Europe Medium- and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, and Forecast (2019 - 2024)

Europe Medium- and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, and Forecast (2019 - 2024)

Market Overview

The European medium- and heavy-duty truck rental/leasing market was valued at USD 143.73 billion in 2018 and is expected to project a CAGR of 7.29%, during the forecast period, 2019-2024.

Some of the factors, like increasing regulations on vehicle emissions, advancement in vehicle safety, introduction of driver assist systems in vehicles, and rapidly growing logistics, retail, and e-commerce sectors, have been significantly driving the demand for the new, advanced trucks in the EU market, over the past two years (2017-2018). Truck rental companies have also been equally impacted by the above-mentioned factors, thus upgrading various systems of trucks in their rental fleet and adding new trucks in their rental fleet, in order to capture the increasing market demand.
Short-term leasing is likely to continue to grow during the forecast period, as it aids EU businesses in meeting the peaks and troughs of seasonal demand, by providing a suitable truck for the job at a short notice, without any penalties or commitments.
The intensity of competition in the market studied is high, as truck rental firms, as well as truck OEMs who offer rental services, have been rigorously promoting their fleet management services to customers. For instance, telematics offers optimal usage of rental trucks with service support, document administration, cost estimates, insurances, and door-to-door service

Scope of the Report

The European medium- and heavy-duty truck rental/leasing market was has been segmented by booking type and rental type.

Key Market Trends

Rising Dependence on Road Freight

The road is by far 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. Logistic companies and leasing firms, therefore, have a particular interest in understanding the dynamics of road freight traffic. In 2016, road transport accounted for over three-quarters (76.4 %) of the total inland freight transport

In terms of ton-kilometer (tkm), European road freight transport increased by 4.5%, from 2016 to 2017. The year 2017 also marks the highest value over the last five years, having increased by 11.8% from 2013.

National and international road freight transport increased by 3.5% and 4.6%, respectively, from 2016 to 2017. Cross-trade and Cabotage also recorded substantial growth of 8.5% and 17.1%, respectively, between the same years.

Poland, with 17.5% of the total EU tkm, reconfirmed its position as one of the most important countries for road transport in the region, in 2017. The country also saw a rise of 15.3% in the tkm performed from 2016 to 2017.

Due to its size and location in the middle of Europe, as well as due to its importance as a country with many manufacturing industries, Germany is the top country for Europe-wide international road freight transport, comprising about 27% of all ton-kilometer freight in this segment. It is followed by France (~18%) and Poland (~8%).

Furthermore, in 2017, metal ores, quarrying, and mining products were the largest product groups in terms of the tonnage transported, accounting for 3,635 million metric ton, and a share of approximately 25%. Other important product groups were food, beverages, and tobacco, with 12.4%, other non-metallic mineral products, with 11.8%, and agricultural products, with 9.1%.

Hence, based on the above-mentioned trends, leasing firms are expected to see continued demand for their trucks from logistic firms and companies operating in FMCG, construction, mining, and other domains, over the forecast period

Offline Booking – Dominated the Market

The European offline booking market for medium- and heavy-duty truck rental/leasing market is expected to value at USD 220.69 billion by 2024.

More than 50% of the customers for medium- and heavy-duty truck rentals have been from industrial and non-construction sectors, such as manufacturing, energy, paper mills, chemical, railroads, shipbuilders, utilities, and retailers.

The above customers come up with custom requirements based on their goods or material transportation needs.
Additionally, the customers prefer to book trucks only after enquiring about several aspects, like availability of trucks and their capacity, performance, maintenance, insurance coverage, etc., in case of renting a bulk number of trucks for long-term.

To clarify the above inquiries, phone calls followed by face-to-face interactions have been the major modes of communications between the customers and renters, before renting the trucks.
Also, the customers have greater potential to negotiate on truck rental fares through offline booking compared to online booking.

The above-mentioned benefits of offline booking method are likely to continue to prevail over online booking method, during the forecast period.

Competitive Landscape

The European medium- and heavy-duty truck rental industry is highly fragmented and competitive in nature.

Some of the popular trucks used in the rental fleet in Europe market belong to manufacturers, like Mercedes-Benz, Fuso, DAF, Volvo, MAN, Scania, Renault, Iveco, MAN, ISUZU, and other local brands.

Reasons to Purchase this report:

The market estimate (ME) sheet in Excel format
Report customization as per the client's requirements
3 months of analyst support

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1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1 By Booking Type
5.1.1 Offline Booking
5.1.2 Online Booking
5.2 By Rental Type
5.2.1 Short-term
5.2.2 Long-term (Leasing)
5.3 Geography
5.3.1 Europe Germany United Kingdom France Spain Italy Rest of Europe
6.1 Market Positioning of Players
6.2 Company Profiles
6.2.1 Truck Rental Firms PEMA Europe United Rentals Inc. Penske Truck Leasing PacLease Heisterkamp Truck Rental Easy Rent Truck and Trailer GmbH Man Financial Services/Euro-leasing Ryder Group Fraikin
6.2.2 Medium- and Heavy-duty Truck Manufacturers PACCAR Daimler AG Volvo Group Traton SE ISUZU Motors Ltd. IVECO SPA

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