New Insights into the UK Construction Equipment Rental Market

AMA Research launches the latest edition of the “Construction Equipment Rental Market Report UK 2024-2028”. This comprehensive analysis sheds light on the evolving dynamics of the UK construction equipment rental market (CERM), emphasizing critical trends, growth catalysts, and future projections. Read below to learn more about key insights and what you can expect in the report. 

Report Overview

The UK construction equipment rental market is a cornerstone of the construction industry. The report estimates the market’s value at £5.7 billion in 2023, with a projected increase to £5.9 billion in 2024, reflecting a growth rate of 3%. This growth trajectory is particularly remarkable given the prevailing economic challenges, such as high inflation, rising construction costs, and political uncertainties.

Key Insights

Market Resilience Post-Pandemic

The sector faced a downturn of -4% in 2020 due to the COVID-19 pandemic but rebounded with a 5% increase in 2021 and an 8% growth in 2022. Despite economic pressures causing a slowdown in 2023, the market is expected to grow by 3% in 2024, showcasing its resilience.

Sector Dynamics

The market is characterized by its fragmentation, with numerous small to mid-sized companies alongside a few major national players. This diversity creates intense price competition and varied performance across companies and segments. The resurgence in plant and tool hire for home improvements and infrastructure development has been pivotal for market growth.

Economic and Political Influences

The market’s expansion is influenced by economic and political factors, including high inflation and interest rates. Despite these challenges, the market benefits from construction companies’ preference for rental solutions over new equipment purchases, a trend expected to continue due to cost-effectiveness.

Future Outlook

The report forecasts an annual growth rate of 3-5% from 2024 to 2028, with improvements anticipated across various construction sectors. Larger companies are expected to leverage digital transformation to enhance operational efficiency, thereby improving profitability and scaling rapidly in response to market conditions.

As the construction equipment rental market evolves, companies must adapt to the changing landscape. The report underscores the importance of digital transformation, operational efficiency, and strategic market diversification as crucial for future success.