Europe Medium and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, and Forecasts (2020 - 2025)

Europe Medium and Heavy-duty Truck Rental/Leasing Market - Growth, Trends, and Forecasts (2020 - 2025)

The European medium and heavyduty truck rental/leasing market was valued at USD 153.73 billion in 2019, and it is expected to project a CAGR of 7.29%, during the forecast period, 2020 2025.

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 ecommerce sectors, have been significantly driving the demand for the new advanced trucks in the EU market, over the past two years. Truck rental companies have also been equally impacted by the aforementioned factors.
Shortterm leasing is likely to continue to grow during the forecast period, as it aids the 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 doortodoor service.

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 threequarters (76.4 %) of the total inland freight transport

In terms of tonkilometer (tkm), European road freight transport increased by 4.5%, from 2017 to 2018. The year 2019 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 2017 to 2018. Crosstrade 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 2018. The country also saw a rise of 15.3% in the tkm performed during 20172018.

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 Europewide international road freight transport, comprising about 27% of all tonkilometer freight in this segment. It is followed by France (~18%) and Poland (~8%).

Furthermore, in 2019, 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 nonmetallic mineral products, with 11.8%, and agricultural products, with 9.1%.

Hence, based on the aforementioned trends, leasing firms are expected 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 offline booking segment of the European medium and heavyduty truck rental/leasing market is expected to be valued at USD 220.69 billion by 2025.

More than 50% of the customers for medium and heavyduty truck rentals have been from industrial and nonconstruction 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 longterm.

To clarify the above inquiries, phone calls followed by facetoface interactions have been the major modes of communications between the customers and renters, before renting the trucks.

Additionally, the customers have greater potential to negotiate on truck rental fares through offline booking compared to online booking.

The aforementioned 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 heavyduty truck rental market is highly fragmented and competitive in nature.

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

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1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces 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 MARKET SEGMENTATION
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
5.3.1.1 Germany
5.3.1.2 United Kingdom
5.3.1.3 France
5.3.1.4 Spain
5.3.1.5 Italy
5.3.1.6 Rest of Europe
6 COMPETITIVE LANDSCAPE
6.1 Market Positioning of Players
6.2 Company Profiles
6.2.1 Truck Rental Firms
6.2.1.1 PEMA Europe
6.2.1.2 United Rentals Inc.
6.2.1.3 Penske Truck Leasing
6.2.1.4 PacLease
6.2.1.5 Heisterkamp Truck Rental
6.2.1.6 Easy Rent Truck and Trailer GmbH
6.2.1.7 Man Financial Services/Euro-leasing
6.2.1.8 Ryder Group
6.2.1.9 Fraikin
6.2.2 Medium- and Heavy-duty Truck Manufacturers
6.2.2.1 PACCAR
6.2.2.2 Daimler AG
6.2.2.3 Volvo Group
6.2.2.4 Traton SE
6.2.2.5 ISUZU Motors Ltd
6.2.2.6 IVECO SpA
7 MARKET OPPORTUNITIES AND FUTURE TRENDS

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