In its latest five-year forecast, the American Rental Association (ARA) said it expects the equipment rental industry’s revenue to grow consistently with a compound annual growth rate (CAGR) between of 4.7% in 2017 and 2021 in the United States, resulting in total revenue of $59.3 billion in 2021.
According to the ARA’s recently updated Rental Market Monitor five-year forecast, total rental revenue in the U.S. is expected to grow by 4.5% in 2018 to reach $51.5 billion, 5.5% in 2019, 4.9% in 2020 and 4.1% in 2021. The November forecast almost is exactly the same as the last forecast in August, with only minor fluctuations up or down in expected growth rates each year.
In Canada, equipment rental revenue also is expected to show consistent growth, reaching $5.3 billion in 2018 with growth rates of 4.1% in 2019, 5% in 2020 and 4.8% in 2021 to total $6.11 billion.
“This is a strong forecast, showing the equipment rental industry will continue to consistently grow over the next five years, without factoring in any possible impact from tax reform or infrastructure spending,” said John McClelland, ARA’s vice president for government affairs and chief economist.
According to the ARA Rental Market Monitor, which incorporates data and analysis from IHS Markit, construction/industrial equipment rental revenue is expected to show a 4.1% CAGR over 2017-21, reaching $40.4 billion in 2021.
Investment in rental equipment is projected to increase by 4% in 2018, 8.4% in 2019, 2.6% in 2020 and 1.2% in 2021, surpassing $15 billion that year.