Impact of Covid-19 Outbreak on Truck Rental Market 2020

The global truck rental market is predicted to have a healthy growth at 15.3% CAGR over the predicted years (2019-2024). Truck rental includes hiring of light or heavy commercial vehicles. Renting trucks will help in curbing vehicular pollution via reducing the owned vehicles’ volumetric sales and also on road vehicles. Renting a truck is an immensely cost-effective and efficient solution compared to loan and purchasing a truck as it gives the owner the choice of mobility devoid of having to pay the price related to vehicle ownership.

There are ample factors that is boosting the growth of the truck rental market. These factors as stated by the Market Research Future (MRFR) report include increasing need for optimization of operational risks, highly cost-effective, burgeoning need for trucks from the construction industries, industrial and logistics, rapid population growth, and no financial liability of servicing, vehicle replacement and maintenance. On the contrary, scarcity of service truck rental providers both in underdeveloped and developing regions may hinder the growth of the truck rental market over the predicted years.

Market Segmentation

MRFR report offers a wide segmental analysis of the truck rental market on the basis of truck type and lease type.

Based on truck type, the truck rental market is segmented into light commercial vehicle and heavy commercial vehicle. Of these, the heavy commercial truck segment will have the largest share in the market and at an astounding CAGR over the predicted years. The intercontinental trucking and cross-border trucking industry is predicted to boost the growth of this segment.

Based on lease type, the truck rental market is segmented into full-service lease and finance lease. Of these, full-service lease will dominate the market and is predicted to grow at the fastest CAGR over the predicted years. This is owing to its growing demand as it helps in managing the operating costs of trucks including roadside assistance, licensing, taxes, repairs and maintenance. Full-service lease helps in minimizing the administrative costs related to operating a truck thereby enabling truck operators in focusing on their business more.

Regional Analysis

By region, the truck rental market covers growth opportunities and latest trends across Rest of the World, Asia Pacific, Europe and North America. Of these, North America will have lion’s share in the truck rental market over the predicted years. This is owing to the presence of leading rental truck provider companies in the region namely Avis Budget Group Inc., Ryder System Inc., Penske Truck Leasing Co., PACCAR Leasing Company and AMERCO. This coupled with the growing awareness and concern to reduce emissions has led to an increase in the truck rental services as they significantly cut down the total number of trucks on the road.

Key Players

Key players profiled in the truck rental market include Europcar (UK), Almano (US), United Rentals, Inc. (US), Sixt SE (Germany), Ryder System, Inc. (US), Penske Truck Leasing Co., L.P. (US), PACCAR Leasing Company (US), AMERCO (US), MAX Rental.lu AG (Luxembourg), Budget Car Rental (US), Avis Budget Group Inc. (US), Advantage Rent-a-car (US) and others.

April 2019- Penske Truck Leasing is relocating their Dubuque, lowa facility. For accommodating the growing customer base, the company has built its new state-of-the-art facility which offers commercial as well as consumer truck rentals, full-service truck leasing, connected fleet solutions, and contract truck fleet maintenance, a value-added resource for helping customers in addressing options and issues related to onboard technology systems (onboard cameras, telematics, ELDs and others).

March 2019- Enterprise Holdings that handles the world’s most diverse and largest privately-owned fleet has launched its first ever vehicle subscription service called “Subscribe with Enterprise” in three states: Nevada, Missouri and Minnesota. Under this program, a single monthly fee will allow customers in selecting from an array of vehicle classes including light duty trucks, mid-sized and small SUVs and premium and full-size sedans, representing over twenty makes and models. Moreover, subscribers have the flexibility of swapping their cars up to 4 times a month.