Truck Rental Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, India, Germany, UK - Size and Forecast 2023-2027

Truck Rental Market Size 2023-2027

The truck rental market size is estimated to increase by USD 28.67 billion between 2022 and 2027. The market size is forecast to grow at a CAGR of 7% during the forecast period. Market growth hinges on several factors, notably the increasing cost pressures faced by fleet operators, a surge in global industrialization and urbanization, and the implementation of strict emissions regulations, all of which contribute to the rise in demand for truck rentals. The increase in global industrialization and urbanization plays a significant role in driving market expansion. With the global economy experiencing rapid growth, urban centers and industrial hubs see significant advancements in development and infrastructure. This progress is greatly facilitated by transportation and logistics, where commercial vehicles (CVs) play a fundamental role in establishing a strong global infrastructure.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

The market is a dynamic sector influenced by various factors, catering to a wide range of customers and industries. Fleet Operators play a crucial role in providing rental services to businesses and individuals alike, offering a diverse fleet of vehicles for different purposes. In the Logistics industry, the demand for Truck Rentals is driven by the need for flexible transportation solutions, especially for Last-mile delivery and urban logistics operations. Startups and established businesses often rely on rental services to optimize their supply chain and meet customer demands efficiently. For Construction Industries, Truck Rentals are essential for transporting materials and equipment to and from job sites, ensuring smooth operations and timely project completion. Compliance with Emission Control Rules and Trade Policies is a key consideration for rental providers, especially as the market shifts towards Eco-friendly trucks, including Electric vehicles and Hybrid vehicles.

By Vehicle Type

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.

By Region

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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.

Moreover, 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. 

Market Dynamics and Customer Landscape

The market is propelled by various factors, such as the increasing demand for flexible transportation solutions in the Logistics industry. This includes the rise of Transportation on-demand services and the need for efficient Last-mile delivery and urban logistics operations. Additionally, the adoption of Eco-friendly trucks, including Electric vehicles and Hybrid vehicles, reflects a growing trend towards sustainability. However, challenges like fluctuating Fuel Prices, compliance with Emission Control Rules and Trade Policies, and competition among Fleet Operators and OEM Captive providers pose significant hurdles to market growth and innovation. 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.

Key Market Driver

The surge in global industrialization and urbanization is a prominent catalyst for market expansion. As the global economy undergoes rapid growth, urban areas and industrial zones witness enhanced development and infrastructure. This progress is significantly facilitated by transportation and logistics, with commercial vehicles (CVs) serving as fundamental components in establishing a robust global infrastructure. Notably, heavy-duty trucks, including both Light Commercial Vehicles (LCVs) and Heavy Commercial Vehicles (HCVs), play pivotal roles in advancing industrial development, especially in tasks such as trailer towing due to their substantial payload capacities.

Moreover, the escalating demand for heavy-duty trucks is fueled by the expansion of global shipping, mining, and construction endeavors. Regions such as the Asia-Pacific (APAC), particularly China and ASEAN nations, stand out as epicenters for significant infrastructure projects, consequently driving up the need for CVs. In response, fleet operators increasingly opt for truck rentals to efficiently fulfill freight transportation demands, avoiding substantial capital investments in new truck purchases. This shift towards rental solutions serves as a positive revenue driver for the global market, fostering growth opportunities throughout the forecast period.

Significant Market Trends

Boosting e-commerce across developing economies and providing a platform 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.

Major Market Challenge

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.

Market Customer Landscape

The 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.

Market Customer Landscape

Who are the Major Market Players?

Companies 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 companies, including:

• Advantage Car and Truck Rentals Ltd.
• Avis Budget Group Inc.
• 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

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments. 

• Vehicle Type Outlook 
  • Light commercial vehicle
  • Heavy commercial vehicle

• Type Outlook 
  • Commercial use
  • Personal use

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The Market is undergoing significant transformations due to various factors influencing the logistics and transportation industries. One key driver is the growing emphasis on sustainability goals, prompting the adoption of eco-friendly trucks such as electric and hybrid vehicles. Emission control rules and fuel prices also play pivotal roles in shaping market dynamics, pushing for cleaner and more efficient transportation solutions. Additionally, trade policies and trade agreements impact the market, influencing the movement of goods across borders and regions. The rise of e-commerce platforms and the logistics industry's evolution towards integrated solutions are driving demand for flexible transportation options, faster delivery times, and personalized services. The market landscape depends on various factors such as construction activities, Medium Commercial Vehicle and Full-Service Lease.

Moreover, the market encompasses a wide range of vehicles, from small cargo vans to larger moving trucks and specialized vehicles like refrigerated trucks for sensitive cargo.  Telematics and GPS tracking technologies are becoming standard features, enhancing fleet management and optimizing route planning for logistics providers and truck rental services. Moreover, financing options such as finance leasing, full-service leasing, and personal leasing cater to diverse customer segments, including commercial banks, non-banking financial companies (NBFCs), commercial customers, and non-commercial customers. This diversity reflects the market's adaptability to varying needs and preferences in the truck rental and transportation sectors. In addition, the Market is experiencing significant shifts and innovations driven by various factors influencing the transportation and logistics sectors. One key trend is the increasing demand for the vehicle rental market, Electric Truck Rental Services, and other eco-friendly solutions as businesses aim to reduce their Carbon footprint. This trend aligns with the growing focus on sustainability across industries, including the Construction Industries and logistics activities.

The market is witnessing a rise in Last-mile delivery services and urban logistics solutions, catering to the evolving needs of e-commerce platforms and fulfillment centers. This demand is driving the adoption of electric vehicles and specialized trucks for efficient and timely order fulfillment in crowded urban areas. Big Truck OEMs are playing a crucial role in offering a range of vehicles, including box trucks with varying load capacities to suit diverse transportation needs. Moreover, the availability of Full Service Lease and other financing options like Finance Lease and Enterprise Leasing is facilitating access to modern fleets for businesses. Moreover, technological advancements are also reshaping the market with the introduction of Autonomous trucks and telematics solutions for enhanced fleet management. Online platforms are streamlining the process of renting trucks, providing businesses with convenient access to a wide range of vehicles, including Medium Commercial Vehicles and specialized trucks for specific tasks. Overall, the Market is evolving to meet the demands of modern logistics, construction, and moving services industries, offering innovative solutions for efficient and sustainable transportation.

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 companies, Market Positioning of companies, 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 forecast, market growth and trends, Market forecasting, 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 market 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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