US Equipment Rental Market Grows Amidst Booming Construction Sector, Supporting Over 7.5 Million Jobs and Contributing 4.3% to GDP

The US Equipment Rental Market is witnessing significant growth, propelled by the continued strength of the construction sector. According to a recent report by Makreo Research, the equipment rental industry expanded at a CAGR of 3% from 2018 to 2022. This expansion, however, has been marked by fluctuations year-on-year, with the market seeing a surge in demand, particularly in 2021, and continued momentum into the first quarter of 2022.

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► Construction Industry Fuels Demand for Equipment Rentals
The driving force behind the growth of the US Equipment Rental Market is the rising construction activity nationwide. Contractors and developers are increasingly relying on rental solutions to meet their equipment needs. The market is divided into various sectors, including construction and industrial equipment, mining and forestry equipment, and transportation equipment, with construction holding the largest market share.

► Key Drivers of Growth in the US Equipment Rental Market
Several factors are contributing to the expansion of the US Construction Tools Rental Market:

• Infrastructure Investments: The passing of the USD 1.2 trillion Infrastructure Investment and Jobs Act (IIJA) has spurred public infrastructure projects across the country, including highways, bridges, and energy systems. This has led to a sharp increase in demand for heavy machinery. Rental firms have reported a 15% year-on-year increase in machinery demand tied to infrastructure projects alone.

• Cost Efficiency: High equipment purchase and maintenance costs have led construction companies to opt for rental services, reducing capital expenditures and allowing for better project execution. Data shows that 55% of U.S. construction companies now rely on rental equipment, a 20% increase over the past decade.

• Rising Housing Demand: Residential construction has seen a surge, with new home starts increasing by 7% in 2023. This rise in construction activity has boosted the demand for earthmoving equipment, concrete mixers, and other essential machinery, with residential construction accounting for 35% of the market's revenue.

• Building Maintenance and Refurbishment: As the building stock in the U.S. continues to grow, so does the demand for equipment used in maintenance and refurbishment projects. This trend is driving demand for rental equipment, particularly in urban and commercial settings.

► Strong Construction Sector Performance Continues to Boost Equipment Rentals
The performance of the construction sector remains a key indicator for the US Equipment Rental Market. In 2023, the total value of new commercial, highway, and public works construction reached USD 510 billion, reflecting a 6% increase from the previous year. The demand for equipment such as excavators, cranes, and forklifts has remained strong, with rental companies catering to both large-scale infrastructure projects and smaller urban developments.

As urbanization accelerates, particularly in metropolitan areas, the demand for compact equipment designed for use in urban settings has grown. Small to mid-sized construction firms are increasingly turning to rental options to maintain competitiveness in an environment characterized by rising material costs and tighter project timelines.

► The Rise of Sustainability and Technological Advancements in Equipment Rental
Sustainability is playing an ever-increasing role in shaping the US Industrial Tools Market. Many construction firms are actively seeking eco-friendly equipment that meets new environmental standards. Equipment rental companies are responding by expanding their fleets with electric and hybrid machinery. Recent reports show a 10% rise in the rental of sustainable equipment over the past year.

In addition, technological advancements, such as telematics and data-driven solutions, are being widely adopted in the construction industry. These technologies enable companies to track equipment usage, improve operational efficiency, and minimize downtime. The adoption of telematics is expected to grow by 8% annually, further benefiting rental companies that offer connected equipment solutions.

► Outlook for the US Equipment Rental Market
The US Equipment Rental Market is well-positioned for continued growth, with the construction sector acting as its primary driver. The demand for rental services is expected to rise as infrastructure and residential construction activities increase. According to Makreo Research, the market is projected to grow at a CAGR of 4% from 2023 to 2028, driven by rising demand for construction, demolition, and infrastructure projects.

► Industry Challenges and Resilience
The US Equipment Rental Market did experience setbacks in 2020 due to the COVID-19 pandemic, which caused industrial slowdowns and halted major construction projects. However, with the easing of restrictions, the market has rebounded and is now on a steady growth trajectory.

Challenges such as labor shortages, equipment shortages, and OEM backlogs are expected to persist into 2023. These factors have prompted rental companies to retain older equipment to meet demand, despite typically selling outdated machinery. Rental prices and sales are likely to increase as a result, ensuring that rental firms remain profitable, even as equipment utilization rates stabilize.

► Sector Contributions to Equipment Rental Market Growth
The US Construction Tools Rental Market is dominated by road-building activities, including earthmoving, which accounted for over 60% of the market's revenue in 2021. Earthmoving machinery such as backhoe loaders, skid-steer loaders, and excavators are in high demand due to their superior engine performance and load capacity, making them ideal for the toughest work environments.

In 2021, the construction or industrial sector represented more than 40% of the market share. As contractors and developers look to reduce organizational complexities and fleet sizes, the adoption of rental services is on the rise, providing a cost-effective alternative to equipment ownership.

Makreo Research has published a comprehensive study titled "United States Equipment Rental Market Outlook 2028: Analysis of Construction, Industrial and Other Equipment by Market Share, Size, Growth Opportunities, and Competition." This report provides an in-depth analysis of the US Equipment Rental Market, assessing both the pre- and post-COVID scenarios, and highlights opportunities for growth in the construction, industrial, and other sectors.

Related Reports:
- Global Demolition Equipment Market Report (2017-2027)
https://www.makreo.com/report/global-demolition-equipment-market-report-size-and-future-forecast

- North America Machine Tools Market Size and Forecast (2019-2028)
https://www.makreo.com/report/north-america-machine-tools-market-size-and-forecast-2019-2028

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Makreo Research is a leading market research and consulting firm based in India, specializing in Syndicated Research, Custom Research, Consulting, and Market Surveys. With expertise in navigating complex market dynamics, we empower businesses to achieve success. Our services span a wide range of industries and geographies, including North America, LATAM, Europe, Asia-Pacific, Oceania, MENA, and more.

This release was published on openPR.