Truck Rental Market to Grow by USD 40 Billion (2024-2028) as Fleet Operators Face Cost Pressure, AI Impact on Trends - Technavio Report

NEW YORK, Sept. 17, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- The global truck rental market size is estimated to grow by USD 40 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.83% during the forecast period. Mounting cost pressure on fleet operators is driving market growth, with a trend towards emergence of truck platooning. However, the emergence of truck sharing poses a challenge. Key market players include 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 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..

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Market Driver

Truck platooning, a concept enabled by automated driving technologies, involves multiple trucks traveling in close proximity and synchronizing speed and braking actions for improved fuel efficiency. Communication among truck fleets is facilitated through wireless connectivity. This technology, akin to a train compartment- arrangement for trucks, is expected to boost operational efficiency for fleet operators. OEMs' involvement in the truck rental market will offer advanced technology-enabled trucks for cost-effective freight transportation. While truck platooning is currently being tested globally, mass commercialization is predicted towards the end of the forecast period. Major truck OEMs, who have demonstrated autonomous capabilities, are poised to play a crucial role in the development and commercialization of this technology. The emergence of truck platooning is a significant trend driving the growth of the global truck rental market. Renting trucks with this technology will be more expensive than traditional trucks, generating revenue for mature truck rental markets. 

The truck rental market is thriving, with fleet operators and logistics companies increasingly relying on truck rentals for their transportation needs. Construction industries are a significant consumer, especially for short-term projects. Emission control rules and trade policies impact fuel prices, driving the demand for eco-friendly trucks like electric and hybrid vehicles. Logistics providers, warehouses, and e-commerce platforms seek integrated solutions for faster delivery times and personalized services. Full service lease options from big truck OEMs cater to last-mile delivery and urban logistics. Startups are disrupting the vehicle rental market with innovative offerings. Moving services industry relies on various truck sizes, from small cargo vans to larger moving trucks, for timely order fulfillment. Flexible transportation options, including specialized trucks like refrigerated and heavy-duty trucks, are essential for distribution centers and fulfillment centers. Fuel prices, carbon footprint, and sustainability goals influence the adoption of eco-friendly trucks. Lastly, finance leasing, autonomous trucks, and fleet management technologies are shaping the future of the truck rental industry. 

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 Market Challenges

• Truck-sharing is a new business model in the transportation industry, allowing vehicle owners to rent out their trucks to individuals or logistics firms for moving limited loads along predetermined routes. This concept enhances overall transport network efficiency by effectively managing peak demand. When not in use, truck owners can share their vehicles, reducing the need for fleet operators to purchase new vehicles. This sharing arrangement significantly lowers transportation costs due to increased fleet utilization and shared infrastructure among operators. The growing popularity of truck-sharing may pose a challenge to the global truck rental market during the forecast period.
• The truck rental market faces several challenges as businesses strive for eco-friendly transportation solutions. Eco-friendly trucks, such as electric and hybrid vehicles, are becoming increasingly popular due to sustainability goals. Logistics providers, e-commerce platforms, and warehouses require timely order fulfillment, leading to a demand for flexible transportation options, including small cargo vans, box trucks, pickup trucks, and larger moving trucks with various load capacities. Short-term projects and construction activities require specialized trucks like refrigerated, heavy-duty, and autonomous models. Telematics, GPS tracking, and online platforms facilitate efficient fleet management. Financing options like finance leasing, full-service lease, personal leasing, enterprise leasing, OEM captive, commercial banks, and NBFCs cater to both commercial and non-commercial customers. E-commerce and logistics activities necessitate faster delivery times, making integrated solutions essential. Medium Commercial Vehicles (MCVs) play a crucial role in this sector. The integration of electric trucks and other advanced technologies like telematics and GPS tracking further enhances operational efficiency. The market continues to evolve, with a focus on personalized services and meeting the diverse needs of various industries.

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Segment Overview 

This truck rental market report extensively covers market segmentation by

1. Vehicle Type
• 1.1 Light commercial vehicle
• 1.2 Heavy commercial vehicle
2. Type 
• 2.1 Commercial use
• 2.2 Personal use
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Light commercial vehicle- Commercial vehicles with a gross vehicle weight of up to 3.5 tons, known as Light Commercial Vehicles (LCVs), play a vital role in the global truck rental market. LCVs, which include pickup trucks and vans, are essential for transporting time-critical and high-value goods in urban areas. Their adoption is increasing due to traffic congestion, which makes heavier vehicles less accessible, and the rise of the home delivery sector. In urban cities, vans are the preferred choice for distributing goods from central hubs and during office hours. Economic instability and competition are also driving fleet owners to minimize operational costs, leading to increased demand for LCV truck rentals. In the US, the DIY moving trend is fueling revenue growth for the LCVs segment. Prominent vendors like U Haul International Inc. And Penske cater to varied customer needs with their extensive LCV portfolios and wide networks. Thus, the LCVs segment is expected to significantly contribute to the growth of the global truck rental market.

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Research Analysis

The Truck Rental Market is a significant segment of the broader Vehicle Rental Market, catering to the needs of various industries such as Construction, Last-mile delivery, and Urban Logistics. Fleet Operators play a crucial role in this market by providing Truck Rentals to businesses and individuals in need. The market is influenced by several factors, including Emission Control Rules, Trade Policies, and Fuel Prices. Startups are disrupting traditional business models with innovative solutions for Transportation on-demand. Eco-friendly trucks, Electric Vehicles, and Hybrid Vehicles are gaining popularity due to increasing environmental concerns. Various leasing options, including Finance Lease, Full-Service Lease, Personal Leasing, Enterprise Leasing, OEM Captive, Commercial Banks, and NBFCs, cater to the diverse needs of Commercial and Non-Commercial Customers.

Market Research Overview

The truck rental market is a significant segment of the logistics industry, catering to the needs of various sectors including construction industries and fleet operators. Truck rentals offer flexible transportation options for short-term projects and last-minute requirements, making them popular among businesses. Emission control rules and trade policies influence the market, with an increasing focus on eco-friendly trucks like electric and hybrid vehicles to reduce carbon footprint and align with sustainability goals. Logistics providers, warehouses, and e-commerce platforms are major consumers of truck rental services, utilizing a range of vehicles from small cargo vans to larger moving trucks and heavy-duty trucks. Fuel prices also impact the market, with the rise in prices leading to increased demand for fuel-efficient and alternative fuel vehicles. Online platforms have disrupted the traditional truck rental market, offering integrated solutions for timely order fulfillment and faster delivery times. Specialized trucks like refrigerated trucks and autonomous trucks are gaining popularity in various industries, including urban logistics and last-mile delivery. Finance leasing, full-service lease, personal leasing, enterprise leasing, OEM captive, commercial banks, and NBFCs are some of the key financing options for commercial and non-commercial customers. Medium Commercial Vehicles (MCVs) are also in demand due to their versatility and load capacities. Telematics, GPS tracking, and on-time maintenance are essential features offered by truck rental service providers to ensure optimal vehicle performance and customer satisfaction.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Vehicle Type
• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Type
• Commercial Use
• Personal Use
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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