US Equipment Rental Market Set for 4% Growth by 2028, Driven by $1.2 Trillion Infrastructure Investments and 60% Earthmoving Machinery Dominance

The US Equipment Rental Market is experiencing steady growth, driven by the booming construction and industrial sectors. As businesses strive to optimize operations and reduce capital expenditures, rental solutions are becoming increasingly popular. Whether it’s for large-scale infrastructure projects or smaller urban developments, contractors and developers are finding rental services to be the most efficient option. According to Makreo Research, the equipment rental market grew at a CAGR of 3% from 2018 to 2022, with demand for equipment surging particularly in 2021.

Key Factors Fueling Growth in the US Equipment Rental Market

The US heavy equipment rental market is seeing unprecedented expansion, thanks to several contributing factors:

1. Infrastructure Investments: One of the biggest drivers of growth is the passing of the USD 1.2 trillion Infrastructure Investment and Jobs Act (IIJA). This legislation has catalyzed public infrastructure projects nationwide, particularly in highways, bridges, and energy systems. As a result, the demand for heavy equipment rentals has surged, with rental companies reporting a 15% year-on-year increase in machinery demand directly linked to infrastructure projects.

2. Cost Efficiency: High purchase and maintenance costs associated with owning equipment have led many construction firms to turn to rental services. In fact, data shows that 55% of U.S. construction companies now rely on rental equipment, which represents a 20% increase over the past decade. Renting allows these companies to reduce capital expenditures while improving project execution timelines.

3. Residential Construction Boom: The housing market is another key player in driving the growth of the United States equipment rental market. In 2023, new home starts saw a 7% increase, pushing the demand for earthmoving equipment, concrete mixers, and other essential machinery. This sector alone accounts for 35% of the total market revenue.

4. Building Maintenance and Refurbishment: The growing building stock across the U.S. has led to increased demand for rental equipment, particularly for maintenance and refurbishment projects. This trend is particularly strong in urban and commercial settings, where rental equipment like lifts, loaders, and scaffolding is in high demand.

The Strong Performance of the US Construction Equipment Rental Market

The performance of the US Construction Equipment Rental Market is tightly linked to the construction sector's ongoing success. In 2023, the total value of new commercial, highway, and public works construction projects reached USD 510 billion, a 6% increase from the previous year. Equipment such as excavators, cranes, and forklifts have seen strong demand across both large-scale infrastructure projects and smaller urban developments.

As urbanization continues, especially in major metropolitan areas, the demand for compact equipment designed for tight urban environments has grown. Small to mid-sized construction firms are increasingly turning to rental options to stay competitive amid rising material costs and shorter project deadlines.

The Rise of Sustainable and Technologically Advanced Equipment Rentals

Sustainability has become an important consideration for companies operating in the US industrial equipment rental market. Many construction firms are now prioritizing eco-friendly equipment that complies with modern environmental standards. In response, equipment rental companies are expanding their fleets to include electric and hybrid machinery, with reports showing a 10% rise in sustainable equipment rentals over the past year.

Moreover, technological advancements such as telematics and data-driven solutions are gaining traction in the industry. These innovations help companies monitor equipment usage, improve efficiency, and reduce downtime. The adoption of telematics in the US heavy equipment rental market is expected to grow by 8% annually, providing rental firms with an additional competitive edge.

Outlook for the US Equipment Rental Market

The future of the US Equipment Rental Market looks promising. With rising infrastructure projects and robust residential construction activity, the demand for rental services is projected to grow at a CAGR of 4% from 2023 to 2028, according to Makreo Research. This growth will be driven by increasing demand for construction, demolition, and infrastructure projects across the nation.

Challenges Facing the US Equipment Rental Market

The US equipment rental industry isn’t without its challenges. Labor shortages, equipment shortages, and OEM backlogs are expected to persist into 2023, making it difficult for rental companies to acquire new machinery. These challenges have prompted many firms to hold on to older equipment to meet rising demand, despite typically selling outdated machinery. As a result, both rental prices and sales are likely to increase, ensuring profitability for rental companies even as equipment utilization rates stabilize.

The Dominance of Earthmoving Machinery in the US Rental Market

When it comes to construction, earthmoving machinery plays a dominant role in the US equipment rental market. Earthmoving equipment, such as backhoe loaders, skid-steer loaders, and excavators, accounted for 60% of market revenue in 2021. These machines are highly valued for their superior engine performance and load capacity, making them essential for tough work environments. The demand for this type of equipment is expected to remain strong, particularly for road-building and large-scale infrastructure projects.

The US Equipment Rental Market is poised for sustained growth, fueled by the construction industry's resilience, infrastructure investments, and increasing demand for cost-efficient and sustainable equipment. With the market projected to grow at a CAGR of 4% between 2023 and 2028, rental companies are well-positioned to thrive in a competitive and evolving landscape. Whether it's for public infrastructure projects, residential construction, or industrial maintenance, the need for high-quality rental equipment will only continue to rise.

For more detailed insights and forecasts, Makreo Research’s report, “United States Equipment Rental Market Outlook 2028”, provides a comprehensive analysis of the market, examining growth opportunities, competition, and the impact of key economic factors.

Period of Study:

• Historical Period: 2017-2020
• Base Period: 2021
• Future Forecast Period: 2022-2028

Segmentation Covered:

• By Sectors
  • Construction
  • Industrial
  • Construction
  • Mining
  • Forestry equipment
  • Transportation Equipment
  • Others
• By Construction Equipment Rental
  • Road Building including Earth Moving
  • Concrete Mixing
  • Material Handing
  • Others

Company’s Assessed 

• The Home Depot
• United Rentals
• Ashtead Group (Sunbelt Rentals)
• Herc Holdings
• H&E Equipment Services