GCC Truck Rental Market Research Report By Truck Type (Heavy Commercial Vehicle, Light Commercial Vehicle) and By Lease Type (Finance Lease, Full-Service Lease)- Forecast to 2035

GCC Truck Rental Market Overview:

As per MRFR analysis, the GCC Truck Rental Market Size was estimated at 5.95 (USD Billion) in 2023. The GCC Truck Rental Market Industry is expected to grow from 6.57(USD Billion) in 2024 to 20.85 (USD Billion) by 2035. The GCC Truck Rental Market CAGR (growth rate) is expected to be around 11.076% during the forecast period (2025 - 2035).

Key GCC Truck Rental Market Trends Highlighted

The GCC Truck Rental Market is experiencing notable trends driven by the increasing economic activities and infrastructure projects across the region. With major initiatives like Saudi Vision 2030 and the UAE's strategic plans, there is a growing demand for transportation and logistics services, which directly impacts the truck rental sector. Key market drivers include urbanization, which escalates the need for construction and heavy goods transport, along with the booming e-commerce sector that has led to heightened demand for last-mile delivery solutions. 

Opportunities in this market include collaboration with construction firms and logistics companies, as the ongoing infrastructure projects provide a fertile ground for truck rental services. Also, as tourism and other activities increase in the GCC region, there also seems to be an increase in demand for rental trucks to meet all sorts of logistical requirements. Recent changes suggest a move towards technology as a growing number of businesses use online services for scheduling rentals and managing vehicles. This leads to a better customer experience as well as greater efficiency in services. 

In addition, there are higher levels of interest in sustainability, which is motivating rental companies to think about adding more fuel-efficient and alternative fuel vehicles to their fleets so that they can meet the environmental standards set by the GCC governments. In brief, even though the market is undergoing quick transformations, there is still a great focus on serving the customers with the best delivery services and meeting consumer demands and regulations in the GCC.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

GCC Truck Rental Market Drivers

Rapid Infrastructure Development in GCC Countries

One of the primary drivers for the GCC Truck Rental Market Industry is the ongoing rapid infrastructure development across Gulf Cooperation Council (GCC) countries. Significant investments have been redirected towards infrastructure projects, including highways, railways, and construction activities, as part of the broader strategy outlined in various national visions, such as Saudi Vision 2030 and UAE Vision 2021. The Saudi Arabia government's National Development Fund and UAE's substantial investment in infrastructure projects highlight this trend.

According to reports from the UAE's Ministry of Infrastructure Development, infrastructure development expenditures are projected to exceed several billion dollars in the upcoming years. This wave of construction and infrastructural activities will hike the demand for truck rentals to facilitate logistics, material transportation, and delivery. As more businesses seek to capitalize on these projects, the need for flexible truck rental solutions will grow significantly, thereby asserting a profound influence on the GCC Truck Rental Market.

Increased E-commerce Activities

The surge in e-commerce activities represents another significant driver for the GCC Truck Rental Market Industry. With the e-commerce sector in the Middle East projected to exceed USD 28 billion by 2022, this rapid growth creates increased demand for logistics services, including truck rentals. The convenience of home delivery has necessitated improved transportation logistics. Major companies, including Noon.com and Souq.com, have been expanding their delivery capabilities, which in turn requires reliable truck rental services. According to the Digital Economy Report, the UAE has seen an annual growth rate of over 20% in e-commerce transactions, pushing the demand for versatile logistics solutions, including truck rentals, to meet consumer expectations for fast deliveries.

Government Regulations and Environmental Initiatives

Government regulations and sustainable practices are increasingly steering the GCC Truck Rental Market Industry towards growth. Many GCC countries are enforcing stricter emissions standards and encouraging the adoption of eco-friendly vehicles in transportation. The UAE's initiative to reduce carbon footprints through Green Mobility Projects points to the higher demand for trucks that comply with these standards. Recent regulations cited by the Gulf Cooperation Council (GCC) ensure that a significant proportion of newly registered vehicles are low-emission.This legislative push is prompting rental fleets to upgrade, increasing demand for eco-friendly truck options, thereby shaping the industry landscape favorably in the GCC.

Shift Towards Flexible Rental Solutions in Business Operations

The trend towards flexible rental solutions is gaining traction among businesses in the GCC, driven by the changing economic environment and the need for operational agility. Companies are increasingly embracing truck rentals as a means to optimize costs and adapt to fluctuating market demands. According to industry surveys, approximately 60% of logistics and construction businesses in the GCC now prefer rental models over traditional ownership due to lower maintenance costs and increased efficiency. Economic diversification efforts, such as those led by Bahrain's Economic Development Board, further accentuate this trend as businesses seek flexibility in resource management. This shift in operational strategy is poised to boost the GCC Truck Rental Market significantly.

GCC Truck Rental Market Segment Insights:

Truck Rental Market Truck Type Insights

The GCC Truck Rental Market, particularly the Truck Type segment, is an area of significant growth driven by various economic activities across the region. The market is largely influenced by the increasing demand for logistics and transportation services within GCC countries, which facilitate trade, construction, and infrastructure development. Heavy Commercial Vehicles (HCVs) play a pivotal role in this segment, primarily utilized for transporting large and heavy goods. Their importance is underscored by the rapid expansion of industries such as construction and oil and gas, where heavy-duty trucks are essential for hauling equipment and materials over considerable distances. 

As a primary driver for the GCC Truck Rental Market revenue, HCVs dominate due to their capacity to handle the rigorous demands of commercial transport. On the other hand, Light Commercial Vehicles (LCVs) serve a different yet crucial role in meeting the transportation needs of small businesses and urban deliveries in growing metropolitan areas. LCVs are favored for their versatility and efficiency, particularly in urban settings, where navigating tight spaces is essential. Their appeal lies in their ability to provide cost-effective solutions for various logistical challenges, thus enhancing the overall performance of businesses within the region. 

Moreover, the increasing trend towards e-commerce and last-mile delivery services is propelling the demand for LCVs, which are increasingly seen as an indispensable component of the modern supply chain. The growing infrastructure projects and urbanization in GCC countries are also critical propellers of market growth. With governments investing heavily in transportation and logistics infrastructure, the demand for both Heavy and Light Commercial Vehicles is forecasted to remain strong. 

However, the market also faces challenges, such as fluctuating fuel prices, which can affect operational costs for truck rental companies. Despite these challenges, the segmentation of the GCC Truck Rental Market presents numerous opportunities for growth, particularly with the rise of technology-driven solutions, such as fleet management systems, which enhance efficiency and reduce costs. As a result, the Truck Type segment continues to showcase a promising landscape for stakeholders in the GCC Truck Rental Market, with diverse applications and sectors relying heavily on both Heavy and Light Commercial Vehicles for their logistics needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Truck Rental Market Lease Type Insights

The GCC Truck Rental Market, particularly within the Lease Type segment, showcases a diverse range of leasing options, including Finance Lease and Full-Service Lease, each catering to the unique needs of businesses operating within the region. Finance Lease is significant for companies seeking long-term leasing solutions that offer an option to purchase the vehicle at the end of the lease term, thereby providing both cost-effectiveness and asset utilization benefits. On the other hand, Full-Service Lease is gaining traction due to its comprehensive management of vehicle maintenance, insurance, and support services, making it an attractive choice for businesses that prioritize operational efficiency and cost predictability.

This segment has become increasingly important as corporations in the GCC focus on optimizing their logistics and supply chain operations, further driven by the region's growing infrastructure investment and economic diversification efforts. The demand for flexible leasing options, paired with a high growth rate in the logistics sector, positions the Lease Type segment as a vital component in the broader GCC Truck Rental Market landscape, reflecting changing market dynamics and evolving business needs in response to regional development initiatives.

GCC Truck Rental Market Key Players and Competitive Insights:

The GCC Truck Rental Market presents a dynamic landscape driven by growth in various sectors, including construction, logistics, and transportation. Companies operating within this market are finding opportunities to capitalize on the increasing demand for flexible transportation solutions. Competitive insights reveal that key players are focusing on expanding their fleets, enhancing service offerings, and investing in technology to optimize their operations. The market is characterized by a diverse range of service providers, each vying for market share through innovative rental options, customer-centric approaches, and strategic partnerships. 

Understanding the competitive dynamics in this region is crucial for stakeholders looking to navigate the evolving landscape effectively.Hertz has established a robust presence in the GCC Truck Rental Market through its wide array of vehicles designed to cater to various business needs, including light and heavy-duty trucks. The company's strength lies in its well-recognized brand reputation, backed by a commitment to quality and customer service. Hertz strategically offers additional services such as flexible rental terms, competitive pricing, and emergency roadside assistance, which resonate well with businesses requiring reliable transport solutions. 

Furthermore, its extensive network of locations across the GCC enhances accessibility for customers, reinforcing its position as a leading player in the market. This strong operational framework has allowed Hertz to maintain a significant market share while adapting to evolving industry trends.Al Jazeera Rentals plays a pivotal role in the GCC Truck Rental Market, providing a comprehensive range of vehicles including trucks, vans, and specialized equipment tailored for various sectors like construction and logistics. 

The company's strength is amplified by its extensive fleet, state-of-the-art maintenance facilities, and strong customer service ethos, offering clients peace of mind when renting vehicles. Al Jazeera Rentals has also been proactive in expanding its market presence through strategic partnerships and collaborations that bolster its service capabilities. In recent years, the company has engaged in selective mergers and acquisitions, enhancing its operational efficiency and broadening its market access. The emphasis on sustainability and technological innovation positions Al Jazeera Rentals well within the competitive landscape, ensuring it meets the diverse needs of its customers in the GCC region effectively.

Key Companies in the GCC Truck Rental Market Include:

• Hertz


• Al Jazeera Rentals


• National Car Rental


• Arabian Automobile Association


• Fast Rent A Car


• Al Naboodah Group


• Europcar


• Carillion


• Dallah Car Rental


• Shaheen Transport


• Al Watania


• Budget Rent a Car


• AlFuttaim Group


• AVIS

GCC Truck Rental Market Industry Developments

In recent months, the GCC Truck Rental Market has seen significant developments, primarily influenced by the region's economic growth and infrastructure investments. Companies like Al Jazeera Rentals and Europcar are expanding their fleets to meet the rising demand for transportation logistics as GCC economies ramp up construction and tourism projects. The market has witnessed a notable increase in vehicle rental rates, partly due to the ongoing supply chain disruptions and the growing preference for flexible rental solutions. Notably, in June 2023, Al Naboodah Group expanded its operations by acquiring a local truck rental company, enhancing its presence in the competitive landscape. 

Furthermore, Hertz has been enhancing its service offerings in the Gulf region, focusing on sustainable vehicle rentals in response to the increasing environmental regulations. Over the past two to three years, initiatives like the construction of new highways and infrastructure developments across the GCC, particularly in Saudi Arabia and the UAE, have been driving the growth of the truck rental segment. As the region's economic diversification efforts continue, companies such as Budget Rent a Car and National Car Rental are positioning themselves strategically to leverage the emerging opportunities in the market.

GCC Truck Rental Market Segmentation Insights

• Truck Rental MarketTruck Type Outlook


• Heavy Commercial Vehicle


• Light Commercial Vehicle

Truck Rental MarketLease Type Outlook

• Finance Lease


• Full-Service Lease

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	5.95 (USD Billion)
MARKET SIZE 2024	6.57 (USD Billion)
MARKET SIZE 2035	20.85 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	11.076% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hertz, Al Jazeera Rentals, National Car Rental, Arabian Automobile Association, Fast Rent A Car, Al Naboodah Group, Europcar, Carillion, Dallah Car Rental, Shaheen Transport, Al Watania, Budget Rent a Car, AlFuttaim Group, AVIS
SEGMENTS COVERED	Truck Type, Lease Type
KEY MARKET OPPORTUNITIES	Growing e-commerce logistics demand, Infrastructure development projects, Sustainable and electric truck rentals, Fleet management technology integration, Increased urbanization and population mobility.
KEY MARKET DYNAMICS	increased infrastructure development, rising logistics demand, fluctuating fuel prices, growing e-commerce sector, expanding fleet management technologies
COUNTRIES COVERED	GCC