Heavy Equipment Rental in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS 53241CARevenue
$9.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
23,136
Businesses
4,420
Wages
$X.Xbn
Heavy Equipment Rental in Canada industry analysis
The construction, transportation, mining, forestry and agricultural markets that lease heavy machinery have weathered the tumult of the COVID-19 pandemic to push the Heavy Equipment Rental industry in Canada to growth. Growth in nonresidential construction activity, increased demand from air and rail transportation, alongside a rise in commodity prices have raised need for heavy equipment, even as the pandemic temporarily crippled economic activity in 2020. Consequently, industry revenue is expected to grow at a CAGR of 0.7% to $9.7 billion over the five years to 2023.While the industry has grown, volatility has been substantial. There was consistent demand for heavy equipment prior to the pandemic because of elevated commodity prices, which drove need from construction and transportation markets. However, the collapse in commodity prices because of the outbreak of COVID-19, as well as a temporary pause in most economic activity at the height of the pandemic, resulted in the largest single-year drop in industry revenue in decades. The rebound in commodity prices since has yielded growth in demand since, alongside strong, if uneven, growth in nonresidential and residential construction markets. With commodity prices tempering in 2023, industry revenue is forecast to rise at a more moderate 1.0% during the year. And while revenue has continued to grow, profit margins have not been spared by volatile demand swings, with profitability contracting over the current five-year period. The industry revenue is forecast to grow solidly as commodity prices remain high, despite the expectation that they will temper. The Bank of Canada, as well as other governments globally, have raised interest rates in an effort to curb inflation, dampening downstream demand. However, the Canadian economy has remained strong and construction activity is forecast to rise, despite the higher costs of borrowing. Perhaps most notably, demand from Canadian extraction markets is likely to remain elevated because of pressure from global turmoil, most notably the war in Ukraine. The industry is thus forecast to expand at an a CAGR of 2.1% to $10.8 billion over the five years to 2028.
Trends and Insights
- Heavy equipment rental has fared with tremendous volatility stemming from the pandemic. COVID-19 initially crimped economic activity and tempered commodity prices, which later shot back up and generated demand for equipment.
- The Canadian economy is resource-driven, and extraction, forestry and construction industries drive demand for heavy machinery. These markets all have high fixed costs, so companies prefer to keep equipment from weighing down balance sheets.
- Alberta and British Columbia are two of the most popular provinces for heavy machinery lessors. Both provinces have large extraction industries, with Alberta home to most of Canada’s oil production.
- Lessors compete chiefly on price. Companies that are able to provide the lowest rates typically win out, favouring large companies that are able to acquire equipment at lower rates due to their advantages in scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.5 % over the past five years, to reach an estimated $9.9bn in 2024.
Trends and Insights
COVID-19 induced revenue volatility, temporarily cratering downstream demand
- The outbreak of COVID-19 interfered with regular activity in a range of markets, including forestry, mining, residential, nonresidential and infrastructure construction. As the level of industrial activity declined, private investment in industrial equipment receded.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Interest rate hikes will cool, but not pause, new construction
- Interest rate hikes in an effort to curb inflation will dampen downstream demand. The Bank of Canada is forecast to raise rates, similar to monetary regulators globally.
Biggest companies in the Heavy Equipment Rental in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
United Rentals Inc. | 1,477.1 | 452.6 | 30.6 | |
Finning International Inc. | 194.0 | N/A | N/A | |
Herc Holdings Inc. | 9.7 | N/A | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Construction, mining, agricultural and forestry equipment, Transport equipment and Other industrial equipment. Construction, mining, agricultural and forestry equipment is the largest segment of the Heavy Equipment Rental in Canada.
Trends and Insights
The need for construction, mining, agricultural and forestry equipment is vast in Canada's resource-rich economy
- Construction, mining, agricultural and forestry equipment industries rent or lease a variety of heavy equipment.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Industrial Equipment Rental & Leasing in Canada
Complementors
- Car Rental in Canada
- Truck Rental in Canada
International industries
- Heavy Equipment Rental in the US
- Commercial Aircraft Leasing in the US
- Machinery and Scaffolding Rental in Australia
- Construction Machinery and Operator Hire in Australia
- Transport Equipment and Large Vehicle Rental in Australia
Table of Contents
About this industry
Industry definition
The Heavy Equipment Rental industry in Canada rents or leases heavy construction equipment, off-highway transportation, mining and forestry machinery and equipment without operators. Companies in this industry may rent or lease products including aircraft, railcars, steamships, tugboats, bulldozers, earthmoving equipment, cranes or well-drilling machinery and equipment.
What's included in this industry?
Aircraft rental or leasingBarge rental or leasingBoat, ship and steamship rental or leasingRailcar rental or leasingTanker rental or leasingTowboat and tugboat rental or leasingForestry and logging machinery and equipment rental or leasingHeavy construction equipment rentalMining machinery and equipment rental or leasingOil field machinery and equipment rental or leasingCompanies
United Rentals Inc.Finning International Inc.Herc Holdings Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
OPERATING LEASEFINANCE LEASEWHOLE-OF-LIFE COSTING SYSTEMEQUIPMENT UTILIZATION RATEIndustry Code
NAICS 532410 - Heavy Equipment Rental in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Heavy equipment rental has fared with tremendous volatility stemming from the pandemic. COVID-19 initially crimped economic activity and tempered commodity prices, which late...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The Canadian economy is resource-driven, and extraction, forestry and construction industries drive demand for heavy machinery. These markets all have high fixed costs, so co...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Alberta and British Columbia are two of the most popular provinces for heavy machinery lessors. Both provinces have large extraction industries, with Alberta home to most of ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Lessors compete chiefly on price. Companies that are able to provide the lowest rates typically win out, favouring large companies that are able to acquire equipment at lower...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
United Rentals is far and away the largest player in the industry. The company operates across North America and has used its scale to corner the industry, making a number of...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of United Rentals Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Finning International Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Herc Holdings Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for United Rentals Inc., and factors influencing its performance in the industry
- Description and key data for Finning International Inc., and factors influencing its performance in the industry
- Description and key data for Herc Holdings Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation across the industry varies by product categories. While aircraft leasing is governed by Transport Canada, oil drilling and mining equipment rental is subject to ov...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Leasing is predicated on the acquisition of expensive equipment. Unsurprisingly, depreciation is the largest cost component for heavy machinery lessors.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Heavy Equipment Rental industry in Canada in 2024?
The market size of the Heavy Equipment Rental industry in Canada is $9.9bn in 2024.
How many businesses are there in the Heavy Equipment Rental in Canada industry in 2024?
There are 4,420 businesses in the Heavy Equipment Rental industry in Canada, which has declined at a CAGR of 0.9 % between 2019 and 2024.
Has the Heavy Equipment Rental industry in Canada grown or declined over the past 5 years?
The market size of the Heavy Equipment Rental industry in Canada has been growing at a CAGR of 0.5 % between 2019 and 2024.
What is the forecast growth of the Heavy Equipment Rental industry in Canada over the next 5 years?
Over the next five years, the Heavy Equipment Rental industry in Canada is expected to grow.
What are the biggest companies in the Heavy Equipment Rental market in Canada?
The biggest companies operating in the Heavy Equipment Rental market in Canada are United Rentals Inc., Finning International Inc. and Herc Holdings Inc.
What does the Heavy Equipment Rental in Canada include?
Aircraft rental or leasing and Barge rental or leasing are part of the Heavy Equipment Rental industry.
Which companies have the highest market share in the Heavy Equipment Rental in Canada?
The company holding the most market share in Canada is United Rentals Inc..
How competitive is the Heavy Equipment Rental industry in Canada?
The level of competition is moderate and increasing in the Heavy Equipment Rental industry in Canada.
