Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 3.9 % over the past five years, to reach an estimated $5.7bn in 2025.
Trends and Insights
Persistent economic uncertainty bolsters demand
- Contractors, project managers and homeowners are steering away from outright purchases, choosing to rent heavy-duty tools—like air compressors and generators—and DIY essentials, such as ladders and sanders. This pivot lets them access premium equipment without high upfront investments or long-term financial risk. Rental providers are capitalizing on this shift by expanding inventories to meet rising demand from the professional and DIY markets.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Gaining uncertainty cements rentals as a cost-saving tool
- According to an annual Deloitte survey, 57.0% of consumers expect the US economy to weaken in 2026, the most negative economic outlook since the company began the survey in 1997. Sustained pessimism will drive businesses and individuals to seek more flexible financial strategies. With uncertainty intensifying, outright equipment purchases—ranging from air compressors, compactors, generators, concrete tools, ladders and sanders—will become less attractive. The rental option, which allows access without significant capital outlay or long-term commitment, grows increasingly appealing.
Biggest companies in the Tool & Equipment Rental in the US
| Company | Market Share (%)
2025 | Revenue
2025 | Profit
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a market share exceeding 5% in the Tool & Equipment Rental in the US industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Contractor equipment, Home tools and DIY equipment rental and Renting consumer goods. Contractor equipment is the largest segment of the Tool & Equipment Rental in the US.
Trends and Insights
A gain in housing starts and renovation spending bolsters demand for contractor equipment
- Contractor equipment includes air compressors, compactors, concrete equipment, generators, scaffolding, welders and sheet metal cutting tools.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry comprises companies that primarily rent tools and small- to medium-size pieces of equipment, including contractors’ and builders’ tools and equipment and home maintenance tools for a short period of time. Enterprises that primarily focus on other rentals such as trucks and trailers without drivers, party and banquet equipment and personal and household goods are all excluded from this industry.
What's included in this industry?
Products and services covered in the Tool & Equipment Rental industry in the United States include Contractor equipment, Home tools and DIY equipment rental, Renting consumer goods, Other equipment rentals and Delivery, repair and other services.Companies
Companies covered in the Tool & Equipment Rental industry in the United States include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Tool & Equipment Rental industry in the United States include nonemployer, do-it-yourself (diy) and aerial lifts.Industry Code
NAICS 532283 - Tool & Equipment Rental in the US
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
Economic uncertainty is boosting demand for tool and equipment rentals. These rentals allow contractors and homeowners to access high-end equipment without substantial upfron...
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 (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- 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
Tariffs on imported replacement parts and components will strengthen maintenance expenses for rental businesses. This could strain profit, especially for companies with older...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
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
Because of dense urban development and aging housing, the Mid-Atlantic has a steady demand for rented tools. Proximity to metropolitan hubs contributes to this demand, as res...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
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
Stable supply chains are enabling rental companies to replenish and advance their fleets. Improved predictability in equipment availability following disruption years allows ...
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 2020-2025
- 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
There are no companies that hold a market share exceeding 5% in the Tool & Equipment Rental in the US industry.
Analyst insights
Top rental providers are leveraging technology integration to streamline operations and enhance customer experience. Adopting advanced fleet management tools and digital plat...
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Tool and Equipment Rental industry's success is markedly tied to residential construction progress. As building projects gain, so does the need for rented tools, turning ...
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 (2015-2030)
- Assistance historical data and forecast (2015-2030)
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
Demand for skilled labor has surged in the Tool & Equipment rental industry. Rising labor costs because of competition for skilled technicians and compliance rules have reduc...
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 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
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 (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Tool & Equipment Rental industry in the United States in 2025?
The market size of the Tool & Equipment Rental industry in the United States is $5.7bn in 2025.
How many businesses are there in the Tool & Equipment Rental industry in the United States in 2025?
There are 13,749 businesses in the Tool & Equipment Rental industry in the United States, which has grown at a CAGR of 7.9 % between 2020 and 2025.
How may import tariffs affect the Tool & Equipment Rental industry in the United States?
The Tool & Equipment Rental industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Tool & Equipment Rental industry in the United States?
The Tool & Equipment Rental industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Tool & Equipment Rental industry in the United States grown or declined over the past 5 years?
The market size of the Tool & Equipment Rental industry in the United States has been growing at a CAGR of 3.9 % between 2020 and 2025.
What is the forecast growth of the Tool & Equipment Rental industry in the United States over the next 5 years?
Over the next five years, the Tool & Equipment Rental industry in the United States is expected to grow.
What does the Tool & Equipment Rental industry in the United States include?
Contractor equipment and Home tools and DIY equipment rental are part of the Tool & Equipment Rental industry in the United States.
How competitive is the Tool & Equipment Rental industry in the United States?
The level of competition is moderate and increasing in the Tool & Equipment Rental industry in the United States.
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 the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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.
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