Construction Equipment Rental Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Equipment Type (Earth Moving Machinery, Material Handling Machinery, General Equipment), By Product Type (Excavator, Cranes, Backhoe, Trucks, Others), By Application Type (Residential, Road Transport, Energy Infrastructure, Mining, Others), By Drive Type (IC Engine, Hybrid Drive), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 213.29 Billion
CAGR (2026-2031)	6.11%
Fastest Growing Segment	Earth Moving Machinery
Largest Market	North America
Market Size (2031)	USD 304.44 Billion

Market Overview

The Global Construction Equipment Rental Market will grow from USD 213.29 Billion in 2025 to USD 304.44 Billion by 2031 at a 6.11% CAGR. Construction equipment rental services involve the temporary leasing of heavy machinery and specialized tools to contractors, enabling project execution without the substantial capital burden of asset ownership. The market is fundamentally driven by the financial flexibility it affords, allowing firms to shift from capital expenditure to operational expense while avoiding costs related to depreciation, storage, and maintenance. Additionally, the capacity to adjust fleet size based on immediate project requirements supports the widespread adoption of rental models over direct purchasing.

According to the American Rental Association, in 2025, the United States construction and general tool rental industry was projected to accrue $87.5 billion in revenue. Despite such growth, the sector encounters a significant challenge regarding the shortage of skilled labor, specifically qualified technicians required to maintain increasingly complex fleets. This workforce scarcity restricts the operational capacity of rental providers and could impede their ability to service growing infrastructure demands effectively.

Key Market Drivers

The surge in global infrastructure investments and smart city projects serves as a primary catalyst for market expansion, as contractors increasingly rely on rental solutions to meet the scale of massive developments. Large-scale initiatives, particularly in the data center, semiconductor, and energy sectors, require vast and varied fleets that are financially impractical for construction firms to purchase outright. This trend is amplified by the emergence of "mega projects," which necessitate the rapid mobilization of heavy machinery without the long-term capital risks associated with ownership. According to Ashtead Group, in July 2025, in the 'Annual Report & Accounts 2025', the pipeline for these robust mega projects in North America was projected to grow to more than $1.3 trillion between fiscal years 2026 and 2028.

Concurrently, the increasing demand for specialized equipment in short-term projects is reshaping fleet compositions, as operators shift focus from generic earthmoving tools to complex, solution-based machinery. Contractors now prefer renting niche assets—such as trench safety gear, fluid management systems, and portable power generation—to ensure operational efficiency without incurring maintenance costs for assets with sporadic utilization rates. This strategic pivot is evident in the revenue streams of major industry leaders; according to United Rentals, in May 2025, the company's specialty segment had expanded to account for roughly 33 percent of its total annual revenues. On a broader scale, this reliance on rental models for both general and specialized tools continues to sustain market value. According to the European Rental Association, in October 2025, the European equipment rental market turnover was forecast to reach €33.9 billion for the year.

Download Free Sample Report

Key Market Challenges

The shortage of skilled labor, particularly qualified maintenance technicians, presents a critical bottleneck for the global construction equipment rental market. As rental fleets expand and incorporate more advanced technology, the requirement for specialized maintenance increases proportionally. Without a sufficient workforce to perform timely diagnostics, repairs, and preventative upkeep, rental providers experience extended equipment downtime. This inability to turn around assets quickly reduces fleet utilization rates, directly eroding revenue potential and return on investment. Furthermore, maintenance backlogs prevent rental companies from maximizing their capital assets, forcing them to leave demand unfulfilled simply because equipment is not managing to clear the service bay.

This workforce deficit also imposes significant financial pressure through increased competition for available talent. Rental providers are compelled to raise wages to attract and retain limited technical staff, which squeezes operational margins. The severity of this labor environment is evident in recent data reflecting the broader heavy equipment and construction ecosystem. According to the Associated General Contractors of America, in 2025, 92 percent of construction firms reported difficulty finding qualified workers to hire. This pervasive skills gap not only hampers immediate operational efficiency but also restricts the long-term scalability of rental firms, as their ability to service growing infrastructure demands is fundamentally capped by the availability of human capital to maintain the fleet.

Key Market Trends

The rapid electrification of construction rental fleets is becoming a defining market trend as providers aggressively decarbonize inventories to align with stringent environmental regulations and client sustainability goals. Companies are prioritizing the acquisition of battery-electric and hybrid machinery to offer zero-emission solutions for urban projects where noise and pollution restrictions are tightening. This strategic shift is quantifiable in the operational results of leading industry players who are actively replacing diesel assets. According to Loxam, June 2025, in the '2024 CSR Report', the company's carbon footprint in 2024 stood at 817,000 tons of CO2 equivalent, a reduction of more than 15 percent over the previous five years, driven largely by the systematic integration of low-emission equipment into its global rental fleet.

Simultaneously, the integration of telematics and IoT for real-time fleet management is reshaping how assets are utilized and maintained across dispersed jobsites. Rental providers are deploying connectivity solutions to capture granular data on equipment health, location, and usage patterns, thereby maximizing uptime and enabling predictive operational adjustments. This digital transformation is evidenced by the surging volume of data traffic and subscription growth within the connectivity sector. According to Trackunit, March 2025, in the 'Annual Report 2024', the company processed over two billion data points daily from more than 3 million connected assets, while its annual recurring revenue from software subscriptions rose by 17 percent to DKK 812.6 million, reflecting the industry's deepening reliance on data-driven decision-making.

Segmental Insights

The Earth Moving Machinery segment currently stands as the fastest-growing category within the Global Construction Equipment Rental Market, driven by the expanding scope of global residential and commercial infrastructure projects. Contractors increasingly favor renting heavy equipment, such as excavators and loaders, to mitigate the high capital acquisition costs and depreciation risks associated with direct ownership. This trend is reinforced by substantial public sector investment in road networks and urban utilities, which necessitates frequent access to excavation machinery. Consequently, the financial flexibility offered by rental models continues to propel the adoption of earth moving equipment among construction companies worldwide.

Regional Insights

North America maintains a dominant standing in the Global Construction Equipment Rental Market, primarily driven by robust activity in the United States. Federal initiatives, such as the Bipartisan Infrastructure Law, have catalyzed large-scale civil projects, sustaining demand for heavy machinery. Furthermore, industry data from the American Rental Association indicates a structural shift where contractors prefer renting over owning to reduce capital expenditures and maintenance liabilities. This strong preference for operational flexibility, coupled with the presence of well-established rental corporations, solidifies North America’s status as the preeminent region in the global sector.

Recent Developments

• In October 2024, Kiloutou launched "iMPAKT City," a specialized showroom dedicated entirely to low-carbon construction equipment in Denmark. This new facility was designed to showcase the company's sustainable rental solutions and support the construction sector's transition toward reduced emissions. The initiative highlighted the company's commitment to corporate social responsibility and innovation in the equipment rental market. By providing a dedicated space for green technologies, the company aimed to demonstrate the practical application and benefits of electric and low-emission machinery to its customers, reinforcing its position as a leader in sustainable equipment rental services and highlighting the potential for carbon-free worksites.
• In July 2024, Sunbelt Rentals UK and Ireland signed a multi-year preferred supplier agreement with Mitie, a leading facilities transformation company. The partnership established the equipment rental firm as the sole provider of plant and tool hire equipment across the partner's entire business operations. This collaboration was intended to streamline procurement processes and enhance operational efficiency through a simplified ordering system for the facilities management sector. The agreement also marked a significant step in the company's new five-year growth strategy, focusing on prioritizing and elevating customer support. Both organizations emphasized their shared commitment to sustainability and delivering social value in the communities they serve.
• In March 2024, United Rentals, Inc. completed the acquisition of Yak Access, LLC and its affiliates for approximately $1.1 billion in cash. This strategic transaction allowed the company to launch a new "Matting Solutions" business, diversifying its specialty offerings with a comprehensive fleet of ground protection and temporary roadway mats. The acquisition added a significant portfolio of hardwood, softwood, and composite mats to the company's assets, catering primarily to customers in the utility and midstream sectors. The executive leadership highlighted that this move would create a new adjacency with scale in a growing market segment, further supporting the company's long-term growth strategy and one-stop-shop value proposition.
• In March 2024, Boels Rental announced the acquisition of Riwal, a specialized rental company focused on aerial work platforms. This significant expansion added approximately €314 million in annual revenue and 65 branches across 14 countries to the company's network. The deal included a specialized fleet of around 20,000 machines, bringing the combined entity's aerial platform fleet to over 55,000 units. The transaction was described as a strategic fit that would strengthen the company's presence in existing European markets and open new territories such as India and Qatar. The acquisition also aligned with sustainability goals, as a significant portion of the acquired fleet was electric-powered.

Key Market Players

• AKTIO Corporation
• Kanamoto Co., Ltd.
• Nishio Rent All Co., Ltd.
• Finning International Inc.
• Cramo Group
• Sarens NV
• Sunstate Equipment Co., LLC
• Kiloutou SAS
• Coates Hire Pty Ltd.
• Zeppelin Rental GmbH

By Equipment Type	By Product Type	By Application Type	By Drive Type	By Region
Earth Moving Machinery Material Handling Machinery General Equipment	Excavator Cranes Backhoe Trucks Others	Residential Road Transport Energy Infrastructure Mining Others	IC Engine Hybrid Drive	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Construction Equipment Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Construction Equipment Rental Market, By Equipment Type:

• Earth Moving Machinery
• Material Handling Machinery
• General Equipment

• Construction Equipment Rental Market, By Product Type:

• Excavator
• Cranes
• Backhoe
• Trucks
• Others

• Construction Equipment Rental Market, By Application Type:

• Residential
• Road Transport
• Energy Infrastructure
• Mining
• Others

• Construction Equipment Rental Market, By Drive Type:

• IC Engine
• Hybrid Drive

• Construction Equipment Rental Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE