The India construction equipment rental market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 5.1 % during the forecast period (2020 – 2025).
- The increasing focus on infrastructure and development of automation in the construction and manufacturing processes had a significant impact on the market growth. The road construction machinery market has witnessed significant growth in the recent past, owing to the increased road development programs undertaken by the central and state government.
- The renting or leasing of construction equipment has been on the rise, owing to the equipment cost and the cost of the maintenance process. Apart from the cost, there are also other benefits associated with renting the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, included in the rent.
- For short-term construction application, renting a machinery has been preferable than a purchase among construction contractors, as renting allows optimum utilization of the machinery.
- India has nearly 1,263 construction projects in progress across various sectors, such as power, road, railways, telecom, and shipping. Additionally, the growing demand for office space in tier 1 and 2 cities is anticipated to continue to increase the demand for rental construction equipment in the country during the forecast period.
Key Market Trends
Growing Investment in The Construction Industry
Growing investments in the infrastructure sector and other strategic initiatives of the government are expected to boost the construction sector in the country.
- The construction sector in India has been growing rapidly with an increase in investments by the government.
- The Indian government's ‘Housing for All by 2022’ is also a major game changer for the industry.
- The growth of commercial real estate has been driven largely by service sectors, especially IT-ITeS.
Prime Minister Narendra Modi announced the launch of Smart Cities Mission, two years ago, with an aim of developing 100 sustainable and inclusive cities across India.
- 99 cities were identified, and the central government recently added nine more to the list.
- With an investment of over INR 2 trillion being dedicated to the project, the government needs to tap into cost-effective and innovative operational models in real estate construction.
The increasing investments in the residential and commercial sectors, along with strategic initiatives by the Indian government, are expected to boost the construction sector in the country.
Cranes Are Likely to Dominate The Construction Equipment Rental Market
The cranes are expected to lead the construction equipment rental market as Rental cranes are available in different types and are majorly classified as, crawler cranes, all terrain cranes, rough terrain cranes, tower cranes, and truck-mounted cranes. Among them, crawler cranes, all terrain cranes, tower cranes, and truck-mounted cranes have been majorly adopted in the construction sector, while rough terrain cranes have covered a limited demand in construction and major demand in mining sector.
With the stark rise in affordable housing and smart city projects by the Indian government (Pradhanmantri Awaas Yojna and Mukhyamantri Awaas Yojna), the demand for tower cranes has been continually increasing.
- Owing to the high cost of these cranes, the demand for rental cranes has been increasing.
Big corporates, like LandT, Shapoorji, and Tata Projects, have begun to take cranes on rentals instead of procurement of new equipment.
The India construction equipment rental market is majorly dominated by few players such as iQuippo, Volvo Construction Equipment, ACE Cranes, ABC Infra Equipment Pvt Ltd., Sanghvi Movers Limited (SML), All India Crane Hiring Co., Jainex Group amongst others.
The companies are expanding their presence and buying new machinery for providing these machineries on rent. For instance,
- Volvo Construction Equipment strengthened its presence in the Indian retail sector, with the addition of a dealer in Rajasthan. The operations of this dealership is head quartered in Udaipur, with initial branch offices in Bhilwara, Rajnagar, Jodhpur, and Barmer.
- JNK Lifter, crane rental company based in Mumbai, took delivery of a new LTM 1250-5.1 mobile crane at the Liebherr stand at the Bauma Conexpo India construction machinery trade show.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support