US construction leasing to hit $23 billion by 2024

The US construction equipment rental market size is set to exceed $23 billion by 2024 according to a research report from Global Market Insights, which predicts the worldwide spend in this area will hit $75.18 billion by the same date.

The consultancy says the practice of leasing instead of purchasing heavy machinery has proven to be beneficial for companies of all sizes across numerous industries, and predicts lower administrative overhead coupled with reduced expense and maintenance will drive construction equipment rental market size in the future.

Since industry vendors need to comply with the pervasive regulatory landscape, buyers benefit from elimination of replacement costs and associated expenditure.

Sensor technology

Other trends positively impacting revenue include growing technological advancements ranging from multifunctional machinery to apps for monitoring fuel consumption.

Key product development and innovation features include remote monitoring, ergonomic controls, and quick-change attachment couplers, while GPS-equipped machines that can be tracked with ease on site have significantly improved fleet management.

The presence of the leasing channel has also helped enhance overall customer service by ensuring high product quality, improved response time, on-time delivery, scheduled pick-ups, and other efficiencies, the report says.

In the US, rising safety and security concerns are likely to drive installation of smart sensors in workers’ hard hats, boots, wristwatches and other safety equipment such as rooftop harnesses. Boot sensors helps in tracking the time duration between breaks, whereas wristwatch sensors monitor workers body temperature.

Global Market Insights says this trend will provide new opportunities for the key construction equipment rental market players, who include United Rentals, Hertz, Neff, Sunbelt, and Ahern.

Global push

Looking at the global trends, the consultancy identifies increasing natural gas drilling activities, the augmentation of the highway network and the formation of smart cities as the developments which will lead to a corresponding demand in the construction equipment market, and also give impetus to the leasing sector.

Overseas markets are also set to expand, with the consultancy forecasting that rising population and growing urbanization along with increasing income levels and growth in IT sector will propel construction equipment rental market share in countries like India.

The report indicates the earthmoving machinery market contributed considerably to the global construction equipment rental market share in 2015, with the segment set to surpass $40 billion in revenue by 2024. This mainly includes products such as excavators and loaders, which witness considerable demand on a global scale.

Concrete and road construction segment was valued at over 10 billion in 2015, and this section of the industry is forecast to witness growth due to new infrastructure projects.