North America Construction Equipment Rental Market Report 2023: A $58.49 Billion Market by 2029 - Tight Supply of New Construction Equipment and High Prices to Escalate Demand for Rentals
Research and Markets
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North American Construction Equipment Rental Market
North American Construction Equipment Rental Market
The North America construction equipment rental market is projected to reach a value of $58.49 billion by 2029 from $42.64 billion in 2022, growing at a CAGR of 4.6%
The earthmoving segment of the overall rental construction equipment accounted for the largest North America construction equipment rental market share in 2022. In the earthmoving segment, excavators accounted for the largest share in 2022.
The Toronto Waterfront Redevelopment project is North America's largest urban redevelopment project. It is anticipated that approximately 5 million square feet of commercial development and 30,000 residential units, including affordable housing, will be built in the West Don Lands, East Bayfront, and Lower Don Lands neighborhoods, and much more across the wider designated waterfront area.
The project will also include cultural facilities such as parks, public spaces, and amenities for new communities. Constriction of the Regal Plaza Corporate Centre includes USD 130 million, 35,650 square-foot mixed-use business complex located at 600 Dixon Road (at Martin Grove Road) in Toronto. The complex will also comprise an 11-story above-grade Staybridge Inn Hotel and a commercial center, with two new underground parking levels.
The construction of various infrastructure and residential projects in North America is expected to drive the demand for renting excavators in the North America construction equipment rental market. For instance, the Denver-based architect, Tres Birds, announced the development of the tallest mass timber building in 2022.
The Portal Bridge Enhancement Project, with a total value of USD 1.65 billion, involves constructing a 3.92 km, two-track, high-level, fixed-span railway bridge over the Hackensack River in New Jersey. The construction commenced in 2021 and is estimated to be completed in quarter four of 2026.
The project would replace the 111-year-old swing bridge, enabling marine traffic to sail underneath smoothly, and will improve service throughout the northeast corridor. This will boost the demand for rental road construction machinery in the North America construction equipment rental market.
MARKET TRENDS & DRIVERS
Investment in the Upgradation and Maintenance of Infrastructure Projects Is Expected to Support the North America Construction Equipment Rental Market
In November 2022, the Minister of Innovation, Science, and Industry in Canada announced an investment of USD 127 million to support the renovation and expansion of 8 biocontainment facilities across Canada.
Additionally, under the Investing Canada Plan, the government stated more than USD 180 billion in grants for public transit projects, green infrastructure, social infrastructure, and trade and transportation routes over 12 years.
Moreover, Quebec announced an expenditure of USD 75.6 billion in 2022 for the renovation and maintenance of infrastructure projects. The education sector has stated an investment of USD 7.2 billion to expand and refurbish higher education institutions and increase classroom space.
Additionally, Canada's focus on the 'Green Building Strategy' has significantly propelled the demand for rental construction equipment in the country. The Strategy aims to reduce emissions by 37% by 2030 and create a net-zero emissions building sector by 2050.
Tight Supply of New Construction Equipment and High Prices to Escalate the Demand for Rental Equipment
The regional supply disruptions have hampered the manufacturing of new equipment, leading to a surge in equipment prices and propelling the North America construction equipment rental market. The severe scarcity of chips used in equipment manufacturing has also added further pressure to the situation.
Moreover, it has been estimated that semiconductor chips will remain in short supply during 2023. Prices of new equipment, for instance, skid steer loaders, increased by 30% in the region. Aerial platform and earthmoving segments also witnessed considerable price jumps in 2022 due to inflationary pressures. Prices of large excavators were up by 12% in 2022 with low sales; for instance, John Deere excavator prices rose by 18% in Canada.
The Boom in Residential Construction to Propel the Demand for Rental Construction Equipment
In May 2022, the U.S. government released its Housing Supply Action Plan, which primarily focused on reducing the burden of housing costs over time and boosting the development of affordable and quality housing across the US. The Plan would also aid the renters with high rental costs by constructing housing for low- and middle-income families.
Integration of Digital Technologies in the Rental Fleet by the Rental Construction Equipment Companies
The North America construction equipment rental market focuses on digital technologies to enhance the customer experience. For Instance, United Rentals has invested significantly in developing productivity-enhancing integration tools, digital platforms, and cloud-based worksite management solutions.
Total Control, provided by United Rentals, is a cloud-based worksite management solution that supports customers in maximizing the utilization of their equipment fleet. The company also has a facility of Mobile Application through which customers can rent equipment smoothly, track their fleet through GPS technology, and browse the online equipment rental fleet portfolio with pricing. Customers can also place service and maintenance requests via the application.
INDUSTRY RESTRAINTS
A Rise in Mortgage Rates in the Region May Restrict the Demand for Residential Units
The Canada Mortgage and Housing Corp. (CMHC), in 2022, stated that approximately 3.5 million houses must be built by 2030 to tackle the housing gap. In Canada, in Nov 2022, single-family permits fell by 9%, and multi-family permits dropped by 2.6%.
Additionally, residential construction in the U.S. fell to its lowest in 2022 due to high mortgage rates and high prices of construction materials.
Skilled Labour Shortage to Hamper the Delivery of Construction Projects
According to the data published by Statistics Canada, the country recorded 81,500 labor shortages in the construction industry as of Q1 2022. Many construction companies were forced to postpone and cancel their construction projects due to a shortage of skilled workforce.
Environmental Regulations to Hamper the Demand for Large Rental Construction Equipment
The U.S. and Canadian governments, in 2021, committed to achieving net-zero emissions by 2050. The U.S. government's concern for air pollution is driving it towards taking more necessary steps. The country is following the Tier 4 emission standard and is expected to launch the Tier 5 emission standard by 2024.
The construction industry in the region is one of the largest contributors to CO2 emissions. Therefore, these regulations could hamper the demand for diesel-powered rental equipment in the North America construction equipment rental market. Demand for large rental equipment in North America would also decline as the construction companies are pushed to use compact and electric equipment on the constriction sites.
VENDOR LANDSCAPE
Liebherr, Caterpillar, Volvo Construction Equipment, Komatsu & Hitachi Construction Machinery are the industry leaders in the region. They have a strong market share, and these vendors offer diverse products in the North America construction equipment rental market.
The prominent key players in the North America construction equipment rental market include Caterpillar, Volvo Construction Equipment, Liebherr, Hitachi Construction Machinery, Komatsu, John Deere, Hyundai Construction Equipment, JCB & Kobelco.
Other prominent vendors are CNH Industrial, Liugong, Tadano, Terex, and JLG.
Key Attributes:
Report Attribute
Details
No. of Pages
143
Forecast Period
2022 - 2029
Estimated Market Value (USD) in 2022
$42648.3 Million
Forecasted Market Value (USD) by 2029
$58492.3 Million
Compound Annual Growth Rate
4.6%
Regions Covered
North America
Key Vendors
Caterpillar
Komatsu
Hitachi Construction Machinery
Volvo Construction Equipment
Liebherr
SANY
Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
Hyundai Construction Machinery
John Deere
Kobelco
JCB
Other Prominent Vendors
Terex Corporation
Liu Gong
CNH Industrial
Tadano
JLG
Rental Companies Profile
United Rentals, Inc.
Sunbelt Rentals
Herc Rentals
The Home Depot Rental
Warren CAT
Sunstate Equipment
H&E Equipment Services
Maxim Crane
Briggs Equipment
Uperio Group
Worldwide Machinery
Cooper Equipment Rentals Ltd.
NCSG
Toromont Industries Ltd.
Segmentation by Type
Earthmoving Equipment:
Excavator
Backhoe Loaders
Wheeled Loaders
Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
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