Page 22 - January_2023

COVER STORY

8.76% over the forecast period, according to Mordor Intelligence this space is exploring rental expanse of equipment. With more
report. efficient use, the total carbon footprint of a piece of construction
Advances in hydrogen technology are opening avenues for equipment can be lowered by between 30% and 50%. When a
the future of electrified heavy-duty vehicles, including off-road specialized vehicle such as an excavator or dump truck is rented
construction equipment. According to McKinsey, Total Cost of for a definitive period of time, the rate of utilization is increased,
Ownership (TCO) could be a major driver in the electrified heavy and the number of different pieces of equipment lying idle around
machinery market. The consulting firm has predicted that by 2023, a construction site at any one time is reduced. There will be many
the TCO of heavy electrified machinery could be up to 21% lower new age electric machines on display at the event for companies
than that of similar internal combustion engine (ICE) equipment. to get first-hand insights.
This is driven by a 40 to 60% lower operating cost reduction, thanks
to reduced fuel consumption, and a simpler drive-train with fewer Rental expanse
moving parts, requiring less maintenance. The Global Construction Equipment Rental Market is projected
Sustainable Technology is the focus at Komatsu, Scania and L&T. to grow at a CAGR of around 4.7% during 2022-27. The growth of
As part of its initiative to introduce sustainable technologies; all the market is driven principally by the swiftly increasing number of
these machines have been designed to run on B20 Bio-Diesel. construction activities across different countries worldwide owing
These equipment deliver the same power and productivity when to the growing government focus on infrastructural developments,
they consume alternate energy but save fossil fuel and reduce i.e., surging the demand for construction equipment.
greenhouse gas emissions. Globally, Scania is working towards Moreover, since the high cost of construction equipment &
developing greater levels of sustainability solutions, with a major ownership for transportation & maintenance can be challenging,
focus on energy efficiency, autonomous vehicles, renewable fuels, contractors are fast inclining toward their rental supply for
electrification, and smart and safe transport, utilizing increasing different construction applications. Besides, rapid technological
levels of digital services to provide higher uptime and vehicle advancements in construction equipment, with the integration
utilization for eco-friendly solutions. All Scania vehicles can run on of telematics & automation, are also propelling the demand
alternative fuels/ renewable fuels. Scania sees itself as a partner for construction equipment among contractors on a rental basis
to India’s ambition of building smart and sustainable mobility and, in turn, driving the global market. For short-term construction
solutions, powered by locally produced biofuels, with low carbon application, renting a machinery has been preferable than a
emission. Caterpillar has an integrated portfolio of machines, purchase among construction contractors, as renting allows
services and technologies that support end-to-end sustainable optimum utilization of the machinery.
solutions for its customers. According to Mordor Intelligence, the India construction
Another interesting insight which can empower sustainability in equipment rental market is anticipated to register a CAGR of

22 CONSTRUCTION OPPORTUNITIES|JANUARY 2023