Equipment Rental Software Report: How to Crush 2025

Digitization, Automation, and AI: The Key Strategies for Growth in a Competitive Market

In 2025, three key buzzwords will dominate the heavy equipment rental industry: digitization, automation, and artificial intelligence (AI). These aren’t just trendy topics; they’re crucial for the growth of your rental business.

Emerging technology is streamlining rental companies’ processes and boosting efficiency. Many heavy equipment businesses already embrace digital technology and automation. And now, businesses are pursuing AI to stay competitive, and adapt to the ever-changing market.

Heavy Equipment Rental Business Digitization

Digitization provides the foundation needed to create online stores, manage inventory, process payments, and improve customer communication. For rental companies, the first step to digitization may involve adopting an industry-specific solution.

Industry-specific solutions like equipment rental software, service management software, or inventory management systems, offer vertical-specific features. This accelerates setup and time to value. However, some may choose to go with a broad B2B software solution, depending on the size and goals of the business.

Modern customer expectations have shifted, and companies who want to grow their business need to meet those preferences. A well-thought out digitization strategy will provide your customers with the real-time convenience they want.

“For [heavy] equipment businesses, the overarching thing that’s important to highlight is how large a percentage of your customer base, contractor base, and repeat business wants to do things digitally,” says Josh Nickell, former Vice President of the Equipment Segment at the American Rental Association (ARA). “Some of the technologies, the AI tools, and things that you can do to enhance the customer experience are all based on digitizing that experience in the first place.”

Like many industries, the heavy equipment rental market has been quickly transitioning to digital purchases. In fact, the share of online rental transactions has surged from 16 percent to 27 percent in just four years according to the ARA.

As more customers shop online, businesses must adapt. Those without robust digital eCommerce risk losing sales and future growth. By avoiding digitization, businesses risk falling behind and leaving money on the table.

Moving to Automation and AI for Heavy Equipment Rental

Digitization gets you started, but it’s not the end of the journey. The real key to your business’s success is the data that comes from that process. This single source of truth is the foundation on which you can deploy automation and AI technology.

“We talk about digitization first because in order for AI to be effective, it has to have a good base of information,” says Adam Kropf, Senior Director of Product at Texada Software. “Sometimes that can be achieved through your [equipment rental software], or other ways you collect feedback digitally. If all of your sales activity is in a notebook in somebody’s pocket, then you’re not going to be able to build that AI piece.”

Nickell warns that organizations that are slow to start with digitization may need to catch up.

“If you’re not doing some of this digitally already and if you’re not even thinking about that broader digitization of what you do as part of your AI strategy, then you’re missing out,” he says.

As 2025 approaches, businesses that have already gone digital have a head start towards growth. Those who automate their processes within their equipment rental software will find themselves working smarter, not harder.

Don’t fall behind– access the 2025 Rental Report to learn how to help your heavy equipment rental business achieve its growth goals.