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

  • Industry : Automotive
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  • Pages : 77
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  • Published Date : March, 2022
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Summary

Report Description

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.

Attribute

Details

Market Size Value in 2021

USD3,334.48 Million

Revenue Forecast in 2027

USD5,357.20 Million

Growth Rate

6.51%

Base Year

2021

Historical Years

2017 – 2021

Estimated Year

2022

Forecast Period

2022 – 2027

Quantitative Units

Revenue in USD Million, Volume in Units, and CAGR for 2017-2021 and 2022-2027

Report Coverage

Revenue forecast, volume forecast, company share, competitive landscape, growth factors, and trends

Segments Covered

·         By Lease Type

·         By Truck Type

·         By End Use Industry

·         By Booking

·         By Region

Region Scope

Northern & Central Region, Western Region, Eastern Region, Southern Region.

Key Companies Profiled

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  

Customization Scope

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

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:
    • Heavy Duty  
    • Medium Duty
  • 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]

Table of content

1.    Service Overview

2.    Research Methodology 

3.    Executive Summary

4.    Voice of Customer

4.1.  Factors Influencing Purchase Decision

4.2.  Customer Satisfaction

4.3.  Brand Recall

5.    Impact of COVID-19 on Saudi Arabia Truck Leasing and Rental Market

6.    Saudi Arabia Truck Market Overview

7.    Saudi Arabia Truck Leasing and Rental Market Overview

8.    Saudi Arabia Truck Leasing and Rental Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.2.  Market Share & Forecast

8.2.1.     By Lease Type (Finance Lease, Full Rental)

8.2.2.     By Truck Type (Heavy Duty, Medium Duty)

8.2.3.     By End Use Industry (Oil & Gas, FMCG, E-Commerce, Mining, Construction, Others)

8.2.4.     By Booking (Online, Offline)

8.2.5.     By Region (Western Region, Northern and Central Region, Eastern Region, Southern Region)

8.2.6.     By Company (2021)

8.3.  Market Map (By Lease Type, By Truck Type, By Application, By Booking, By Region)

9.    Saudi Arabia Truck Finance Lease Market Outlook

9.1.  Market Size and Forecast

9.1.1.     By Value

9.2.  Market Share and Forecast

9.2.1.     By Truck Type

9.2.2.     By End Use Industry

9.2.3.     By Booking

10.  Saudi Arabia Truck Full Rental Market Outlook

10.1.              Market Size & Forecast

10.1.1.  By Value

10.2.              Market Share & Forecast

10.2.1.  By Truck Type

10.2.2.  By End Use Industry

10.2.3.  By Booking

11.  Market Dynamics

11.1.              Drivers

11.2.              Challenges

12.  Market Trends and Developments

13.  Policy and Regulatory Landscape

14.  Saudi Arabia Economic Profile

15.  Competitive Landscape

15.1.              Yanal Finance Company

15.2.              Saudi Transport & Investment Co. (Mubarrad)

15.3.              Fraikin Dayim Truck Rental Ltd

15.4.              Aljozoor Alrasekha Trucking Ltd. (Rahaal)

15.5.              Trukker Holding Limited

15.6.              Neeraan International Contracting Co.

15.7.              Imad Company for Trading & Contracting

15.8.              Trukkin Middle East FZ-LLC

15.9.              Federal Wave Specialized Contracting Establishment

15.10.            Spark Arabia

16.  Strategic Recommendations

Figures and Tables

List of Figures:

Figure 1: Saudi Arabia Truck Leasing & Rental Market Size, By Value (USD Million), 2017-2027F                     

Figure 2: Saudi Arabia Truck Leasing & Rental Market Share, By Lease Type, 2017-2027F

Figure 3: Saudi Arabia Truck Leasing & Rental Market Share, By Truck Type, 2017-2027F

Figure 4: Saudi Arabia Truck Leasing & Rental Market Share, By Application, 2017-2027F Figure 5: Saudi Arabia Truck Leasing & Rental Market Share, By Booking, 2017-2027F

Figure 6: Saudi Arabia Truck Leasing & Rental Market Share, By Region, 2017-2027F  

Figure 7: Saudi Arabia Truck Leasing & Rental Market Share, By Company, By Value, 2021                                                     

Figure 8: Saudi Arabia Truck Leasing & Rental Market Map, By Lease Type, Market Size (USD Million) & Growth Rate (%)                                                                                                          

Figure 9: Saudi Arabia Truck Leasing & Rental Market Map, By Truck Type, Market Size (USD Million) & Growth Rate (%)          

Figure 10: Saudi Arabia Truck Leasing & Rental Market Map, By Application, Market Size (USD Million) & Growth Rate (%)

Figure 11: Saudi Arabia Truck Leasing & Rental Market Map, By Booking, Market Size (USD Million) & Growth Rate (%)                                                      

Figure 12: Saudi Arabia Truck Leasing & Rental Market Map, By Region, Market Size (USD Million) & Growth Rate (%)                                                      

Figure 13: Saudi Arabia Truck Finance Lease Market Size, By Value (USD Million), 2017-2027F

Figure 14: Saudi Arabia Truck Finance Lease Market Share, By Truck Type, 2017-2027F

Figure 15: Saudi Arabia Truck Finance Lease Market Share, By Application, 2017-2027F         

Figure 16: Saudi Arabia Truck Finance Lease Market Share, By Booking, 2017-2027f               

Figure 17: Saudi Arabia Truck Full Rental Market Size, By Value (USD Million), 2017-2027F

 Figure 18: Saudi Arabia Truck Full Rental Market Share, By Truck Type, 2017-2027F

Figure 19: Saudi Arabia Truck Full Rental Market Share, By Application, 2017-2027F

Figure 20: Saudi Arabia Truck Full Rental Market Share, By Booking, 2017-2027F

Frequently asked questions

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Saudi Arabia truck leasing and rental market stood at USD334.48 million in the year 2021 in the terms of value. This is because of the increasing price of new trucks people are preferring to take trucks on lease for a certain period of time.

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The Northern & Central region is the largest leasing market with a market share of 54.87% in Saudi Arabia’s truck leasing and rental market in 2021 and the same region is expected to be the largest market share with a CAGR of 6.11% in the forecast years

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Some of the key players in the Saudi Arabia truck leasing and rental market include 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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Growing Tourism Expenditure, increasing preference for leasing vehicles over owning them, addition of different types of vehicles are some of the trends in Saudi Arabia truck leasing and rental market.

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Sakshi Bajaal

Principal Consultant
Press Release

Saudi Arabia Truck Leasing and Rental Market to Grow at a CAGR of 6.51% through 2027

Mar, 2022

Various ongoing construction projects in the country are raising the demand for trucks, by which many corporate companies take trucks on lease, thus driving the Saudi Arabia truck leasing and rental

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