Dublin, Dec. 12, 2024 (GLOBE NEWSWIRE) — The “UAE Truck Leasing & Rental Market, By Region, Competition, Forecast and Opportunities, 2019-2029F” report has been added to ResearchAndMarkets.com’s offering.
The UAE Truck Leasing & Rental Market was valued at USD 1.02 billion in 2023, and is expected to reach USD 1.72 Billion by 2029, rising at a CAGR of 9.44%.
The UAE truck market is growing during the coming years owing to the rapid increase in demand for trucks in the transportation sector, construction activities, and logistics sector. The UAE’s robust economic growth, particularly in cities like Dubai and Abu Dhabi, has led to an increased demand for commercial vehicles, such as trucks.
Rapid urbanization and development projects, including the construction of new roads, highways, and industrial zones, have significantly boosted the need for trucks. Massive investments in infrastructure projects, including the expansion of ports, airports, and logistics hubs, have fueled the demand for heavy-duty trucks.
Projects like the Etihad Rail, which aims to connect key cities across the UAE, have created substantial opportunities for the truck market. The UAE government’s focus on diversifying the economy and enhancing the logistics sector has led to favorable policies that support the growth of the truck market. Initiatives such as the UAE Vision 2021 and the Dubai Industrial Strategy 2030 aim to develop the country’s infrastructure and logistics capabilities, providing a significant boost to the truck industry. As the e-commerce sector continues to grow, so will the need for efficient logistics solutions. Companies that can provide reliable and scalable truck services to support e-commerce operations will find ample growth opportunities.
The UAE has actively expanded its defense and commercial vehicle capabilities, emphasizing advanced and versatile solutions for various sectors. A new fleet of JAC heavy-duty trucks was unveiled in the UAE, designed to meet the diverse needs of industries such as construction, logistics, and transportation. The new models featured spacious cabs, ergonomic dashboards, and air suspensions to ensure driver comfort. They were equipped with powerful engines and advanced transmissions to handle harsh conditions while maintaining reliability and fuel efficiency.
Key Market Trends
Government support towards Infrastructure Projects
The UAE government’s endorsement of infrastructure projects, along with the burgeoning construction sector, coupled with the commencement of grand-scale ventures, is driving the demand for the truck leasing and rental market. This is in response to the country’s significant investments in infrastructure, real estate, and tourism, as seen in landmark projects like Expo Dubai Creek Harbour, and the Abu Dhabi Economic Vision 2030. These developments require robust transport and logistics services, where leasing and rental options offer a viable and cost-effective means to meet the growing needs. The UAE has climbed three places to rank seventh globally on the International Institute for Management Development’s World Competitiveness Report, reflecting the country’s strong economic performance, government efficiency, and business efficiency, which also contributes towards the demand for truck leasing and rental market in UAE.
Expansion of EV in Truck Category
In the dynamic landscape of the UAE’s automotive market, a significant trend is the introduction of electric vehicles (EVs), particularly electric trucks, by leading companies. This move towards sustainable transportation is not only an innovation but also a response to the growing environmental concerns about reducing carbon emissions. The integration of EV trucks into fleets is becoming a competitive edge for leasing and rental companies, offering them the opportunity to cater to eco-conscious customers while capitalizing on the lower operating costs of EVs compared to traditional trucks. For instance, in June 2024, IKEA UAE launched a new eight-tonne electric delivery truck. The electric truck, powered by advanced Lithium Iron Phosphate (LFP) battery technology, has a range of 250 kilometers. This initiative aligns with the UAE’s national policy to support the electric vehicle industry and promote sustainable transport solutions.
Economic Growth and Rising Population
The UAE’s economic structure, characterized by a high dependence on imports and a thriving consumer market driven by increasing population and per capita incomes, significantly influences the demand for transportation and logistics services, particularly for trucks. As the population grows and incomes rise, there is a corresponding surge in consumption of goods ranging from essentials to luxury items, bolstered by the country’s reputation as a regional trade and business hub.
The UAE’s strategic location as a gateway between East and West enhances its role in global trade, necessitating robust logistics and transportation infrastructure to facilitate the movement of goods. For instance, Foreign Direct Investment (FDI) flows into the United Arab Emirates (UAE) reached a record high of USD23 billion in 2022, reflecting the UAE’s status as an attractive investment destination. With a substantial portion of consumer goods being imported, the demand for efficient and reliable trucking services will rise and lead to the expansion of truck leasing & rental market in UAE.
Region Insights
In 2023, Dubai emerged as the dominant region in the UAE’s truck leasing and rental market. As the commercial and economic hub of the country, Dubai’s demand for truck leasing services remains high due to its diverse and rapidly growing industries. The city’s expansive infrastructure development, booming retail sector, and large-scale logistics operations require a reliable fleet of trucks for transportation, delivery, and distribution. Dubai’s strategic location as a global trading hub further drives the need for heavy-duty and medium-duty trucks, particularly for long-haul logistics within the region and beyond. The ongoing expansion of the city’s construction projects, coupled with the rise in e-commerce and retail distribution, fuels demand for light-duty trucks, making it a highly active market for various vehicle types.
The region’s robust infrastructure network, including major highways and ports, supports the growth of truck leasing and rental services, providing companies with easy access to transportation options for both short and long-distance routes. In 2023, Dubai’s logistics and transportation sectors contributed significantly to the leasing market as businesses sought efficient solutions to meet growing demand. Furthermore, the ongoing development of Dubai’s Expo 2020 legacy projects, large-scale real estate ventures, and the vibrant hospitality and tourism industries have driven additional demand for transportation fleets, especially in areas like construction and distribution.
The competitive nature of the market in Dubai ensures that businesses offering truck leasing services must maintain high standards of fleet maintenance and customer service. The significant number of logistics companies, retailers, and service providers operating in the city makes it a highly sought-after market for truck rentals, with businesses looking to optimize their operations through flexible rental agreements. Dubai’s modern infrastructure, coupled with its economic prominence, positions it as the leading region for truck leasing and rental activities in the UAE in 2023, making it a key player in shaping the market’s dynamics across the country.
Key Market Players
- Cactus General Transport
- Great Movers General Transport
- Noor Ahmed Transports
- Frontline Logistics
- Trukkin Middle East FZ-LLC
- Sand Dunes Transport
- Ahmed Alameri Transportation
- Convoy Heavy Equipment Rental
- Shanawaz Group
- Autobahn Car Rental
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2023 – 2029 |
| Estimated Market Value (USD) in 2023 | $1.02 billion |
| Forecasted Market Value (USD) by 2029 | $1.72 Billion |
| Compound Annual Growth Rate | 9.4% |
| Regions Covered | United Arab Emirates |
Report Scope:
In this report, the UAE Truck Leasing & Rental Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
UAE Truck Leasing & Rental Market, By Vehicle Type:
- Light Duty Truck
- Heavy Duty Truck
- Medium Duty Truck
UAE Truck Leasing & Rental Market, By End Use:
- Oil & Gas
- Construction
- Wholesale/ Retail
- Logistics
- Mining
- Others
UAE Truck Leasing & Rental Market, By Booking:
UAE Truck Leasing & Rental Market, By Region:
- Dubai
- Abu Dhabi
- Sharjah
- Rest of UAE
For more information about this report visit https://www.researchandmarkets.com/r/7tfttw
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- UAE Truck Leasing & Rental Market
