The tool rental industry has been holding its own, even during some tricky times. In 2024, the market size hit around $4.7 billion, though it dipped slightly (down 1.4% from last year). A big reason for this slowdown has been higher interest rates, which have cooled down construction projects. But here’s the good news: tool rentals are still in demand. Whether it’s for construction or industrial work, people are renting what they need to get the job done, keeping the industry steady.
Looking ahead to 2025, things are looking brighter. The American Rental Association (ARA) expects the industry to grow by 8.2% in revenue next year, reaching $78.2 billion. This growth is likely to get a boost as interest rates drop, which should help construction projects pick up again. Plus, more people and businesses are choosing to rent instead of buy—it’s cheaper, easier, and way more flexible. As the market grows, companies in the rental industry will need to keep up with trends, like using new tech and meeting changing customer needs, to stay ahead. All in all, it’s an exciting time for tool rentals!
How can KATCO help?
To stay competitive, tool rental companies can benefit from offering high-performance pneumatic tools from Kent Air Tool Company (KATCO). With products like chipping hammers, demolition tools, and paving breakers designed for heavy-duty use, KATCO helps rental businesses meet the needs of contractors tackling tough jobs. Our fast delivery and dedicated service ensure rental companies can keep their inventory in top shape, improving customer satisfaction and tapping into the market’s growth potential.
Who is Renting?
In 2025, a wide range of contractors are driving demand in the tool rental market, reflecting the diversity of ongoing construction and renovation projects. Key groups include:
General Contractors: These professionals manage large-scale residential, commercial, and infrastructure projects, often renting specialized equipment like pneumatic tools, heavy machinery, and demolition equipment to meet specific project needs without the cost of ownership.
Specialty Contractors: Electricians, plumbers, and HVAC technicians frequently rent niche tools and equipment such as conduit benders, pipe threaders, or industrial-grade air compressors for short-term projects.
Landscaping and Outdoor Contractors: With a growing emphasis on sustainable and outdoor spaces, landscapers rent equipment like trenchers, aerators, and paving breakers for hardscaping and soil preparation.
Renovation and Remodeling Contractors: Driven by the surge in residential and commercial remodeling projects, these contractors rent tools like saws, drills, and compact demolition tools to efficiently update spaces.
Small Business Owners and DIY Professionals: While not always traditional contractors, this group is increasingly turning to rentals for cost-effective access to professional-grade equipment for one-off or seasonal projects.