The American Rental Association expects total equipment rental revenue to reach $38 billion in North America, according to the latest figures released from its ARA Rental Market Monitor service. The figure represents a 6.2-percent increase compared to 2012 with fourth-quarter revenue growth projected to be 7.1 percent.

The figure includes the construction/industrial segment, as well as general tool/DIY and party/special event. In the U.S. alone, ARA projects equipment rental to grow 6.5 percent to $33.3 billion.

“The general economy in the U.S. has slowed down slightly this year with the gross domestic product now forecast to grow 1.5 percent in 2013,” said Christine Wehrman, ARA’s executive vice president and CEO. “That means equipment rental industry revenue continues to grow at more than four times the general economy. The industry remains vibrant, strong and will benefit even more in the coming years due to nonresidential growth, supplemented with residential construction growth and the strong influence of the energy boom in North America. We expect revenue in the U.S. to grow 8.4 percent in 2014 and 11.3 percent in 2015.”

ARA’s North American Economic Analysis provided by IHS Global Insight projects revenue growth to accelerate in all segments through 2015 before leveling off in 2016 and 2017. The general tool segment will show the highest compound annual growth rate at 10.1 percent over the five-year forecast while construction and industrial equipment revenue is forecast to see a CAGR of 7.8 percent between 2013 and 2017, IHS said.

The construction market and consumer spending are expected to be the most important drivers of growth of the equipment rental market in 2014. According to the U.S. economic analysis from ARA Rental Market Monitor and IHS Global Insight, the U.S. equipment rental market will continue its upward trajectory and show strong growth through 2017. They project the construction and industrial segment to grow 9.1 percent in 2014 and 10.5 percent in 2015.

The U.S. general tool segment is expected to grow 7.9 percent in 2014 and 15.5 percent in 2015. ARA forecasts party and event rental to benefit from continued improvement in consumer spending with rental revenue to show a 3.2-percent CAGR over the five-year forecast to 2017.

Total equipment rental revenue is expected to grow at a CAGR of 8.6 percent between 2013 and 2017, exceeding pre-recession totals in 2015 and reaching $46.3 billion in 2017.

Scott Hazelton, senior partner with IHS Global Insight said the U.S. economic expansion, after a slowdown in the third quarter this year, will pick up in 2014 with homebuilding to surge through early 2016. He added that the North American energy boom will continue to create jobs, investment and a competitive advantage in manufacturing. Investment in equipment by rental companies will grow in 2014, Hazelton said, and will surpass $14 billion in 2015.