Equipment Rental Market Size, Share, Growth, and Industry Analysis, By Type (Online Rental and Offline Rental), By Application (Oil and Gas Industry, Construction Industry, Mining Industry, Power Industry, and Others) and Regional Forecast to 2034

EQUIPMENT RENTAL MARKET OVERVIEW

The global Equipment Rental Market size is USD 47.45 billion in 2025 and is projected to touch USD 54.30 billion in 2034, exhibiting a CAGR of 1.5% during the forecast period.

The Equipment Rental market is expected to grow considerably due to embracing renting practice by customers and rising environmentally conscious choices and increasing fleet utilization. Equipment rental is a service industry. This service represents vibrant ecosystems where machinery and tools are leased on a temporary basis to several industries. They permit business and individuals to access a variety of equipment without spending substantial investment. It generally involves fixed rental duration, rental fees, and terms and conditions regarding tools usage and maintenance.

GLOBAL CRISES IMPACTING EQUIPMENT RENTAL MARKET- COVID-19 IMPACT

Equipment Rental Industry Had a Negative Effect Due to Supply Chain Interruption during COVID-19 Pandemic

The COVID-19 pandemic has adversely influenced market growth. The disruption and restriction of supplication and travelling respectively has slowdowns in construction and other activities. This has resulted in declined demand for the services. The pandemic has halted and postponed various projects and industrial operations, hindered market growth. Shortage of labour and staying at homes decreases sped on unnecessary items affected requirement for various items. Conversely, economic recovery and ease of restriction boosted demand for this equipment due to restart of various industrial functions and individual requirements.

LATEST TRENDS

Embracing Subscription-Based and Peer-to-Peer Rental Models to Boost Market Growth

The current trend in the market is the escalating acceptance of subscription-based models. These services including Rental-as-a-Services permit consumers to access equipment on a monthly basis and provide flexibility and cost-saving solutions without the commitment of ownership. In addition, the implementation of P2P platforms allows individuals to rent out their personal equipment and bolsters market growth. They are increasing the sharing economy and expanding the accessibility of rental options. These models are meeting demand of diverse consumer base and appealing for short term access to specialized machinery, fuelling market growth.

EQUIPMENT RENTAL MARKET SEGMENTATION

BASED ON TYPES

• Online Rental: This segment is growing considerably in the market due to transition of process into digital platforms and it provides convenience, ease of access, and lower upfront costs.
• Offline Rental: This segment dominates in the market, driven by its long-term, high-value tools on-site services, and custom packages are preferred by customers

BASED ON APPLICATIONS

• Oil and Gas Industry: This sector is using the services due to increased onshore and offshore exploration and maintenance activities and compresses and power systems are extensively used.
• Construction Industry: This segment is exploiting earthmoving equipment, scaffolding, and cranes for both residential and commercial projects.
• Mining Industry: This section is using the services due to rising requirement for metals and minerals and its commonly used rented assets include drill rigs, conveyors, and loaders.
• Power Industry: This sector is employing the services such as temporary power setups and emergency generators that are especially vital in developing countries and during grid failures or construction support.
• Others: The other sections such as event, entertainment, and agriculture are utilizing the services including compact machinery and short-terms rentals are highly used.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

Expansion of Construction and Infrastructure Sectors to Impel Market Growth

One of the key attributes for market growth is the rapid augmentation of the construction and infrastructure industry. Specialized machinery is often required for short-terms projects and making the service an attractive option for firms. Large-scale infrastructure development mainly in emerging economies is continuing to fuel demand for construction tools. This market allows businesses to access state-of-the-art tools without investing high amounts on upfront costs with ownerships. Furthermore, increasing demand for inexpensive solutions is thrusting market growth.  Renting apparatus facilitates businesses to evade the high money expenditure associated for purchasing expensive machinery. Companies can allocate resources more efficiently, optimizing their budgets and improving financial flexibility attracting customers is impelling market growth.

Integration of Technological Advancements and Digital Platforms to Enlarge Market Growth

Another growing aspect for Equipment Rental Market Growth is incorporation of advanced technologies and introduction of digital platforms. These techniques are streamlined equipment tracking, booking, and maintenance processes. These platforms provide users with real-time information on gear availability, decrease downtime, and enhance operational efficiency. This provides ease to manage service requirements and ensures the machinery is readily available for use. Furthermore, integration of Internet of Things (IoT) and telematics are boosting market growth. They are streamlining fleet management in this business. It helps businesses to make vital decisions by enabling real-time monitoring and collecting field data, drawing attention of traders towards the services.

RESTRAINING FACTOR

Changing Demand and Market Volatility to Potentially Obstruct Market Growth

The off-putting factor for market hindrance is fluctuating demand of end-users. Varying demand for the equipment particularly in construction and infrastructure projects according to season is posting barriers for companies to maintain a consistent revenue stream. Uncertain and unpredictable economic cycles impact the requirement for the equipment is hampering market growth. Furthermore, shifting stress of companies to adapt quickly that changing market conditions are hampering market growth is making it difficult to adjust inventory levels and providing equipment adoption resulting in unstable financial state of the business. Its impact on long-term investment or managing operation costs efficiently due to periods of uncertainty is discouraging new entrants to enter in the business.

OPPORTUNITY

Rising Adoption of Green and Sustainable Tools and Expansion of Emerging Markets to Create Opportunity for the Market Growth

One of the significant opportunities for increasing Equipment Rental Market Share is growing implementation of eco-friendly and sustainable gears. There are growing ecological, energy efficient machinery because of rising concerns regarding environmental conditions. Companies are progressively focusing on reducing their carbon footprints and fulfilling ecological policy. The availability of green equipment is amplifying rental businesses, attracting new customers and fostering market growth. Furthermore, escalating emerging markets in developing regions is presenting a great option for market growth. Increasing focus on the benefit of cost saving and requirement of products for short-terms are pushing firms to expand their market presence in untapped countries to expand their market growth.

CHALLENGE

Maintenance and Equipment Downtime Be a Potential Challenge for Market Growth

The market is facing barriers that can impede market growth is high equipment safeguarding and breakdowns. Rental troupes control and maintain large fleets of machines that necessitate significant resources for regular servicing and upkeep is increasing cost on companies. Prolonged downtimes and breakdown may cause loss of revenue and influence customer dissatisfaction is hammering market growth. Timely maintenance adds extra operational expenses and obscures the rental process. Therefore, balancing the cost of revamp with the obligation to keep apparatus in finest working condition, stress on careful resource management and regular attention on the lifecycle of gear is posing barriers for market growth.

EQUIPMENT RENTAL MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America is the dominating region, driven by the subsistence of well-built transportation, and industrial sectors. Presence of entrenched networks of rental companies fulfilling varied requirements propels market growth. The United States Equipment Rental Market is a major contributor to make this region dominant due to the rising need for specialized tools in urban development products. Infrastructure upgrades and requirements for maintenance are amplifying demand for the services and bolstering market growth.

• EUROPE

Europe is witnessing substantial market growth, caused by the growing requirement for rental services in various sectors. Rising financial recovery and empowering infrastructure projects by the government is bolstering market growth. Growing requirements of short-terms and long-term projects are heightening demand for the solutions. Imposition of strict environmental regulations is emphasising on sustainability, encouraging end-users to adopt the systems, fostering market growth.

• ASIA

Asia Pacific is expected to grow at a higher growth rate attributable to development of infrastructures. Growing transportation and energy projects along with increasing rate of construction are supporting market growth. Increasing demand for inexpensive and flexible rental solutions in developing countries is fuelling market growth. Growing spending incomes are augmenting requirements for specialised equipment impelling market growth.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Expenditure in R&D and Market Strategies

The market is highly competitive with various top players present in this field. Major companies are providing a wide range of construction material handling, industrial equipment to strengthen their market presence. These companies are utilizing sturdy regional networks and sophisticated digital platforms to enlarge their market reach. These large multinational corporations and domestic players are investing in research and development to reinforce their diverse market segments. Some participants are augmenting their product offerings, enhancing customer services, and enhancing fleet management. They are also applying a number of business tactics including merger, acquisition collaboration, and others to amplify their market operational efficiency and support rapid growth.

LIST OF TOP EQUIPMENT RENTAL COMPANIES

• Hertz Equipment Rental (U.S.)
• Sunbelt Rentals (U.S.)
• United Rentals (U.S.)
• Atlas Copco (Sweden)
• Caterpillar (U.S.)
• Aggreko (U.K.)
• AKTIO Corporation (Japan)
• Ashtead Group (U.K.)
• BlueLine Rental (U.S.)
• Cramo (Finland)
• Deere & Company (U.S.)
• Fabick CAT (U.S.)
• Herc Rentals (U.S.)
• Kanamoto (Japan)
• Loxam (France)
• Maxim Crane Works (U.S.)
• Mustang CAT (U.S.)
• Nishio Rent All (Japan)
• Nikken Corporation (Mitsubishi Corporation) (Japan)
• Sims Crane & Equipment (U.S.)
• Stephensons Rental Services (Canada)
• Sunstate Equipment Company (U.S.)
• Titan Machinery (U.S.)

KEY INDUSTRY DEVELOPMENT

April, 2025: Aggreko announced the sell-out of its Eurasian power rental businesses for USD 29 million with an aim to strategic exit from the region. It also announced a 14% rise in annual sales to 2.85 billion for 2024, with pre-tax profit approximately threefold to USD 329 million.

REPORT COVERAGE

The Equipment Rental Market is poised for a continued expansion driven by the increasing insistence for cost-effective solutions and integration of Internet of Things (IoT) and telematics. Despite challenges, which include changing demand and market volatility and maintenance and equipment downtime the market is expanding significantly. Key industry players are paying attention to apply market strategies and utilizing extensive fleets and advanced digital platforms. With the rising acceptance of green and sustainable tools and expansion of emerging markets are offering great avenues for market growth.