ARA updates forecast for equipment and event rental markets
The American Rental Association (ARA) has updated its economic forecast for the North American rental industry, projecting growth in both equipment and event rental markets through 2028.
ARA forecasts the combined U.S. construction and industrial equipment (CIE) and general tool rental industry will grow 3.6% in 2026, reaching $83.5 billion. The projection is higher than the association’s previous forecast of 2.8% growth and $82.9 billion in revenue.
“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 combined U.S. CIE and general tool rental revenue will increase 3.8% in 2027 and 4.4% in 2028.
Scott Hazelton, managing director at S&P Global, which compiles data and analysis for the ARA forecast, said projected growth is tied to expectations that uncertainty surrounding geopolitical issues, energy prices, tariffs and other factors affecting investment decisions will ease.
Hazelton said growth in the CIE segment remains limited because of a stagnant construction market, while the general tool segment is expected to advance.
“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, the combined CIE and general tool rental industry is projected to grow 5% in 2026, reaching $6.3 billion. The previous forecast projected the segment would total $6 billion this year.
ARA projects combined Canadian CIE and general tool rental revenue will grow 5.8% in 2027 and 5.4% in 2028. The association attributed the slower growth rate beyond 2027 to moderating rental revenue as construction markets and industrial production cool.
Event rental segment
ARA also updated its forecast for the event rental industry.
The U.S. event rental industry is projected to grow 8% in 2026, reaching $6.1 billion. The previous forecast projected 5.8% growth and total revenue of $5.9 billion.
Growth in U.S. event rental revenue is forecast to slow to 5.5% in 2027 and 4.6% in 2028.
In Canada, the event rental industry is projected to grow 6.3% in 2026, reaching $280 million.
Canadian event rental revenue is forecast to increase 7.2% in 2027 and 5.6% in 2028.
“The updated forecast points to a solid year ahead for the U.S. event rental industry, with growth around 8 percent in 2026 before moderating to the mid-5 percent range in 2027. While overall momentum remains positive, the easing reflects broader economic headwinds, including slower GDP growth, elevated inflation and higher interest rate conditions. Canada shows a slightly steadier trajectory, supported by improving investment activity and a rebound following a softer 2025,” said Bryan Bolt, ARA senior director of tenting solutions.
