The construction equipment rental market is expected to witness the robust growth in next 10 years on the back of the increasing practice of leasing construction equipment across the World including India, said a report. The companies across the world prefer the renting option to reduce project costs.
An abstract of a report titled ‘Construction Equipment Rental Market: Global Industry Analysis and Forecast 2016-2016’ published by Persistence Market Research said that practice of leasing heavy construction equipment has proven to be beneficial for all sizes of the companies across the world which would result into boosting the rental market during the forecast period.
The report observed that construction equipment rental market will majorly get benefit from investments in the sectors like transport, housing, energy, and power. With such high level of investments in these sectors, the construction companies are expected to prefer the renting option as to reduce their overall project costs.
“This is a cost effective approach as in doing so they face lower maintenance costs and fewer technical charges. Adding to that, transportation, operation and servicing requirements are reduced many folds. Both these factors fuel demand for the construction equipment rental market in the coming future,” said the report.
The other reasons which would drive CE rental market during the period are; renting reduce operating expenses and evade tax, insurance, licensing, interest on loans, storage cost, and others which usually come with purchasing new machines. These expenses can be saved by renting the construction equipment.
The inclusion of a varied range of advanced construction equipment in rental fleets is expected to drive the rental market in all the major markets in the world. The other key reasons which would fuel the construction equipment rental market during the forecast period are strict regulations, increasing ownership cost and financial constraints.
On the other hand, the major obstruction for the demand for renting construction equipment during forecast period would be fluctuating fuel prices, expenditure of picking up and delivering machinery, especially when the contractor is working in remote areas.
According to the report, the demand for advanced and eco-friendly machinery will rise, and low maintenance machinery is expected to castaway conventional equipment during the forecast period.
The study is very bullish on Asia pacific region, the region is expected to dominate the construction equipment rental market over the forecast period. India and China are expected to offer better opportunities due to rising population and urbanization, and the growth in IT sector will further push the construction equipment rental market.