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The truck rental market size is estimated to grow at a CAGR of 7% between 2022 and 2027. The market size is forecast to increase by USD 28.67 billion. The growth of the market depends on several factors, including mounting cost pressure on fleet operators, a rise in global industrialization and urbanization, and stringent regulations to control emissions boosting truck rentals.
This truck rental industry analysis market report extensively covers market segmentation by vehicle type (light commercial vehicle and heavy commercial vehicle), type (commercial use and personal use), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in global industrialization and urbanization are notably driving market growth, although factors such as the emergence of truck sharing may impede market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in global industrialization and urbanization is notably driving market growth. The global economy is expanding quickly, and as a result, cities and towns are becoming more intelligent and have better infrastructure. The industrialization and urbanization of the global economy are being accelerated by the use of transportation and logistics. This is where mobility enters the picture, and the Commercial Vehicle (CV) market acts as a foundation for developing such a global infrastructure. The development of the world's infrastructure has been greatly aided by CVs, which also include Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs). Heavy-duty trucks have played a crucial role in advancing industrial development. They have established themselves as a key player in this development, especially when it comes to towing trailers because of their high payload capacities.
Additionally, the demand for heavy-duty trucks has increased as a result of the expansion of global shipping, mining, and construction activities. As the focal point for the majority of the major infrastructure development projects, APAC nations like China and ASEAN have seen a significant increase in demand for CVs. The global market is well positioned to meet the growing demand for CVs because fleet operators can efficiently meet the demand for freight transportation by renting a truck rather than spending a significant amount of money purchasing new trucks. This is a positive driver for revenue growth in the global market during the forecast period.
Boosting e-commerce across developing economies and providing a platform for truck rentals is an emerging trend in market growth. More than 80% of the world's population is anticipated to have Internet access in 2022. Globally, APAC has the most internet users. The developing economies of APAC, the Middle East, Africa, Central and Eastern Europe, and South America have seen the greatest increase in internet penetration. The global e-commerce industry is expanding as a result of the expanding internet connectivity. In emerging economies like India, internet connectivity has a significant positive impact on e-commerce transactions.
Internet usage, online shoppers, and per capita income are the main growth drivers for e-commerce. Startups specializing in online services have found success due to the rising popularity of e-commerce sites. Markets in developing nations have always been price-conscious, and the general trend is moving away from ownership and moving toward accessibility. Hence, the global market is expected to benefit significantly through the boost in e-commerce during the forecast period.
The emergence of truck sharing is a major challenge impeding the market growth. In a demand-driven arrangement known as truck sharing, a vehicle owner helps people or logistics companies move constrained loads along predetermined routes. Truck owners can also lend out their vehicles when not in use. The truck-sharing idea increases the overall efficiency of the transportation network and more effectively manages peak demand when compared to renting trucks. In order to handle unexpected spikes in demand, fleet operators are no longer required to buy vehicles; instead, they can rent them from other operators.
The truck-sharing concept significantly lowers transportation costs because existing fleets and infrastructure will be used more frequently and will be shared by operators engaged in transportation. Hence, during the forecast period, the market will face challenges due to the growing popularity of the truck-sharing idea.
The truck rental market analysis, report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Truck Rental Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
EASY RENT truck and trailer GmbH - The company offers trucks, trailers, and special vehicles for rentals. The key offerings of the company include truck rentals such as Auflieger Kipper, Plateau, and Chassis.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the light commercial vehicle segment will be significant during the forecast period. Pickup trucks and vans, which are used to transport a variety of goods from hubs to various locations, are examples of LCVs. When it comes to the final delivery of high-value, time-sensitive goods as well as support services, LCVs are indispensable. They are widely adopted worldwide and are primarily used in urban areas with limited space. The use of LCVs rather than HCVs for cargo transportation within urban cities is being pushed by the escalating traffic congestion. Additionally, the expansion of the home delivery industry is to blame for the increase in the use of LCVs in urban areas.
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The light commercial vehicle segment was valued at USD 23.80 billion in 2017 and continued to grow until 2021. The most popular vehicles for distributing goods from centralized distribution hubs are vans. In urban areas, they are also used during business hours because heavier vehicles are subject to entry restrictions and are unable to reach all city centers. Additionally, fleet owners are under pressure to reduce operational costs due to intense competition and economic instability, which is a key factor in the demand for LCV truck rentals. The LCVs sector of the global market is benefiting from the rising commercial rental demand. There is a high demand for movers and packers in the US due to the increasing need for moving loads for intra-city or inter-city transportation. Thus, the LCVs segment is expected to drive the growth of the global market during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Light commercial vehicles and pickup trucks predominate the North American market. Five to seven tons is the weight range for full-sized pickup trucks. Small-sized pickup trucks are defined as those with a tonnage under five tons. To increase overall longevity, truck manufacturers are offering pickup trucks with improved body and structural strength. Pickup trucks and other commercial vehicles produced in North America for the automotive industry have a long operational life as a result of the high manufacturing and quality standards. Pickup trucks have bigger trunks, strong motors, better off-road performance, and higher towing capacities. Compared to other car models, they are more dependable.
Customers looking to rent a truck in the US, Canada, and Mexico frequently conduct price comparisons and model research online. A key connection between offline truck dealers and buyers is provided by online aggregators. Truck owners are being forced to trade in their old vehicles for more modern ones as a result of stricter emission regulations and the development of multiple vehicle models by automakers. The North American market is seeing an increase in the supply of used trucks due to declining truck ownership, particularly in the US. Hence, the regional market is fuelling the regional market growth during the forecast period.
In 2020, the COVID-19 pandemic hindered market growth in North America during the forecast period. However, lockdown restrictions were lifted due to the initiation of large-scale vaccination drives across the region in the second half of 2020. This led to the resumption of operations in various sectors, including supply chain and manufacturing activities. For instance, the US contribution of the manufacturing industry towards GDP increased to USD 2283.4 billion in 2022 from USD 2258.6 billion in 2021. The rise in the manufacturing industry fueled the demand for truck rental, which will fuel the growth of the regional market during the forecast period.
The truck rental industry analysis report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global truck rental industry analysis as a part of the global transportation market. The parent global transportation market covers companies engaged in ground transportation services for goods and freight. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Truck Rental Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7% |
Market growth 2023-2027 |
USD 28.67 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.5 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advantage Car and Truck Rentals Ltd., Avis Budget Group Inc., EASY RENT truck and trailer GmbH, Element Fleet Management Corp., Enterprise Holdings Inc., Europcar Group UK Ltd., GoTranspose Inc., Hertz Global Holdings Inc., Imperial Logistics Ltd., Mercedes Benz Group AG, NL Commercials Holdings Ltd., PACCAR Inc., Pan Pacific Van and Truck Leasing Pte Ltd., Penske Automotive Group Inc., Ryder System Inc., SIXT SE, The Larson Group, TruckGuru LLP, TruKKer Holding, U Haul International Inc., and United Rentals Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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