Market Trends of Europe Medium and Heavy Duty Truck Rental Leasing Industry
This section covers the major market trends shaping the Europe Medium & Heavy Duty Truck Rental Leasing Market according to our research experts:
Rising Emission Standards in Europe
There are nearly 6 million trucks on EU roads. Almost 98.3% of them run on diesel, 1% on gasoline, and the remainder on other fuels. In May 2018, the European Commission presented a legislative proposal for setting up the first-ever CO2 emission standards for heavy-duty vehicles. A provisional agreement was reached on the same in February 2019. As a first step, these standards are proposed for large lorries, which account for 65-70% of all emissions from heavy-duty vehicles.
Major European Union countries, including Germany, France, and the United Kingdom, have strictly prohibited older diesel trucks from operating in a few cities. Such bans have had a significant impact on transportation services in EU countries. As a result, companies in retail and logistics have begun to prefer trucks with improved emission standards, as well as eco-friendly trucks, such as hybrid and electric trucks, in their business operations.
Renting and leasing behemoths in Europe, such as Penske, have invested tens of millions of dollars in transportation management platforms to assist shippers in optimizing their supply chains, reducing waste, identifying areas for improvement, reducing cycle time, and reducing inventory, all of which reduce overall costs. For instance, in July 2021, Penske Truck Rental introduced its first-ever mobile app for consumer truck rental customers. It could provide do-it-yourself movers with the ability to manage their moves more efficiently and effectively. Additionally, the Penske Truck Rental app incorporates insurance bundling options.
Rest of Europe is witnessing significant growth
The countries considered in the rest of Europe are the Netherlands, Russia, Sweden, Poland, and Belgium, among others.
In Greece, companies are not permitted to lease trucks without a driver. Businesses in the country frequently buy used trucks from other countries to meet their transportation needs. As a result, Greece's average truck age is approaching 20 years.
The United Kingdom also held a significant market share in terms of revenue in 2021 and is expected to grow during the forecast period. Several major players are investing in the R&D of advanced technology to attract customers, overcome the growing problem of driver shortages, and gain market share.
Following the three-year plan, the association launched a 'Plug-in Pledge,' aiming to register 300,000 plug-in vehicles by 2025. As a result, the rental industry is expected to adopt electric trucks. Manufacturers such as Magtec, Daimler, and Renault have electric trucks in their portfolios for the UK market.
Based on such developments, the market is expected to witness considerable growth during the forecast period.
