Rental market growth, trends identified

A new report from Research and Markets that includes the top global equipment producers has identified a projected growth in the rental market of more than 3% between last year and 2021
Rental market growth, trends identified Rental market growth, trends identified Rental market growth, trends identified Rental market growth, trends identified Rental market growth, trends identified

Staff reporter

The newly released offering, Global Equipment Rental Market 2017-2021, is based on in-depth market analysis, paired with the opinions of industry experts. The current market, growth prospects, drivers and challenges, market trends and more were detailed.

In addition to projecting a CAGR growth of 3.26% during this period, the report spotlighted a top market trend: rental equipment monitoring. 

“With the rise in the mining and construction activities, it becomes crucial to manage the rental equipment efficiently,” it said. “Keeping a regular track of the fleet improves the allocation resources of the rental company. The equipment offered are GPS-equipped, which increases the efficiency of fleet management.”

Another positive driver in the market is the advantage of having rental equipment available for short-term projects. As noted in the report, having a competitive edge is a key element of sustainability regardless of the industry.

To up operations metrics and thus increase market share, many companies turn to upgrades as a way to maximise profits; however, for equipment and heavy machinery, this avenue can be costly and consequently can put pressure on a balance sheet. 

“As the management of the companies is involved in increasing the sales figures and other aspects of the business, the costs of leasing or renting equipment for short-term projects proves lesser than the cost of purchasing the required equipment."

Also in the report is a challenge that isn’t limited to any one sector: environmental impact due to end-user industries. Mining, along with areas of business such as construction, oil and gas exploration and drilling, creates some level of environmental damage, the investigators said, including hydrodynamic changes, land degradation and ground subsidence. Chemicals, erosion, and dust pollution were also listed as obstacles for the timeframe outlined.

Some of the key vendors looked at for the research project included Atlas Copco, Caterpillar, Hertz Equipment Rental, Sunbelt Rentals and United Rentals.