5.9.2Segment

Equipment Rental & Leasing

Equipment rental companies supplying construction machinery, material handling equipment, and specialty tools.

4
Verticals

Overview

Equipment Rental & Leasing covers the rental of construction, industrial, and general equipment — aerial lifts, earthmoving, power and HVAC, tools, and specialty equipment. At ~$83B across ~17,000 establishments, it is led by national rental majors (United Rentals, Sunbelt/Ashtead, Herc) alongside a large base of regional and specialty rental operators.

Demand is driven by construction and industrial activity and the secular shift from owning to renting equipment (better fleet utilization, no maintenance burden), with the rental penetration rate still rising. It is consolidating rapidly around scaled players, and one of the most successful industrial roll-up stories, with fleet scale and branch density the key advantages.

Market snapshot

Market size
~$99B
Growth
~10.1%CAGR (2017–22, nominal)
Companies
~10,679 firms
Firms by employee count

83.5% of firms have fewer than 20 employees: 8,914 micro-businesses, below most mandates.

The investable universe1,765 firms with 20+ employees
20–99
1,21269%
100–499
31518%
500+
23813%

The fastest growth on this page, and it is a genuine structural shift rather than pricing: contractors and industrial operators moved decisively toward renting through the supply-chain squeeze, when buying meant waiting a year for delivery. Fleet age and utilisation are the whole business — an acquirer is buying a depreciation schedule and a branch network, not a customer list.

NAICS 532310, 532411, 532412, 532420, 532490. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Equipment rental and leasing fees on owned fleet

Key economics

Revenue per firm
$9,281,570
Revenue per employee
$404,216
Employees per firm
20.2
Recurring revenue
Moderate–High

recurring rental and repeat customers

EBITDA margin
Strong

high-utilization fleet economics

Capex intensity
High

Characteristics

  • Scale-driven — payroll is only 17% of revenue; the cost base is assets, not headcount
  • Deep strategic-buyer pool — 238 firms exceed 500 employees, so a scaled asset has trade buyers
  • Led by United Rentals, Sunbelt, Herc.
  • Secular shift from owning to renting equipment.
  • Fleet scale and branch density key advantages.

NAICS 532310, 532411, 532412, 532420, 532490. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

M&A deal context

Deal activityHigh

Who’s acquiring

  • National rental strategics
  • PE-backed rental platforms
  • Regional & specialty consolidators

What’s driving deals

  • Aggressive roll-up of regional rental operators.
  • Rising rental-penetration secular shift.
  • Specialty-fleet and geographic expansion.

Verticals in this segment

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