Heavy-Duty Vehicle Rental Market - By Type (Trucks, Buses, Trailers), By Propulsion (ICE, Electric), By Service Provider (OEM, 3rd Party Companies), By Rental Type (Short Term, Long Term), Forecast 2023 - 2032

Heavy-Duty Vehicle Rental Market Size

Heavy-Duty Vehicle Rental Market was valued at USD 102.4 billion in 2022 and is anticipated to register a CAGR of over 6% between 2023 and 2032. The rising Consumer Price Index (CPI) in motor vehicle maintenance & repair is prompting businesses to seek cost-effective alternatives.
 

According to the U.S. Bureau of Labor Statistics, the CPI of motor vehicle maintenance & repair in the U.S. has risen to 392.2 from 310.6 between 2021 to 2023. As maintenance costs increase, companies are turning to heavy-duty vehicle rental services. Renting these heavy-duty vehicles provides a practical solution, allowing businesses to fulfill their transportation needs without the burden of rising maintenance expenses.
 

Cost efficiency is a key factor driving the market share. Renting vehicles eliminates the high upfront costs associated with purchasing vehicles, enabling businesses to allocate resources strategically. Also, rental fees often cover maintenance & repair expenses, saving businesses from unexpected financial burdens. This flexibility allows companies to optimize their budgets, especially for short-term projects or seasonal demands, making heavy-duty vehicle rental a financially prudent choice. It ensures that businesses can access necessary vehicles without long-term financial commitment, enhancing their financial stability and overall operational efficiency.
 

The shortage of skilled drivers poses a significant challenge to the heavy-duty vehicle rental market. Limited availability of experienced operators can lead to delays in fulfilling rental contracts, impacting project timelines and customer satisfaction. It can also result in increased labor costs as companies may need to offer higher wages to attract drivers. Ultimately, the issue will hamper the industry's ability to promptly meet the growing demand, hindering the market expansion.
 

COVID-19 Impact

The COVID-19 pandemic had detrimental impacts on the heavy-duty vehicle rental market. Lockdowns, travel restrictions, and economic uncertainties led to reduced industrial activities & construction projects. Many businesses scaled back operations, negatively affecting the demand for rental vehicles. Additionally, hygiene concerns and safety protocols further deterred vehicle usage. These factors combined resulted in a significant decline in rental bookings, revenue loss for rental companies, and a slowdown in market growth during the pandemic period.
 

Heavy-Duty Vehicle Rental Market Trends

The electric truck rental service is meeting the rising demand for sustainable transportation solutions, sowing lucrative growth in the market. Businesses increasingly seek eco-friendly options, driven by environmental concerns and regulations. For instance, in August 2022, Orange EV, a prominent producer of electric trucks for heavy-duty use, broadened its rental program for yard trucks. This expansion resulted in the most extensive electric spotter rental fleet nationwide. These fully electric rental vehicles are accessible in 48 states of U.S., ensuring enhanced operational efficiency and lowered expenses for businesses. This eco-conscious approach attracts environmentally responsible clients, paving the way for sustainable growth in the truck rental market.
 

The integration of diverse technologies in rental fleet management is driving the market forward. Advanced systems including GPS tracking, telematics & IoT sensors optimize fleet operations, enhancing efficiency and reducing downtime. Predictive maintenance tools minimize vehicle breakdowns, ensuring reliability for renters. Additionally, digital platforms streamline booking processes, improving customer experiences. These technological advancements enhance the overall fleet management, encouraging more businesses to opt for rental services, thereby fuelling the market progress.
 

Heavy-Duty Vehicle Rental Market Analysis

Based on propulsion, the market is categorized into trucks, buses, trailers, and others. The trucks segment accounted for around 40% business share in 2022. Rental programs guaranteeing uninterrupted service are driving the trucks segment growth in the truck rental market. These programs, offering flexible & reliable access to well-maintained trucks, cater to businesses with fluctuating needs, seasonal demands, or unexpected surges in workload.

For instance, in July 2022, Big Truck Rental (BTR), the primary rental provider for essential services in North America, introduced a new rental initiative called BTR's Complete Fleet. This program offers waste haulers and municipalities unparalleled flexibility, granting instant access to nearly new trucks on a recurring or continuous basis. It also ensures uninterrupted service without the burden of high maintenance fees.
 

Based on propulsion, the heavy-duty vehicle rental market is divided into ICE and electric. The ICE segment held around 95% business share in 2022 and is poised for significant growth over the forecast period. Range and flexibility are crucial factors driving the popularity of ICE vehicles in the market. ICE vehicles typically offer extended driving ranges on a single tank of fuel, making them ideal for long-distance transportation and tasks that require continuous operation. Additionally, these vehicles have faster refuelling times compared to electric alternatives, allowing businesses to minimize downtime. Thus, the extended range and quick refuelling contribute to the flexibility of ICE vehicles, making them suitable for diverse rental needs & operational requirements.
 

Asia Pacific heavy-duty vehicle rental market exceeded USD 34.8 billion in 2022 and is poised for significant growth over the forecast period. Flexible rental solutions are a key factor spurring the Asia Pacific market trends. Businesses prefer renting vehicles for specific projects or short-term needs, eliminating the burden of long-term investments. Rental companies offer customizable plans, allowing clients to access vehicles when required, ensuring cost efficiency and flexibility. This adaptability enables businesses to scale their operations as needed, responding to market demands without the financial commitment of purchasing vehicles outright, making flexible rental solutions highly attractive in the dynamic business landscape of the Asia Pacific region.
 

Heavy-Duty Vehicle Rental Market Share

Major players operating in the heavy-duty vehicle rental industry are:

• Enterprise Truck Rental
• Hertz Equipment Rental Corporation
• Penske Truck Leasing
• Ryder System, Inc.
• United Rentals
• XTRA Lease

Ryder System, Inc. is one of the dominating players in the market with around 4% business share. The competitive landscape of the truck rental market is highly competitive, marked by established players constantly innovating to offer diverse fleets, superior customer service, and competitive pricing. Companies vie for market share by expanding services, embracing technology, and maintaining high-quality, well-maintained vehicle offerings.
 

Heavy-Duty Vehicle Rental Industry News

• In February 2023, LALAMOVE Automotive collaborated with QSJ Motors Phils Inc. to launch a new vehicle rental initiative aimed at supporting the delivery operations of both current & prospective partner drivers and fleet operators. This program provides a range of choices for existing and future LALAMOVE partners, allowing them to rent or opt for a rent-to-own model for vehicles.
   

The heavy-duty vehicle rental market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Type, 2018 – 2032

• Trucks
• Buses
• Trailers
• Others

By Propulsion, 2018 – 2032

• ICE
• Electric

By Service Provider, 2018 – 2032

• OEM
• 3rd Party Companies

By Rental Type, 2018 – 2032

• Short Term
• Long Term

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Nordics
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia