Equipment-as-a-service models and mergers and acquisitions emerged as key trends in the equipment rental market in 2024.
Rental demand remained strong amid high interest rates, with construction and general tool rental revenue expected to grow 8.9% from 2023 to $78.7 billion in 2024, according to the American Rental Association (ARA). Both dealers and lenders capitalized on this growing market. While demand is expected to stay strong, lower interest rates and easing inflation may allow dealers to execute more rental-to-sale conversions.
Here are Equipment Finance News’ top rental stories of 2024.
1. Equipment-as-a-Service model drives rental industry boom
Equipment-as-a-service (EaaS) bolstered the rental boom as companies offered renters value-add services, such as field-level consultation, specialized application setup, maintenance and telematics. EaaS models allowed customers to sidestep the costs associated with owning equipment — including high interest rates — while gaining technical knowledge. The outlook remains positive for the EaaS industry, although high labor costs and labor shortages are a concern.
2. Opifex-Synergy merger builds 9th-largest equipment rental company
In August, Tampa-based Synergy Equipment merged with Austin, Texas-based Opifex Enterprises to form the ninth-largest rental equipment provider in the United States. The companies, which will continue operating under their names, aim to capitalize on increased infrastructure spending and commercial construction projects throughout the Southern U.S. The venture is backed by incremental equity capital from Avance Investment Management and Synergy Chief Executive J.C. Mas.
3. Equipment rental acquisitions rise as megaprojects strengthen rental demand
M&A activity rose among rental companies as they worked to keep up with demand. During the first nine months of its fiscal 2024, ending Jan. 31, Sunbelt Rentals had added 106 North American locations, 26 of which were through acquisitions. Megaprojects — large-scale construction and infrastructure developments — was a driving force behind M&A in the equipment rental space.
4. As-a-service financing grows in equipment industry
In addition to rental houses, more equipment financiers and manufacturers began to launch as-a-service models to support rental growth. Mitsubishi HC Capital America, for instance, partnered with electric vehicle charging station manufacturer Electrada to offer charging-as-a-service for commercial vehicle OEMs.
5. Demand for online rental transactions rising
Evolving customer demands led to an uptick in online rental transactions. Rental companies were urged to adopt technologies, including AI tools, to meet this need. According to a survey by the ARA, 42% of customers want digital quotes, 53% want to find their equipment and tools online and 49% want to schedule pickup and delivery online. Still, rental companies must work to maintain strong customer relations as they digitalize their operations.
The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.
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