The American Rental Association (ARA) has updated its 2026 economic outlook, projecting continued growth for the equipment rental industry across North America as demand for rental equipment remains strong in construction, industrial and access-related markets.
ARA forecasts the combined U.S. construction and industrial equipment (CIE) and general tool rental industry will increase 3.6% in 2026, reaching $83.5 billion. The revised forecast is higher than the previous quarter’s estimate of 2.8% growth and $82.9 billion in revenue.
According to ARA, continued demand for rental equipment is being supported by ongoing project activity, financial flexibility and the increasing shift from equipment ownership to rental models.
“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.”
Looking ahead, ARA projects combined U.S. CIE and general tool rental revenue to increase by 3.8% in 2027 and 4.4% in 2028.
The forecast was developed using data and analysis from S&P Global. Scott Hazelton, managing director at S&P Global, said projected growth in equipment rental is tied to anticipated improvements in economic conditions as uncertainty surrounding geopolitics, energy prices and tariffs begins to ease.
Hazelton said the construction and industrial equipment segment is currently experiencing slower growth due to a stagnant construction market, while the general tool rental segment is expected to strengthen in the years ahead.
“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 construction and industrial equipment and general tool rental market is forecast to grow 5% in 2026 to $6.3 billion. Growth is expected to continue at 5.8% in 2027 before easing slightly to 5.4% in 2028.
ARA also updated projections for the event rental segment, forecasting 8% growth in the U.S. market in 2026 to $6.1 billion. Canadian event rental revenue is expected to increase 6.3% this year to $280 million.
“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.
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