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Here’s Why, CE Rental Market Will Touch $75 Billion by 2024

Due to rising trend of renting Construction Equipment across the globe including India, the global construction equipment Rental Market is expected to reach USD 75.18 billion by 2024, says the latest report of Global Market Insights, Inc.

The report explains, the major reason of driving rental market is, Lower administrative overhead coupled with reduce expense and maintenance will drive construction equipment rental market size. The practice of leasing construction equipment instead of buying new machinery has proved to be beneficial for the construction and infrastructure companies.

“Rising population and growing urbanization along with increasing income levels and growth in IT/ITeS sector will push India construction equipment rental market share,” said the report.

The Earthmoving equipment market has considerably contributed to the global rental market share in 2015 and the Earthmoving segment is set to surpass USD 40 billion in revenue by 2024. The Concrete and road construction segment was valued at over USD 10 billion in 2015, the industry is forecast to witness growth due to new infrastructure projects.

The other trends positively impacting revenue also include growing technological advancement in latest models of construction machinery which coming up with multifunctional features and apps for monitoring fuel consumption of the machine, it said.

The presence of the leasing channel has also helped enhance overall customer service by ensuring high product quality, improved response time, on-time delivery, scheduled pick-ups, etc.

Back to India, slowly but gradually the demand of rental is increasing in India; many construction equipment companies have also started providing rental services to the construction companies, few of them include Volvo CE, Caterpillar, Komatsu and other. However, in comparison to other international market, India’s rental market of construction equipment is in nascent stage but gradually showing growth.

The entrance of construction companies into rental service is indicating two things in India, one is the growing rental market in the country and second, non-dominance of third party rental companies as compared to other rental market, which gives room to manufacturers to get into rental services. Therefore, manufacturers are trying to occupy a share of the rental market. Many construction companies prefer to rent the equipment direct from manufacturers only because additional services given by them.

The prime reason of renting construction equipment is saving of capital investment in buying construction machinery, saving on maintenance cost, minimize costly breakdown, availability of the machine at any place and others. While there are some challenges with rental option, some time you may not get right machine or at right place or at right time, which could lead to the project delay.

The few known rental construction companies in India are Quippo Construction Equipment, Gemini Equipment and Rental, Equipwell and soon Equipment One stop is also coming up with rental services.

Source: Information has been obtained from Global Market Insights, Inc and ReportsnReports

This post first appeared on Equipment One Stop, please read the originial post: here

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Here’s Why, CE Rental Market Will Touch $75 Billion by 2024


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