Russia Construction Equipment Rental Market Overview, 2028

Russia Construction Equipment Rental Market Overview, 2028

Russian government's long-term plan for the home construction industry as well as investments in infrastructure projects is important factors supporting the country's economic revival. The heightened economic instability caused by invasion in Ukraine and inflation in Russia is predicted to drive up demand for construction equipment rental. The increasing economic uncertainty prevents construction companies and contractors from investing substantial sums of money in purchasing equipment for their projects. As a result, they prefer to hire construction equipment rather than buy new, strengthening the Russian construction equipment rental sector. Scaffolding Rental, Forklift Rental, Trencher Rental, Lift Rental, Scissor Lift Rental, Auger Rental, Mini-Excavator Rental, Excavator Rental, Sod Cutter Rental, Backhoe Rental, etc. are the top construction equipment rental used in Russia. Ditch Witch of Russia, Berinaprokat, Fort rent, etc. are the top agencies operating in Russian construction equipment rental market.

According to the research report, “Russia Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 0.67 Billion by 2028. Infrastructure enhancement projects in rural parts of the country, such as the restoration of commercial buildings, railway stations, and airports, the rehabilitation of runways, and roadway and bridge extensions, are fueling the strong demand for Russia's construction equipment rental business. Renting construction equipment has the advantage of avoiding high capital costs, expensive construction equipment maintenance, and a shortage of current, technologically equipped construction equipment. DHL, the world's top contract logistics service, intends to build a 400,000-square-meter carbon-neutral warehouse in major European markets, including Russia, in 2022.

Russia has 143.4 million people. The majority of the population, 49.80 million people, is between the ages of 18 and 44. Inhabitants dwell in metropolitan areas, whereas rural areas have 35.85 million people. Russia's GDP in 2021, according to the World Bank, will be $1.78 trillion USD, with an inflation rate of 6.7% and a per capita income of USD 12,172.8. Indicator values climbed by 0.5% year over year in 2021 and there were 58.5 million households in Russia, demonstrating the astounding growth rate of the country's housing market. The market for equipment rentals expands in tandem with the housing sector and other sectors too. Housing construction continues to be one of the most important segments of the Russian construction market, influencing both linked businesses and the general macroeconomic situation, including GDP dynamics and labour market indicators. Because of the population's stagnant real income in recent years, affordable mortgages boosted house demand. State programmes that began in 2018 targeted certain populations, but owing to the pandemic in 2020, they were included in a broader anti-crisis package to stimulate the economy, and extraordinary efforts to promote building were implemented. Thus, the construction equipment rental market grows at a steady rate.

Russian government infrastructure development projects
The Russian government has set aside $1.78 billion for the construction of new motorway linkages. The most significant of these projects will be the construction of the new M12 highway, which will connect Moscow with Kazan and pass via Nizhny Novgorod. Other significant projects include additional parts of the M4 Don highway, a 51-kilometer bypass around Krasnodar, and a 67-kilometer bypass around Aksaya. Work on the $266.5 million bypass around Novorossiysk will begin in 2022 and is expected to be completed by 2023.

Furthermore, the Russian government is working on transportation infrastructure upgrading. RUB 6.3 trillion was granted as part of a comprehensive plan to upgrade the country's roadways, airports, railways, ports, and other transportation facilities. Furthermore, the Russian government has allotted RUB 4.8 trillion (USD 66.6 billion) to the Safe and High-Quality Highways initiative. These initiatives strengthen regional road connections in Russia.

However, the government intends to build 6,835 miles (11,000 kilometres) of new train tracks by 2030, connecting the cities of Moscow, St. Petersburg, Samara, Krasnodar, and Novosibirsk. Furthermore, the Russian railway network is seeing a surge in construction activity under the direction of the rail monopoly RZD (Russian Railways). In 2020, RZD was constructing 12,427 miles (20,000 kilometres) of new lines, which were expected to be completed by 2030 at a cost of more than USD 61 billion.

As a result of the increased construction activity by the Russian government and private sector, the market for construction equipment rental has significant potential. As the cost of equipment drops and the company's profitability rises, corporations prefer to rent rather than buy.

Covid-19 Impact
The spread of COVID-19 contributed to the decline of the Russia Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries.

Considered in this report
• Geography: Russia
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Russia Construction Equipment Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment type
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application type
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.