Europe Medium and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Europe Medium and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The European Medium and Heavy-duty Truck Rental/Leasing Market was valued at USD 136 billion in 2020. It is expected to reach USD 217 billion by 2026, registering a CAGR of around 8% during the forecast period (2021 - 2026).

The COVID-19 pandemic has hindered the growth of the European medium and heavy-duty truck leasing/rental market due to the government's continuous lockdowns and travel restrictions. In addition, disruptions in the supply chain and shortage of drivers to work amid pandemic declined demand for leasing/rental of trucks in the region.

However, the market is expected to regain its momentum during the forecast period as medium and heavy-duty truck rental/leasing offers a cost-effective and efficient alternative to commercial truck ownership. In addition, the rapidly growing e-commerce sector and logistics, rising regulations on vehicle emissions, advancement in vehicle safety, the introduction of driver-assist systems in vehicles are likely to boost the demand for trucks in the region.

Moreover, short-term leasing is expected to drive the demand in the market as it aids the EU businesses in meeting the peaks and troughs of seasonal demand by providing a suitable truck for the job at short notice, without any penalties or commitments.

An increase in stringency of emission norms through the EU Common Transport Policy has raised the cost of trucks and the demand for retro-fitment of emission devices on on-road trucks. Transport companies in Europe increasingly prefer truck rental services to avoid the hassle of upgrading the truck fleet and saving on associated costs.

Key Market TrendsGrowing Dependence on Road Freight

The road is the most dominant mode of freight transport in the European Union, and trucks account for a significant proportion of the total traffic on the road network. Therefore, logistic companies and leasing firms have a particular interest in understanding the dynamics of road freight traffic.

Moreover, owing to the presence of major manufacturing industries such as pharmaceutical, steel mills, and others around the road network in the region to fuel dependence on road freight day by day. Furthermore, firms and companies operating in FMCG, construction, mining, and other domains are likely to contribute to the growth of road transportation.

For instance, Germany is the top country for Europe-wide international road freight transport, compromising 27% of all ton-kilometer freight. Therefore, a rise in dependence on road freight is expected to fuel the growth of the medium and heavy-duty leasing market in the coming years. Thus, the rising utilization of trucks in road transport is anticipated to boost demand for medium and heavy-duty trucks as it plays a significant role in logistic and e-commerce activities.

High Possibility of Discount Over Offline Booking

Almost 70% of customers for medium and heavy-duty truck leasing are mainly industrial and non-construction sectors such as manufacturing, paper mills, retailers, and others. The consumers require medium or heavy trucks leasing based on the goods to be transported. For instance, when the tonnage of goods to be transported is less than 16 tons, medium trucks will be leased; however, when the tonnage exceeds 16 tons, heavy trucks are leased.

Furthermore, industries prefer to lease the trucks after an inquiry regarding capacity, insurance cover, and others. Moreover, to clarify the above inquiries, phone calls followed by face-to-face interactions have been the major modes of communication between the customers and renters before renting the trucks. Owing to the aspects mentioned and the negotiations on the leasing fares, customers have a greater potential to negotiate through offline booking when compared to online bookings.

During the pandemic, some major players offered online booking to meet customer needs. However, as economic activities resumed worldwide, customers prefer offline booking over online booking due to its varied advantages. Therefore, to attract customers, major players in the market have a higher possibility of discount over offline booking. This new consumer trend is is anticipated to boost the European medium and heavy-duty leasing market growth during the forecast period.

Competitive Landscape

The European medium and heavy-duty truck rental/leasing market is consolidated due to major players in the region. In the truck rental/ leasing market, companies are increasing efforts to introduce diagnostic technologies and applications in trucks that can greatly reduce the turnaround time and deploy real-time insights about system downtime. For instance,

• In March 2021, Penske Truck Rental has selected Avaamo's voice-driven Intelligent Virtual Assistant (IVA) for its phone-based truck rental central reservations call center. The goal is to further enhance Penske's truck rental reservation process by phone and drive its call center operations efficiencies.

Some of the truck manufacturers include Daimler AG, Volvo group, Isuzu motors, and IVECO SpA. The intensity of competition in the market studied is high, as truck rental firms and truck OEMs who offer rental services have been rigorously promoting their fleet management services to customers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Truck Rental Firms
Truck Manufacturers

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