KBS - Equipment-as-a-Service - Market Insight

FACTORS DRIVING GROWTH Key drivers of EaaS include the growing adoption of subscription-based models, increasing demand for operational flexibility, and technological advancements. The EaaS market has witnessed a surge in cloud-based platforms and IoT-enabled equipment, facilitating real-time data analytics and enhanced equipment utilisation. REGULATIONS AND SAFETY STANDARDS The UK’s stringent safety and emissions regulations encourage the use of modern, up-to-date equipment. From low-emission construction machinery to safer lifting gear, regulatory compliance necessitates continual equipment upgrades. EaaS offers an avenue to access compliant equipment without upfront investments. SUSTAINABILITY There is growing recognition in the UK that equipment rental supports sustainability goals. Renting enables higher utilisation of each asset, reducing the total number of machines that need to be manufactured and eventually disposed of. Moreover, many EaaS firms in the UK are introducing greener technologies such as electric plant equipment and solar lighting towers in their fleets. Environmentally conscious customers and government procurement policies favour more sustainable options. TECHNOLOGY The rise of telematics and IoT in equipment management has enhanced the capabilities of EaaS. UK rental companies leverage these telematics for usage-based pricing, predictive maintenance and asset tracking, thereby improving accuracy, reliability and transparency. The technology integration lowers downtime and optimises fleet efficiency. Furthermore, online platforms have created a seamless process to rent via instant quotes and digital ID of equipment, broadening the customer base and retention. INFRASTRUCTURE Large infrastructure projects often opt to rent equipment to avoid logistics of ownership and to ensure access to a broad range of machinery. In the UK, due to government initiatives in infrastructure and a focus on improving productivity in construction, EaaS solutions are in demand to support these projects. The rental industry’s ability to provide turnkey solutions, i.e. equipment, service and logistics, aligns with the needs of contractors - driving growth in EaaS as these projects roll out.