Appliances Rental Market Trends

Growth Drivers

• Increase in Urbanization and Mobility- As urbanization grows, so does the demand for home appliances, which in turn, will drive the demand for appliance rental services. More than 4 billion people now live in urban areas and the rates of urbanization have been increasing rapidly across all regions (in 1800, less than 10% of people across all regions lived in urban areas) due to which urbanization is expected to continue to increase with rising incomes and shifts away from employment in agriculture. The rental services provide convenience, flexibility in renting, easy access to appliances, and other advantages, which make it a preferred option amongst customers over purchasing of appliances. Additionally, the rise in urbanization and mobility has led to an increasing number of customers preferring rental services.
• Growth in Environmental Awareness- As environmental concerns grow, so does the demand for sustainable practices, including the use of rental services over traditional ownership of appliances. This is because rental services reduce the use of resources and energy while providing access to appliances, without needing to purchase them. In addition, the adoption of appliances rental services is being driven by the growing awareness and promotion of environmental sustainability.
• Changing Consumers' Lifestyle- As lifestyle changes, so do the consumption dynamics of individuals, which influences the demand for rental services. This is because the consumption patterns of consumers are becoming more focused on convenience, flexibility, and cost-effectiveness, rather than traditional ownership. In addition, the trend of changing consumer lifestyle is also driven by an increasing number of consumers prioritizing experiences over physical possessions.

Challenges

• Availability of banks and financial loans- The availability of financing allows individuals to purchase appliances instead of renting them. When consumers have access to financing, it gives them the power to make decisions based on their financial capabilities, which results in individuals with strong financial capabilities are more likely to purchase appliances rather than renting them. This limits the growth of the appliances rental market, as the availability of financing restrains consumption of rental services.
• High maintenance and repair costs.
• Calculating asset ROI and TCO.
• Difficulty in tracking and managing equipment availability.