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Forecast Period
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2026-2030
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Market Size (2024)
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USD 379.45 Million
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CAGR (2025-2030)
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6.51%
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Fastest Growing Segment
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Finance Lease
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Largest Market
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Eastern Region
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Market Size (2030)
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USD 553.98 Million
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Market
Overview
The Saudi Arabia Truck Leasing and Rental market was valued at
USD 379.45 Million in 2024 and is expected to reach USD 553.98 Million by 2030
with a CAGR of 6.51% during the forecast period. The truck leasing and
rental market in Saudi Arabia is experiencing steady growth, driven by an
increasing focus on logistics, transportation, and construction projects. With
the rising need for cost-effective supply chain solutions, businesses are shifting
from ownership to leasing, eliminating maintenance expenses and providing
access to modern fleets. Infrastructure developments under Vision 2030 have
further elevated the demand for trucks to support mega-projects across diverse
sectors. The market also benefits from the flexibility leasing offers, enabling
businesses to scale operations without high capital investment.
Market Drivers
Growing
Logistics and Transportation Needs
As
Saudi Arabia expands its trade and industrial sectors, the logistics industry
has seen a significant surge in demand. Manufacturing, retail, and e-commerce
companies increasingly rely on efficient transportation systems to move goods.
Leasing and renting trucks provide a cost-effective solution for businesses
looking to optimize their supply chain without committing to the high upfront
costs of purchasing fleets. With the rise of mega-projects like NEOM, the need
for reliable transportation will continue to drive the truck leasing and rental
sector. For instance, in 2024, during the 94th Saudi National Day, the
Ministry of Transport and Logistics Services showcased Saudi Arabia's vital
role in the global logistics sector, driven by Saudi Vision 2030. The National
Transport and Logistics Strategy has spurred significant investment and
activity, leading to a rise in Saudi Arabia's ranking to the 15th largest
handler of shipping containers worldwide, as reported by Lloyd’s List. The
Kingdom has invested USD 1.2 billion to enhance its ports, with King Abdullah
Port leading the way in eco-friendly operations, reducing carbon emissions by
over 20% through solar energy and water-saving practices.
Infrastructure
Development Under Vision 2030
Vision
2030 has sparked widespread infrastructure development, including smart cities,
industrial hubs, and tourism projects. These large-scale initiatives require a
robust transportation network for material and equipment movement, driving
demand for trucks. Leasing services help companies meet these temporary needs
without long-term investment. These dynamic supports economic diversification
goals while fueling growth in the leasing and rental market. For instance, Saudi
Arabia is set to invest approximately $1 trillion in infrastructure by 2030, as
announced by Economy Minister Faisal Alibrahim during the PIF Private Sector
Forum. He emphasized that this massive investment, aligned with long-term
private-sector strategies, aims to accelerate non-oil sector growth by 2026.
The Public Investment Fund (PIF) plays a central role in this transformation by
launching strategic companies, nurturing human capital, and fostering
public-private partnerships.
Corporate
Preference for Flexible Operations
Companies
increasingly prioritize operational flexibility to adapt to market fluctuations
and project-specific requirements. Truck leasing and rental services offer this
flexibility, allowing businesses to adjust fleet sizes without long-term
commitments. This is especially advantageous for sectors such as construction,
where demand for transportation can vary significantly over time. By opting for
leasing, businesses can mitigate risks associated with asset depreciation and
maintenance while ensuring access to modern and reliable vehicles. This shift
in corporate strategy underscores the growing preference for adaptable
solutions, making leasing an attractive choice for enterprises aiming to remain
agile in competitive markets.
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Key Market Challenges
Intense Market Competition
The
truck leasing and rental industry in Saudi Arabia is becoming increasingly
competitive, with numerous players vying for market share. To attract clients,
providers often resort to aggressive pricing strategies, which can erode profit
margins. Smaller companies, in particular, struggle to compete with larger
firms offering comprehensive packages and value-added services, creating a
challenging landscape for sustained growth.
Limited
Skilled Workforce
The
availability of skilled drivers remains a persistent issue in Saudi Arabia.
Without a sufficient pool of qualified personnel, truck utilization rates and
service reliability can suffer. This challenge not only impacts the efficiency
of leasing operations but also raises concerns among clients regarding service
quality and safety.
Fuel
Price Volatility
Frequent
fluctuations in fuel prices create uncertainty in operational costs for
businesses relying on leased trucks. High fuel prices can strain budgets,
particularly for companies in sectors like logistics and construction that
heavily depend on transportation. This volatility impacts the overall appeal of
leasing services, as businesses may hesitate to commit to agreements when faced
with unpredictable expenses.
Key
Market Trends
Digital
Transformation in Leasing Services
Digitalization
is revolutionizing the leasing market, with platforms enabling online bookings,
fleet tracking, and seamless payment solutions. These innovations enhance
customer convenience and operational efficiency, setting new industry
standards. The adoption of digital tools not only streamlines processes but
also appeals to tech-savvy clients, ensuring a competitive edge for early
adopters.
Shift
Toward Long-Term Leasing Contracts
Long-term
leasing agreements are gaining traction as businesses seek predictable expenses
and tailored service packages. These contracts are particularly popular among
industries with consistent transportation needs, offering stability and cost
efficiency. The preference for long-term solutions underscores the market’s
evolution towards more structured and client-focused offerings.
Rise
in Sustainable Fleet Options
The
increasing emphasis on sustainability has driven demand for eco-friendly
trucks, such as hybrid and electric models. Leasing companies are actively
expanding their green fleet offerings to align with environmental goals and
attract businesses prioritizing sustainability. This trend is expected to grow
as regulatory frameworks and consumer preferences continue to favor
environmentally responsible practices. For instance, In 2023, Quantron AG, a
clean technology firm specializing in sustainable transportation for both
passengers and freight, in collaboration with its partner Electromin, which is
fully owned by the Petromin Corporation, announced the delivery of the inaugural
50 QUANTRON QARGO 4 EV trucks in the Kingdom of Saudi Arabia. These vehicles
have been prepared for use by clients such as PepsiCo and Red Sea Global. This
delivery marks the largest shipment of battery-electric trucks in the Kingdom,
representing a significant step towards the decarbonization of mobility, in
alignment with the sustainability objectives outlined in Saudi Vision 2030.
Segmental
Insights
Truck Type Insights
In 2024,
the Heavy Duty truck segment dominated Saudi Arabia's truck leasing and rental
market. This segment's prominence is largely driven by the substantial demand
for trucks in large-scale construction, mining, and logistics operations. Heavy
Duty trucks are essential for transporting goods across long distances,
handling larger cargo volumes, and operating in rugged environments. As
infrastructure development continues to be a key focus of Saudi Arabia's
economic diversification, the need for Heavy Duty trucks has surged. These
trucks are integral to projects like the construction of roads, bridges, and
large industrial complexes, where high-capacity vehicles are required to
transport building materials, equipment, and machinery.
The
growth of sectors such as oil and gas, construction, and retail also plays a
significant role in the rising demand for Heavy Duty trucks. For instance, Saudi
Arabia’s construction sector witnessed strong momentum in 2024, with over 3,800
new licenses issued, marking a 59% surge in the fourth quarter alone and
bringing the total number of valid licenses to nearly 8,900. This expansion
reflects enhanced investor confidence and an accelerated push under Vision 2030
reforms to streamline market entry. Beyond construction, more than 14,000
permits were granted across various industries, indicating broad-based economic
liberalization. Their ability to
carry heavy loads over extended periods makes them indispensable for businesses
involved in supply chain and logistics management.
Region
Insights
In 2024,
the Eastern region of Saudi Arabia emerged as the dominant market for truck
leasing and rental services, driven by its vital role in the oil and gas
industry and concentration of industrial hubs like Dammam, Dhahran, and Al
Khobar. The region’s high logistics demand, port connectivity through King Fahd
Port, and large-scale infrastructure projects under Vision 2030 created
sustained need for flexible transport solutions. Growing economic
diversification into petrochemicals and manufacturing expanded the customer
base for leasing services, while improved road networks and logistics hubs
reinforced the Eastern province’s position as a key transportation and rental
hub.
In the
Central region, Riyadh's role as the administrative and economic center
contributed to growing demand for truck leasing and rental, especially for
last-mile delivery and intercity freight. Government-backed mega projects, new
industrial zones, and continuous commercial development drove the need for
scalable truck fleets. Businesses preferred leasing to avoid upfront capital
expenses while maintaining access to well-maintained vehicles for varied urban
logistics needs.
In the
Northern region, the expansion of mining activities and NEOM-related
developments significantly boosted truck rental requirements. The challenging
terrain and evolving infrastructure prompted businesses to seek flexible lease
terms for heavy-duty vehicles. As transportation networks developed to support
new economic zones, leasing emerged as a strategic option for ensuring fleet
availability without long-term asset ownership, particularly for companies
operating in remote areas
Recent
Developments
- In 2024, Tata Motors launched its first AMT truck, the
Prima 4440.S AMT, in Saudi Arabia and showcased five commercial vehicles at the
HEAT Show in Dammam, targeting the country’s logistics and transportation needs.
- In June 2024, JAC unveiled its full range of medium and
heavy trucks including cargo, tractor, and dump models in Dammam, finalizing
its commercial vehicle lineup in the Saudi market.
- In 2024, SDEC, Perfect Arabia Factory (PAF), and Daewoo
Trucks signed an MoU to explore commercial truck manufacturing in Saudi Arabia,
aiming to boost local production, jobs, and technology transfer.
- In 2025, Lumi has launched its largest service and
maintenance center yet in Tabuk's industrial zone, spanning 4,500 m² its first
in the northern region. Equipped to service both cars and buses, the facility
can handle up to 30 vehicles daily and features advanced diagnostic and
automated systems.
Key
Market Players
- YANAL
Finance Company
- Saudi Transport and Investment Company
(Mubarrad)
- Fraikin Dayim Saudi Arabia
- United International Transport Company
- TruKKer Technologies DMCC
- Neeraan International
- IMAD COMPANY
- Trukkin Middle East FZ-LLC
- Arabian transporter Co.
- Musallam & Partner Co.
|
By Lease Type
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By Truck Type
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By End-User Industry
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By Booking
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By Region
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|
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- Oil & Gas
- FMCG
- Construction
- Mining
- E-Commerce
|
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- Northern & Central
- Western
- Southern
- Eastern
|
Report Scope:
In
this report, the Saudi Arabia Truck Leasing and Rental Market has been
segmented into the following categories, in addition to the industry trends
which have also been detailed below:
·
Saudi Arabia Truck Leasing and Rental Market, By Lease
Type:
o
Finance Lease
o
Full Rental
·
Saudi Arabia Truck Leasing and Rental Market, By Truck
Type:
o
Heavy Duty
o
Medium Duty
·
Saudi Arabia Truck Leasing and Rental Market, By End-User
Industry:
o
Oil & Gas
o
FMCG
o
Construction
o
Mining
o
E-Commerce
- Saudi Arabia Truck Leasing and Rental Market, By Booking:
o
Online
o
Offline
·
Saudi Arabia Truck Leasing and Rental Market, By Region:
o
Northern & Central
o
Western
o
Eastern
o
Southern
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the Saudi Arabia Truck Leasing and
Rental Market.
Available Customizations:
Saudi
Arabia Truck Leasing and Rental Market report with the given market data,
Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed
analysis and profiling of additional market players (up to five).
Saudi Arabia Truck Leasing and Rental Market is
an upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]