Heavy Duty Vehicle Rental Market Analysis

Global Heavy-Duty Vehicle Rental Market Overview

Heavy-Duty Vehicle Rental Market Size was valued at USD 102.9 Billion in 2022. The Heavy-Duty Vehicle Rental Market industry is projected to grow from USD 109.2 Billion in 2023 to USD 176.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.20% during the forecast period (2023 - 2032). Increasing regulations on vehicle emissions, advancements in vehicle safety, and rapidly growing logistics, retail, and e-commerce sectors are expected to be significant market drivers for the heavy-duty vehicle rental market.

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

Heavy-Duty Vehicle Rental Market Trends

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  Rising consumer price index (CPI) in motor vehicle maintenance & repair and the rising demand for sustainable transportation solutions are driving the market growth

  
  

Market CAGR for heavy-duty vehicle rental is being driven by the rising consumer price index (CPI) in motor vehicle maintenance & repair and the rising demand for sustainable transportation solutions. Escalating the consumer price index (CPI) in motor vehicle maintenance and repair has prompted businesses to explore cost-effective alternatives. The U.S. Bureau of Labor Statistics reports a notable increase in the CPI of motor vehicle maintenance and repair in the United States, rising from 310.6 to 392.2 between 2021 and 2023. In response to escalating maintenance costs, companies are turning to heavy-duty vehicle rental services as a practical solution. Opting for such rentals enables businesses to meet their transportation needs without being burdened by the rising expenses associated with maintenance. The key driver of this market shift is the imperative for cost efficiency. Heavy-duty vehicle rental offers a strategic advantage by eliminating the high upfront costs associated with vehicle purchases. Additionally, rental fees often cover maintenance and repair expenses, shielding businesses from unexpected financial burdens. This flexibility allows companies to optimize their budgets, particularly for short-term projects or seasonal demands, making heavy-duty vehicle rental a financially prudent choice. This approach ensures that businesses can access necessary vehicles without committing to long-term financial obligations, thereby enhancing their financial stability and overall operational efficiency.

Furthermore, the electric truck rental service is meeting the growing demand for sustainable transportation solutions, contributing to lucrative market growth. Businesses, motivated by environmental concerns and regulations, are increasingly seeking eco-friendly options. A notable example is Orange EV, a leading producer of electric trucks for heavy-duty use, which expanded its rental program for yard trucks in August 2022. This expansion resulted in the most extensive electric spotter rental fleet nationwide, providing businesses across 48 states in the U.S. with enhanced operational efficiency and reduced expenses. This eco-conscious approach is attracting environmentally responsible clients, paving the way for sustainable growth in the truck rental market.

As a result, it is anticipated that throughout the projection period, demand for the Heavy-Duty Vehicle Rental Market will increase due to the rising Consumer Price Index (CPI) in motor vehicle maintenance & repair and the rising demand for sustainable transportation solutions. Thus, driving the Heavy-Duty Vehicle Rental Market revenue.

Heavy-Duty Vehicle Rental Market Segment Insights:

Heavy-Duty Vehicle Rental Market Type Insights

The Heavy-Duty Vehicle Rental Market segmentation, based on Type includes Trucks, Buses, and Trailers. The trucks segment dominated the market, accounting for 58% of market revenue (59.6 Billion). The construction industry plays a pivotal role in driving growth within the Truck segment. Construction projects frequently demand heavy-duty trucks for transporting materials, equipment, and machinery. Opting for truck rentals on a short-term basis provides construction companies with the flexibility to scale their fleet based on project requirements without the long-term commitments associated with vehicle ownership.

Figure 1: Heavy-Duty Vehicle Rental Market, by Type, 2022 & 2032 (USD Billion)

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

Heavy-Duty Vehicle Rental Market Propulsion Insights

The Heavy-Duty Vehicle Rental Market segmentation, based on Propulsion includes ICE and Electric. The ICE segment dominated the market, accounting for 58% of market revenue (59.6 Billion). Renting heavy-duty vehicles with internal combustion engines can be a cost-effective solution for businesses that require occasional or seasonal access to such equipment. Avoiding the upfront costs and ongoing maintenance associated with ownership makes renting a viable and economical option.

Heavy-Duty Vehicle Rental Market Service Provider Insights

The Heavy-Duty Vehicle Rental Market segmentation, based on Service Providers includes OEM and 3rd Party Companies. The 3rd party companies segment dominated the market, accounting for 60% of market revenue (61.7 Billion). Engaging with third-party rental providers is often more cost-effective for businesses, especially those that do not require heavy-duty vehicles continuously. Renting allows companies to avoid the substantial upfront costs associated with purchasing and maintaining their fleet, making it a financially efficient option. The 3rd Party Companies segment offers flexibility and scalability for businesses with varying operational needs. Renting allows companies to scale their fleet size based on project demands, ensuring they have the right number and type of heavy-duty vehicles without the long-term commitment of ownership.

Heavy-Duty Vehicle Rental Market Rental Type Insights

The Heavy-Duty vehicle Rental Market segmentation, based on Rental Type includes Short Term and Long Term.  The short-term segment dominated the market, accounting for 60% of market revenue (61.7 Billion). Businesses often engage in short-term projects, such as construction, events, or seasonal operations, requiring heavy-duty vehicles for a limited duration. The Short-Term Rental Type segment addresses these project-specific needs without the long-term commitment of purchasing vehicles. The Short-Term Rental Type allows businesses to adapt to changing operational requirements. Whether there's a sudden increase in demand, a temporary project, or the need for specialized vehicles, short-term rentals provide the flexibility to quickly adjust the fleet size and composition.

Heavy-Duty Vehicle Rental Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Heavy-Duty Vehicle Rental market in North America can be attributed to several key factors. The North American Heavy-Duty Vehicle Rental Market is significantly influenced by the dynamics of the logistics and freight industry, a critical component in the movement of goods across the region. Economic conditions and global trade play pivotal roles in determining the demand for heavy-duty vehicle rentals. In the United States, the transportation and storage sector contributed around 2.8% to the Gross Value Added (GVA) as a percentage of GDP in 2021. Within this sector, truck transportation held the largest share at 0.8%, followed by other transportation & support activities at 0.7%, and warehousing & storage at 0.4%. Trucking, as the primary mode for overland freight movement in the U.S., played a substantial role, representing almost 70% of the modal share in 2020. The sector moved 3,443 billion ton-km during that period. Given the dynamic nature of the logistics industry, where cargo volumes and transportation requirements can change rapidly, renting heavy-duty vehicles offers a strategic advantage to logistics companies. It allows them to adapt swiftly to fluctuations in demand and optimize their fleet according to specific operational needs.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Heavy-Duty Vehicle Rental Market Share By Region 2022 (Usd Billion)

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

Europe's Heavy-Duty Vehicle Rental Market accounts for the second-largest market share as The European Heavy-Duty Vehicle Rental Market faced challenges during the COVID-19 pandemic due to disruptions in the transportation sector and the closure of small and medium-scale industries caused by lockdowns and shutdowns in 2020. However, with the easing of restrictions, there has been a notable shift in the strategies of logistics companies. Many have redirected their attention toward renting and leasing medium and heavy-duty trucks instead of making new purchases, a strategic move aimed at avoiding high initial costs. This trend is expected to persist, contributing to sustained positive growth in the market over the long term. Further, the German Heavy-Duty Vehicle Rental Market held the largest market share, and the UK Heavy-Duty Vehicle Rental Market was the fastest-growing market in the European region

The Asia-Pacific Heavy-Duty Vehicle Rental Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region has experienced a notable upswing in e-commerce activities, marked by an increasing reliance of consumers on online platforms for their shopping needs. In India, the social commerce sector has the potential to reach US$ 16-20 billion by FY25, with a projected CAGR of 55-60%. Over the past three years, India has witnessed a growth of 125 million online shoppers, and an additional 80 million are expected to join by 2025. During the festive season of 2021, Indian e-commerce platforms achieved sales with a Gross Merchandise Value (GMV) of US$ 9.2 billion, reflecting a 23% increase from the previous year's US$ 7.4 billion. This surge in e-commerce activities has led to an elevated demand for efficient and flexible logistics solutions, consequently driving the need for heavy-duty vehicles. Moreover, China’s Heavy-Duty Vehicle Rental Market held the largest market share, and the Indian Heavy-Duty Vehicle Rental Market was the fastest-growing market in the Asia-Pacific region.

Heavy-Duty Vehicle Rental Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Heavy-Duty Vehicle Rental market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Heavy-Duty Vehicle Rental industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Heavy-Duty Vehicle Rental industry to benefit clients and increase the market sector. In recent years, the Heavy-Duty Vehicle Rental industry has offered some of the most significant advantages to the logistics and transportation sector, providing flexibility, cost-efficiency, and adaptability to meet varying demands for the movement of goods and materials. Major players in the Heavy-Duty Vehicle Rental Market, including Budget Truck Rental, Crestwood Transportation, Enterprise Holdings, Inc., Fox & James, Herc Rentals Inc., Idealease, MB Holding, Nationalease, PACCAR Leasing Company (PacLease), Penske Truck Leasing, Ryder System, Inc, Sixt SE, Summit Truck Group, Swift Leasing Corporation, The Home Depot Truck Rental, TIP Trailer Services, U-Haul, Velocity Truck Rental & Leasing, Werner Enterprises and XTRA Lease are attempting to increase market demand by investing in research and development operations.

Enterprise Holdings Inc (Enterprise) is a comprehensive provider of car rental services with a diverse service portfolio encompassing car rental, fleet management, truck rental, car sales, carsharing, vanpooling, luxury rental, vehicle subscription, and technology solutions. Operating under various brands such as Enterprise, Alamo, National, Enterprise Fleet Management, Enterprise Truck Rental, Enterprise Flex-E-Rent, Enterprise Car Sales, Enterprise CarShare, Enterprise Car Club, and Entegral, the company extends its services across multiple regions including North America, Central America, South America, the Caribbean, Europe, Asia-Pacific, and the Middle East. Established commercial partnerships further augment the Enterprise's operations, collaborating with entities such as ANA Holdings, Alaska Mileage Plan, Eva Air, Asiana Airlines, Korean Air, Best Western Hotels and Resorts, and Hilton Honors. The company, headquartered in St. Louis, Missouri, USA, strategically positions itself as a global player in the transportation services industry.

Ryder System Inc (Ryder) is a prominent provider of comprehensive transportation, logistics, and supply chain management solutions. Specializing in leasing, rental, and programmed maintenance services for tractors, trucks, and trailers targeted at commercial clients, Ryder offers turn-key transportation solutions encompassing drivers, vehicles, routing, and scheduling. Additionally, the company delivers integrated logistics services, including dedicated transportation, e-commerce, distribution management, transportation management, brokerage, last-mile delivery, and professional services within the North American market. Ryder's services cater to diverse industries such as food and beverage, retail, consumer goods, transport and logistics, automotive, industrial, housing, technology, business, and personal services. The company has a broad operational footprint, extending its services across the United States, Canada, Mexico, the United Kingdom, and Germany. Ryder is headquartered in Miami, Florida, solidifying its position as a key player in the transportation and logistics industry.

Key companies in the Heavy-Duty Vehicle Rental Market include

• Budget Truck Rental


• Crestwood Transportation


• Enterprise Holdings, Inc.


• Fox & James


• Herc Rentals Inc.


• Idealease


• MB Holding


• Nationalise


• PACCAR Leasing Company (PacLease)


• Penske Truck Leasing


• Ryder System, Inc


• Sixt SE


• Summit Truck Group


• Swift Leasing Corporation


• The Home Depot Truck Rental


• TIP Trailer Services


• U-Haul


• Velocity Truck Rental & Leasing


• Werner Enterprises


• XTRA Lease

Heavy-Duty Vehicle Rental Industry Developments

April 2022: In April 2022, Free2move completed the acquisition of Comparateur-location-utilitaire.fr, the first metasearch platform for van and truck rentals. This strategic move is aimed at enhancing and expanding Free2move's commercial vehicle rental services for both private customers and B2B clients.

April 2021: In April 2021, United Rentals Inc. agreed to acquire General Finance Corporation for USD 19 per share in cash. The acquisition, with a total enterprise value of approximately USD 996 million, including the assumption of USD 400 million net debt, is intended to strengthen United Rentals' geographical presence and broaden its rental services in the European region.

Heavy-Duty Vehicle Rental Market Segmentation

Heavy-Duty Vehicle Rental Market Type Outlook

• Trucks


• Buses


• Trailers

Heavy-Duty Vehicle Rental Market Propulsion Outlook

• ICE


• Electric

Heavy-Duty Vehicle Rental Market Service Provider Outlook

• OEM


• 3rd Party Companies

Heavy-Duty Vehicle Rental Market Rental Type Outlook

• Short Term


• Long Term

Heavy-Duty Vehicle Rental Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America