What will 2025 hold for equipment rental companies?

(Photo: KeetaKawee via AdobeStock)

Crane rental market trends: navigating a shifting landscape

In North America, rental revenue growth is expected to slow over the next few years as the US and Canadian markets soften. However, demand from key sectors like construction and infrastructure will continue to support crane rental companies.

(Photo: Coates)

According to the Canadian Rental Association (CRA), Canada will see moderate rental growth due to increasing demand from non-residential construction. Last year, the CRA predicted that Canada’s equipment rental revenue would grow by 7.6 per cent to $8.2 billion (€7.7 billion) in 2024, with the rate slowing to 6.8 % in 2025.

“The outlook for Canada’s equipment rental industry reflects a balanced growth trajectory that will benefit from continued strength in the construction and industrial sectors,” says Melanie Misener, executive director of the CRA.

“As Canada’s economy stabilises, we expect steady demand across residential and non-residential investment, further fuelling growth in equipment rentals.”

In the US, rental sector growth in 2025 is expected to come from the residential construction sector, rather than the non-residential sector, according to the American Rental Association (ARA). The ARA forecasts a 5.7 % year-on-year increase in equipment rental revenue for 2025.

The construction and industrial rental segments are set to see the lowest growth, while general tool hire remains stable. The ARA predicts rental revenue growth in the construction and industrial sectors will decline from 7.9 % in 2024 to 3.6 % in 2025.

Oxford Economics warns that US policy changes - including fiscal stimulus, tariffs, and immigration restrictions - could impact construction activity. While tax cuts, interest rate reductions, and increased federal spending on defence could temporarily boost privately funded projects, the long-term effects of inflation and debt concerns may weigh on investment and construction demand.

Equipment rental in the US and Canada is expected to see moderate growth in the coming years.

Efficiency and partnerships: key focus for UK rental companies

In the UK, a highly competitive and mature rental market means efficiency and customer service will be paramount.

“The UK rental market remains one of the most mature in the world, and with that longevity comes a wealth of established hire companies,” says Jon Overman, CEO at HSS Hire.

“A highly competitive market coupled with a weaker economy means we are all going to need to be on our ‘A’ game with customers.”

One strategy UK rental companies are adopting is partnering with builders’ merchants to enhance service offerings. Overman explained, “We’re already doing this and have been for quite a few years, proudly partnering with more than 20 different builders’ merchants around the UK.”

Cost efficiency is another priority.

“With the economy as it is—and in the wake of recent government policy changes on NMW and NI—being efficient in our operating models and cost structures will be important for the whole industry throughout 2025,” Overman adds.

The energy transition: sustainable cranes and green initiatives

(Photo: Kennards Hire)

Sustainability remains a major focus for crane rental companies, as customers increasingly seek greener solutions.

Mark Keily, Health, Safety & Sustainability director at Sunbelt Rentals, believes that 2025 will be a turning point for sustainable equipment adoption.

“While there’s still work to be done in raising awareness about the operational benefits of sustainable equipment, we expect 2025 to be a turning point as more customers explore greener options and trial more sustainable solutions. This shift will likely include a greater adoption of renewable fuels,” he says.

Sunbelt’s sustainability strategy, outlined in its Sunbelt 4.0 plan, builds on its previous initiatives, with new targets set for Scope 1 and 2 emissions reductions of 50% by 2034 from a 2024 baseline.

“We’re actively working to address [sustainability challenges] by focusing on practical and actionable solutions for our customers, suppliers and partners,” Keily adds. This includes providing education through Green and Innovation days, supporting customers’ net-zero strategies, trialling new technology, and offering renewable fuels such as HVO through its partnership with Kier.

Regulatory drivers and sustainability in Australia

Australia’s crane rental sector is also feeling the pressure of evolving regulations and sustainability demands.

A Sunbelt battery energy storage system (BESS). (Photo: Sunbelt)

Robyn Simpson, national manager - environment & sustainability at Coates, highlights the impact of the new Australian Sustainability Reporting Standards (ASRS), which will drive collaboration between suppliers and construction customers.

“Coates offering hire of high-efficiency, low associated embodied emissions equipment supports our customers’ GHG emissions reduction,” Simpson says.

“Equally, our expert solutions in specialist and general hire support customers with tailored processes and fleet to reduce energy and liquid fuel costs in construction.”

To meet demand, Coates is strategically transitioning its fleet, focusing on lighting, hybrid power generation, and more energy-efficient site accommodation solutions.

“In terms of our own footprint, Coates has significantly reduced its own energy and emissions footprint by investing in solar PV and battery systems for our branch network across Australia,” Simpson adds. “This has helped drive down Coates’ GHG emissions footprint by circa 30% since 2020, demonstrating the potential of renewable energy in delivering operational cost reductions.”

Kennards Hire, another key player in the Australian rental market, sees growing demand for battery, solar, and hybrid power solutions.

“Battery, solar, and hybrid power solutions are becoming more accessible, efficient, and cost-effective, making them a viable alternative to traditional diesel-powered generators for many sites,” says Nathan Venables, general manager, Fleet.

Venables also highlights the role of digital transformation in optimising rental operations: “Kennards Hire’s digital transformation focuses on enhancing customer and employee experiences using digital tools. Our approach involves leveraging AI, IoT, and advanced fleet management systems to address real business and customer challenges.”

A steady outlook for 2025

Jon Overman, CEO, HSS: The Hire Service Company.

Despite economic uncertainties, rental companies are cautiously optimistic about 2025.

Access International’s Confidence Survey, which includes responses from manufacturers, rental firms, and end users, indicates stability. The Confidence Index stands at 66, nearly unchanged from last year’s figure.

A majority (50 %) of participants expect growth of 0-10 %, though the percentage predicting over 10 % growth has halved compared to last year. Encouragingly, 48 % of rental companies say they plan to invest in new equipment, up from 37 % in 2023.

With sustainability, digitalisation, and efficiency driving industry trends, crane rental companies in 2025 will need to stay agile, balancing investment in new technology with cost-conscious operations to navigate an evolving market.