Rental market buoyed by usage-based payments, flexible floorplans, data

Equipment lenders are deploying usage-based models, customizable floorplans and digital tools to capitalize on growing rental demand while supporting rental fleet management.  

Roughly 72% of more than 125 contractors in North America reported renting equipment over the 12-month period ending in July, according to equipment market research firm EquipmentWatch. Of those contractors, 70% said renting made more financial sense than buying.  

The global equipment rental market is projected to grow nearly 80% to $264.5 billion by 2034 compared with $147.4 billion in 2024, according to market research firm Global Market Insights. Rental fleet acquisitions are unleashing financing opportunities amid strong demand in an increasingly competitive market.  

To support rental companies’ growing fleet financing needs, equipment lenders are offering solutions tailored to “rental cycles and asset utilization,” Heidi Brooks, program manager at global equipment financier DLL, told Equipment Finance News.  

For instance, flexible floorplan terms and usage-based payment models allow rental houses to “expand their fleets without straining cash flow,” she said. Lenders are also offering a single line of credit for rental companies to acquire equipment from multiple manufacturers, she said. 

“These strategies help rental companies respond to market demand quickly while maintaining profitability and operational efficiency,” Brooks said. “Integration between financing and fleet management also simplifies planning and helps rental houses assess when to retire or sell assets to maximize returns.” 

Fleet management challenges 

While growing rental demand presents opportunities across the heavy-equipment industry, rental fleet management poses challenges, including “fluctuating utilization rates, intensive asset wear and unpredictable revenue streams,” Brooks said.  

“Managing financed fleets requires balancing asset availability with maintenance and replacement schedules,” she said. “Rental companies must also assess asset performance to ensure it delivers the expected return on investment.” 

Financing tools such as flexible lease structures, usage-based payments and end-of-term options for asset refresh “help rental companies maintain fleet performance while optimizing financial outcomes,” Brooks said.  

Tracking performance  

The equipment management software market is projected to more than double to $18.9 billion by 2032 from 2023, according to Global Market Insights.  

Using digital platforms and data analytics to track “asset usage, location and condition” are crucial to monitoring rental fleet performance, Brooks said. 

“For rental houses, the focus is on utilization efficiency and return on investment per asset,” she said. 

This strategy differs from traditional dealer inventory financing, which focuses more on inventory turnover and sales velocity, she said.  

Fleet performance data allows lenders to “adjust financing terms, recommend asset upgrades and support long-term planning,” Brooks said. 

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