Global Compact Power Equipment Rental Market Overview:
The Compact Power Equipment Rental Market Size was estimated at 32.48 (USD Billion) in 2022. The Compact Power Equipment Rental Market Industry is expected to grow from 33.42(USD Billion) in 2023 to 43.14 (USD Billion) by 2032. The Compact Power Equipment Rental Market CAGR (growth rate) is expected to be around 2.88% during the forecast period (2024 - 2032).
Key Compact Power Equipment Rental Market Trends Highlighted
The compact power equipment rental market is experiencing several key trends:Digitalization: Rental companies are leveraging technology to streamline operations, improve customer experience, and enhance equipment tracking and maintenance. Customers are increasingly seeking environmentally friendly rental solutions, driving demand for low-emission and electric equipment. Rental companies are expanding their offerings to include specialized equipment for specific industries, such as construction, landscaping, and infrastructure maintenance.
Online platforms and mobile applications are simplifying the rental process, allowing customers to reserve equipment conveniently and track their orders. The demand for compact power equipment rentals is increasing in urban settings due to limited storage space and the need for flexible and cost-effective solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Compact Power Equipment Rental Market Drivers
Increasing Demand for Construction and Infrastructure Projects
The construction industry is experiencing a surge in demand due to urbanization, population growth, and government initiatives. This growth is creating a high demand for compact power equipment, such as generators, compressors, and pumps, which are essential for powering tools and machinery on construction sites.
The growing need for infrastructure development, such as roads, bridges, and utilities, is also contributing to the increased demand for compact power equipment rental services. As construction and infrastructure projects continue to expand globally, the market for compact power equipment rental is expected to witness significant growth in the coming years.
Growing Popularity of Rental Services
Rental services have a number of advantages as compared to the ownership of the equipment, such as flexibility, cost-effectiveness and the use of the latest technology. Lots of contractors and businesses prefer to rent compact power equipment rather than buy them because of the high cost of purchasing this equipment as well as the costs of maintenance they produce for the business owners.
Rental services have made it easier for companies to access equipment without making costly capital investments. Thus, the increasing popularity of rental services should ultimately enhance the Compact Power Equipment Rental Market Industry.
Technological Advancements and Innovation
The rapid advancements in technology are leading to the development of more efficient and environmentally friendly compact power equipment. Manufacturers are continuously innovating to meet the evolving needs of customers and address environmental concerns.
The introduction of new technologies, such as emission control systems, fuel-efficient engines, and telematics systems, is expected to enhance the performance and functionality of compact power equipment. These advancements are likely to drive the adoption of rental services as customers seek access to the latest and most efficient equipment.
Compact Power Equipment Rental Market Segment Insights:
Compact Power Equipment Rental Market Application Insights
Application Segment Insights The Application segment for the compact power equipment rental market includes the Construction, Industrial, Residential, Utilities, and Others. The construction segment is predicted to be the largest segment of the compact power equipment rental market, which will generate around 38.1% of global revenue by 2024.
The main reason for this will be the increasing number of building operations that take place around the world, especially in developing countries. The industrial segment will show a sufficient pattern of growth. Many industries, such as manufacturing industries, mines, minerals, and equipment carriers, constantly require the use of lease equipment for operational work. The residential segment is predicted to increase because most people now carry out various activities in their homes.
The global utility equipment rental market segment will show steady growth as the plant and equipment rental market size for the electric power industry will expand. The remaining other markets include landscaping, agricultural, and event rentals. The latter is expected to show moderate growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Compact Power Equipment Rental Market Equipment Type Insights
The predetermined compact power equipment rental market is divided by equipment type, such as compressors, generators, light towers, pumps, and others. Of these, the compressors segment occupied the largest market share by 2023 and is expected to dominate the industry throughout the forecast period. The rapid growth of the construction, manufacturing, and mining industries fuels the demand for such types of equipment as compressors.
The demand for generators in the market is huge since these types of equipment serve as sources of backup power in cases of any emergency or power outage. Light towers become increasingly popular, especially in the construction business, which is why the pye demand in the future is expected. Pumps belong to another major segment in the industry as they find vast application in the management of water, irrigation, and wastewater treatment, for instance.
The other segment includes highly specialized types of compact power equipment that cater to the needs of a particular industry, such as trenchers, forklifts, or excavators.
Compact Power Equipment Rental Market Rental Duration Insights
The Compact Power Equipment Rental Market is segmented by rental duration into short-term rentals (less than 30 days), mid-term rentals (30-180 days), and long-term rentals (over 180 days). In 2023, the short-term rental segment accounted for the largest share of the market, with a revenue of 12.45 (USD Billion) and is projected to reach 18.24 (USD Billion) by 2032, exhibiting a CAGR of 3.56%.
The mid-term rental segment is expected to witness steady growth, reaching 12.32 (USD Billion) by 2032, with a CAGR of 2.77%. Long-term rentals are anticipated to gain traction and reach 12.58 (USD Billion) by 2032, growing at a CAGR of 2.91%.
The growth of the rental duration segment is attributed to the increasing demand for flexible and cost-effective rental options, particularly in the construction, industrial, and agricultural sectors. Short-term rentals cater to immediate project requirements, while mid-term and long-term rentals offer cost advantages for extended projects or seasonal needs.
Compact Power Equipment Rental Market End User Insights
The Compact Power Equipment Rental Market is segmented into various end-user industries, including Contractors, Small Businesses, Homeowners, Government Agencies, and Others. Among these end users, Contractors hold a significant share of the market and are expected to continue dominating in the coming years. Contractors rely heavily on compact power equipment for construction, excavation, and other heavy-duty applications.
The growth in construction activities, particularly in developing economies, is driving the demand for compact power equipment rental among contractors. Small Businesses also contribute a notable share to the market, utilizing compact power equipment for various tasks such as landscaping, maintenance, and repairs. Homeowners, Government Agencies, and Other end users also account for a portion of the market, depending on their specific needs for rental equipment.
The increasing preference for renting equipment over purchasing due to cost-effectiveness and flexibility is fueling the growth of the compact power equipment rental market across these end-user segments.
Compact Power Equipment Rental Market Power Source Insights
The Compact Power Equipment Rental Market is segmented based on Power Sources into Diesel, Gasoline, Electric, Hydraulic, and Other. Among these, the Diesel segment is expected to hold the largest market share in 2023, accounting for around 45% of the market revenue.
Additionally, the Electric segment is projected to grow at the highest CAGR from 2024 to 2032, owing to the increasing adoption of eco-friendly equipment. The growing demand for compact power equipment in various industries, coupled with the rising environmental consciousness, is driving the growth of the Electric segment.
Compact Power Equipment Rental Market Regional Insights
Regionally, North America held the largest market share in 2023, accounting for approximately 35% of the global market. Europe is projected to witness significant growth over the forecast period, owing to increasing investments in infrastructure development and construction activities.
The APAC region is anticipated to emerge as a lucrative market for compact power equipment rental, driven by rapid urbanization and industrialization in countries like China and India. South America and MEA are also expected to contribute to the market growth, although at a slower pace compared to other regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Compact Power Equipment Rental Market Key Players And Competitive Insights:
Major players in the Compact Power Equipment Rental Market industry are focusing on expanding their operations and strengthening their foothold in the market. Leading Compact Power Equipment Rental Market players are investing in research and development to introduce innovative products and services. The Compact Power Equipment Rental Market development is driven by the increasing demand for efficient and cost-effective power solutions from various industries.
The growing construction and infrastructure sectors are also contributing to the market growth. Furthermore, the adoption of compact power equipment for residential and commercial purposes is expected to drive the market further. The Compact Power Equipment Rental Market Competitive Landscape is fragmented with the presence of both global and regional players. Key players are adopting various strategies such as mergers, acquisitions, and partnerships to gain a competitive edge.
A leading company in the Compact Power Equipment Rental Market is United Rentals. The company offers a wide range of compact power equipment, including generators, compressors, and pumps. United Rentals has a strong presence in North America and Europe and is expanding its operations in other regions. The company has a well-established distribution network and provides excellent customer service. United Rentals is focused on providing innovative solutions to meet the evolving needs of its customers. A competitor company in the Compact Power Equipment Rental Market is Herc Rentals.
The company offers a similar range of products and services as United Rentals. Herc Rentals has a strong presence in North America and is expanding its operations in other regions. The company has a well-established distribution network and provides excellent customer service. Herc Rentals is focused on providing customized solutions to meet the specific needs of its customers.
Key Companies in the Compact Power Equipment Rental Market Include:
-
Sunbelt Rentals, Inc.
-
Hertz Equipment Rental Corporation
-
Foley Equipment Company
-
United Rentals, Inc.
-
Ramirent
-
RSC Equipment Rental
-
H E Equipment Services, Inc.
-
Ashtead Group
-
Elliott Equipment Company
-
Kiloutou
-
Lowe's
-
The Home Depot
-
Cat Rental Services
-
Boels Rental
-
Compact Power Equipment Rental
Compact Power Equipment Rental Market Industry Developments
The compact power equipment rental market is projected to reach USD 43.14 billion by 2032, exhibiting a CAGR of 2.88% during the forecast period (2024-2032). Increasing construction activities in emerging economies and rising demand for compact power equipment in industries such as manufacturing, mining, and oil and gas are key factors driving market growth.
Additionally, the adoption of advanced technologies, including telematics and IoT devices, is enhancing equipment utilization and optimizing rental operations. Recent developments include the launch of new rental platforms and partnerships between equipment manufacturers and rental companies to expand market reach. The market is witnessing a shift towards long-term rental contracts and the emergence of subscription-based rental models.
Compact Power Equipment Rental Market Segmentation Insights
-
Compact Power Equipment Rental Market Application Outlook
-
Construction
-
Industrial
-
Residential
-
Utilities
-
Other
-
Compact Power Equipment Rental Market Equipment Type Outlook
-
Compressors
-
Generators
-
Light Towers
-
Pumps
-
Other
-
Compact Power Equipment Rental Market Rental Duration Outlook
-
Short-Term Rentals (less than 30 days)
-
Mid-Term Rentals (30-180 days)
-
Long-Term Rentals (over 180 days)
-
Compact Power Equipment Rental Market End User Outlook
-
Contractors
-
Small Businesses
-
Homeowners
-
Government Agencies
-
Other
-
Compact Power Equipment Rental Market Power Source Outlook
-
Diesel
-
Gasoline
-
Electric
-
Hydraulic
-
Other
-
Compact Power Equipment Rental Market Regional Outlook
-
North America
-
Europe
-
South America
-
Asia Pacific
-
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
32.48(USD Billion) |
| Market Size 2023 |
33.42(USD Billion) |
| Market Size 2032 |
43.14(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
2.88% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Sunbelt Rentals, Inc., Hertz Equipment Rental Corporation, Foley Equipment Company, United Rentals, Inc., Ramirent, RSC Equipment Rental, H E Equipment Services, Inc., Ashtead Group, Elliott Equipment Company, Kiloutou, Lowe's, The Home Depot, Cat Rental Services, Boels Rental, Compact Power Equipment Rental |
| Segments Covered |
Application, Equipment Type, Rental Duration, End User, Power Source, Regional |
| Key Market Opportunities |
Increased construction activity Rental fleet modernization Growing demand for emission-free equipment Enhanced focus on safety and productivity Technological advancements |
| Key Market Dynamics |
Rising demand for construction activities, increasing adoption of rentals by small businesses, technological advancements in equipment expansion of rental fleets, and growing infrastructure projects. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Compact Power Equipment Rental Market is expected to be valued at USD 33.42 billion in 2023 and is projected to reach USD 43.14 billion by 2032, exhibiting a CAGR of 2.88% during the forecast period.
North America is anticipated to dominate the Compact Power Equipment Rental Market, accounting for the largest market share during the forecast period due to the presence of a well-established construction industry and increasing investments in infrastructure development.
Compact power equipment is widely used in various applications, including construction, landscaping, agriculture, and industrial sectors, among others.
Key players in the Compact Power Equipment Rental Market include United Rentals, Herc Rentals, Ashtead Group, Loxam, and Aktio Corp., among others.
The growth of the Compact Power Equipment Rental Market is attributed to factors such as increasing construction activities, rising urbanization, and the growing adoption of rental equipment over ownership.
Challenges in the Compact Power Equipment Rental Market include factors such as intense competition, fluctuating equipment costs, and seasonal fluctuations in demand.
Key trends influencing the Compact Power Equipment Rental Market include digitalization, the adoption of advanced technologies, and the increasing focus on sustainability.
The Compact Power Equipment Rental Market is projected to grow at a CAGR of 2.88% during the forecast period from 2024 to 2032.
Major factors driving the growth of the Compact Power Equipment Rental Market include increasing construction activities, growing urbanization, and the increasing adoption of rental equipment over ownership.
Key opportunities for growth in the Compact Power Equipment Rental Market lie in the expansion of rental services into emerging markets, the development of innovative rental solutions, and the adoption of eco-friendly equipment.
