Commercial Vehicle Rental and Leasing Market Size, Share & Covid-19 Impact Analysis, By Rent Type (Business and Personal Use), By Vehicle Type (Car, Light Commercial Vehicle, and Medium/Heavy Commercial Vehicle), and Regional Forecasts, 2020-2027

The global commercial vehicle rental and leasing market size was USD 86.33 billion in 2019 and is projected to reach USD 116.72 billion by 2027, exhibiting a CAGR of 8.0% during the forecast period.

Leasing is similar to renting but the time duration for leasing is longer as compared to renting. Rapid growth in smartphone users globally and increasing reliance on technology for performing activities such as paying and booking for rental services can create immense growth opportunities. Various vehicle rental and leasing companies are developing apps to notify their customers through mobile applications about discount coupons, promotional offers, real-time tracking, fare, and availability of the vehicle.  The key players are focused on streamlining business processes to better serve the demand for cars. Leasing a vehicle or truck minimizes the operational cost. Numerous truck operators have a preference for leasing or renting trucks rather than purchasing them. Furthermore, renting  a truck with full-service eliminates the financial responsibility of servicing, maintenance, and vehicle replacement. Thus, these factors are anticipated to boost the growth of the market during the forecast period.

COVID-19 Impact On Market

The outburst of the Coronavirus (COVID-19), which started in Wuhan, China at the end of December 2019, is spreading fast across the globe and it is having a most important impact on all aspects of civilization. At the start, vehicle manufacturers and their providers have been scrambling to keep vehicle assembly lines active but March has seen the production take action, in sync with administration advisories, to keep its workers safe. The World Health Organization declared the COVID-19 outbreak and a pandemic. Automobile, construction, and tourism industries are being shut down around the world, customer footfalls in showrooms have fallen harshly. Tourism revenue has dropped considerably and almost every major industry conference is either being canceled or held virtually. The entire March has been packed with COVID-19 outbreak a pandemic. The impact of COVID-19 and the lockdown has vigorously impacted the financial market as well. These factors are estimated to hamper the growth of the market.

As there is an outburst of the Coronavirus (COVID-19), the countries which are being affected have started the lockdown for social distancing, thus, various industries, hotel, and commercial sectors are locked down for further few months. These factors are anticipated to hamper the growth of the market during the forecast period for the next few years. According to the Centers for Disease Control and Prevention (CDC), the logistics and transportation industry may be particularly affected by the Coronavirus (COVID-19). If disruptions in the supply chain occur, the companies will work to identify alternate transportation modes and routes. After the Covid-19 global pandemic, commercial vehicle rental and leasing providers are anticipated to look for a fast track strategy for growth in rental and leasing of vehicles and supply chains as they prepare for a volatile demand environment.

LATEST TRENDS

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Shift Towards Use of Rental Vehicles for Long Journey

The automotive industry is moving towards developing and designing innovative technologies to permit advanced vehicle safety, better connectivity solutions, and improve in-vehicle user-experience for rental vehicles as well as for personal use. The key players are focusing on developing more features into their commercial vehicle for achieving growth in the rental and leasing market, to make as enjoyable and as effortless journeys as possible. Whether it's a long drive, family vacation, or ride to a national park, there is an increasing demand for renting vehicles or leasing the vehicles as per the duration of the journey. The various modern commercial vehicles connect with all the smart automotive technologies such as ADAS systems, 2X connectivity solutions, telematics devices, smartphones, sensors, and others. These factors are anticipated to propel the growth of the market during the forecast period at a significant CAGR.

DRIVING FACTORS

Various Features Offered by Rental Vehicles is Expected to Boost the Growth of Market

With the growing demand for lavish, safe, and smart vehicles, automobile manufacturers are developing automobiles with advanced technology. The rental vehicle providers offer a mixture of entertainment and information for an improved in-vehicle experience. The manufacturers of technologically advanced vehicles are providing features such as parking recommendations, pre-trip planning, predictive navigation, and other important features. Smartphones can be paired with commercial vehicles using Bluetooth connectivity or WiFi hotspot. Pairing the smartphone with the vehicle allows the user to access features on the phone. As there are various features offered by the vehicles, there is rapid growth in renting features loaded commercial vehicles for the long journey. Thus, these factors are anticipated to boost the growth of the market during the forecast period at significant CAGR

Rapid Growth in Tourism and Transport is Gaining the Traction

Rapid growth in tourism and transport is significantly propelling the growth of the market during the forecast period at a significant CAGR. Various key players of the commercial vehicle renting and leasing market are working to enhance the visitor experience, including suitable multi-modal transport options to access destinations, well-organized connections between local and inter-regional modes, baggage transfer and storage options, multilingual user information and way-finding, and ease of access for travelers with limited mobility. These factors are propelling the growth of the market over the forecast period at High CAGR.

RESTRAINING FACTORS

High Cost Associated with Rental Services of Commercial Vehicles is Anticipated to Hamper the Growth of Market

Nowadays, vehicles are equipped with interactive information and entertainment systems for entertainment and guidance purposes. As the rental vehicle providers provide a mixture of entertainment and information for an improved in-vehicle experience, there is a high cost associated with the market. The average lease prices can range from $300 a month for smaller trucks and small cars and can extend over $1,000 a month per vehicle for large, luxury, or semi-trucks. These factors are hampering the growth of the market during the forecast period.

SEGMENTATION

By Rent Type Analysis

Business Use Segment of Commercial vehicle rental and leasing is Expected to Hold the Large Market Share

Based on the rent type, the market is segmented into business use and personal use of commercial vehicle rental and leasing. The business use segment of the commercial vehicle rental and leasing segment is expected to exhibit significant growth in this market owing to the rapid adoption of commercial vehicles for various industries, resorts, multinational companies in various regions. The personal use segment of the commercial vehicle rental and leasing segment is also expected to show good growth in this market as there is an increase in tourism and traveling with luxury vehicles for a comfortable and enjoyable ride. These factors are propelling the growth of the market.

By Vehicle Type Analysis

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Light Trucks Segment is gaining the traction and Expected to Hold the Largest Market Share

Based on the vehicle type, the market is segmented into cars, light trucks, heavy/medium trucks. The car segment holds the largest market share for this technology, owing to the higher production of passenger cars globally as well as rapid adoption by consumers. The light trucks segment is also expected to contribute to the growth of commercial vehicle rental and leasing for various mid-sized industries. The heavy/medium trucks segment is expected to show steady growth in this market as there is an increasing need for various manufacturing and construction industries. These factors are influencing the commercial vehicle rental and leasing market growth.

REGIONAL INSIGHTS

North America Commercial vehicle rental and leasing Market Size, 2019 (USD Billion)

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By geography, the market has been segmented into North America, Asia Pacific, Europe, and Rest of the World. Currently, the market exhibits a strong growth rate in developed economies. The countries in North America such as the US are expected to dominate the global commercial vehicle rental and leasing industry as there is rapid growth in the technology for vehicle user experience. The market share of North America is followed by European countries such as Spain, Germany, France, UK, and Italy. As there is rapid growth in the tourism sector in European countries. The growth potential in emerging markets such as China, India, and Brazil is likely to account for the largest share owing to the rising population in those regions. These factors are anticipated to boost the growth of the market during the forecast period at a significant CAGR.

KEY INDUSTRY PLAYERS

PACCAR Leasing Company, Penske Automotive Group, Inc., and Enterprise Holdings Inc.are Top Market Players

PACCAR Leasing Company, Penske Automotive Group, Inc., and Enterprise Holdings Inc. are top market players in the world. These players are focusing on providing wide-ranging and advanced commercial vehicle rental and leasing for various vehicle manufacturers in vkey regions across the globe.

However, RYDER, The Hertz Corporation, Avis Budget Group, ALD Automotive, SIXT SE, Europcar, Localiza, Unidas, and Movida, are also prominent players in this market.

LIST OF KEY PLAYERS PROFILED:

• PACCAR Leasing Company


• Penske Automotive Group, Inc.


• RYDER


• Enterprise Holdings Inc.


• The Hertz Corporation


• Avis Budget Group


• ALD Automotive


• SIXT SE


• Europcar


• Localiza


• Unidas


• Shouqi Zuche


• Goldcar


• Movida


• LeasePlan

KEY INDUSTRY DEVELOPMENTS:

• 2020 - Rush Truck Leasing Houston, has been named the PacLease (PACCAR Leasing Company) 2019 North American Franchise of the Year. Moreover, PACCAR Leasing Company documented its top Canadian and U.S. franchises.


• 2020 – PACCAR Leasing Company continued its vehicle growth trend by growing its new full-service leasing and rental business by 18 percent in 2019. Moreover, Over the past four years, PACCAR Leasing Company has added 31 new locations.


• 2019 – European auto major Volkswagen on December 14, 2019, partnered ORIX Auto Infrastructure Services to provide car rental or leasing service in India. The partnership includes retail leasing solution, which estimated to offer a wide range of Volkswagen cars

REPORT COVERAGE

An Infographic Representation of Commercial Vehicle Rental and Leasing Market

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The commercial vehicle rental and leasing market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, system types, and leading markets of the product. Besides this, the report offers insights into the market trends and competitive landscape, by highlighting key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2016-2027
Base Year	2019
Forecast Period	2020-2027
Historical Period	2016-2018
Unit	Value (USD billion)
Segmentation	By Rent Type Business use Personal Use
	By Vehicle Type Cars Light Trucks Heavy/Medium Trucks
	By Geography North America (U.S., Canada, and Mexico) Europe (U.K., Germany, France and Rest of Europe) Asia-Pacific (Japan, China, India, South Korea and Rest of Asia- Pacific) Rest of the World