European medium and heavy truck rental/leasing market –

New York, Oct. 04, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Europe Medium and Heavy-duty Truck Rental/Leasing Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027) – https://www.reportlinker.com/p06321502/?utm_source=GNW

The COVID-19 pandemic has hampered the growth of the market studied in the European region as shutdowns and closures of manufacturing facilities in 2020 have led to disruptions in the transportation sector and closure of small and medium industries. However, as restrictions eased, several logistics companies focused on renting and leasing medium and heavy trucks instead of buying new ones to avoid high upfront purchase costs. Such trends in the market are expected to continue and provide long-term positive growth for the market.

Over the long term, one of the other notable drivers of market growth is the exceptional rental supply and aggressive advertising by market players. Rising vehicle emission regulations, advancements in vehicle safety, and rapid growth in the logistics, retail, and e-commerce sectors have significantly boosted the demand for new advanced trucks in the market. of the EU in recent years. Truck rental companies have also been affected by the aforementioned factors as well.

Leasing or renting trucks is an attractive option for many consumers in various sectors in the EU region. The demand in the market is expected to increase as it serves businesses, individuals, agencies, and other users. The construction sector, logistics and other industrial sectors constantly need truck rental services; hence, market growth is expected to increase over the forecast period.?

Strict emission control regulations implemented by the governments of major European countries are positively influencing the growth of the truck rental market as they reduce the number of sales of owned vehicles and on-road vehicles. Recently released heavy-duty vehicle certification data for 2021 by the European Union revealed that while fuel consumption values ​​in the various truck subgroups ranged from 24 L/100 km to 33 L/100 km, emissions specific CO2 showed greater variation. Urban delivery trucks in 4×2 axle configuration (4-UD) emitted an average of 307 gCO2/t-km, more than five times more than long-haul semi-trailers (5-LH) with emissions of 57 gCO2 / t-km.

Main market trends

Long-term rental dominates the market

Long-term truck rentals of more than two months have been considered. Customers mainly from the industrial and construction sectors favored long-term truck leasing. Manufacturing, energy companies, chemical companies, paper mills, railways, shipbuilders, utilities and retailers accounted for about half of total long-term truck rental revenue in Europe.

Commercial construction contractors accounted for a considerable market share of total long-term truck rental revenue in Europe, which includes rentals for office, accommodation, healthcare, entertainment and other commercial purposes. Germany, the United Kingdom and France have been Europe’s top markets for long-term truck leasing in recent years, due to strong demand from the industrial and construction sectors.

The demand for long-term truck rental in Europe is expected to increase further during the forecast period, owing to the increase in construction, agricultural and industrial activities (mainly manufacturing, logistics and e-commerce) in major countries such as as Germany, the United Kingdom, France and Spain.

Due to their greater carrying capacity, heavy duty trucks are commonly used for long distance transportation of frozen foods and perishables. Additionally, by using multi-temperature refrigerated systems, these trucks can transport multiple products such as meat, fish, and dairy at the same time, improving delivery efficiency as well as profit margins for service providers. .

As of May 2019, PacLease customers can now access 2,100 DAF trucks and over 800 trailers. The company also offers customers CF-6×4 3-way tippers and CF-8×4 cement mixers for the first time. In addition, municipal companies can rent CF-340-6×2 garbage trucks, especially for long-term rental.

Considering these developments, the demand for the target market is expected to grow moderately over the forecast period.

The rest of Europe is seeing significant growth

The countries considered in the rest of Europe are the Netherlands, Russia, Sweden, Poland and Belgium, among others.

The COVID-19 pandemic has impacted the truck rental and leasing industry in the rest of European countries as economic activities have been halted during the enforced lockdown period. Many industries, such as manufacturing, construction and mining, have been forced to shut down. However, it is expected that with the gradual opening of economies, these activities will accelerate and the demand for rental and leasing trucks will increase. Moreover, market growth was expected during the second half of 2021.

Companies in Greece are not allowed to rent trucks without a driver. Companies in the country frequently purchase imported used trucks to meet their transportation needs. As a result, the average age of trucks in Greece is approaching 20 years.

Several major players are investing in advanced technology R&D to attract customers, overcome the growing problem of driver shortages and gain market share. For instance,

In January 2020, ICTS Group in Russia announced a partnership with BM Truck as a network service partner in Russia. BM Truck’s eight service points cover a large area of ​​the Russian Federation. BM Truck offers trailer rental customers parking, repairs and tire changes.

In 2019, FRAIKIN Group enters the Netherlands. The FRAIKIN Group has signed a new contract with Loxam to support its subsidiary Loxam Workx. Both companies have been focused on making vehicles safer and more comfortable while working on a new “pilot” vehicle that can become a milestone in the transporter/low loader market.

The UK also holds a significant market share in terms of revenue in 2021 and is expected to grow over the forecast period. In 2018, the British Vehicle Rental and Leasing Association (BVRLA) launched a three-year plan to address unprecedented industry challenges, such as the industry’s path to a fair tax regime, a competitive model to monetize and share data connected vehicles, and the creation of a sustainable market for electric vehicles.

Following the three-year plan, the association launched a “Plug-in Pledge”, aiming to register 300,000 plug-in vehicles by 2025. As a result, the rental industry is expected to embrace electric trucks. Manufacturers such as Magtec, Daimler and Renault have electric trucks in their portfolios for the UK market.

Based on these developments, the market is expected to witness considerable growth over the forecast period.

Competitive landscape

Some of the major truck leasing service providers include Penske Truck Leasing Inc., Paccar Leasing Gmbh, Fraikin, Tip Trailer Services Germany Gmbh, Man Financial Services/euro-leasing, etc. The intensity of competition in the market studied is high, as truck rental companies, as well as truck OEMs that offer rental services, rigorously promote their fleet management services to customers. For example, telematics offers optimal use of rental trucks with assistance service, document management, cost estimates, insurance and door-to-door service. Growing investments by key players to drive demand in the market. For instance,

In April 2022, Free2move acquired the first van and truck rental meta search Comparateur-location-utilitaire.fr to expand and improve its commercial vehicle rental services to individuals and B2B customers.
In April 2021, United Rentals Inc. signed an agreement to acquire General Finance Corporation for $19 per share in cash, representing a total enterprise value of approximately $996 million, including the assumption of a net debt of 400 million USD. This acquisition aims to stabilize its geographic presence by expanding rental services in the region.
In April 2021, Fraikin Limited UK announced its partnership with Samsara. This partnership aims to make real-time data available to customers to help them improve the safety, efficiency and long-term viability of their associated fleets.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06321502/?utm_source=GNW

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