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A new report by Off-Highway Research has shed light on the significant role rental companies play in North America’s construction equipment market. In 2024, rental businesses accounted for nearly one-third of all equipment sales, purchasing 33% of the 333,000 units sold across earthmoving equipment, material handling equipment, and compact machines.
This substantial figure highlights the dominance of rental companies as a key buyer in the construction industry. The findings provide a deep dive into how rental companies are reshaping the market and point to potential trends for the future.
Rental companies are leading in sales
According to the reports, rental companies remain an essential sales medium for construction equipment manufacturers, particularly in the material handling sector. The construction industry has seen impressive growth on the rental side. Rental buyers accounted for 79% of the material handling equipment sold in 2024, including telescopic handlers, mobile cranes, and rough terrain forklifts.
This equipment is vital for the projects and infrastructure sectors, making them a popular choice for rental fleets that serve a wide range of construction projects.
The significance of rental buyers was also notable in earthmoving equipment sales, representing 28% of the total 95,000 units sold. This category includes heavy equipment like loaders, dozers, graders, and excavators, which are staples of large-scale construction sites. The equipment for sale in Houston, Texas has seen significant growth across Houston and other regions.
High demand for material handling equipment
According to the survey, rental fleets will purchase 79% of the units sold in 2024. This indicates that material handling equipment remains a top investment for rental companies. Rental fleets benefit greatly from their adaptability and widespread use in infrastructure improvements, warehouses, and building projects.
The requirement for adaptable equipment solutions in sectors that need short-term machinery rentals is predicted to fuel this trend going forward. Renting equipment allows businesses to stay flexible and scale their operations in response to project demand while avoiding the upfront expenditures associated with buying it.
Electric equipment gaining ground
The equipment sales and rentals are expanding beyond conventional models. It also surges in the electric-powered equipment. This is one of the most interesting and hopeful findings of the survey, which shows that the industry is now more inclined towards electric equipmentThe report encourages manufacturers to invest further in producing electric-powered equipment and components. Such machines are not only sustainable for the future but also highly profitable for contractors and project owners.
Each of the 100 electric compacts tracked loaders sold in 2024 went to rental companies, while rental businesses also purchased 90% of the electric mini excavators sold this year.
Despite the slow adoption of electric earthmoving equipment—just 47 electric units were sold in 2024—eleven of those units were bought by rental firms. This shows that rental companies are not only interested in increasing their regular fleets but also exploring the possibility of electric equipment, which might become more frequent as the sector transitions toward sustainability.
The dominance of major rental firms
The report points out the substantial market share that the leading rental chains hold such as United Rentals and Sunbelt Rentals. These are the firms that have long been in the lead of the market, using their size to buy large stocks of equipment. On the other hand, the report also admits the influx of new startups such as EquipmentShare that have recorded remarkable growth recently, due to the company’s use of technology and fleet management.
In a similar light, by renting their equipment, rental companies serve as key players in the construction equipment market, which, according to Chris Sleight, Director of Off-Highway Research, is a growing industry. Rentals are the key channel of equipment suppliers for construction and industrial equipment in North America, especially in heavy lifting equipment. They are almost the sole supplier in this area.
Popular equipment categories
Rental companies have displayed a strong affinity for certain kinds of machinery in the earthmoving type. Rental businesses were the biggest Articulated dump truck users, with 55 percent of sales going to them. Backhoe loaders were just next on the list, with a 35% share, and as the wheel loaders of this category, crawler excavators were the last with shares of 33%.
These machines are used in the large construction, roadworks, and infrastructure facilities sectors where they are required for rental businesses to assure their clients of the availability of plenty of the proper machines possible.
Veracity’s data clearly show that among all other reasons, machines that are both versatile and durable are on rental fleets play a significant role.
Growing value of rental fleets
The amount of equipment that rental firms own is impressive. The greatest portion, earthmoving equipment, is valued at around $63 billion. Material handling equipment is valued at $16 million, while compact equipment comes in second with a $25 million valuation. This significant investment illustrates how important rental companies are in providing construction companies with the equipment they need to finish projects of all kinds.
The value of these fleets is expected to increase as more construction companies use rentals to fulfill project demands, particularly as new technology and electric-powered solutions become more accessible.
Technology driving efficiency in the rental sector
The rental market is changing as a result of the emergence of tech-driven businesses. Innovative technologies are being used by companies to get more profit to increase operational efficiency, optimize fleet management, and improve asset tracking. Rental businesses may maximize equipment utilization and improve customer service by utilizing real-time data and AI-powered systems.
This innovation is not only reshaping the rental landscape but also making it more competitive. As traditional rental companies adopt similar technologies, the market will likely see greater efficiency and cost savings, benefiting both equipment providers and renters alike.
Why is it important for the construction industry
The findings of this report reveal several important trends for the construction industry. First, the dominant role of rental companies suggests that purchasing equipment outright may become less common as firms opt for more flexible, rental-based models. This allows businesses to scale operations without the burden of long-term ownership costs.
Second, the increased interest in electric equipment from rental companies indicates a steady shift toward more sustainable practices. As more electric options become available, adoption will likely rise, particularly in smaller equipment categories like compact machines and material handling equipment.
Finally, the market’s reliance on major rental chains and the emergence of tech-driven companies point to a future where technology and innovation will drive competition and efficiency within the rental sector.
Conclusion
The Off-Highway Research report offers valuable insights into the evolving construction equipment sales landscape in North America. The report thoroughly sheds light on the rental market, particularly in the Northern region. With rental companies purchasing nearly one-third of all equipment sold in 2024, their influence on the market is undeniable.
As trends like electric equipment adoption and technological innovation continue to shape the industry, rental companies will likely play an even more critical role in the construction equipment ecosystem. For manufacturers and contractors, understanding these dynamics will be essential to navigating the future of equipment sales and rentals. All the stakeholders and other business owners need to be at the forefront of the trends to sustain in the rental industry. These trends and market analysis help to make the smart decision amid the tough investment and financial situations.
