After an unprecedented year behind us, the construction market as a whole is looking to the future with expectations of growth, including the global crane rental market.
According to Graphical Research, an economic research firm that provides industry knowledge, market forecasting and strategic inputs, the crane rental market is expected to grow significantly over the next five years.
This growth spurt is mainly due to the preference for rental cranes – as opposed to buying new or used equipment. Companies are finding that crane rental is a solution to avoiding costly investments in purchasing new cranes while taking advantage of rental services. These services include repairs, technical maintenance, and collection and return.
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The remainder of this article describes seven key trends that are driving growth in the global crane rental market.
1. Expand the telecommunications sector across North America
Currently, countries like Canada and the United States are expanding their telecommunications facilities and investing in the development of strong telecommunications infrastructure. This focus is driving demand for cranes and crane rental services across North America.
According to Graphical Research, the US government is investing $ 6 billion in developing 5G and other wireless technologies. This and other extensive projects are already paving the way for future regional market growth.
2. Favorable financial situation
The rental crane market has an advantage over other markets due to the low operating costs for renting cranes. In addition, renting cranes is more flexible and therefore more practical than other options available in the industry.
3. Rapid industrialization across Canada
In North America, particularly Canada, the demand for cranes is growing because of the variety of applicable tasks that cranes can perform. The main industry currently benefiting from the use of cranes is the oil and gas industry, which needs cranes to operate safely.
In the next few years, the Canadian construction and mining sectors are expected to stabilize, which will lead to a significant increase in demand for cranes and other equipment in the region.
In order to anticipate this increase in demand, the rental companies in the region are expanding their rental fleets and complementing the regional market growth.
4. Affordability of cranes and innovative progress in Europe
From the past to the present – and beyond – cranes are constantly evolving, offering new innovative technologies that streamline processes, improve safety and efficiency, and reduce downtime. Although cranes are constantly evolving, the equipment remains relatively affordable.
Flexible down payments or monthly leasing options are available today, creating an environment in which crane rentals can thrive.
5. Increased acceptance of mobile rental cranes across Europe
Across Europe, Graphical Research expects the crane rental industry to see its own growth in sales. This is due to the ongoing infrastructure projects across the country and the expansion of the cement works.
However, these are not the only markets that have seen an increase. The transportation and construction sectors increase productivity. These specific markets are key to the increase in the use of mobile cranes to further develop infrastructure.
6. Infrastructure development by regional governments in the Asia-Pacific region
In the Asia-Pacific region, regional governments initiate development in rural and isolated areas. These plans include the provision of electrical facilities, electricity, and other utilities to these locations.
This eases the demand for cranes as they are needed for ongoing maintenance and servicing of water, telecommunications and other electrical requirements. This initiative, coupled with the construction of transportation networks and distribution facilities for utility companies in the region, created a thriving market for the crane rental industry.
7. Increased demand for crawler cranes in Asia Pacific
Crawler cranes offer unique and valuable know-how. The machines work efficiently off-road and are used for removing debris, loading cargo, building bridges, doing demolition sites, and more.
According to Graphical Research, because of the tremendous ability of cranes to be used across industries, there is increased demand for machinery around the world, particularly in the Asia-Pacific region. Companies are finding that renting a crane is associated with efficient rental, installation, maintenance, and technical assistance in replacing parts – an advantage in the industry.
Information provided by Graphical Research and edited by Chantal Zimmermann.
