The equipment rental industry provides machinery, tools and equipment for a set period of time to users like construction companies or individual consumers. In some countries, it is known as plant hire. The American Rental Association launched in 1955. In Europe, many small and medium sized businesses were established in the 1950s and 1960s and have thrived, like Loxam and Cramo. The European Rental Association began in 2006. Types of equipment rented include cranes, bulldozers, excavators, and small rental equipment for construction, transportation, mining, oil and gas, forestry and more. The industry provides light and heavy equipment logistics and warehousing as well.
The global equipment rental market declined over 60% in 2020 due to the pandemic, but is expected to rebound and grow over 4.5% annually from 2021 to 2027. Growth is driven by public infrastructure development and government expenditures on smart cities.
Those looking to start an equipment rental business should research their local market, as results can vary dramatically by location. Upfront investments in equipment are required, and software can help improve profitability.
In the US, the equipment rental industry is a $38 billion market projected to grow 4.8% from 2011-2015. Most businesses rent equipment regularly, making this sector quite lucrative.
Starting an equipment rental business requires thorough market research, and potential profitability varies by location. Substantial investments are needed for purchasing the necessary equipment. Businesses can enhance their operational efficiency and profitability by utilizing specialized rental software.