Truck Rental & Leasing to Expand at CAGR of 5.4% from 2019 to 2025
JAN 20, 2020 - 6:35 am
The rental and leasing market for medium and heavy-duty truck sales in North America is expected to expand at a CAGR of 5.4% from 2019 to 2025, according to a report from ResearchAndMarkets.com, the “Analysis of the Medium and Heavy Duty Truck Leasing Market, North America, 2019-2025.”
New truck rental and leasing shipments in the region expected to reach 212,150 units in 2025 with strong demand from regional haul applications
Companies’ financial needs, operational requirements, asset type and utilization including yearly total mileage, desired replacement cycle and usage pattern influencing wear and tear are major factors impacting the methods of truck financing.
Fleets are increasingly adopting safety technologies to raise their Compliance, Safety and Accountability (CSA) scores and reduce insurance premiums. Leasing enables fleets to constantly upgrade fleets with advanced technologies. Additionally, stringent emission regulations are moving fleets towards adopting natural gas and electric trucks. The high initial costs, uncertainty over residual costs, and rapid technological changes in alternate fuel segments are making leasing attractive for fleet managers.
Last-mile innovations are driving truck demand in the regional haul and urban delivery segments with a large number of fleets preferring full-service leasing to focus on their core competencies. OEMs are enhancing captive leasing with service options, fleet management products, and flexible payment options.
Operational leasing will experience a 6.4% and 7.2% CAGR during 2019-2025 in Class 4-7 and Class 8 trucks respectively. It will be preferred in segments where fleets try to reduce the amount of capital tied to non-core assets, avoid residual risk, and constantly upgrade to newer vehicle models. Financial lease is preferred in segments where fleets require greater control over asset utilization and disposal with expertise in remarketing.
The future of leasing market will see the emergence of digital interaction portals and blockchain-based smart contracts providing fleets precise information meeting their requirements. OEMs and leasing companies have already started to explore peer-to-peer digital platforms and Big Data analytics for vehicle maintenance.
This study sheds light on the market size across medium and heavy-duty commercial vehicle and trailer segments and provides sales data for the retail market, as well as operational leasing, and financial leasing of trucks and trailers. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid in their pursuit of growth and success.
Major participants are establishing their dominance by enhancing product portfolios in order to cater to varying Class 4-8 end-user applications.
Some of the companies featured in this study are U-Haul, Penske, Ryder, PacLease, National Lease, Idea Lease, Premier Trailer Leasing and Compass Trailer Leasing.
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