ARA Forecast Projects Growth for Equipment Rental Industry in 2026

The American Rental Association (ARA) has released an updated economic forecast showing continued growth for the North American equipment rental industry, with gains projected across both construction and industrial equipment (CIE) and general tool rental segments.

According to ARA, the combined U.S. CIE and general tool rental industry is expected to grow by 3.6% in 2026, reaching a projected total of $83.5 billion. The updated forecast marks an increase from the previous quarter’s outlook, which projected 2.8% growth and $82.9 billion in revenue for the year.

“Rental revenue continued to grow, particularly in areas where the large and megaproject work is,” said Tom Doyle, ARA vice president, program development. “The trend toward more rental versus ownership also continues. Rental tailwinds include project uncertainty, market volatility, sustainability, financial flexibility for the rental user and the high cost of owning. Rental companies are focused and delivering better solutions.”

ARA projects additional growth beyond 2026, forecasting combined U.S. construction and industrial equipment and general tool rental revenue to rise 3.8% in 2027 and 4.4% in 2028.

The forecast, compiled with data and analysis from S&P Global, points to improving market conditions in the coming years. Scott Hazelton, managing director at S&P Global, said anticipated growth is tied to expectations that uncertainty surrounding geopolitical conditions, energy prices and tariffs will ease.

Hazelton noted that growth in the construction and industrial equipment segment has remained relatively flat due to a stagnant construction market, while the general tool rental segment has shown stronger momentum.

“This year [general tool] is a little bit weak but overall, in the outer years, it is strong. Part of that is increased adoption, part of that is an increased housing outlook and part of that is the manufacturing sector that gets a little more strength as we get past some of these tariff-inflicted pains of last year,” Hazelton said.

In Canada, ARA forecasts the combined construction and industrial equipment and general tool rental market to grow 5% in 2026, reaching $6.3 billion. Growth is expected to continue at 5.8% in 2027 before moderating slightly to 5.4% in 2028.

The report also included projections for the event rental segment, with the U.S. market forecast to grow 8% in 2026 to $6.1 billion. Canadian event rental revenue is projected to grow 6.3% this year to $280 million.