Summary

The Asia-Pacific region is one of the largest markets that have seen a boom in infrastructure development and construction as governments increasingly focus on developing infrastructure for a growing economy. The region has seen remarkable growth in the number of Special Economic Zones (SEZs), hydropower projects, dams, highways, subways, and airports to support the high level of industrial activity, increasing energy demand, and better connectivity. As a result, numerous international companies have started to invest and set up distribution centres and production facilities in the region to meet the growing demand and capture the regional market. Governments in Asia's emerging economies are heavily investing in major products to improve connectivity, trade, and the overall economy. These initiatives are gaining the attention of global construction equipment companies, which are motivated to invest heavily and set up their companies in the region. Global construction equipment manufacturers such as Caterpillar, Hitachi, Liebherr, and Sumitomo Corporation provide their products and services in the region. Asia Pacific currently holds the largest share in the market and is expected to expand at the fastest rate throughout the forecast period.

According to the research report, "Asia-Pacific Construction Equipment Rental Market Outlook, 2028," published by Bonafide Research, the market is anticipated to reach USD 33.89 billion by 2028. The emergence of online retail facilities, the availability of heavy machinery for rent, rapid technological advancements, and an increase in investments by prominent market players are key factors driving revenue growth in the Asia Pacific market. Furthermore, China is investing significantly in public infrastructure and residential construction projects and development, as the population in China is increasing rapidly. This is also contributing to the growth of the construction equipment rental market in Asia-Pacific. The growing emphasis on infrastructure, as well as the advancement of automation in construction and manufacturing processes, has had a significant impact on the growth of the construction equipment rental market in Asia Pacific. Players are launching their products in the Asia-Pacific market, which is also expected to give the market a boost. For instance, in May 2022, MYCRANE, a digital disruptor for cranes and construction equipment based in Dubai, will announce plans to launch the world's first online crane rental platform in key Asia-Pacific (APAC) markets such as Singapore, Thailand, and Indonesia.

Construction contractors and construction equipment rental companies have gradually resumed their work as governments in many countries, including China, Japan, India, and South Korea, have begun to approve commercial construction projects across cities. To ramp up the efficiency of work and decrease the maintenance cost of the machinery, equipment rental software solutions provide a base for construction machinery rental companies. Most international companies have already begun using these software solutions to track operation efficiency, parts replacement cycles, and precise working hours. The Indian government has started a series of leading initiatives, like the Smart Cities Mission, Make in India, and Housing for All, and the AMRUT, also known as the Atal Mission for Urban Rejuvenation and Transformation, is also projected to support sales of construction equipment rental services in this region. Based on these factors, the residential segment will lead the market in 2022. However, the non-residential segment is growing at a higher CAGR for 2023–28. As governments are increasingly focusing on infrastructure development for a growing economy, the region is one of the largest markets, witnessing a boom in infrastructure development and construction.

On-going megaprojects in China need a lot of machinery and materials to be displaced from one part of the country to the other. Projects like the Tianhuangping hydroelectric project, the South-North water transfer project, the Belt and Road Initiative, and the Beijing airport are some of the many projects that will deploy many pieces of construction equipment. The rise of online shopping facilities, the increased availability of equipment on a rental basis, growing government spending on infrastructure development, and higher capital investments are likely to drive the growth of the market in the region. Likewise, the Chinese government is investing in public infrastructure, renewable energy, and residential construction projects, all of which are driving up demand for construction equipment.

According to the research report, the Asia-Pacific market is segmented into five major countries, including China, Japan, India, South Korea, and Australia. Among them, China is expected to dominate the market during the forecast period. China is witnessing phenomenal growth in the construction equipment rental industry. This country is estimated to hold the highest market share as a result of tremendous opportunities for the rental equipment manufacturers as the government is investing significantly in public infrastructure and residential construction projects and developments as the population in China is increasing rapidly. This is also elevating the market share across the globe. With bullish projections for the construction industry in India and China, the trend for material handling and cranes will boost the revenue stream in the region. The rising adoption of material handling equipment in the freight transport sector will bolster rental equipment services. Earthmoving and roadbuilding equipment will gain prominence as excavators and backhoes are increasingly used to supplement construction activities. In Japan and China, thriving investments in public infrastructure activities, such as the renovation of ageing buildings and road structures, bode well for the growth of the construction equipment rental market. Based on equipment type, the earthmoving segment is leading the market.

On construction sites, various types and sizes of construction equipment are used depending on the scale and process. Conventionally, construction equipment systems have generally been owned by general construction contractors, and therefore, the construction equipment business of Sumitomo Corporation began with a trade business that sold construction equipment manufactured in Japan to overseas users. Sumitomo Corporation later expanded the business into machinery and equipment wholesale, targeting sales agents in foreign countries. With the aim of also entering the retail business, the company subsequently acquired local distributorships and became involved in their management. The renting or leasing of construction equipment has been on the rise, owing to the equipment cost (which is more feasible for short-duration construction activities) and the cost of the maintenance process. Apart from the cost, there are also other benefits associated with renting construction equipment. Rental companies provide the machinery along with the required professional machine operators and drivers, which are included in the rent. On the basis of application, the residential segment will lead the market in 2022.

Various construction projects in Singapore, Indonesia, and Malaysia, such as the Penang Transport Master Plan, the MRT Circle Development Project, the Sarawak-Sabah Link Road Project, and other major projects in the region, are expected to drive the demand for earthmoving equipment in the area. Various public infrastructure projects are planned, such as Bicol Medical Center’s Medical Arts Building and the NEDA Makati Property Redevelopment Project in the Philippines in 2021. Similarly, development is progressing in various countries in the Southeast Asia region. Therefore, the demand for aerial platforms is expected to rise in the forecast period. Large construction projects such as Changi Airport and Tuas Mega Port in Singapore and the development of metropolitan regions for Palembang, Banjarmasin, Makassar, and Denpasar in Indonesia in 2021 are expected to drive demand for bulldozers and trenchers in Southeast Asia.

The growing trend towards automation is expected to drive the growth of the market. Automation brings down the operational cost of equipment by improving its efficiency and functional capacity & operational cost of equipment by improving its efficiency and functional capacity. Automation aids fleet management for equipment rental services by replacing ageing equipment with new equipment to meet the most recent customer requirements. Increased construction activities across the globe have resulted in increased consumption of diesel. Although diesel has high energy content compared to gasoline, its combustion releases dangerous exhausts into the environment. Governments and pollution regulatory bodies across the globe have established norms and regulations that require diesel engines to produce almost negligible NOx and SOx emissions. This has opened the doors for OEMs to switch to hybrid and electric vehicles in the future. Electric construction equipment is not only a zero-emission machine but also produces very little heat, noise, and vibrations.

Residential building construction is predicted to raise demand for construction equipment across the board. Furthermore, macroeconomic factors benefit home buyers by lowering mortgage rates and creating stable employment. Such factors are likely to fuel the long-term growth of the construction equipment rental sector. In addition, demand in the commercial sector is expected to rise due to expanding infrastructure initiatives in developed and developing countries. However, during the COVID-19 pandemic, critical government construction projects, such as key utilities, hospital builds, and infrastructure, sustained work but at a slower pace with less labour force at the job site to avoid the spread of COVID-19. Therefore, in 2020, the value of the construction equipment rental market fell owing to a fall in global economic growth, which, in turn, is resulting in a slowdown in construction work timelines.

Major Companies present in the market:
Nikken Corporation, Caterpillar Inc., Sumitomo Corp., Hyundai Construction Equipment Ltd., Loxam Group, Finning International Inc, Maxima Carne Works Lp, Ashtead Group Plc

Considered in this report
• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Asia-Pacific Construction Equipment Rental market with its value and forecast along with its segments
• Country-wise Construction Equipment Rental market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:
• China
• Japan
• India
• Australia
• South Korea

By Equipment Type:
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application Type:
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Construction Equipment Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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