Saudi Arabia’s truck
leasing and rental market was valued at USD3,334.48 million in the year 2021,
and the market is anticipated to grow in the forecast period with a CAGR of
6.51% in terms of value in the period 2022-2027. The growth in the market is attributed
to the fact that the country is undergoing numerous construction activities,
and these construction companies prefer to take trucks on lease instead of
owning them, as leasing a truck has greater cost benefits than purchasing it.
Moreover, Saudi Arabia’s 90% land is covered by sand making the land infertile
for farming due to which the government of Saudi Arabia is dependent on the
import of goods for the consumers. The imported goods are carried out with the
help of trucks from one place to another in Saudi Arabia, for which government
takes trucks on lease by the leasing companies for a certain period. With time
the automotive industry is witnessing large-scale technological innovation, a
result of which many new products are coming out in the market like electric
trucks, autonomous trucks, etc. Leasing companies are also adding such variety
of trucks in their product offerings. Since these latest truck models are
costlier than the conventional ones, the customers prefer to lease/rent them
out at a lower cost.
Leasing a truck is an
agreement between the leasing company and the lessee, in which a person gets a
used truck for a specific period of time by the leasing companies in exchange
for the payment monthly wise. Leasing or renting trucks is more profitable as
compared to buying a new one, as a person can take a truck on lease or on rent
according to the need and can have the option to make a payment at the end of
the month. One of the main benefits of taking a truck on lease is that at the
end of the agreement, a person can buy the truck as the leasing company gives
an option to buy the truck when the lease expires. While taking the truck on
lease, one must sign the agreement which is set by the leasing company, which
has given terms and conditions by the leasing company. Many companies'
agreement includes a number of miles one is allowed to drive the truck within a
year and also the total number of miles a truck driver is allowed to accrue
during the term of the lease, a person who takes the truck on lease is asked to
pay the penalties for the exceeding of the mileage limits which was set at the
leasing time.
Get New Truck Frequently
The main drawback of
owning a truck is that the owner has to take responsibility for maintaining it
as well as at times he has to face the wrath of the depreciating value of the
truck. Hence, the customers can face challenges in reselling the truck, but if
they opt for the leasing/rental option, the customers will have the option to
get a new truck after the end of every term of the rental/leasing period.
Generally, a typical leasing contract offered by any leasing or rental company
is a maximum of three years. This means that after every three years, a person
can have a new truck with better safety features, no major issues, and with
maintenance packages.
Capitalized Cost
At the time of
purchasing a truck, customers do not have the option to decide the price as the
price is fixed by the manufacturers. However, while taking the truck on lease,
a person can negotiate with the dealer for the lease price of the truck, as
they have wide options to negotiate such as the down payment, monthly payment,
the lease term, the closing factors, and the security deposit.
Logistic Solution for
Automotive Companies
Saudi Arabia is home to
a significant number of passenger cars, with more than 16 million vehicles
reported on-road as of 2022. Apart from having this huge number of vehicles on
the road, there is no vehicle manufacturing plant for any company in Saudi
Arabia. Most of the cars are imported from around the world with the help of
ships at the port, and trucks are used to deliver the cars from port to the
cities of Saudi Arabia. Cars are also brought from the neighboring countries in
Saudi Arabia by the mean of trucks. Therefore, many automotive companies,
showrooms owners order a certain number of trucks at a time for the
transportation of cars, and for that, they hire trucks on lease/rent by the
leasing and renting company.
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Market Segmentation
The Saudi Arabia truck leasing
and rental market is segmented based on lease type, truck type, end use
industry, booking, and region type. Based on lease type, the market is further
fragmented into finance type and full rental. Based on the truck type, the
market is bifurcated into the heavy and medium trucks. In truck type, heavy
trucks account for the dominant market share of 66.52% in the year 2021. In
Saudi Arabia, many construction projects are going on due to which trucks are
in high demand, and due to these projects, many corporate firms take trucks on
rent/lease till the project ends. With the high demand for trucks on the
construction sites, the demand for leasing and rental companies’ trucks is
increasing, which is driving the Saudi Arabia Truck leasing and rental market.
Company Profiles
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 leasing/rental Company are among the major market players in Saudi
Arabia Truck leasing and rental market that lead the market growth of the truck
leasing and rental market in the country.
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Attribute
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Details
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Market Size Value in 2021
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USD3,334.48 Million
|
|
Revenue Forecast in 2027
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USD5,357.20 Million
|
|
Growth Rate
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6.51%
|
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Base Year
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2021
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|
Historical Years
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2017 – 2021
|
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Estimated Year
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2022
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Forecast Period
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2022 – 2027
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Quantitative Units
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Revenue in USD Million, Volume in Units, and CAGR for 2017-2021
and 2022-2027
|
|
Report Coverage
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Revenue forecast, volume forecast, company share, competitive
landscape, growth factors, and trends
|
|
Segments Covered
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·
By Lease Type
·
By Truck Type
·
By End Use Industry
·
By Booking
·
By Region
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Region Scope
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Northern
& Central Region, Western Region, Eastern Region, Southern Region.
|
|
Key Companies Profiled
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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, and Spark Arabia
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|
Customization Scope
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10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
|
|
Pricing and Purchase Options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
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Delivery Format
|
PDF and Excel through Email (We can also provide the editable
version of the report in PPT/pdf format on special request)
|
Report Scope:
In this report, Saudi Arabia truck
leasing and rental market have 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:
- Finance Lease
- Full Rental
- Saudi Arabia Truck Leasing and Rental Market, By Truck Type:
- Saudi Arabia Truck
Leasing and Rental Market, By End Use Industry
- Oil & Gas
- FMCG
- Construction
- Mining
- E-Commerce
- Others
- Saudi Arabia Truck Leasing and Rental
Market, By
Booking:
o Offline
o Online
·
Saudi Arabia Truck
Leasing and Rental Market, By Region:
o
Northern
& Central Region
o
Western
Region
o
Eastern
Region
o
Southern
Region
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in Saudi Arabia truck leasing and
rental market.
Available Customizations:
With the given market data, TechSci
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).
In case you don’t find what you are
looking for, please get in touch with our custom research team at [email protected]