Construction Equipment Rental Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 – 2034

Construction Equipment Rental Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025 – 2034

The Global Construction Equipment Rental Market was valued at USD 147.4 billion in 2024 and is projected to grow at a CAGR of 6.2% from 2025 to 2034. The high cost of purchasing construction machinery is driving contractors to opt for rental and hiring services as a more economical and practical solution. Equipment such as earth-moving, road-building, and material-handling machines come with significant price tags, making rentals an attractive alternative. This shift is further supported by operator training programs aimed at improving workplace safety, which many rental providers offer as part of their services.

Rising labor costs and workforce shortages in regions like the U.S. and Germany are adding to the financial burden of machinery ownership. Manufacturers have been increasing equipment prices to sustain profitability, making outright purchases less feasible for private construction firms. Innovations in machinery, including automated handling, telematics, and driving assistance, further escalate costs, leading firms to prioritize renting over buying. 

Global demand for advanced construction equipment rentals is on the rise due to the benefits of improved performance and faster operations. Rental companies are increasingly integrating cutting-edge technologies like telematics, which combines telecommunications and informatics to enable real-time machine tracking. Features such as GPS integration and cloud-based connectivity enhance operational efficiency and safety, making these options highly appealing to contractors.

In 2024, the backhoes segment accounted for 50% share and is projected to generate USD 76.3 billion by 2034. This growth is fueled by rapid developments in road construction and public infrastructure projects. The mechanization of infrastructure development to achieve higher quality is driving demand for earth-moving and road-building equipment rentals. Similarly, excavators are witnessing strong growth due to rising residential construction activities, offering significant opportunities within the rental market.

The material handling and cranes category includes storage and handling equipment, engineered systems, industrial trucks, and bulk material handling equipment. Bulk material handling equipment, which held a 45% share in 2024, is seeing increasing demand due to its role in expediting large-scale infrastructure projects. The trend toward constructing large commercial buildings and skyscrapers boosts the adoption of material handling rentals.

North America led the global market in 2024, with 35% of the share. The U.S. drives regional growth due to a surge in construction activities and the presence of major rental providers. Additionally, growing tourism-related infrastructure development in Canada further supports market expansion.