According to the Market Statsville Group (MSG), the global commercial vehicle rental market size is expected to grow from USD 89,282.18 million in 2022 to USD 1,99,847.97 million by 2033, growing at a CAGR of 7.6% from 2023 to 2033. Factors such as growing vehicle-as-a-service, surging tourism industry will fuel the market’s growth in forthcoming years across the globe. Further, integration of advancing technologies will create lucrative opportunities for the market’s growth. Automotive manufacturers' increasing development of comfortable, safe, smart, and AI-equipped automobiles is a favorable element for market growth. Furthermore, increased demand for commercial vehicles, particularly for long-distance travel, will boost the market in future years. Furthermore, the focus on improved connection options and improving the in-vehicle user experience for commercial rental vehicles will allow for rapid industry development.
Rapid expansion in smartphone users worldwide, as well as increased reliance on technology for completing tasks such as paying for and reserving rental services, might provide enormous development prospects. Leasing a car or truck reduces operational costs. Rather of owning vehicles, many truck owners opt to lease or rent them. Furthermore, renting a full-service truck reduces the financial burden of servicing, maintenance, and vehicle replacement. As a result, these factors are expected to drive market growth throughout the forecast period.
The commercial vehicle rental and leasing market is set to gain traction from the increasing adoption of electric vehicles in rental companies owing to insignificant profitability and high cost of ownership. Also, stringent emission targets and low battery prices are encouraging people to use electric vehicles. The commercial vehicle rental industry consists of rental trucks, equipment, and other services. These businesses often have a retail store or a facility for renting automotive equipment. Some car rental firms specialize in either short-term or long-term rentals, while others provide both.
The renting of vehicles is governed by an agreement or contract. A rental agreement is a contract for future performance that must be in written and signed by both the service provider and the consumer. It is frequently utilized in both corporate and personal settings. Automobile equipment rental businesses include passenger cars and trucks, vans, utility trailers, and recreational vehicles (RV) without drivers.
The COVID-19 has a significant impact on the growth of the market, as various end-users of the market witnessed distinct COVID-19 impacts. For instance, the tours and travel industry witnessed a negative impact, however, for e-commerce the demand was positive.
Further, for e-commerce, the COVID-19 had a positive impact, as people adopted e-commerce platforms for the purchase of necessary products and services. Various people who lost their jobs due to COVID-19, seek emerging e-commerce as an opportunity and had become delivery partners they rented vehicles and sold fruits and vegetables to the local people during and post-pandemic. This indicated the positive impact on the market’s growth during the pandemic.
In addition, with ease in COVID-19 and offices were resume to work people opted for personal vehicles and discouraged the use of public transportation to restrain the cross-contamination or spread of virus people rented vehicles to travel to the office instead of using public transports. All such factors contribute in the growth of the market amid the pandemic.
The government of emerging nations is investing in infrastructure developments to connect remote areas to major cities and nearby bus/railway stations. This surges the demand for commercial vehicles to transport passengers from such areas to assigned destinations. For this purpose, rented buses are used. This, in turn, fuels the growth of the market in forthcoming years. In addition, for events rented buses have huge demand whether for a picnic, sports event, rally, and others.
Further, the growing tourism industry will also demand commercial vehicle rentals to travel to the destination on time as compared to public transport. The local service providers are focused on enhancing their local presence and online presence to gain more customers. Such a factor will accelerate the growth of the market in forthcoming years across the globe.
One of the difficulties plaguing the truck rental industry is truck availability. Unlike vehicle rentals, consumers must reserve trucks or micro trucks in advance. If the driver is required to return the truck to a different location because to a long-distance trip, the truck rental company may charge a greater premium.
If the customer's leased moving truck does not have enough capacity for the items to be relocated, the client may have to make additional trips and pay extra. In this case, the customer should rent a vehicle that is at least 15% bigger than its actual size. Having more room aboard the truck allows them to properly pack the items so that they remain safe while on the route.
Many truckers face the issue of truck damage compensation in spite of not doing any harm to the trucks as they neglected the truck before taking it from the company. When a trucker owns a vehicle, he or she is aware of the exact state of the truck; however, when a truck is rented, the firm frequently charges a hefty fee for the damages caused by the previous trucker because the current trucker did not examine the truck before renting it. Such factors hamper the growth of the market over the forecasting period.
Emerging and evolving technologies contribute to the growth of every segment it gets employed in. With the use of advancing technologies, commercial vehicle rental service providers can enhance their operations and can effectively track their vehicles when required. For instance, smart antennas were installed in vehicles to establish effective communication with the vehicle and track their positions. Further, the use of technologies such as AI and virtual assistance will create lucrative opportunities for the market’s growth. For instance, In March 2021, Penske Truck Rental and Avaamo collaborated. Penske Truck Rental's phone-based truck rental central reservations contact centre now employs Avaamo's voice-driven Intelligent Virtual Assistant (IVA). The purpose is to improve Penske's phone-based truck rental reservation process and achieve efficiency in its call centre operations. The IVA employs Avaamo's Conversational IVR technology to automate and expedite the truck rental reservation process, allowing Penske clients to effortlessly confirm, amend, or query about current bookings via proactive and personalised voice calls.
The intelligent virtual assistant identifies the caller by their phone number to anticipate their request and proactively addresses their issues, saving the caller both time and effort. By maintaining context based on these customers' histories, the IVA avoids repetitive questions while also resolving the customers' issues in the quickest possible manner, drastically reducing call times. It ensures faster and easier truck rental reservations by checking whether a user's selection falls within working hours and communicating available slots to the customer. Hence, the adoption of technology in the commercial vehicle rental market will assist service providers in enhancing their operational capabilities and managing business with more efficiency. This, in turn, paves the way for the growth of the market over the forecasting period.
The study categorizes the commercial vehicle rental market based on type, and application area at the regional and global levels.
Based on the type, the market is divided into truck, bus, and others. The truck segment is expected to dominate the market share in 2022 in the global commercial vehicle rental market. The truck segment currently dominates in 2022, gaining a revenue share of around 52.8%. It is expected to grow at a CAGR of 7.8% throughout the forecast period in the commercial vehicle rental market. The growing demand from the e-commerce sector, as well as the necessity for effective last mile delivery by logistic businesses, has increased the need for trucks and cargo vans of various capacities that can meet the various space requirements of the last mile delivery industry. As a result, some e-commerce and logistics firms have turned to rental vehicles to meet the increasing demand for trucks and vans to perform deliveries during peak seasons. This, in turn, raised demand for rental services, and the majority of businesses realized the benefit of renting fleets rather than owning them.
Based on the regions, the global commercial vehicle rental market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share of 38.4% in 2022. Due to digitization and automation, which are projected to transform the transportation of people and products in the next years, the area dominates the worldwide market. These technical improvements are projected to fuel the North American market. Furthermore, the region's expanding import/export trend is likely to drive up demand for such services.
The commercial vehicle rental market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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