Rental tech, scale, data drive competitive edge as growth normalizes

Equipment rental companies are looking to technology, data and scale to sharpen operations as industry growth moderates but long-term demand remains. 

The U.S. construction and industrial equipment rental industry reached $80.6 billion in 2025 and is forecast to grow 2.8% in 2026, driven by recovering demand and higher rental rates, according to an American Rental Association release this month. Meanwhile, the Canadian rental industry projects to grow 1.5% in 2026, landing at $6 billion. 

As a result, rental software providers like Quipli, which launched an integration with asset-tracking provider Hapn on Feb. 24, aim to grow their own operations and improve customer operations, Rebecca Lefebvre, marketing specialist at Quipli, told Equipment Finance News. 

“With growth slowing, there is a focus on execution and simplifying operations.” — Rebecca Lefebvre, marketing specialist at Quipli

“It’s really a matter of making sure that our customers know how to simplify their workflows and make better decisions,” she said.

As growth normalizes, a performance gap is emerging, with stronger operators pulling ahead by combining disciplined execution with better use of data and technology, Lefebvre said. As a result, Quilpi is also developing an AI product designed to turn metrics into actionable insights for its customers.

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Rental houses navigate slowdown 

The integration reflects a broader move across the sector toward centralized systems that reduce manual processes and improve visibility into key metrics like utilization and maintenance. 

A robust pipeline of large-scale projects, including data centers, highlights the importance of technology and fleet diversity in gaining share in a fragmented market, Aaron Birnbaum, president of Herc Rentals, said on March 17 during the company’s presentation at the JPMorgan Industrials Conference in Washington. 

“Our share is roughly 5% market share in a really fragmented industry, so there’s a lot of opportunity,” he said. “It takes the fleet to get absorbed, to get the revenue to grow your position and your share, so we’re really focused on being a premium equipment rental company.” 

That broader industry momentum is also reflected in credit markets, as Sunbelt Rentals received a BBB- rating with a stable outlook thanks to its scale, strong cash flow and ability to maintain profitability through cycles, according to a March 17 S&P Global release. The agency expects megaprojects in infrastructure, manufacturing and energy to support steady demand despite mixed construction trends. 

The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston from May 18-19. Learn more about the event and register here by April 3 for early-bird savings.