Equipment Rental Market Size, Share, Growth, and Industry Analysis, By Type (Online Rental,Offline Rental), By Application (Oil and Gas Industry,Construction Industry,Mining Industry,Power Industry,Others), Regional Insights and Forecast to 2033

Equipment Rental Market Overview

Global Equipment Rental Market size is forecasted to be worth USD 48163.95 million in 2024, expected to achieve USD 55070.18 million by 2033 with a CAGR of 1.5%.

The Equipment Rental Market Market represents a vibrant ecosystem where machinery, tools, and equipment are leased on a temporary basis to industries ranging from construction and mining to oil and gas. With the shift toward asset-light business models, rental providers are meeting rising demand for flexibility, efficiency, and access to the latest technologies without the burden of ownership.

Equipment Rental Market Market offerings now include a wide spectrum—from heavy earthmoving machines and aerial work platforms to compact tools and power generators. Driven by digital platform integration, enhanced fleet utilization, and growing environmentally conscious choices, this market epitomizes a circular economy model. Today, about 60% of revenue in the Equipment Rental Market Market stems from construction-related rentals, while emerging sectors like oil and gas and renewable energy are gaining traction, reinforcing its fundamental role in global infrastructure development.

Key Findings

Top Driver reason: Rising preference for rental over ownership due to flexibility and cost efficiency

Top Country/Region: North America leads with over 50% share of the global Equipment Rental Market Market

Top Segment: Construction equipment rental accounts for approximately 60% of market revenue

Equipment Rental Market Trends

Rental penetration in emerging economies has outpaced traditional equipment sales, growing by around 9% annually, underlining the shift toward rental solutions.

In North America, heavy machinery rental constitutes about 70% of regional Equipment Rental Market Market revenue, revealing a clear dominance in the segment. Digital adoption is reshaping operations—30% of equipment rentals are now booked via online platforms, up from just 10% five years ago, improving fleet utilization and market transparency.

The aerial work platform (AWP) rental segment alone accounts for over 22% of the market. Compact equipment rentals have surged by 15% year-over-year, highlighting demand for smaller, agile machines. The global power rental subset is expanding, mirroring growth rates of over 6% annually, as regions invest in infrastructure and backup systems. Eco-friendly equipment rentals have spiked by 25% in 2023, reflecting growing sustainability awareness. These trends reflect a market driven by digital innovation, sustainable operations, and strong demand in both developed and emerging territories.

Equipment Rental Market Dynamics

DRIVER

Rising demand for flexible fleet access

Rise in infrastructure investment and project cycles has led to 8% more companies opting for rentals over ownership. North American market alone recorded an 8% year-over-year growth, reflecting increased interest in temporary equipment access without the burden of capital purchase or maintenance. Flexible fleet models are allowing businesses to match fleet size with project scope, which is boosting rental penetration rates across all sectors.Rise in infrastructure investment and project cycles has led to 8% more companies opting for rentals over ownership. ARA data shows the North American market grew by 8% year-over-year, underscoring the trend.

OPPORTUNITY

Digital platforms and smart fleets

Online booking platforms now handle 30% of equipment rental transactions, dramatically improving response times and booking efficiency. Predictive maintenance integration has expanded to 25% of active rental fleets, enabling fleet owners to reduce unexpected breakdowns and increase equipment uptime. This shift toward digital fleet operations opens new opportunities for service innovation and operational cost savings.Online booking platforms now handle 30% of transactions, and predictive maintenance usage has jumped to 25% of rental fleets, enabling better uptime and cost efficiency.

RESTRAINTS 

High rental rates due to supply constraints

Rental costs have risen by approximately 12% over the last year due to limited availability of heavy machinery and logistics bottlenecks. Construction and industrial companies, especially in emerging markets, are scaling back rental commitments due to these price hikes. This is affecting smaller contractors who cannot pass on the increased costs to end clients, potentially stalling smaller-scale projects.Supply chain disruptions triggered a 12% rise in heavy machinery rental prices, squeezing margins and slowing down adoption in cost-sensitive markets.

CHALLENGE

Inflation and rising operational costs

Operational costs in the Equipment Rental Market Market have grown by about 10% year-over-year due to inflation, rising labor wages, and increasing fuel prices. Profit margins are being compressed, forcing companies to explore more efficient asset utilization and predictive analytics. The challenge is compounded for operators in remote or low-volume regions, where cost per unit of service remains higher.Inflationary pressures have compressed margins—companies like United Rentals have cited missed profit targets due to rising costs. Moreover, soaring fuel and maintenance costs have increased operating expenses by approximately 10% year-over-year in North America.

Equipment Rental Market Segmentation

By Type

• Online Rental: Online rentals have grown significantly, with 30% of total rental transactions now processed through digital platforms. This type appeals to SMEs due to convenience, ease of access, and lower upfront costs. Online rentals also offer faster booking and real-time availability, reducing lead times by over 80%. This segment has grown rapidly, with 30% of rentals processed digitally. It appeals to SMEs and boutique contractors, offering streamlined booking and real-time availability.
• Offline Rental: Despite the rise of online platforms, offline rentals still dominate with approximately 70% market share. These are preferred for long-term, high-value equipment where personal negotiation, on-site services, and custom packages are needed, especially in the construction and mining sectors.Still dominant, it commands about 70% of the market, driven by long-term and heavy-equipment leases handled through traditional dealer networks.

By Application

• Oil and Gas Industry: Rentals in the oil and gas sector are growing at 8% annually due to increased offshore and onshore exploration and maintenance activities. Equipment such as compressors and power systems are in high demand.Equipment rentals in this sector have seen an 8% annual growth, primarily due to exploration and maintenance activities.
• Construction Industry: The construction segment remains the largest consumer of rental equipment, contributing to 60% of total market demand. Earthmoving equipment, cranes, and scaffolding are key assets leased for both residential and commercial projects.The largest application, accounting for around 60% of rental volumes, powered by cyclical infrastructure and building projects.
• Mining Industry: Mining sector rentals have expanded by 7% year-on-year, supported by growing demand for minerals and metals. Drill rigs, conveyors, and loaders are among the most commonly rented assets.Mining-focused rentals are growing at 7% yearly, supported by expansion in resource-rich regions.
• Power Industry: The power sector accounts for a 6% annual increase in rental demand. Temporary power setups and emergency generators are especially vital in developing countries and during grid failures or construction support. Power rental equipment is expanding at 6% annually, driven by grid upgrades and standby power needs.
• Others: This category, including agriculture, events, and entertainment, sees around 5% yearly growth. Compact machinery and short-term rentals are predominant in these applications, driven by seasonal and project-specific needs.Includes agriculture, events, and film production, collectively growing at 5% annually, with compact equipment playing a key role. 

Equipment Rental Market Regional Outlook

• North America

North America dominates with over 50% share, driven by heavy machinery demand and digital adoption. The U.S. equipment rental market grew 8% in 2024. Online rental platforms in the region now contribute to 30% of overall transactions.

• Europe

Europe holds approximately 20–25% of global share, with growth driven by construction and sustainability policies. Environmental rentals rose 25% in 2023, and scaffolding rentals constitute 22.6% of European MHE rentals.

• Asia-Pacific

The Asia-Pacific region accounts for about 31% of the Equipment Rental Market Market, with rapid urbanization and industrial projects. Segment expansion in emerging markets is high, with rental growth around 9% annually.

• Middle East & Africa

In the MEA region, GCC countries contribute around $4.9 billion, with an annual growth rate near 6.5%. Infrastructure megaprojects like NEOM and new airports are driving demand for cranes and power units.

List of Key Equipment Rental Market Companies

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

Investment Analysis and Opportunities

The Equipment Rental Market Market presents numerous investment avenues over the next decade. Fleet modernization remains a top priority, with over 25% of capital expenditure channeled toward upgrading equipment to electric and telematics-enabled models. Companies are now prioritizing predictive maintenance, which has been adopted by over 25% of fleets, helping reduce equipment breakdowns by up to 70% while increasing operational uptime by 25%.

Digital transformation is another significant investment trend. About 30% of rental transactions are conducted through online platforms, streamlining operations and reducing reservation-to-delivery timeframes by over 80%. In addition, 20–30% of IT budgets in rental firms are allocated to the development of digital booking and rental management systems.

Merger and acquisition activities are heating up, with major players like United Rentals and Herc Rentals acquiring regional competitors. These acquisitions bring fleet expansion benefits and cost synergies, boosting profitability and geographic reach. For instance, one major acquisition brought in over 64,000 rental units and aimed for $130 million in annual savings.

Sustainability is also driving investments. Green equipment rentals increased by 25%, prompting companies to invest in electric, hybrid, and fuel-efficient machinery. There is also a growing focus on analytics, with investment in rental software rising by 9.7% annually, enhancing asset tracking and regulatory compliance.

Asia-Pacific and Middle East regions offer rich opportunities, with rental growth rates reaching 9% and 6.5% respectively. Governments are prioritizing infrastructure development, further fueling rental demand. Specialty equipment like aerial work platforms and power generators is witnessing 6–8% annual growth, opening up high-margin investment paths.

New Products Development

Innovation in the Equipment Rental Market Market is robust, spanning electric, hybrid, and connected equipment technologies. Electrification of rental fleets is a leading trend, with electric rentals doubling year over year. Approximately 25% of new fleet investments are directed toward sustainable and eco-friendly equipment. Hybrid power systems and zero-emission engines are increasingly part of new product offerings.

Digitization plays a central role in product development. About 30% of rental transactions are processed through digital platforms, and smart fleet systems that use GPS, IoT sensors, and predictive analytics are growing in adoption. Predictive maintenance tools now monitor over 25% of rental fleets, enhancing lifecycle management and uptime.

Compact and modular equipment designs are gaining ground. Compact machinery rentals have increased by 15% year-over-year, especially in urban construction where maneuverability is key. The growing popularity of compact excavators, mini-loaders, and portable generators is influencing manufacturers to develop scalable and transport-friendly units.

Rental companies are also incorporating AR and VR-based operator training in their offerings, which are being tested by over 18% of equipment rental firms. This enhances operational safety and workforce readiness. Meanwhile, digital rental management platforms are being enhanced with AI features to personalize user experiences, reduce idle time, and boost equipment utilization.

As sustainability and digitization become central to customer preferences, manufacturers are focusing heavily on zero-emission models and cloud-connected tools that offer real-time diagnostics. These trends are shaping the future of new product development in the Equipment Rental Market Market.

Five Recent Developments

• United Rentals acquires H&E Equipment Services: This acquisition added over 64,000 units to United Rentals' fleet and is expected to generate $130 million in annual cost savings. It marks a strategic move to expand geographical reach and fleet capabilities.
• Herc Holdings wins H&E bidding war: Herc outbid competitors with a $5.3 billion offer, paying a 109% premium, gaining access to H&E's industrial fleet and significantly boosting its market presence and capacity.
• Ashtead predicts 0–4% rental revenue growth: Ashtead Group revised its forecast due to U.S. construction market uncertainty but expects stable growth from data centers and LNG infrastructure projects.
• United Rentals reports profit pressures: United Rentals highlighted that inflation and increased fuel and maintenance costs have squeezed margins, pushing the company to re-focus on operational efficiency and digital transformation.
• Ashtead plans U.S. re-listing: In 2024, Ashtead secured shareholder approval for relocating its listing to the U.S., aiming to tap into stronger investor interest and access more capital markets for expansion.

Report Coverage of Equipment Rental Market 

The Equipment Rental Market Market report provides a comprehensive overview of the industry landscape, including segmentation, regional analysis, key trends, market share insights, and competitive dynamics. The report segments the market by type, application, region, and rental duration. It highlights the increasing share of online rental platforms, which now account for 30% of all equipment rental transactions.

Regionally, the report covers North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa, with detailed insights such as North America holding over 50% market share and Europe contributing approximately 20–25%. Asia-Pacific follows with a growing 31% share, supported by rapid industrialization and urban development. GCC countries alone contribute to 6.5% of the growth in the Middle East & Africa region, driven by infrastructure projects.

The report includes detailed market trends such as a 25% increase in eco-friendly equipment rentals, 15% year-over-year growth in compact equipment, and 22% market share held by aerial work platforms. The shift toward digital transformation, including the adoption of AI, AR/VR, and IoT across fleet management, is also thoroughly analyzed.

Competitive landscape analysis identifies leading players such as United Rentals and Sunbelt Rentals, with estimated market shares of 16% and 14%, respectively. M&A activity is addressed, with examples such as United Rentals' acquisition of H&E Equipment Services and Herc’s strategic moves to expand its industrial portfolio.

The report further evaluates investment trends, highlighting the 25% allocation of CAPEX to fleet electrification and the 9.7% annual growth in digital rental software. It outlines emerging opportunities in specialty equipment rentals, growth in the Asia-Pacific and MEA regions, and evolving customer expectations for sustainability and real-time service access.

This report provides stakeholders with essential insights and data-driven strategies to navigate the evolving Equipment Rental Market Market and make informed business decisions.

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