North America Construction Equipment Rental Market value was estimated to be over USD 43 billion in 2019 and is expected to grow at a CAGR of over 4.5% from 2020 to 2026.
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The North America market is anticipated to grow during the forecast period due to rising shift in trend toward rental equipment services in the U.S. and Canada. Construction companies prefer renting the construction equipment due to high purchase and maintenance cost associated with the new equipment. Furthermore, the presence of key players, such as Cooper Equipment Rentals Ltd, Hinkel Equipment Rental Associates, and Caterpillar Inc., in the region will propel the demand for equipment rental services, proliferating the market growth.
The market has been significantly impacted due to the prevailing situations of COVID-19. The manufacturing plants of various industries were shut down due to the pandemic. The manufacturing of automotive vehicles has been affected and the sales number also decreased because of the emergence of COVID-19 pandemic. The equipment rental services have been impacted due to the temporary slowdown in construction activities in the region. However, the market is expected to witness a steady growth subject to the revival of global economic conditions in 2021.
The growing number of immigrants in Canada is driving the growth of the regional construction industry. The growing number of construction activities are propelling the demand for construction equipment rental services in the country. The rapid increase in government spending on infrastructure development is supporting the market demand. For instance, the government of Canada allotted USD 81.2 billion to the Invest in Canada initiative. The initiative will focus on the development of commercial and public infrastructure to address the growing demand for residential infrastructure for immigrants in the country. This will accelerate the demand for the construction equipment rental services, propelling the market size.
Based on product, the North America market is segmented into earthmoving & road building equipment, material handling & cranes, and concrete equipment. The earthmoving & roadbuilding segment comprises construction equipment rental such as backhoes, loaders, excavators, and compaction machines. The loader market is expected to proliferate during the forecast period owing to its applications such as loading material in trucks, digging, and clearing rubble. The increasing adoption of loaders to move and lift heavy objects is contributing to the growing demand in the market. The bucket-like structure is attached to the loader, which is used to remove lose materials from the ground such as gravel, dirt, and sand. The ability of these machines to move materials from one place to another is also enhancing the market size.
Key players operating in the North America construction rental equipment industry are Ahern Rentals Inc., Briggs Equipment Inc., Caterpillar Inc., Cooper Equipment Rentals Ltd, H&E Equipment Services, Herc Rentals, Inc., Hinkel Equipment Rental Associates, and United Rentals, Inc. These players are majorly focusing on mergers and acquisitions to enhance their business operations and reach in the market. For instance, in July 2018, United Rentals acquired BakerCorp International Holdings, Inc. The acquisition was valued at USD 175 million. This assisted the company to cater to a wide range of customer groups and expand their construction equipment rental services. Similarly, in March 2019, Cooper Equipment Rentals Ltd. acquired Prime Rentals Ltd., which is an independent equipment rental company in Canada.