The Global Truck Rental Market is estimated to be valued at USD 270.1 Bn in 2024 and is expected to reach USD 330.1 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031.

The truck rental market has been witnessing significant growth over the past few years. The rising demand from construction and mining industries has been a key growth driver. Additionally, the growing demand for goods transportation across various sectors such as retail, e-commerce, FMCG has also fueled the need for truck rental services. Moreover, availability of advanced truck models with improved fuel efficiency and operational effectiveness has made truck rental an attractive option over ownership for many end-use industries. Going forward, emergence of 5G technology is also expected to open new avenues with connectivity solutions for truck fleets. However, rising competition and growing environmental concerns related to emissions may pose a challenge to market players in the coming years. Overall, the truck rental market is estimated to experience healthy growth over the forecast period supported by rising infrastructure development projects and expansion of the transportation & logistics industry worldwide.

Market Driver - Growth in Demand for Last-Mile Delivery Solutions Due to The E-Commerce Surge

The truck rental market is witnessing positive growth driven by the rising demand for last-mile delivery solutions. E-commerce became an integral part of daily lives over the past couple of years with people relying more on online channels for shopping. This has significantly increased the parcel volume handled by logistics firms. According to estimates, e-commerce sales could grow over 25% annually in the coming years.

Fulfilling the delivery needs of this growing e-commerce industry requires a robust logistics chain. The last-mile delivery, which connects distributors to customers, is a crucial link that requires a flexible fleet. Renting trucks on a short-term basis has proven beneficial for logistics players to handle intermittent peaks in delivery demand. This allows them to scale up delivery capacity and optimize fleet utilization without making large capital investments in vehicles. Furthermore, meeting delivery deadlines and ensuring positive customer experience is a focus area for e-tailers. Outsourcing last-mile logistics to experienced transportation providers helps them concentrate on their core business.

Relying on a rental fleet also provides logistics companies operational flexibility to experiment with different vehicle sizes and adjust capacities. This helps in transport route optimization and reducing cost per delivery. During seasonal peaks and times of transient capacity requirements, truck rentals present an economical solution compared to owning vehicles when not in full use. As e-commerce continues to drive new customer expectations around delivery speed and convenience, the pressure to strengthen last-mile delivery infrastructure will further lift demand in the truck rental marketplace. Many companies see it as a sustainable model that aligns well with their longer-term strategic goals.

Market Driver - Increasing Focus on Minimizing the Total Cost of Ownership by Companies

The rental model has gained acceptance driven by companies exploring new ways to optimize transportation costs. With rising operational expenses, cost-cutting has become a top priority. Fleet management involves substantial initial investment and comes with fixed operational overheads. Companies are closely evaluating fleet costs and shifting to variable expense structures through rental fleets.

Rental agreements allow customizing vehicle specifications, rental period and payment terms to align exactly with actual business needs. Rather than owning vehicles which may lie underutilized at times, there is freedom to scale capacity and let the mobility provider handle non-core responsibilities of fleet maintenance, taxes and insurance. This transfers fixed ownership liabilities to a variable operating cost. An increasing number of businesses prefer variable payments linked solely to usage. This makes budgeting easier and lets them benefit from the flexibility to return vehicles whenever requirements change.

With rental agreements, users can choose the latest models aligned with their brand and sustainability goals without facing risks of infrastructure changes or early technology obsolescence. Periodic upgrades in rental vehicles also help companies optimize operations. Mobility solutions providers continuously strive to enhance vehicle operational efficiency, safety and compliance standards which clients can leverage. Their geographic network access provides scalability for multi-city transportation needs as businesses expand.

Rental firms also help streamline administration work like regulatory inspections, renewals and disposal at the end of useful vehicle lifecycles. This frees up corporate resources for core areas. By adopting a pay-per-use rental model, companies aim for a more predictable cost-structure focusing on variable operational expenditures rather than fixed annual ownership expenses. This is fueling greater appeal of rental fleets as a strategic option to minimize overall transportation costs over time in a volatile economy.

Market Challenge - Shortage of Skilled Drivers Affecting Truck Rental Availability.

Truck rental companies today face a serious challenge of shortage of skilled commercial drivers which is affecting their truck rental business operations and availability. The aging workforce combined with fewer younger people entering the commercial transportation industry has exacerbated this driver shortage problem over the past decade. Finding and retaining qualified drivers is now one of the top concerns for truck rental firms. Due to lack of sufficient drivers, some companies have to reject rental requests or face delays in fulfilling rental orders. This is negatively impacting customer satisfaction and loyalty. Companies are trying various measures like increasing pay, offering sign-on bonuses and better benefits to attract drivers but it has not fully addressed the shortage issue. Due to high demand, drivers can also easily switch jobs which further raises costs for companies. The driver shortage problem if not addressed properly can restrict the future growth potential of the whole truck rental market. Companies need to collaborate with training institutions and continually focus on recruiting new drivers through campaigns to overcome this critical challenge.

Market Opportunity - Global Industrialization and Urbanization Driving Demand for Truck Rental Services

The truck rental market is experiencing significant growth opportunities due to rising global trends of industrialization and urbanization. In developing economies, growing infrastructure and construction activities are fueling the demand for material and equipment transportation. This is generating more projects for truck rental companies to deliver construction machinery, tools and material to remote project sites on a rental basis. At the same time, rapid urbanization is leading to expansion of cities and establishment of new industrial areas. For transportation and logistics of imported and exported goods within and between cities, requirement for rented trucks from warehouses, ports and commercial establishments is on the rise. Even developed countries are witnessing increased activities in areas like oil and gas, mining and power generation which involves heavy machinery movement and material handling on projects - benefiting truck rental businesses. Overall, the global trends of more industrial and infrastructure works are driving considerable expansion of addressable markets for truck rental companies across industry sectors. They can capitalize on these opportunities through customizing service offerings and penetrating emerging Growth markets.

Fleet Expansion and Modernization: Leading players such as U-Haul, Penske, Ryder and Budget Truck have strategically expanded their fleet size over the years to cater to rising demand. For example, U-Haul added over 25,000 new trucks to its fleet in 2019 alone, increasing its North American fleet count to over 167,000 vehicles. Companies regularly invest in replacing older trucks with new fuel-efficient models to provide a better customer experience. This strategy of continuous fleet modernization has helped companies strengthen their market leadership positions.

Strategic Acquisitions: Acquisitions have allowed players to quickly expand geographic footprints and product portfolios. In 2020, Penske acquired rental truck company GE Capital's North American truck rental operations, adding over 23,000 rental trucks and trucks to its fleet. Ryder acquired Meyer Utility Solutions in 2019, adding over 10,000 specialty vehicles to its commercial fleet leasing services. Such acquisitions have boosted market shares and diversified revenue streams for companies.

Leveraging Technology: Top players are investing in digitization to enhance customer convenience. For example, U-Haul's mobile app and website allow users to easily book trucks, view real-time truck availability and add optional items. Penske's digital tools enable contactless rental procedures. The use of telematics and analytics also helps companies optimize fleet utilization. Adopting technology early on has given companies an edge over others.

Strategic Partnerships: Collaborating with moving and logistics companies has expanded customer bases. For instance, Penske has partnerships with moving companies such as North American Van Lines and Allied Van Lines. U-Haul actively partners with independent dealers to rent trucks from over 22,000 locations across North America. Such synergistic partnerships provide ample growth opportunities.

Insights, By Truck Type, Convenience and Cost-Effectiveness Drives Light Duty Segment

By Truck Type, Light Duty contributes the highest share of the market owning to its convenience and cost-effectiveness for many applications. Light duty trucks are perfect for local and short-haul transportation needs. They are compact in size yet still provide versatility for hauling equipment, goods, and materials within a metropolitan area. For businesses and contractors working on projects that require frequent but small deliveries, light trucks streamline the process without breaking the budget. Their nimbleness allows easy navigation through dense urban environments where large trucks would be impractical.

Many rental customers only require a truck for a day or weekend project and don't need the added capacity of a heavier vehicle. The light duty option suits these occasional or one-off needs well since it has a lower upfront rental fee. Individual consumers renting trucks to assist with household moves likewise choose the light class that meets their limited hauling demands without costing more than needed. The compact exterior footprint of light trucks also opens parking access that heavier sizes cannot manage. Their fuel efficiency keeps operational expenses lower as well.

The proliferation of last-mile delivery services has been a major driver of light truck rental demand. Companies fulfilling online orders need reliable vehicles accessible on short notice at competitive rates. Rather than owning fleets, the on-demand model relies on rental trucks that can be obtained for discrete assignments. Light trucks match this application and business model closely through convenient access paired with responsible pricing. Their agility in residential areas maintains fast delivery schedules.

Insights, By Propulsion, Internal Combustion Continued Dominance in Propulsion Segment

By Propulsion, Internal Combustion Engine (ICE) is expected to contribute 58.7% market share in 2024 due to customers' familiarity and the technology's established infrastructure. Diesel and gasoline powertrains have powered commercial trucks for decades, creating deep market familiarity with their operating models. Rental customers feel confident entrusting mission-critical workloads to a proven technology even if alternatives now exist. Many are also mechanically adept with internal combustion and capable of basic roadside repairs themselves if issues arise.

Fueling and maintenance networks for gas and diesel engines blanket the continent, giving ICE trucks a pervasive supply chain reach. Rental customers appreciate the ease of refueling almost anywhere during long hauls instead of locating comparatively scarce electric charging sites. Should mechanical trouble occur on the road, diesel mechanics trained on these systems surround service stations. Tow trucks able to handle a broken ICE truck also stay ubiquitous.

Telematics data from rental fleets demonstrates resounding customer satisfaction with internal combustion efficiencies. Drivers accustomed to gas or diesel ranges and refueling speeds accept EVs' more constrained operating parameters less readily for their operations. Until battery technology extends electric truck capabilities on par with ICE in key metrics like payload capacity and road trip endurances, the tried-and-true designs will hold an edge for dependable work schedules. Infrastructure buildout likewise must proliferate further to lessen range and refueling anxieties holding some back from going electric. Until then, ICE trucks satisfy needs through established commercial truck DNA.

Insights, By Service Providers, Rental Specialization Drives Leasing Company Dominance

By Service Providers, Rental and Leasing Companies contributes the highest share of the market owing to their specialization and scale. Unlike OEMs focused on production or individual owners actively using a single truck, rental agencies specialize exclusively in truck provision. Significant accumulated assets and logistical expertise optimize access to the right vehicle class for any job. Partnerships with major truck brands further strengthen flexible fleets tailored to local market nuances.

Customers appreciate rental agencies' core competency in fleet management. Operators entrust their capabilities to procure alternative vehicles on short notice if situations change. Maintenance programs and emergency roadside assistance provide reliability assurances for critical operations. Usage-based rental rate structures also properly allocate costs versus outright purchase obstruction. Call centers and online platforms streamline procurement.

Large centralized fleets reduce overhead in quantity. National footprints allow repositioning trucks between branches as demand ebbs and flows regionally. Economies of scale likewise improve negotiating power over purchase and resale prices. Data-driven fleet optimization allocates the most appropriate truck models and counts for steady utilization across territories. Together these factors let rental agencies thrive through competitive rates not feasible through limited individual or OEM fleets of scaled-down size. Customers turning to experts in truck provision naturally gravitate to leasing company resources and service specialization.

The truck rental market is set to grow at a robust pace, driven by the increasing demand for flexible and cost-effective logistics solutions, especially from businesses focused on minimizing operational risks. The rise of e-commerce and the gig economy, coupled with the growing trend of optimizing the total cost of ownership, has led to a shift towards rental services as a preferred option. Truck rentals provide businesses with significant advantages, such as reduced financial liabilities and the flexibility to meet seasonal or fluctuating demand without long-term commitments. Additionally, the adoption of electric vehicles in rental fleets is gaining momentum, especially in regions with stringent emission controls and urban mobility policies. The Asia Pacific region, due to its rapid industrialization, remains a dominant force in the market, while North America is seeing accelerated growth. Key players like Enterprise Holdings, Penske, and Ryder System are continuously expanding their service offerings, integrating advanced technologies like AI for fleet optimization and customer experience enhancement.

The major players operating in the Truck Rental Market include Enterprise Holdings, Inc., The Hertz Corporation, Penske, Ryder System, Inc., Avis Rent A Car System, LLC, NationaLease, Daimler Truck AG, United Rentals, Inc., Bush Truck Leasing and Kenworth Sales Company.

• In February 2024, Mercedes Benz entered the truck rental market in Brazil to offer cost-effective leasing solutions amid economic challenges like high vehicle prices and strict emission norms.
• In February 2024, Flexter and Green Motion partnered to streamline global short-term truck rental bookings through a real-time online marketplace.
• In July 2023, NHR Group partnered with Hertz to enhance truck and van rental services in New Zealand, leveraging Hertz’s large fleet and logistics expertise.

• By Truck Type
  • Light Duty
  • Medium Duty
  • Heavy Duty
• By Propulsion
  • Internal Combustion Engine (ICE)
  • Electric
• By Service Providers
  • Rental and Leasing Companies
  • OEM
  • Third-party