Commercial Equipment Rental and Leasing

The 8,521 Companies in the US rent or lease commercial or industrial equipment and machinery directly to businesses. Major categories for rental or leasing revenue include miscellaneous types of commercial or industrial equipment (manufacturing, medical, audio/visual, theatrical and motion picture, modular/mobile buildings, energy/power generating); construction, mining, and forestry equipment; transportation equipment; and office equipment. Firms may also sell new or used equipment, supplies, and parts.

Capital-Intensive Operations

The commercial equipment rental and leasing industry is capital-intensive, and firms typically have significant investment in fleet holdings.

Variable Equipment Market Value

Fluctuations in market value for rental or leased equipment affect a firm’s fleet management effectiveness because companies rely on the sale of used equipment as a source of revenue.

Sep 6, 2026 - Mega Projects Boost Equipment Demand

• Large data centers, infrastructure, power, and other mega projects are reshaping demand for equipment rental, as contractors require different machines across successive construction phases, according to Construction Equipment. These projects are boosting demand for specialty equipment such as portable power, load banks, trench safety systems, scaffolding, and temporary structures. In Q2 2026, Sunbelt reported a 15.1% year-over-year increase in North American specialty rental revenue, while United Rentals posted a 24.8% gain. Large, complex jobs are also encouraging contractors to consolidate equipment rentals and adopt telematics platforms that track utilization, reduce underused equipment, and coordinate fleets across multiple contractors. Rental companies are responding by expanding their fleets, with United Rentals, Sunbelt, and Herc planning up to about $9.5 billion in combined equipment purchases. The trend is strengthening rental's role as contractors seek flexibility rather than owning every machine needed for major projects.
• US equipment rental revenue, which includes the construction/industrial and general tool market segments, is expected to rise 3.4% to $83.5 billion in 2026, according to a recent forecast by the American Rental Association (ARA). The construction and industrial equipment market is forecast to grow 4.4% in 2027, then rise another 5.1% in 2028. However, the ARA forecast could be altered by potential headwinds, including the impact inflation, interest rates, and tariffs have on construction spending. The ARA expects event rental industry revenue to grow 6.5% in 2026 to $6.2 billion, then rise another 8.3% in 2027 and 6.4% in 2028.
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume increased 47.3% to $14.3 billion in July 2026 compared to the same month in 2025. ELFA President and CEO Leigh Lytle said, "Equipment demand surged to new heights in July, on the back of AI-related investment. This is the second time this year that the pace of monthly new volumes has set a new record. Credit quality improved as well, with the average loss rate at a nine-month low and delinquencies holding near the low end of their two-year range. With unrelenting demand and healthy financial conditions, it’s going to take a lot more than recent market volatility or a few Fed rate hikes to keep the industry from breaking records in 2026."
• Rental Management reported strong second-quarter growth at Herc Holdings and United Rentals, with both companies raising their 2026 outlooks. Herc's revenue rose 20% to $1.2 billion from $1 billion, while the company earned net income of $19 million, compared with a $35 million loss a year earlier. Herc increased its full-year equipment rental revenue forecast to $4.38 billion to $4.48 billion from $4.28 billion to $4.40 billion. United Rentals' revenue increased 12% to a record $4.41 billion from $3.94 billion, and net income rose 21% to $753 million. United Rentals raised its full-year revenue outlook to $17.5 billion to $17.8 billion from $16.9 billion to $17.4 billion.

Industry size & Structure

The average commercial equipment rental company operates out of one to two locations, employs 24 workers, and generates nearly $11 million in annual revenue.

• The commercial equipment and machinery rental industry consists of about 8,521 firms that employ 201,000 workers and generate $93 billion annually.
• The construction, transportation, mining, and forestry sector accounts for about 35% of firms and 58% of industry revenue. The miscellaneous (manufacturing, medical, audio/visual, theatrical and motion picture, modular/mobile buildings, energy/power generating) sector accounts for 60% of firms and 41% of revenue. The office machinery and equipment sector accounts for 5% of firms and 1% of revenue.
• The industry is concentrated; the top 50 companies account for about 53% of industry revenue.
• Large companies include Aercap Group (commercial aircraft), United Rentals, and GATX. Large firms may have international operations.