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April
Global Commercial Vehicle Rental & Leasing Market
A Quick Overview on Global Commercial Vehicle Rental & Leasing Market
The commercial vehicle rental market is expected to witness growth in the logistics sector. The rising demands of commercial vehicles will eventually propel the market in the upcoming years.
As well as the rising preferences of corporate companies play toward renting and leasing fleet vehicles. Renting a truck or any fleet vehicle with full-service eliminates their financial responsibility of maintenance, servicing, and vehicle replacement. These are the factors that are anticipated to foster the expansion of the market.
Fraikin Vehicle Rental Company offers comprehensive services that play a substantial role in the market. Most companies like Fraikin provide both types of services that include short-term rental and long-term rental or lease services. It can be widely used for personal and business purposes.
The focus towards a better connectivity solution & enhancing the user-experience effectively for commercial vehicles empowers rapid growth in the market. Whereas, there has an immersive growth opportunity to perform activities like online booking and online services for commercial renting.
Commercial Vehicles Market in Saudi Arabia – Forecast & Opportunities
Saudi Arabia’s commercial vehicles industrial market stood at $ 3.3 billion during 2019. It is forecast to grow at a CAGR of 4 % during the forecast period of increasing the use of commercial vehicles in the transportation and logistics sectors.
Small and medium-sized enterprises and businesses are generating huge demand for commercial vehicle rental & leasing services.
According to Saudi Arabia’s commercial vehicle market by vehicle type, it is forecast to grow at a CAGR of 8.5 percentage during 2017 – 2022. Generally, Saudi Arabia is an oil-based economy & discovered among the countries with the highest GDP per capita. Demand for commercial vehicles in the country is emerging from the construction & infrastructure sectors. Thus, this is projected to grow further in the forecast period.
In addition to that, the rising focus of the Saudi Arabia government is to develop the construction and tourism sectors which are anticipated to fuel on-demand for commercial vehicles. These developments are predicted to positively influence the country’s commercial vehicles market in the coming years.
You can find some of the major companies operating Commercial Vehicles in Saudi Arabia are:
- Toyota Motors Corporation
- Hyundai Motor Company
- Mitsubishi Fuso Truck and Bus Corporation
- Isuzu Motors Saudi Arabia Co
Nowadays, a growing number of small & medium-sized companies are moving towards the preference of renting a long-term fleet vehicle for commercial purposes. This is anticipated to boost the demand for commercial vehicles across Saudi Arabia country in the coming years.
Commercial Vehicle Market by Geography
North America is the largest country in the commercial vehicle market around the world, accounting for 65% of the market in 2020. Then, Asia Pacific is the 2nd largest region deemed for 20% of the global commercial market. Then comes Eastern Europe, which is considered the smallest region in the commercial vehicle market across the world.
Whereas, on the basis of regional analysis, the growth potential of Saudi Arabia is deemed to be the largest share with the rise of population, companies, and industries.
Commercial Vehicle Market Segmentation
Commercial vehicles in Saudi Arabia are segmented by the market. Primarily, there are 2 categories:
- Commercial Vehicles for Rental & Leasing Market by Rent Type
- Commercial Vehicles Rental & Leasing Market by Vehicle Type
Commercial Vehicles for Rental & Leasing Market by Rent Type
The vehicle rental and leasing market are segmented on the basis of rent type and vehicle type. On the basis of rent type, it is differentiated into business and personal use. Commercial vehicle rental for business use is predicted to exhibit significant growth in the market.
Commercial Vehicles Rental & Leasing Market by Vehicle Type
On the basis of vehicle type, the market is divided into Car, Light commercial vehicles, and Medium/Heavy commercial vehicles.
Among these, car rental services hold the biggest market with a higher production of passengers. The light and medium/heavy commercial vehicles are expected to contribute to the expansion of commercial vehicle rental & leasing for various companies & industries.
Benefits of Renting a Commercial Vehicle
In today’s scenario, many companies and industries are switching to commercial vehicle rental over their purchases which contains several advantages. The reason behind the growth of the commercial vehicle service industry - renting a vehicle is cost-effective and you can get it any time. Let’s dive into the advantages of commercial vehicle rental in Saudi Arabia.
Flexibility: Vehicle rental gives you flexibility based on your needs and performs your task by choosing a specific mode of transportation.
Lower Maintenance: Renting a vehicle from Fraikin Full-service Management Company takes care of all fleet services & maintenance.
Vehicle Replacement: When your fleet breaks down without warning, get a faster replacement rental vehicle & keep your business rolling.
Many companies and organizations depend on choosing a rental or leasing vehicle to reduce their cost & increase profits. The growth rate increases with a significant impact on the financial performance of the clients. Fraikin offers vehicle rental and vehicle lease solutions that facilitate other businesses. Even customers can get fleet management services & solutions to specific problems such as:
- Repairs
- Insurance
- Tires
- Conservation
- Replacement Vehicle
- Administration
- Vehicle Sales
- 24/7 Support Service
Conclusion
Commercial vehicles are brewing in the market and growing in trend among businesses. The vehicle rental and leasing sector in Saudi Arabia is secured close to the commercial benefits. Many companies are offering a diverse range of vehicle services that include short-term and long-term rentals and leasing vehicles. As a result of more interest, Fraikin is expected to increase fleet vehicles to cater to the huge demand for rented transportation in all regions.
Overall, the benefits like better mileage, lower operational cost, and easy maneuverability come along with light commercial vehicles influencing the market towards the forecast growth.
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