Dublin, Jan. 02, 2025 (GLOBE NEWSWIRE) — The “Saudi Arabia Truck Leasing and Rental Market, By Region, Competition, Forecast & Opportunities, 2019-2029F” report has been added to ResearchAndMarkets.com’s offering.
The Saudi Arabia Truck Leasing and Rental Market was valued at USD 379.45 Million in 2023, and is expected to reach USD 553.98 Million by 2029, rising at a CAGR of 6.51%.
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.
Emerging trends highlight the growing adoption of digital platforms in truck leasing and rental services, improving customer experience and streamlining processes. Technological advancements in fleet management, such as telematics and GPS tracking, enhance efficiency and safety, making leasing more attractive to companies. The market is also shifting towards eco-friendly and fuel-efficient vehicles as environmental concerns and regulatory pressures intensify. These trends align with Saudi Arabia’s broader sustainability goals, encouraging leasing companies to expand offerings in electric and hybrid trucks.
Despite these opportunities, the market faces challenges, including fluctuating fuel prices and the high cost of advanced truck models, which can deter adoption for smaller businesses. Regulatory compliance related to vehicle emissions and safety adds complexity to operations, increasing costs for providers. Additionally, the availability of skilled drivers remains a bottleneck, impacting service reliability and efficiency. Addressing these issues is crucial for the market to sustain its growth trajectory while meeting evolving industry demands.
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.
Regional Insights
In 2023, the Eastern region of Saudi Arabia stands out as the dominant area in the truck leasing and rental market. This region’s prominence is largely driven by its central role in the country’s oil and gas industry, which significantly influences the demand for transportation services. The Eastern province, home to key industrial cities such as Dammam, Dhahran, and Al Khobar, plays a crucial part in supporting logistics and infrastructure development for the energy sector. The substantial logistics demand for moving goods, equipment, and materials related to the oil industry drives the high demand for trucks in this region. Furthermore, the increasing focus on industrial diversification and urbanization under Vision 2030 has resulted in large-scale construction and development projects, further boosting the demand for truck leasing and rental services.
The region’s strategic location, with its proximity to major ports like the King Fahd Port in Dammam, also enhances its importance as a transportation hub. This provides easy access to both local and international markets, increasing the reliance on flexible and scalable truck leasing solutions to meet the growing logistics needs. Additionally, the region’s infrastructure development is focused on enhancing transport links, including roads and logistics hubs, which further strengthens the need for reliable vehicle fleets, which leasing and rental services provide.
Economic diversification efforts are also playing a role in shifting the region towards more diversified industries such as manufacturing, petrochemicals, and non-oil sectors. This broadens the types of companies needing trucks for various uses, from transporting raw materials to delivering goods and products. Truck leasing becomes an attractive option for these companies, as it reduces capital expenditures while ensuring access to modern fleets and equipment.
The Eastern region’s continuous industrial growth, coupled with its pivotal role in logistics, infrastructure, and trade, positions it as the largest and most active market for truck leasing and rental services in Saudi Arabia in 2023. The convergence of oil-related industries, regional infrastructure projects, and diversified economic activities makes it the leading region for this market segment.
Key Market Players
- YANAL Finance Company
- Saudi Transport and Investment Company (Mubarrad)
- Fraikin Dayim Truck Rental Ltd
- United International Transport, Inc.
- TruKKer Technologies DMCC
- Neeraan International
- IMAD COMPANY
- Trukkin Middle East FZ-LLC
- Arabian transporter Co.
- Hertz Corporation
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2023 – 2029 |
| Estimated Market Value (USD) in 2023 | $379.45 Million |
| Forecasted Market Value (USD) by 2029 | $553.98 Million |
| Compound Annual Growth Rate | 6.5% |
| Regions Covered | Saudi Arabia |
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:
Saudi Arabia Truck Leasing and Rental Market, By Truck Type:
Saudi Arabia Truck Leasing and Rental Market, By End-User Industry:
- Oil & Gas
- FMCG
- Construction
- Mining
- E-Commerce
Saudi Arabia Truck Leasing and Rental Market, By Booking:
Saudi Arabia Truck Leasing and Rental Market, By Region:
- Northern & Central
- Western
- Eastern
- Southern
For more information about this report visit https://www.researchandmarkets.com/r/78bwu3
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- Saudi Arabian Truck Leasing and Rental Market
