Industry insights

Equipment rental industry indicators (2026)

The US equipment rental industry is on track for $83.5 billion in 2026 (+3.6% YoY), with renting taking a growing share of construction equipment hours as contractors prioritise financial flexibility over ownership. Here are the numbers that matter — and what they mean for your next rental.

US rental market 2026: $83.5B
YoY growth: +3.6%
Utilization sweet spot: 65–75%
ABC construction backlog: ~8.2 mo

Market size & growth

The American Rental Association projects US rental revenue of $83.5B in 2026, growing 3.8% (2027) and 4.4% (2028). Canada is forecast at $6.3B (+5%). Global construction-equipment rental is estimated around $160–169B, with Asia-Pacific the largest region and North America roughly a third of the market.

The shift from owning to renting

The ARA attributes rental's momentum to "project uncertainty, market volatility, sustainability, financial flexibility, and the high cost of owning." US construction rental penetration has climbed toward roughly half of equipment hours, and in India from about 48% (2010) to 68% (2020). Renting keeps capital free and shifts maintenance, storage, and depreciation risk off your books.

Aerial (MEWP) & category demand

North American MEWP (aerial platform) rental revenue reached $15.2B in 2024 per IPAF, up ~1% — the end of a high-growth cycle — while Europe reached €3.5B (+3%). Across segments, earthmoving leads demand (excavators, loaders), followed by aerial lifts and compact/material-handling equipment.

Utilization benchmarks

If you run your own fleet — or want to understand supplier pricing — the benchmarks are: 65–75% time utilization is healthy (60–70% is the sweet spot); consistently above ~85% means lost bookings and below ~55% means idle capital. Dollar utilization targets ~55–65% at large national chains and ~100% at smaller general-rental centers.

Demand signals to watch

The ABC Construction Backlog Indicator sits around 8.2 months and hit a 10-month high in 2026 on data-center construction — data-center-tied contractors report 11.0 months of backlog versus 7.8 for others. Rising backlog signals sustained equipment demand (and tighter availability for popular machines).

FAQ

How big is the equipment rental market in 2026?

The American Rental Association forecasts the US equipment rental industry to reach $83.5 billion in 2026, up 3.6% year over year, with continued growth of 3.8% in 2027 and 4.4% in 2028. Globally, estimates cluster around $160–169 billion.

Is renting equipment growing faster than buying?

Yes. The ARA cites a structural shift toward renting driven by project uncertainty, financial flexibility, sustainability, and the high cost of ownership. US construction rental penetration has risen toward roughly half of equipment hours.

What utilization should a rental fleet target?

Operators target 65–75% time utilization as the healthy range; consistently above ~85% means you are turning away work, while below ~55% signals idle capital. Dollar utilization targets run ~55–65% for large national chains.

Planning a project? Get rental quotes

Tell us what you need and where — we'll send back real quotes from local suppliers.

Sources

Figures are drawn from the sources above and were accurate at the time of writing; market data and rates change — treat ranges as indicative and verify current figures for decisions.