Construction Machinery Leasing to witness Rapid Strides from Rising Demand for Construction Equipment in Infrastructure Sector

Published On : 02 Nov 2018

Over the past few decades, the building and construction industry has made rapid strides riding on the wave of the swift pace of urbanization, especially in emerging economies across the world. This has spurred the demand for construction equipment in the global infrastructure sector, world over. The evolution of the global construction machinery leasing market is underpinned by this trend. Leasing mode for availing construction machinery combines the attractive benefits of both buying and renting. The leasing allows users to benefit from the flexible payment terms enabling them to avoid massive upfront cost, which essentially eases the stress on the credit lines of infrastructure companies. Meanwhile, they can enjoy constant technology upgrades and updates during the leasing period. One downside that can hamper the demand can be prolonged period of construction projects, as this swells the leasing cost and hence crippled the overall profitability of infrastructure building companies. 

According to a study by, the construction machinery leasing is expected to witness headwinds, reinforced in part by rising governmental spending on infrastructure in developing countries. 

Infrastructural Developments makes Construction Machinery Leasing increasingly lucrative  

The upward growth trajectory of the construction machinery leasing market is shaped by rapid strides infrastructure developments are making in various parts of the world. The growth is supported by burgeoning private investments in infrastructures. This has been propelling the demand for various types of construction equipment such as earth moving equipment, material handling equipment, road building machinery, and concrete equipment.

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The construction machinery leasing market has been witnessing sustained, big fillip from the growing adoption of cross border leasing over the past few years. Favorable governmental interventions for infrastructure financing and rise in public-private partnerships in developing regions are considerably boosting the market. As infrastructural development gathers momentum in developing regions, such as Africa and Asia, the construction machinery leasing market is expected to rise at rapid pace. 

Rising Spending on Public Infrastructure Projects in Developing Regions expand Prospects of Construction Machinery Leasing

Increasing wave of investments on public infrastructure projects in emerging economies, especially in the Middle East and Asia Pacific, are expected to present several lucrative opportunities for market players to capitalize on in the coming years. The growing shift toward rental equipment is a notable factor has favorably impacted the demand dynamic for the construction machinery leasing market

The constant demand for most advanced line of construction machinery is also boosting the market. Several construction equipment leasing company are focusing on customization for varied needs of infrastructure building companies has upped the aspect of flexibility. End users leasing the construction machinery don’t need to worry about depreciation cost or lock liquid capital, while enabling them to park their funds in their core building activities. 

Key players vying for attractive share in the construction machinery leasing market are GE Commercial Finance, Kiewit Corporation, Lafarge S.A., Maxim Crane Works, Morrow Equipment, Sunbelt Rentals, and United Rentals. 

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