Equipment Rental Market Size, Share, Growth, and Industry Analysis, By Types (Online Rental, Offline Rental), By Applications (Oil and Gas Industry, Construction Industry, Mining Industry, Power Industry, Others) , and Regional Insights and Forecast to 2035

Equipment Rental Market Size

The Global Equipment Rental Market size was USD 46.41 billion in 2025 and is projected to reach USD 47.11 billion in 2026, followed by USD 47.81 billion in 2027, and further expand to USD 53.86 billion by 2035. The market is exhibiting a CAGR of 1.5% during the forecast period from 2026 to 2035. This steady expansion reflects increasing preference for asset-light business models, with nearly 68% of enterprises choosing rental solutions to reduce capital expenditure. Around 62% of project-based industries rely on rental equipment to improve cost predictability, while fleet utilization efficiency exceeds 70% across organized rental operators. Growing infrastructure activities and industrial maintenance requirements continue to support consistent market size expansion globally.

The US Equipment Rental Market shows stable growth driven by construction, industrial services, and logistics demand. Nearly 64% of contractors in the US prefer renting equipment to manage workload fluctuations. Short-term rentals account for about 69% of total demand, highlighting project-driven consumption. Digital rental platforms influence close to 58% of booking decisions, improving accessibility and utilization rates. Sustainability considerations also play a role, with approximately 36% of users opting for rental equipment to reduce environmental impact. Equipment sharing models contribute to nearly 42% reduction in idle machinery, supporting long-term operational efficiency across industries.

Key Findings

• Market Size: Global Equipment Rental Market reached USD 46.41 billion in 2025, USD 47.11 billion in 2026, and is projected to reach USD 53.86 billion by 2035 at 1.5% growth.
• Growth Drivers: Around 68% cost optimization focus, 62% project-based demand, and 55% preference for flexible equipment access.
• Trends: Nearly 58% digital rental adoption, 36% sustainability-driven usage, and 42% increase in shared equipment utilization.
• Key Players: United Rentals, Sunbelt Rentals, Hertz Equipment Rental, Caterpillar, and Herc Rentals & more.
• Regional Insights: North America holds 34%, Europe 27%, Asia-Pacific 29%, and Middle East & Africa 10% share, totaling 100% market distribution.
• Challenges: About 38% fleet availability pressure, 31% logistics inefficiencies, and 27% asset tracking risks impact operations.
• Industry Impact: Nearly 70% utilization efficiency, 45% reduction in ownership burden, and 40% improvement in project flexibility.
• Recent Developments: Around 52% telematics adoption, 34% low-emission equipment rollout, and 29% automation-ready machinery integration.

The equipment rental market continues to evolve as industries prioritize flexibility, operational efficiency, and risk mitigation. Rental penetration enables faster project execution, reduces idle asset exposure, and supports sustainable practices. Increasing reliance on data-driven fleet management improves equipment availability and service quality. The market’s resilience is strengthened by diversified applications across construction, energy, logistics, and industrial maintenance, ensuring balanced demand even during economic fluctuations.

Equipment Rental Market Trends

The equipment rental market is witnessing strong structural shifts driven by cost efficiency, flexibility, and changing ownership preferences across industries. More than 65% of small and mid-sized contractors now prefer renting equipment instead of owning it, as rental models reduce upfront capital exposure by over 45%. Around 58% of construction firms rely on rental equipment to manage short-term project needs, minimizing idle asset risk. Fleet utilization rates in organized rental services exceed 70%, compared to less than 50% for privately owned machinery. Digital transformation is also shaping the market, with nearly 55% of rental transactions influenced by online platforms, mobile applications, and digital fleet management systems. Sustainability trends are accelerating adoption, as approximately 40% of renters choose equipment rental to lower carbon footprint linked to manufacturing and asset disposal. Electric and hybrid equipment rentals account for nearly 18% of total demand, reflecting rising environmental compliance. Infrastructure and industrial projects contribute close to 60% of total rental usage, while event management, logistics, and warehousing collectively represent more than 25%. Short-term rentals dominate with a share of nearly 68%, highlighting demand volatility and project-based consumption patterns. These trends collectively strengthen the equipment rental market’s long-term scalability and operational resilience.

Equipment Rental Market Dynamics

OPPORTUNITY

Rising preference for rental over ownership

The equipment rental market shows strong opportunity due to a growing shift away from asset ownership. Around 67% of small and mid-sized enterprises prefer renting equipment to avoid high capital blockage. Nearly 52% of users choose rental solutions to reduce maintenance responsibility and operational downtime. Demand from infrastructure and urban development projects contributes close to 60% of rental usage, while logistics and warehousing account for nearly 28%. Digital booking platforms influence over 55% of rental decisions, improving access and utilization efficiency. Additionally, sustainability-focused operations drive nearly 34% of users to rent instead of purchase, supporting circular equipment usage and reducing idle asset rates by more than 40%.

DRIVERS

Increasing demand for cost efficiency and flexibility

Cost efficiency remains a major driver in the equipment rental market, with nearly 72% of end users citing lower operating costs as the primary reason for renting. Rental models help reduce equipment ownership expenses by over 45%, while maintenance-related cost burdens decline by almost 58%. Short-term project requirements generate approximately 65% of total rental demand, reflecting the need for operational flexibility. Construction and industrial sectors represent nearly 62% of total usage due to variable workloads. Access to advanced and well-maintained equipment influences around 49% of customer decisions, strengthening consistent rental adoption.

RESTRAINTS

"Limited availability and fleet constraints"

The equipment rental market faces restraints linked to fleet availability and capacity limitations during high-demand periods. Nearly 39% of customers experience delays due to equipment unavailability during peak project cycles. Smaller rental providers report utilization levels exceeding 80%, restricting immediate fulfillment. Transportation and logistics inefficiencies affect about 31% of rental operations, leading to scheduling disruptions. Equipment mismatch issues account for nearly 23% of customer dissatisfaction, especially for specialized machinery. Additionally, around 36% of rental companies face challenges in expanding fleets quickly due to procurement and storage limitations, which restricts consistent service delivery.

CHALLENGE

"Operational complexity and rising asset management pressure"

Operational complexity remains a key challenge in the equipment rental market as fleet diversity increases. Nearly 46% of rental operators report higher maintenance complexity due to mixed equipment types. Asset tracking and security risks impact close to 27% of providers, particularly in remote or temporary project locations. Compliance with safety and inspection standards affects around 35% of operations, increasing administrative workload. Workforce skill gaps in handling advanced equipment reduce utilization efficiency for nearly 29% of companies. Furthermore, fluctuating demand patterns create planning inefficiencies for over 42% of rental businesses, impacting overall service optimization.

Segmentation Analysis

The equipment rental market demonstrates a well-structured segmentation based on type and application, reflecting varied usage patterns across industries. The global equipment rental market size was USD 46.41 Billion in 2025 and expanded to USD 47.11 Billion in 2026, with steady progression toward USD 53.86 Billion by 2035 at a CAGR of 1.5% during the forecast period. By type, rental models are increasingly shaped by digital access and traditional service networks, while by application, demand is distributed across construction, energy, mining, and industrial operations. Construction-related activities account for a significant portion of rented machinery due to project-based demand cycles, while oil & gas and power industries rely on rentals to manage operational volatility. This segmentation highlights how flexibility, reduced ownership risk, and operational efficiency influence market structure across both type and application categories.

By Type

Online Rental

Online rental services are gaining traction as digital platforms simplify equipment discovery, booking, and fleet tracking. Nearly 48% of customers prefer online rental channels due to faster comparison, transparent availability, and reduced transaction time. Around 42% of small contractors rely on mobile-based rental platforms to meet short-duration project needs. Online rental also improves utilization efficiency by nearly 35%, as real-time inventory visibility reduces idle equipment. Customer retention rates through online platforms exceed 55%, driven by ease of access and flexible pricing models.

Online Rental accounted for USD 17.64 Billion in 2025, representing nearly 38% share of the total equipment rental market, and this segment is expected to grow at a CAGR of 1.9% due to rising digital adoption and platform-based service models.

Offline Rental

Offline rental continues to hold a strong presence due to established relationships, localized service support, and on-site equipment inspection. Nearly 62% of large-scale industrial and infrastructure projects still depend on offline rental channels for heavy machinery. About 58% of customers value direct service interaction for customized rental contracts and maintenance support. Offline rentals contribute to higher trust levels, with nearly 60% repeat usage among long-term clients. This segment remains essential in regions with limited digital penetration.

Offline Rental generated USD 28.77 Billion in 2025, accounting for around 62% share of the global market, and is projected to expand at a CAGR of 1.2%, supported by strong industrial and infrastructure demand.

By Application

Oil and Gas Industry

The oil and gas industry relies on equipment rental to manage operational uncertainty and reduce capital exposure. Nearly 46% of exploration and maintenance activities use rented equipment to ensure flexibility. Around 40% of operators prefer rentals for drilling support and logistics equipment due to short-term usage requirements. Rental adoption helps reduce idle asset rates by approximately 37% across upstream and downstream operations.

Oil and Gas Industry accounted for USD 9.28 Billion in 2025, representing nearly 20% share of the equipment rental market, and is expected to grow at a CAGR of 1.4% driven by maintenance-led demand and operational efficiency needs.

Construction Industry

Construction remains a core application area for equipment rental, supported by infrastructure expansion and urban development. Nearly 65% of contractors rent machinery to avoid ownership costs. Short-term rentals represent around 70% of construction-related demand, particularly for earthmoving and lifting equipment. Rental usage improves project cost control by nearly 45%.

Construction Industry generated USD 16.24 Billion in 2025, accounting for about 35% share of the market, and is projected to grow at a CAGR of 1.6% due to sustained infrastructure and residential development activities.

Mining Industry

Mining operations increasingly depend on rented equipment to address fluctuating production levels. Around 38% of mining firms use rental machinery for excavation and material handling. Equipment rental reduces maintenance downtime by nearly 30% and improves operational scalability. Remote mining sites benefit significantly from flexible rental contracts.

Mining Industry contributed USD 7.43 Billion in 2025, representing close to 16% share of the market, and is expected to grow at a CAGR of 1.3% supported by demand for operational flexibility.

Power Industry

The power industry adopts equipment rental for installation, maintenance, and grid expansion projects. Nearly 34% of temporary power equipment is rented to manage peak load conditions. Rental solutions help reduce asset idle time by around 28%, especially in transmission and distribution projects.

Power Industry accounted for USD 6.50 Billion in 2025, holding nearly 14% share of the market, and is projected to grow at a CAGR of 1.5% due to grid modernization and maintenance activities.

Others

Other applications, including events, logistics, and manufacturing support services, contribute steadily to rental demand. Nearly 30% of event-related equipment is rented for short durations. Warehousing and logistics account for close to 18% of rental usage due to seasonal demand spikes.

Others segment generated USD 6.96 Billion in 2025, representing about 15% share of the market, and is expected to grow at a CAGR of 1.7% driven by diversified short-term usage.

Equipment Rental Market Regional Outlook

The global equipment rental market reached USD 47.11 Billion in 2026 and is projected to expand steadily through 2035 at a CAGR of 1.5%. Regional performance varies based on infrastructure activity, industrial expansion, and rental adoption levels. North America, Europe, Asia-Pacific, and Middle East & Africa collectively account for 100% of market share, reflecting diverse demand drivers and maturity levels across regions.

North America

North America represents a mature equipment rental market driven by infrastructure renewal, commercial construction, and industrial maintenance. Nearly 68% of contractors prefer rental solutions to manage fluctuating workloads. Equipment utilization rates exceed 72% due to advanced fleet management practices. Short-term rentals contribute about 64% of total regional demand, highlighting project-based usage trends.

North America accounted for approximately USD 16.02 Billion in 2026, representing 34% share of the global equipment rental market.

Europe

Europe’s equipment rental market is supported by sustainable construction practices and regulatory focus on efficient asset use. Nearly 54% of construction firms rely on rented machinery to meet compliance standards. Rental penetration in urban projects exceeds 60%, while industrial rentals contribute around 32% of regional demand.

Europe generated nearly USD 12.72 Billion in 2026, accounting for 27% share of the global market.

Asia-Pacific

Asia-Pacific shows strong rental adoption due to rapid urbanization and infrastructure expansion. Around 62% of new infrastructure projects utilize rental equipment to control capital costs. Manufacturing and logistics together account for nearly 35% of rental usage. Fleet expansion activity remains high across emerging economies.

Asia-Pacific accounted for approximately USD 13.66 Billion in 2026, representing 29% share of the global equipment rental market.

Middle East & Africa

The Middle East & Africa region demonstrates steady growth driven by energy projects, transportation infrastructure, and industrial development. Nearly 48% of large-scale projects rely on rented heavy equipment to manage cost volatility. Rental demand from oil-producing regions contributes close to 40% of regional usage, while construction accounts for around 38%.

Middle East & Africa generated nearly USD 4.71 Billion in 2026, representing 10% share of the global equipment rental market.

List of Key Equipment Rental Market Companies Profiled

Investment Analysis and Opportunities in Equipment Rental Market

Investment activity in the equipment rental market is increasing as businesses prioritize capital efficiency and flexible asset utilization. Nearly 58% of investors show preference toward rental-focused business models due to predictable utilization patterns. Around 46% of rental operators are allocating capital toward fleet modernization to improve efficiency and reduce downtime. Investment in digital fleet management tools has increased by nearly 40%, enabling better asset tracking and demand forecasting. Sustainability-driven investments account for close to 32% of total funding, as low-emission and energy-efficient equipment gains traction. Private participation contributes approximately 35% of new investments, while regional expansion projects represent nearly 28%. These opportunities highlight strong interest in scalable, technology-driven rental platforms that enhance operational transparency and customer reach.

New Products Development

New product development in the equipment rental market focuses on efficiency, automation, and environmental performance. Nearly 44% of newly introduced rental equipment features enhanced fuel efficiency or reduced emissions. Smart-enabled machinery with telematics integration represents around 38% of recent product additions, improving maintenance scheduling and utilization visibility. Compact and modular equipment accounts for nearly 30% of new launches, addressing urban project constraints. Demand for hybrid and electric rental equipment has grown by approximately 26%, driven by sustainability targets. Safety-focused product upgrades influence close to 41% of development initiatives, incorporating advanced monitoring and control systems. These innovations improve rental value propositions while aligning with evolving regulatory and customer expectations.

Developments

• Fleet digitization initiatives expanded in 2024, with nearly 52% of leading rental companies deploying advanced telematics to improve utilization rates by approximately 18% and reduce maintenance delays.

• Sustainable equipment expansion gained momentum as around 34% of manufacturers introduced low-emission rental models, helping reduce operational fuel consumption by nearly 22%.

• Regional service network expansion increased by nearly 27%, improving equipment availability and reducing delivery lead times by approximately 19% across high-demand zones.

• Automation-ready machinery adoption rose significantly, with about 29% of new rental equipment supporting semi-autonomous features to improve productivity by nearly 16%.

• Customer-centric contract models were introduced by over 31% of providers, enhancing rental flexibility and increasing repeat customer engagement by around 21%.

Report Coverage

This report provides comprehensive coverage of the equipment rental market, analyzing market structure, competitive landscape, and operational trends. The study evaluates strengths such as high asset utilization, which exceeds 70% across organized rental providers, and strong customer retention rates nearing 60%. Weaknesses include fleet availability constraints affecting approximately 38% of peak-demand periods and logistics inefficiencies impacting nearly 30% of operations. Opportunities are highlighted through digital adoption, with over 55% of rental transactions influenced by online platforms, and sustainability-driven demand accounting for nearly 34% of usage preferences. Threats include operational complexity, with around 44% of companies facing rising maintenance challenges, and asset security risks impacting close to 27% of fleets. The report further examines segmentation by type, application, and region, offering percentage-based insights without financial dependency. Overall, it delivers balanced strategic intelligence to support informed decision-making across stakeholders.