|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
1.20 Billion
|
|
CAGR
(2023-2028)
|
4.60%
|
|
Fastest
Growing Segment
|
Earthmoving
Machinery
|
|
Largest
Market
|
Cairo
|
The construction equipment
rental market in Egypt has witnessed significant growth in recent years. The
country booming construction sector driven by infrastructure projects,
residential and commercial developments also government initiatives has created
a robust demand for rental equipment’s. The market size is influenced by various
factors such as economic conditions government investments and the overall
growth of the construction industry.
Egypt Construction Equipment
Rental Market Overview
The construction equipment
rental market in the country of Egypt plays a vital role in supporting the
country growing construction industry year on year. It also provides businesses
and contractors with access to a wide range of equipment and machinery on a temporary basis allowing
them to complete construction projects efficiently without the need of
substantial upfront investments for purchasing equipment. Egypt's market for
renting construction equipment has expanded significantly in past few years.
Rental equipment is in high demand due to the nations burgeoning construction
industry which is being fueled by government initiatives residential and
commercial developments and infrastructure projects. The state of the economy government
spending and the expansion of the construction sector all have an impact on the
market size.. The customer base for construction equipment rentals in
Egypt is diverse and it includes various segments within the construction
industry. This includes contractors, builders, developers, infrastructure
companies, government entities, and other organizations. The rental market
caters to both small-scale projects and large-scale ventures, serving customers
with different equipment requirements and project durations.
Egypt Construction Equipment
Rental Market Drivers
In recent times, many
constructions projects such as the Capital Med City October Oasis, etc., are
going on in Egypt. By running multiple projects at a time many construction companies take construction
equipment on rent or lease for a short period of time. This is more
cost-effective as compared to owning a new one for private firms. The leasing
company offers commercial truck leasing in two ways which are closed-end and
open-end fleet leases. Many corporate firms prefer to take the construction
equipment on a closed-end lease or rent which protects the business from
residual risk as they can return the equipment at the end of the rental period
with no obligation to resell it. Owing to the benefits of renting a construction
equipment over buying a new one, the increasing number of rented construction
equipment is increasing, which is driving Egypt Construction Equipment Rental
Market. By renting the construction equipment it saves various
types of costs such as maintenance cost, operational cost, repair cost and also
big amount investment at a time. By providing service such as on site service,
support services can increase the longevity of the equipments which also increases the profit and further enhances the
customer experience.
Leasing or renting a construction
equipment can have significant advantages over outright purchasing a equipment,
as it could save a huge up-front cost of buying a vehicle. Large amounts of
capital saved can be preserved for other usages such as operational
expenditures, manpower, etc. Also, budgeting or renting is easy, as the
payments majorly remain the same throughout the agreement period. Long-term
leasing of construction equipment is considered significantly cost-effective
over other forms of owning equipment fleets as contract durations, depreciation
curves, and maintenance requirements are reasonably predictable. The
cost-effective advantages of leasing and renting construction equipment are
anticipated to drive the market in the forecast years.