The Global Off-Highway Rental Equipment Market size was USD 107.53 billion in 2021 and it is expected to grow to USD 151.17 billion in 2030 with a CAGR of 4.56% in the 2022-2030 period.
Global Off-Highway Equipment Rental Market: Overview
Off-Highway equipment rental include the vehicles that are usually implement off-roading. The off-roading vehicles are categorized as – Large mining trucks, Small Agriculture machines, Backhoes, Excavators, Loaders, Crawling Dozers, Cranes, Forklift, and Others. Rising prices of Off-Highway Equipment has been a driving factor for the major market players to shift their focus from owning an equipment to renting one. Also, the increased government spending on the development of construction and mining activities in the emerging economies has resulted in the growth of the market. However, the construction industry undergoes slumps and recessions over a period of time and the growth of the construction industry is cyclical in nature. This serves as a restraining factor for the growth of the market. As far as market opportunities are concerned, the manufacturers are implementing advanced technologies that would enable the end user to operate this off-highway equipment through internet. The incorporation of IoT is a welcome step in order to bridge the gap between shortage of skilled operators, and the safety of the operators along with end users.
The global Off-highway rental equipment market is segmented into various sub types depending upon the product type, application, and mode of propulsion. Also, the market is segmented into five key regions such as – North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The growth and trend analysis over the forecast period are discussed here along with key players.
Key Insights
- As per the analysis done by our research analyst, the Global Off-Highway Rental Equipment Market is estimated to grow with a CAGR of 4.56% over the forecast period (2022-2030).
- In terms of revenue, the Global Off-highway rental equipment market size was valued at USD 107.53 billion in 2021 and is estimated to grow to around USD 151.17 billion in 2030.
- Due to various driving factors, the off-highway rental equipment market is predicted to grow at a significant rate. Government spending on construction & mining activities in emerging economies is the key reason for development.
- Based on the Product Type Segmentation, loaders dominated the market growth.
- Based on the Equipment Type Segmentation, Earthmovers segment dominated the market growth.
- Based on the propulsion system analysis, the Internal Combustion Engines dominated the market growth.
- By Regional Analysis, North America contributes revenue share in the market.
COVID-19 Impact:
COVID-19 has asserted a negative impact on the Off-Highway Rental Equipment Market. As there was problems regarding the supply chain domain worldwide, the market suffered a lot during the pandemic times. The suspension of obligations for the completion of ongoing construction projects also slowed the growth of the market. Sudden shutdown from the manufacturing sector also hampered the growth of the market.
Off-Highway Rental Equipment Market Dynamics:
Driving factors:
- Increased Adoption of Rental Equipment: Due to the high initial cost of such equipment, extra expenses incurred for their maintenance, lack of skilled operators & high wages of the operators served as the main reasons behind the major construction companies not opting for direct purchase of this equipment. Rather, they shifted their focus from purchasing to renting out.
Restraints:
- Economic Downturn: The growth of the construction industry is cyclical in nature. It is subjected to slumps and recessions over a period of time. This has restrained the healthy growth of the rental equipment market.
- Saturation in Construction & Mining Industry in Developed Countries: Saturation in Construction and Mining industries in developed nations also hindered the growth of the market.
Opportunities:
The manufacturers are implementing advanced technologies such as Internet of Things to easily operate this equipment as these require skilled operators. The high wages of operators can be overcome with the use of such advanced technologies. Further, use of telematics systems further eases the use by providing simple information like location of the equipment, fuel consumption and engine idle time etc.
Off-Highway Rental Equipment Market Scope:
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Attribute
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Details
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Market Size in 2021
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USD 107.53 billion
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Estimated Market Size in 2030
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USD 151.17 billion
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CAGR Growth Rate
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4.56%
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Base Year
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2021
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Forecast Years
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2022-2030.
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Major Regions Covered
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- North America
- Europe
- Asia Pacific
- Latin America
- The Middle East & Africa
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Companies Covered
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United Rentals, Inc., Loxam, Sunbelt, Taiyokenki Rental Co., Ltd., Caterpillar Inc., AKITO Corporation, Herc Rentals Inc., Ahern Rentals, H&E Equipment Services, Inc., Nikken Corporation, Nishio Rent All Co. Ltd.
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Report Coverage
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Revenue Forecast, Company Share, Competitive Landscape, Growth Factors, Restraints, Opportunities, Value Chain Analysis, Porter’s Five Forces Analysis, Patent Analysis, Market Attractiveness Analysis by Segments
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Off-Highway Rental Equipment Market: Segmentation
- Based on Product Types: Based on Product Types, the market is categorized into Backhoes and Excavators, Crawling dozers, cranes, forklifts, loaders and others. Among these, the loader product type has dominated the market share. Whereas the forklifts may register a significant growth during the forecast period.
- Based on Equipment Type: The market is classified into excavation & mining, concrete and road building, earthmoving, material handling, and others. Of these earthmovers, segment has registered a dominant position in the market. However, in the coming future, the construction and mining sector will experience significant growth.
- By Propulsion System: The Market is segmented into Internal Combustion Engines (ICE) and Electric. Of these, the ICE segment has dominated the market growth. In the near future Electric segment will lead the market.
Regional Insights:
The Off-Highway Rental Equipment Market can be differentiated into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. In terms of regional analysis, North America has dominated the market in terms of revenue however, due to increasing building, construction, and mining activities, the Asia Pacific region will lead the market in the forecast period. In 2021, North America will have a 45% market share.
Over the forecast period, the region is expected to maintain its dominance. The availability of project-specific technologically advanced machinery at a low cost is driving the growth of construction equipment companies in the region. United Rentals, Ahern Rentals, Ashtead Group, and other prominent construction equipment rental companies based in the United States have increased demand for enhanced rental services and solutions. Europe has also registered significant growth due to rebuilding activities. Latin America, the Middle East & Africa will also add a significant share because of development activities.
Competitive Analysis:
The Off-Highway Rental Equipment market is driven by United Rentals, Inc., Loxam, Sunbelt, Taiyokenki Rental Co., Ltd., Caterpillar Inc., AKITO Corporation, Herc Rentals Inc., Ahern Rentals, H&E Equipment Services, Inc., Nikken Corporation, Nishio Rent All Co. Ltd.
Recent Developments:
- November 2021: Herc Holdings acquired Rapid Equipment Rental Limited, a Toronto-based rental company.
- June 2020: H&E Equipment Services Inc., announced the relocation of its Georgetown-based unit to a Texas-based expanded unit.
- February 2020: Boels took over Cramo PLC to increase its customer base.
Global Off-Highway Rental Equipment Market: Segmentation
By Product Types
- Backhoes & Excavators
- Crawling Dozers
- Cranes
- Forklifts
- Loaders
- Others
By Equipment Type
- Excavation & Mining
- Concrete and Road Building
- Earthmoving
- Metal Handling
- Others
By Propulsion System
- Internal Combustion Engines (ICE)
- Electrical
Frequently Asked Questions (FAQs):
Which is the leading segment in the market?
Based on Product Type, Loaders are the leading segment in the market.
What are the key factors driving the market?
The growing number of government assistance in the field of infrastructure and development in emerging economies is the key driver of the market.
Which region will contribute notably towards the Off-Highway Rental Equipment Market growth?
North America contributes notably to the Off-Highway Rental Equipment Market.
What are the key players in Off-Highway Rental Equipment Market?
United Rentals, Inc., Loxam, Sunbelt, Taiyokenki Rental Co., Ltd., Caterpillar Inc., AKITO Corporation, Herc Rentals Inc., Ahern Rentals, H&E Equipment Services, Inc., Nikken Corporation, Nishio Rent All Co. Ltd.