In its latest five-year forecast, the American Rental Association (ARA) expects equipment rental industry revenue to grow consistently with a compound annual growth rate (CAGR) between 2017 and 2021 of 4.7 percent in the United States, resulting in total revenue of $59.3 billion in 2021.

According to the ARA Rental Market Monitor™ five-year forecast updated in early November, total rental revenue in the U.S. is expected to grow by 4.5 percent in 2018 to reach $51.5 billion, 5.5 percent in 2019, 4.9 percent in 2020 and 4.1 percent in 2021. The November forecast almost is exactly the same as the last forecast in August, with only minor fluctuations up or down in expected growth rates each year.

In Canada, equipment rental revenue also is expected to show consistent growth, reaching $5.3 billion in 2018 with growth rates of 4.1 percent in 2019, 5 percent in 2020 and 4.8 percent in 2021 to total $6.11 billion.

“This is a strong forecast, showing the equipment rental industry will continue to consistently grow over the next five years, without factoring in any possible impact from tax reform or infrastructure spending,” says John McClelland, ARA’s vice president for government affairs and chief economist.

“People continue to realize the benefits of renting and how it can positively impact the bottom line. As a result, the equipment rental industry continues to outperform the general economy as well as the industries it serves,” McClelland says.

According to the ARA Rental Market Monitor, which features data and analysis from IHS Markit, one of the world’s leading forecasting firms, construction/industrial equipment rental revenue is expected to show a 4.1 percent CAGR over 2017-21, reaching $40.4 billion in 2021.

General tool is expected to post a 5.7 percent CAGR over the forecast period, reaching $15 billion in 2021, while party and event is expected to have a 6.3 percent CAGR and surpass $3.9 billion in revenue in 2021.

Investment in rental equipment is projected to increase by 4 percent in 2018, 8.4 percent in 2019, 2.6 percent in 2020 and 1.2 percent in 2021, surpassing $15 billion that year.