The Canada truck leasing &
rental market is expected to grow at a steady CAGR in the
forecast period, 2023-2027. The escalating demand for optimization of
operational risks and the inflating need for cost effective solutions towards
the fleet operating organizations are propelling the market growth. With this,
the strict emission control regulations by government bodies of several
countries and fluctuation in fuel prices is supporting the market growth. Also,
increase in freight transport supported by favorable trade policies and rise in
residential moving activities, are propelling the truck rental and leasing
market.
Inflating Awareness Regarding
the Benefits of Truck Leasing & Rental Services Fuels the Market Growth
The economic development activities
across the country are fueling the demand for commercial vehicles. The
decreasing the oil prices has adversely impacted the purchasing capability of
the leading market players. Truck leasing & rental services removes the
hidden costs of buying, as investing in the purchase of trucks comes with
associated expenses of towing, taxes, licensing and fueling, acquiring
substitute vehicles, and other hard costs. With the prolonged ownership of the
trucks, the maintenance and operational cost of the truck also grow, such as regular
inspection, oiling requirements, and replacement of tires. The utilization of
the truck leasing and rental services eliminates the maintenance and repair
expenses involved with the ownership of vehicles, as the service provider must
bear all these costs. Fleet ownership includes indirect costs and issues including
indirect compliance issues, fees associated with driver training and costs and
replacing drivers, and other costs which supports the market growth. The older leased
trucks can be exchanged with their newer versions, which ensures better
services and reduced costs. Additionally, the advantages of availing of truck
leasing and renting services and the entry of new market players are expected
to accelerate stimulate the growth of the Canada truck leasing and rental
services over the forecast period.
Expanding Automotive Sector
is Projected to Bolster the Market Growth
Canada automobile sector is
supported by several factors including labor availability, R&D efforts,
geographic advantage, and government support. The automotive industry is expanding
owing to the increase in the skilled workforce in the country and the huge
potential for foreign direct investments in the country. An immense support
from the government promoting the automotive industry along with the
significant growth in the production of automotive parts and components are
propelling the market growth. Truck manufacturing companies are continuously working
on technological advancements and are introducing advanced features to rise the
fuel efficiency, carrying capacity, and performance of trucks. Therefore, the
launch of novel trucks in the market and the robust growth of the automotive
industry are projected to drive the Canada truck leasing & rental market
growth in the upcoming years.