Various ongoing construction projects in the country are raising the demand for trucks, by which many corporate companies take trucks on a lease, thus driving the Saudi Arabia’s truck leasing and rental market in the forecast period. According to TechSci Research report, “Saudi Arabia Truck Leasing and Rental Market -By Region, By Company, Forecast & Opportunities, 2017- 2027F”, the Saudi Arabia truck leasing and rental market stood at USD3,334.48 million in 2021 and is expected to register a CAGR of 6.51% to reach USD5,357.20 million by 2027.
Important Aspects of Saudi Arabia Truck Leasing and Rental Market
The rise in demand for trucks for the transportation, construction, and logistics industry and the introduction of connected and smart trucks are expected to drive the demand for the Saudi Arabia truck leasing and rental market. Rapid urbanization and increasing demand for construction activities are bolstering the demand for trucks to carry heavy materials from one place to another.
However, the availability of limited financial options and cyclic price fluctuations may restrain the Saudi Arabia’s truck leasing and rental market growth in the forecast period.
Browse over 20 market data Figures spread through 77 Pages and an in-depth TOC on “Saudi Arabia Truck Leasing and Rental Market“
The Saudi Arabia truck leasing and rental market are segmented into lease type, truck type, end-use industry, booking, regional distribution, and competitive landscape.
Based on truck type, the market is divided into heavy-duty and medium-duty. Heavy-duty trucks dominated the market in 2021, capturing a market share of 66.52%, and are expected to maintain their dominance throughout the forecast period. The high demand for trucks with high load-carrying capacity to handle strong suspension systems and heavyweights is expected to accelerate the demand for heavy trucks. Increased supply of goods and materials to various end-user industries and high-end investment for infrastructure development by government authorities are expected to fuel the demand for heavy-duty trucks in the next five years.
Based on the end-use industry, the market is divided into oil & gas, FMCG, e-commerce, mining, construction, and others. The oil & gas industry is expected to grow at a CAGR of 6.01% to hold the largest market share in the forecast period. The oil & gas industry is the major revenue-generating industry in Saudi Arabia. It requires the use of pick-up trucks to carry explosive materials like petroleum and related products from on-site for further processing is expected to fuel the Saudi Arabia truck leasing and rental market growth in the next five years.
Based on booking, the market is divided into online and offline. The online segment is expected to witness the fastest incremental growth in the forecast period. High internet penetration and the proliferation of smart devices are strengthening the foothold of online sales channels in the country. Companies have started to avail services using online platforms and get the truck delivered to their address. Ijarah Finance and Abdul Latif Jameel IPR Company Limited are some of the companies offering truck leasing and rental services at lucrative discounts. Growing awareness about the benefits of opting for online platforms is expected to significantly contribute to the Saudi Arabia truck leasing and rental market over the next five years.
Major market players operating in Saudi Arabia’s truck leasing and rental market are :
- Yanal Finance Company
- Saudi Transport & Investment Co. (Mubarrad)
- Fraikin Dayim Truck Rental Ltd
- Aljozoor Alrasekha Trucking Ltd. (Rahaal)
- Trukker Holding Limited
- Neeraan International Contracting Co.
- Imad Company for Trading & Contracting
- Trukkin Middle East FZ-LLC
- Federal Wave Specialized Contracting Establishment
- Spark Arabia
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“The ongoing activities such as the construction of Neom and Qiddiya city and Red Sea Project, and other infrastructure development projects require vast amounts of construction material and equipment to complete the project on time. Companies involved in multiple projects prefer to take trucks for short durations, avoid hefty investments, and increase profit margins. The strong economic position of Saudi Arabia is fueling industrialization and urbanization in the country. Market players are expected to invest in the expansion of product portfolio to garner customer attraction and adopt alternate distribution channels and aggressive marketing strategies to stay ahead in the market, which in turn is expected to propel the Saudi Arabia truck leasing and rental market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“Saudi Arabia Truck Leasing and Rental Market By Lease Type (Finance Lease, Full Rental), By Truck Type (Heavy Duty, and Medium Duty), By End-Use Industry (Oil & Gas, FMCG, Construction, Mining, E-Commerce), By Booking (Offline, Online), By Region, By Company, Forecast & Opportunities, 2017- 2027F”, has evaluated the future growth potential of Saudi Arabia truck leasing and rental market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Saudi Arabia’s truck leasing and rental market.
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