Truck Rental Market: Industry Analysis and Detailed Profiles of top Industry Players
Truck rental is a hire or lease business of trucks, which primarily serves companies or agencies who do not own their own truck fleets but yet undertake freight transports.
Rising demand for optimization of operational risks is expected to boost the demand for rental trucks. Leasing a truck minimizes the operational risk arising from seasonal transport demand or uncertainty of contracts and consequently, several truck operators prefer hiring or leasing trucks rather than purchasing them. Truck rental is a highly cost-effective solution as compared to loan and hence, is a major factor driving the truck rental market. Increasing stringency of emission norms for trucks is refraining buyers from purchasing new vehicles, as update of an existing fleet requires considerable investment.
Fuel charges contribute to nearly 70% of operating cost and therefore, it is imperative to own a fuel-efficient truck fleet. Truck rental acts an alternative to outright purchase, which is driving the market. Leasing a truck eliminates the financial liability of maintenance, servicing, and vehicle replacement, which is key factor driving the truck rental market. Increased intercontinental freight transport backed by favorable trade policies is driving the truck rental market.
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The global truck rental market can be segmented based on truck capacity type, lease type, and region. Based on truck capacity type, the truck rental market can be classified into class 6 and below, and Class 7 and above. The class 7 and above rental trucks are built in tractor configuration to pull trailers and are used for heavy freight transport. Rise in cross-border and intercontinental trucking is expected to boost the class7 and above segment of the rental truck market.
In terms of lease type, the global truck rental market can be divided into finance lease and full service lease. The full service lease segment is expected to expand at a higher CAGR, as several truck operators are preferring to opt for full service since it manages maintenance, repairs, taxes, licensing and roadside assistance. Full service leasing reduces the administrative hassle associated with operating a truck, helping truck operators to focus on their main business more and hence, is gaining popularity in the truck rental market.
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Based on region, the global truck rental market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the global market, followed by Europe. North America and Europe held a dominant share of the global truck rental market. Asia Pacific witnesses heavy freight transport traffic on the China-ASEAN corridor. Rising trend of connectivity services in the region is expected to help shift the Asia Pacific market from ownership-based model to truck rental.
Key operating players in the global truck rental market include Amerco, PACCAR Leasing Company, Penske, Ryder System, SIXT, and United Rentals.