Why Rental Demand Is Still High in the U.S. Equipment Rental Market in 2026

In its August 2026 forecast, the American Rental Association (ARA) expects U.S. equipment rental revenue to reach $83.5 billion in 2026, up 3.4% from 2025.

That figure covers construction and industrial equipment plus general tool rental. Growth is moderate, and it comes with high financing costs, mixed economic signals and tight rental rates.

The International Powered Access Federation (IPAF) shows a similar picture for aerial work platforms (MEWPs). The U.S. MEWP rental market grew 4% to about $15.8 billion in 2025, and the rental fleet rose 2% to roughly 875,000 units. IPAF expects revenue to grow about 5% in 2026.

For contractors, the takeaway is practical. Renting keeps cash free and gives access to specialized machines for the length of a job. Owning still pays off when a machine works most days of the year.

What Is Driving Rental Demand in the U.S.? 

No single factor explains it. Contractors weigh equipment cost, project schedule, financing terms and how often they will use a machine before choosing between renting and buying. Renting also lets a business bring in a specialized machine for one job without carrying it on the balance sheet for years.

For aerial work platforms, IPAF points to three drivers: the cost advantage of renting over owning, steady underlying demand, and work linked to facilities management and data center projects.

U.S. Equipment Rental Market at a Glance

ARA and IPAF measure different parts of the market, so the figures should not be added together. ARA’s $83.5 billion covers construction and industrial equipment and general tool rental. IPAF’s $15.8 billion covers aerial work platforms only.

Rental vs. Buying Heavy Equipment

The decision between renting and buying depends heavily on utilization and project duration.

A contractor who runs a machine almost every day for years will often come out ahead by owning it. A contractor who needs it for a few months usually does better renting. The daily rate or the purchase price alone does not settle it. Total cost and expected utilization do. 

For a worked example on a used excavator, see our comparison of a used Cat 320 and a new excavator. 

Why Utilization Matters as Rental Fleets Grow 

IPAF reports that the U.S. MEWP rental fleet grew about 2% in 2025 to roughly 875,000 units, while utilization slipped to 70%. 

IPAF attributes the dip mainly to fleet growth, not weaker demand. When rental companies add machines faster than customers book them, average utilization falls even if rentals are holding up. 

Each machine still has to earn enough to cover its purchase price, maintenance, transport and eventual replacement.

Rental Rates Are Rising Slowly

IPAF puts U.S. MEWP rental rate growth at about 2% in 2025 and says competition kept increases moderate. 

At the same time, equipment, labor, maintenance, transport and financing costs squeeze margins, and not every increase can be passed on to customers. For a rental fleet, steady utilization matters more than the headline rate. 

A machine that rents regularly earns its place even when rates barely move. A machine that sits idle drags down fleet profit.

Where Renting Makes Sense by Machine Type 

The U.S. rental market covers compact machines, aerial platforms, heavy construction equipment and specialized lifting gear. Which machines make sense to rent depends on the project type, location and how long the work lasts.

Excavators

Excavators are used on site preparation, utility work, demolition and infrastructure jobs. Renting suits a job that needs one particular size for a few weeks. If the same size works most of the year, a used excavator may cost less over time. Browse excavators for sale.

Wheel Loaders

Wheel loaders handle material handling, aggregate yards and loading. Contractors often rent one when a project needs extra loading capacity for a short period. A loader that works daily is usually a better buy. See wheel loaders in stock.

Cranes

Many lifts need serious capacity but only for a few days or weeks, which makes crane rental a common choice for short or specialized lifts. For long projects or steady use, a used crane can cost less per month. MY Equipment offers crane rental and used cranes for sale.

Aerial and Access Equipment

IPAF’s 2025 figures, covered above, show how large this rental market has become.

Need lifting capacity for one job, not a long-term purchase? MY Equipment offers crane rental, and you can also compare used cranes for sale if your project runs long. Contact our team with your lift details and we will help you choose.

Frequently Asked Questions

How big is the U.S. equipment rental market in 2026?

The American Rental Association forecasts U.S. construction, industrial equipment and general tool rental revenue of about $83.5 billion in 2026, up 3.4% from 2025.

Is the U.S. equipment rental market growing?

Yes, at a moderate pace. ARA expects 3.4% growth in 2026. IPAF expects U.S. aerial work platform rental revenue to grow about 5% in 2026.

Why are contractors renting more equipment?

Rental can help contractors reduce upfront capital requirements, maintain fleet flexibility, and access specialized equipment for projects without taking on long-term ownership costs.

How large is the U.S. MEWP rental market?

The U.S. MEWP rental market reached approximately $15.8 billion in 2025, after growing 4%. The total U.S. MEWP rental fleet reached approximately 875,000 units.

Is renting heavy equipment better than buying?

Utilization, project duration, financing, maintenance costs, and the anticipated ownership period all play a role. While purchasing may be more cost-effective for machines that will be used regularly over an extended period of time, renting may make more sense for short-term or erratic equipment needs.

Are data centers driving up demand for equipment rentals?

IPAF lists data center projects, along with facilities management, among the factors behind U.S. aerial work platform rental growth. Data center sites also use cranes and other lifting equipment, so demand for rented lifting capacity can follow the same projects.

Before renting equipment, what should contractors take into account?

Contractors should compare the total rental cost with the expected utilization, project duration, transportation, attachments, fuel or charging requirements, maintenance arrangements, and availability of the required machine. The cheapest daily rental rate is not necessarily the lowest overall project cost.

Rent or Buy: What to Do Next

Not sure whether renting or buying fits your fleet? Start with your expected hours of use and the length of the project. If the machine will work most days, browse used cranes for sale. If the need is short, ask about crane rental.

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