United States Equipment Rental Market Outlook 2028

United States Equipment Rental Market Outlook 2028

Executive Summary

The United States Equipment Rental Market is growing due to the expansion of the construction and Industrial sector. There has been a significant increase in the number of people using rental services as contractors and dealers choose to do so in order to reduce the size of their fleets and the complexity of their organisations, which could otherwise affect activities like asset disposals, logistics, maintenance, and procurement. The acceptance rate of rental services is increasing as there are more infrastructure projects underway, which is propelling the expansion of the equipment rental market in the United States.

Due to the COVID-19 pandemic breakout and the subsequent lockdown, which limited industrial operations and halted significant economic activities, the market experienced a downturn in 2020. The lifting of the restrictions did, however, relieve market circumstances and steady market growth.

Moreover, the growing acceptance and popularity of RTA furniture in the US is what fuels the DIY movement. In the US, ready-to-assemble (RTA) furniture with cutting-edge designs is becoming more and more popular. Key vendors have been forced to produce custom-designed RTA furniture for individualized interiors due to the growing trend of customization. As a result, they have been able to draw in more DIY customers, which has increased sales. People are strongly demanding rented equipment as a result of the variety of options offered by market.

However, by the end of 2022, the rental business began to face challenges related to a lack of new equipment and a labour shortage; these problems are anticipated to worsen in 2023. Since OEM backlogs are anticipated to extend until mid-2023, rental companies are holding onto older equipment that they would have likely sold when new equipment wasn't so hard to come by.

The rental market is currently predicted to stay stable, with increased sales and rental prices translating into more revenue when combined with stable utilisation rates. Rental firms may boost their income by having larger fleets, but they might not be able to raise rental rates as much, and utilisation would also decline.

Contribution by Construction Equipment Rental

The US Equipment Rental Market by 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 usage 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 organisational complexity, which could otherwise have an impact on activities like asset disposals, logistics, maintenance, and procurement.

Makreo research has published study on 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 have combined the impact of macroeconomic and micro economic scenario. The market has witnessed many shifts in recent past after the COVID-19 outburst that given a suggest push in the market therefore, we have studied the impact of pre-COVID and post-COVID scenario. Future outlook has been assessed keeping various influencing factors into consideration and also to assess the expected opportunities in the market.

Segmentation Covered:

• By Sectors: Construction or Industrial, Construction, mining, and forestry equipment, Transportation Equipment and Others.
• By Construction Equipment Rental: Road Building including Earth Moving, Concrete Mixing and Others, and Material Handing

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?