Innovation and growth in construction methodologies are pushing need for high-end, AI-led equipment
The global construction equipment rental market is forecast to be worth US $225bn annually by 2032, with a projected CAGR of 4% for the period 2023-2032, according to a report by Global Market Insights.
The market growth is mainly driven by the rising demand for tech innovations in construction equipment, implementing the latest smart technologies such as the Internet of Things (IoT) compatibility, artificial intelligence and machine learning, and the growth of telematics and remote operating.
Typically, rental specialists in this industry lease out or rent construction equipment such as cranes, scaffolding, crane lorries, MEWPs, graders, bulldozers and excavators to carry out a host of building activities. Moreover, the market’s key providers are more frequently engaging in strategic initiatives such as partnerships, mergers and acquisitions, R&D investments, and new product launches to gain a competitive edge in the industry.
In December 2022, Magna Tyres introduced three new mining sizes and in mid March 2023, it was revealed that excavators are in high demand ahead of a Ritchie Bros. auction in Dubai.
For instance, in January 2023, Al Faris Group recently extended its portfolio with addition of 24 Liebherr heavy-duty mobile cranes to its fleet, said the report. The delivery includes a range of models with lifting capacities from 110 to 700 tonnes, including four LTM 1500-8.1s with a lifting capacity of 500 tonnes.
Overall, the construction equipment rental market is very much segmented in terms of product and region. Based on product, the concrete equipment segment, for example, is expected to achieve over 5% CAGR between 2023-2032. This growth is being driven by changing production requirements in the sector: modern concrete producers are using cutting-edge technologies to eliminate raw material waste and reduce the need for costly storage space.
Moreover, a rising preference for high-capacity, innovative batching plants – taking advantage of incremental scale – will also drive demand, the report outlined.