Market Size of Forklift Rental Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 4.78 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Forklift Rental Market Analysis
The forklift rental market is expected to reach USD 8.17 billion, registering a CAGR of 4.78% over the next five years.
The COVID-19 pandemic is likely to have a positive impact on the forklift rental industry for the foreseeable future. Renting equipment can provide several long-term benefits for dealers and users. A key takeaway is that, in the long run, renting will be far more profitable than owning. When an equipment dealership offers rentals, it is investing in future revenue streams with the potential for extremely high returns. Furthermore, by renting a forklift, the company gains some monetary benefit that can be used for other purposes.
Over the long term, renting forklifts is becoming more popular among contractors and e-commerce firms due to the high initial purchase cost of a new forklift. The demand for forklift rentals has increased as a result of market factors such as high taxes, maintenance costs, high depreciation costs, and equipment insurance requirements for new machines. Industries are also dynamic and heavily influenced by changes in the market. Renting equipment helps protect the company from unexpected financial instability. The rental of a wide variety of cutting-edge equipment is also helping to boost market revenue. Several emerging trends in the automation sector have led to an increase in forklift rental market share following the pandemic. Moreover, with more people shopping online, there is a greater need for warehouse and logistics specialists, such as forklift operators and mechanics. The trajectory of e-commerce is increasing demand for forklift operators and other logistics personnel in two ways: higher volumes of online orders necessitate more staff to fulfill them, and as the e-commerce sector becomes more competitive, consumers pressurize retailers to increase delivery speed and efficiency.
Along with forklift operators, the rise in e-commerce will most likely benefit forklift suppliers, manufacturers, and engineers. In 2021, retail e-commerce sales in the United States surpassed USD 900 billion, including digital services. However, a significant constraint to growth in the global market is a lack of trained labor.
In the coming years, the Asia-Pacific region is anticipated to experience significant growth. Governments of emerging economies in Asia are heavily investing in the construction of roads, airports, dams, and special economic zones to improve trade, increase connectivity, and strengthen the region's economy. These initiatives have caught the attention of major manufacturers of construction equipment, who are now motivated to invest heavily and establish a presence in the area.
For instance, GIKEN and AKTIO Corporation work together in the rental business. AKTIO Corporation is one of the industry's leading construction equipment rental companies. The company recognizes this business alliance as a significant step toward reaching JPY 100 billion (around USD 739 Million) in sales in 10 years as a 2024 Mid-term Management Plan. To meet rising demand, the company will use AKTIO's extensive network to accelerate the development of new customers and establish the supply structure for press-in machinery.
Through a proposal-based construction equipment rental service called "RensultingR," AKTIO works with various construction companies and specialty contractors. AKTIO will be a strong partner for GIKEN in customer development. By utilizing AKTIO's various channels, GIKEN hopes to increase its user base, and AKTIO hopes to increase its revenue by adding SILENT PILERTM to its line of products. The "Construction Revolution" will continue to advance thanks to the synergistic effects of this business partnership, ushering in a new era of construction.
Forklift Rental Industry Segmentation
Forklift rental refers to a location where large vehicles or machinery are supplied to different industry verticals and can be retrieved and stored for public use. It may also include complementary and auxiliary retail activities.
The forklift rental market has been segmented by load type, end-use type, and geography. By load type, the market is segmented into 3.5 tons, 10 tons, and above 10 tons. By end-use type, the market is segmented into construction, automotive, aerospace and defense, warehouse and logistics, and other end-use types. By region, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The report offers market size and forecast for the forklift rental market in value (USD billion) for all the above segments.
Load Type | |
3.5 Tons | |
10 Tons | |
Above 10 Tons |
End-Use Type | |
Construction | |
Automotive | |
Aerospace & Defense | |
Warehouse and Logistics | |
Other End-Use Types |
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Forklift Rental Market Size Summary
The forklift rental market is poised for steady growth, driven by the increasing preference for renting over owning due to the high initial costs and ongoing expenses associated with new equipment. This trend is particularly evident among contractors and e-commerce firms, where the financial flexibility and reduced risk of renting are highly valued. The market is further bolstered by the rising demand for modern material handling equipment, as industries such as consumer goods, automotive, and e-commerce expand. The shift towards online shopping has intensified the need for efficient logistics and warehouse operations, thereby increasing the demand for forklift rentals. Additionally, the Asia-Pacific region is expected to witness significant growth, fueled by government investments in infrastructure and economic development, attracting major construction equipment manufacturers to the area.
The market landscape is characterized by a fragmented structure with numerous domestic and international players engaging in partnerships, mergers, and acquisitions to enhance their service offerings and expand their geographical reach. Companies like Sunstate Equipment and H&E Equipment Services Inc. are actively pursuing growth strategies through strategic collaborations and acquisitions. The focus on high-performance, fuel-efficient forklifts is driving innovation and replacement of outdated models, particularly in North America. The market's growth is also supported by advancements in technology and sustainability initiatives, such as collaborations between rental companies and battery technology firms. As the demand for forklifts continues to rise, driven by economic growth and infrastructure development, the rental market is expected to expand, offering lucrative opportunities for industry players.
Forklift Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Value in USD Billion)
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2.1 Load Type
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2.1.1 3.5 Tons
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2.1.2 10 Tons
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2.1.3 Above 10 Tons
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2.2 End-Use Type
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2.2.1 Construction
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2.2.2 Automotive
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2.2.3 Aerospace & Defense
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2.2.4 Warehouse and Logistics
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2.2.5 Other End-Use Types
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 India
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2.3.3.2 China
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2.3.3.3 Japan
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2.3.3.4 South Korea
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 Rest of World
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2.3.4.1 Brazil
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2.3.4.2 Saudi Arabia
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2.3.4.3 United Arab Emirates
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2.3.4.4 South Africa
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2.3.4.5 Rest of World
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Forklift Rental Market Size FAQs
What is the current Forklift Rental Market size?
The Forklift Rental Market is projected to register a CAGR of 4.78% during the forecast period (2024-2029)
Who are the key players in Forklift Rental Market?
Caterpillar Inc, Crown Equipment Corporation , Sunbelt Rentals, Inc., Toyota Industries Corporation and Combilift Depot are the major companies operating in the Forklift Rental Market.