The equipment rental software market is expected to grow from US$ 266.78 billion in 2021 to US$ 430.61 million by 2028; it is estimated to grow at a CAGR of 7.1% during 2021-2028.
Emerging technologies, such as big data, artificial intelligence (AI), and machine learning (ML), are gaining significant traction, aiding the equipment rental software market growth. The North America equipment rental software market growth is driven by several factors, such as data security, faster Disaster Recovery (DR), and meeting compliance requirements. The need to mitigate risks, achieve scalability and flexibility in moving and storing data, reduce storage and infrastructure complexities, and increase business efficiency are also fueling the demand for equipment rental software in the region.
In North America, trade agreements are one of the best ways to open up foreign markets to exporters. The US has 14 agreements in force with 20 countries, such as the Central American Free Trade Agreement (CAFTA-DR) and North American Free Trade Agreement (NAFTA). In Canada and Mexico, United States-Mexico-Canada Agreement (USMCA) came into force on July 1, 2020. These free trade policies in the North America support the growth of various industries, such as manufacturing, construction, medical, mining, transportation, and consumer electronics. For instance, according to new US Census Bureau data, the US goods trade deficit reached a record US$ 1.09 trillion in 2021, increasing US$ 168.7 billion (18.3%) from the 2020 trade deficit. Favorable policies and emerging technologies, such as IoT and AI, and the rapid uptake of cloud computing are driving the growth of the North America equipment rental software market.
The APAC equipment rental software market is developing rapidly. Several government initiatives, such as Digital India, and rising digitization and competition have led many small and large enterprises to take up the digital business model to gain competitive advantages. In APAC, fleet management services are proliferating with the growth in the logistic industry. Many industry verticals are targeting maximum output at a minimum cost. Thus, they are inclined toward equipment rental software. For retailers and equipment rental management, the cost incurred on fleets holds a large portion of the company’s operating expenses. Organizations benefit from robust tracking and inventory management tools provided by players in the equipment rental software market. For instance, dealerships and rental companies can see every piece of equipment in their software through GPS tracking. Organizations gain a competitive advantage by allowing executives to make strategic decisions based on equipment usage, travel time and distance, freight cost, and more using real-time KPIs integrated with GPS mapping
Impact of COVID-19 Pandemic on Europe equipment rental software Market
Russia was the hardest-hit country by the COVID-19 outbreak in Europe, followed by the UK. Most European countries are expected to suffer an economic hit due to a lack of revenue from various industries. The countries recorded the highest number of COVID-19 cases and deaths in the past years. Due to business lockdowns, travel bans, and supply chain disruptions, the region faced a substantial economic setback during 2020–2021.
The construction industry in Europe experienced one of the steepest declines in activities after the pandemic shut down construction sites and hampered the supply of safety equipment and personnel. The decline in building activity in the region has directly impacted Europe’s rental equipment industry. The rental equipment software market saw an unexpected drop in 2020 due to a decline in construction. However, a moderate recovery was seen in 2021, and normalization is predicted to begin by 2022.
Based on component, the equipment rental software market is segmented into software and services. In 2021, the software segment led the market with a larger share. Based on deployment, the market is bifurcated into cloud and on-premise. In 2021, the cloud segment accounted for a larger market share. Based on organization size, the equipment rental software market is segmented into small and medium enterprises (SMEs) and large enterprise. In 2021, the large enterprises segment accounted for a larger market share. Based on end users, the market is segmented into manufacturing, construction, transportation, and others. In 2021, the construction segment accounted for the largest market share. By geography, the equipment rental software market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for the largest share in the market.
The equipment rental software market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the equipment rental software market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions?North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants to validate data and gain more analytical insights. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the equipment rental software market.
BCS ProSoft, LLC; Booqable.com; eSUB, Inc.; EZRentOut; HQ Rental Software; inspHire Ltd.; MCS Global Ltd.; Orion Software Inc.; Point of Rental; and Wynne Systems are among the key companies operating in the equipment rental software market.