The equipment rental industry in the United States is expected to generate $35.8 billion in revenue and outpace gross domestic product by more than four times in 2014, according to the American Rental Association’s latest forecast from the ARA Rental Market Monitor. Economic data and analysis for ARA Rental Market Monitor are compiled by IHS Inc., a global research firm.

IHS forecasts total equipment rental revenue in the U.S. to grow 7.6 percent in 2014 to reach $35.8 billion, 10.5 percent in 2015 to reach $39.6 billion, and another 10.2 percent in 2016 to reach $43.6 billion, surpassing the previous industry record of $36.9 billion in 2007. IHS predicts a growth rate of 8.9 percent in 2017 and 7.7 percent in 2018, reaching total rental revenue of $51.2 billion.

“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy,” said Scott Hazelton, managing director with IHS Global Insight. “Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments.”

During the next two years, the construction and industrial segment and the general tool segment will experience double-digit growth in U.S. rental revenue, IHS said. In 2015, construction and industrial rental revenue is projected to increase 10.7 percent and general tool 11.7 percent. In 2016, the increases will be 10.4 percent and 11.6 percent respectively.

The party and event segment is expected to continue steady growth, with revenue increasing 4.2 percent in the U.S. in 2014 to reach $2.6 billion.

The forecast calls for less dramatic growth in Canada: 5.2 percent growth in 2014 to $4.9 billion; 6 percent in 2015; 6.6 percent in 2016; 3.5 percent in 2017, and 3.6 percent in 2018 to reach $5.9 billion.

IHS predicts that rental companies in the U.S. will invest more than 30 percent of their revenue in new equipment during the next five years, totaling $12.1 billion in 2014 and $16.1 billion by 2018.

ARA is based in Moline, Ill. IHS Global Insight is headquartered in Englewood, Colo.