Construction Equipment Rentals to See Big Growth
A healthy CAGR rate of more than 7% by 2019 is the predicted growth rate for construction equipment rental industry. The boost in the infrastructure development segment is the steroid on which the construction equipment rental business is surfing to newer heights. The global report for the construction equipment rental business is pretty optimistic given the growing demand for residential and connectivity infrastructure. The rental business in India is still in its nascent stages and has a huge scope for growth in the years to come. Add conducive policies to the mix and the segment is bound to growth at a rate never seen before.
The market is driven forward by the need to replace the outdated equipment in the market with the new ones equipped with the latest tech. This is one of the most crucial factors that will help the market grow. Internationally and nationally the equipment rental market is seeing a strong presence of the manufacturers unlike the past when third party operators ruled it. More and more manufacturers are opting to rent out their equipment directly to the companies and on the other hand the companies are preferring to rent from manufacturers thanks to the additional services and expertise that the manufacturers are willing to provide.
Residential infrastructure, energy infrastructure, transport and power are the segments that are currently attracting high volumes of investments. With companies handling multiple projects at the same time, they are opting to rent equipment instead of buying them to cut down on costs. Additionally fleet management softwares make it easier for the construction companies to take inventory and manage their fleet for optimal use of resources. Services provided by the manufacturers when renting out the equipment add to the company’s savings and efficiency of the project.
While construction equipment rental is set for growth, it has its own set of problems that the industry needs to tackle. Rental companies find it difficult to provide services in rural areas often restricting the market for small and big rental companies alike. While the industry is run by the big honchos, the smaller companies and local contractors take the cake in the rural areas of the country. Most of the big manufacturers across the globe are present in India either independently or in collaboration with local manufactures. OEM being big in the equipment rental market is a trend that is predicted to stay in the years to come.
While the global equipment rental market is set to bloom, the market in India has its own set of hurdles that will need to be overcome before the market can bloom to its full potential. Given India’s growing economy and the huge investments happening in the domestic infrastructure these problems will need to be overcome soon if the market is to ride the wave of growth. That being said , billions of dollars are being put to work in the development of the infrastructure of the country and the industry is bound to make its moolah. How much? is the question that remains to be answered.