According to our latest market study on "Equipment Rental Software Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Component, Deployment, Organization Size, and End User," the market is projected to reach US$ 430.61 million by 2028 from US$ 266.78 million in 2021; it is expected to grow at a CAGR of 7.1% from 2021 to 2028.
Rising Use of IoT and Predictive Analysis Drives Equipment Rental Software Market Growth
The rental industry can benefit significantly from the enormous amount of data produced by the Internet of Things (IoT), as it has the potential to transform the way organizations work, improve processes, and increase profits. Using analytical tools, IoT data can be leveraged to enhance business operations. Predictive analysis can be used to anticipate maintenance needs, allowing companies to take action before equipment defects occur. This predictive analysis can revolutionize asset management by enabling companies to forecast when equipment needs maintenance through data analysis. Maintenance schedules are typically based on time or usage. Still, if companies can predict when maintenance is necessary, they can save money on early or unnecessary care, leading to greater overall efficiency and use. Thus, integrating IoT and predictive analytics is likely to emerge as a significant trend in the equipment rental software market, contributing to its growth.
The construction sector in Italy, Germany, and France is experiencing growth due to an increase in public infrastructure projects, such as airports and railways, which has led to a surge in demand for construction equipment rental services. For example, Milan Bergamo airport in Italy plans to invest US$ 503.09 million in its growth plan until 2030, which includes expanding the terminal and developing new facilities. These factors are anticipated to have a positive impact on the rental services market and heavy machinery, consequently driving the growth of the equipment rental software market.
Moreover, in January 2020, WeShare announced its expansion plans in seven additional cities across Europe, with a goal to operate an electric car fleet of 8,400 vehicles in cities such as Prague, Hamburg, Madrid, Paris, Munich, and Budapest. WeShare is collaborating with Skoda in Prague and Budapest, while Volkswagen is expected to provide e-Golf1 and other vehicles in Germany, Spain, Italy, and France. Consequently, many rental service companies are adopting digital solutions to efficiently manage their operations and business, driving the growth of the equipment rental software market.
The construction sector's rapid growth across the Asia Pacific (APAC) region is a significant driver of the equipment rental software market. The construction and infrastructure transformation projects across all industrial verticals in countries like India, China, and other APAC countries are booming. For example, India's construction industry is currently working on several essential projects such as Pune Metro Rail, Navi Mumbai International Airport, Delhi Mumbai Industrial Corridor, Charanka Solar Park, and Chenab River Railway Bridge. The demand for efficient construction machinery at lower prices in both small and large infrastructure projects is driving the demand for rental equipment, leading to the equipment rental software market's growth. Similarly, in China, ongoing mega-projects require the relocation of a significant amount of machinery and materials from one region of the country to another. Several construction devices are likely to be used on projects such as the Tianhuangping hydroelectric project, the South-North water transfer project, the Belt and Road Initiative, and the Beijing airport. In 2019, China's fixed-asset infrastructure development grew at an average monthly rate of 5.3%. Excavator sales in China also increased by 25% in 2019, indicating an increase in construction activity. Therefore, the increasing number of infrastructure development projects across APAC is expected to drive the growth of the construction equipment rental business during the forecast period, leading to the expansion of the equipment rental software market.
Key Findings of Study:
The global equipment rental software market is segmented based on component, deployment, organization size, end user. Based on component, the equipment rental software market is bifurcated into software and services. Based on deployment, the equipment rental software market is segmented into on-premise and cloud. Based on organization size, the equipment rental software market is segmented into SMEs and large enterprises. Based on end user, the equipment rental software market is segmented into manufacturing, construction, medical, mining, transportation, consumer electronics, and others.
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