 and grow at a CAGR of 5.17% to reach USD 158.35 billion by 2028.
What is the current Machinery Rental And Leasing Market size?
In 2023, the Machinery Rental And Leasing Market size is expected to reach USD 123.07 billion.
Who are the key players in Machinery Rental And Leasing Market?
General Electric Company, United Rentals Inc., Berkshire Hathaway Inc., Ashtead Group PLC and Tokyo Century Corporation. are the major companies operating in the Machinery Rental And Leasing Market.
Which region has the biggest share in Machinery Rental And Leasing Market?
In 20221, the Asia-Pacific accounts for the largest market share in Machinery Rental And Leasing Market.
Machinery Rental And Leasing Industry Report
Statistics for the 2023 Machinery Rental And Leasing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Machinery Rental And Leasing analysis includes a market forecast outlook to for 2023 to 2028) and historical overview. Get a sample of this industry analysis as a free report PDF download.
