South Africa Construction Equipment Rental Market Research Report, 2028

In the South African construction industry, the use of rental services is prevalent. Over the last few years, there has been a steady increase in the rental model. Several organisations prefer to hire construction machinery in order to avoid the high costs involved with the purchase of new equipment. Rental services are allowing SMBs to use this machinery on an as-needed basis and pay per usage. Almost all types of construction machinery are available for rent, depending on the application of the end user. Rental service providers are buying equipment from major businesses including SDLG, Sennebogen, Tadano, Terex, Volvo, and Liebherr. These factors are driving the Southern African construction equipment rental market's growth. Goscor Group, enX Equipment, Coastal Hire, Barloworld, Babcock International, Atlas Crane Hire, Anglo V3 Crane Hire, Altec, Alistair Group, and Adima Hire are among the prominent participants in the Southern Africa construction equipment rental sector. According to the research report, “South Africa Construction Equipment Rental Market Research Report, 2028” published by Actual Market Research, the market is projected to add USD 0.05 Billion by 2028. Infrastructure improvement projects in rural areas of the South Africa, such as the refurbishment of commercial buildings, railway stations, and airports, the repair of runways, and the extension of roadways and bridges, are fuelling the strong demand for the South Africa construction equipment rental industry. Southern African developing economies such as Mozambique and Zambia have had consistent economic growth in recent years. The rise of the Southern African construction equipment rental market is being driven by these countries' increasing urbanization. The countries have seen a rapid increase in the industrial sector. Mozambique's government is investing heavily in large-scale infrastructure projects. For example, in 2016, the government launched a new project in which Japan will invest USD 255 million in port and railway capacity upgrades to allow mineral resource exports to developing nations, providing a boost to industry growth. According to the World Bank, South Africa has a population of 60.04 million people, with 29.56 million men and 30.48 million women. Twenty million people are under the age of 14, and 34 million are between the ages of 15 and 64. There are 8.2 million urban residents and 1.26 million rural residents. According to the World Bank, South Africa's GDP in 2021 will be USD 419.95 billion, with an inflation rate of 6% and a per capita income of USD 6,994.2. The number of households in South Africa climbed and reached 17.95 million as of 2021, a rise of almost 530,000 over the previous year and the greatest figure throughout the specified time period, which is pretty intriguing because the market for construction equipment rentals will benefit from the high number. Rental firms own a major portion of machinery such as concrete equipment, material handling equipment, lifting equipment, and sections of heavy earthmoving equipment. The construction equipment rental industry in Southern Africa is continuously expanding as users such as construction organisations aim to benefit from high machinery utilisation, offload their balance sheets, and focus on their core operations. There are a number of local and regional rental companies in the area. Several OEMs and dealers have their own rental operations. Because construction equipment is used for so many different things, there is a large range of end users, including recycling companies, quarry operators, construction contractors, and others. The bulk of end users of construction equipment are small enterprises that lease or rent the equipment. South Africa Government Infrastructure Development The NIP intends to develop a thriving private infrastructure investment sector supported by an efficient public sector procurement system, with South Africa's infrastructure finance gap projected at R2.15 trillion (£109.5 billion) up to 2040. The plan also articulates South Africa's goal of shaping a regional infrastructure agenda by enhancing cooperation and implementing projects that benefit the entire African continent, such as key energy and water projects, trade routes, and improved digital connectivity. In another recent development, the government claimed that as of February 2022, 18 new housing projects totalling ZAR129 billion ($8.6 billion) were under construction with the intention of building more than 190,000 housing units. Long-term growth in the construction industry would be encouraged by investments as part of the government's 10-year ZAR2.2 trillion (US$133 billion) infrastructure plan, which was unveiled in 2020. The plan includes 276 projects in diverse sectors such as transportation, energy, industry, and housing. As a result of the increased construction activity by the South Africa government and private sector, the market for construction equipment rental has significant potential. As the cost of equipment drops and the company's profitability rises, corporations prefer to rent rather than buy. Covid-19 Impact The spread of COVID-19 contributed to the decline of the South Africa Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries. Considered in this report • Geography: South Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South Africa Construction Equipment Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Equipment type • Earthmoving • Material Handling • Concrete & Road Construction • Others By Application type • Residential • Non-Residential • Others (Infrastructure, industrial, real estate, etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.