Asia Pacific Construction Equipment Rental Market size exceeded 30 billion in 2019 and is anticipated to witness over 6% CAGR from 2020 to 2026.
The APAC industry growth is owing to the rapid developments in the construction sector in the region. The construction industry in India, China, and other Asia Pacific countries is experiencing rapid development owing to the growing construction and infrastructure transformation projects across all industry verticals. Some major projects ongoing in the Indian construction industry include Pune Metro Rail, Navi Mumbai International Airport, Delhi Mumbai Industrial Corridor, Charanka Solar Park, and Chenab River Railway Bridge. All these factors along with the need for efficient construction machines at lower costs in such small and big infrastructural projects are creating growth opportunities for the market.
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The APAC construction equipment rental industry has been significantly impacted due to the spread of COVID-19. The pandemic has resulted into economic disruption and financial insecurities across various countries in the region. The construction industry witnessed a massive setback owing to lockdown restrictions in the first two quarters of 2021. However, with the gradual leniency in quarantine restrictions, construction equipment rental is witnessing a growing demand, attributed to the rising inclination of construction contractors toward renting equipment instead of investing in expensive new equipment.
APAC Market, By Product
The material handling and crane segment will witness a significant growth during the forecast timeline on account of the increasing demand from the e-commerce sector across the globe. As per the data published by United Nations Conference on Trade and Development (UNCTAD), in 2018, the B2B e-commerce industry sales in China were USD 2,304 billion and USD 3,280 billion in Japan. The increasing adoption of material handling equipment in freight transport applications will drive the segment growth.
Competitive Industry Landscape
Key players operating in the Asia Pacific market are Caterpillar Inc., United Rentals, Inc., Herc Rentals, Kanamoto Co. Ltd., Mahindra & Mahindra Ltd, and Hitachi Group. These players emphasize on enhancing their business operations and reach in the market. For instance, in November 2018, Kanamoto Co. Ltd. and JP Nelson Equipment established their joint subsidiary and began operations in Malaysia. This aided the company to enhance its customer base in South East Asia.