Analysis of the Medium and Heavy Duty Truck Leasing Market, North America, 2019–2025

Analysis of the Medium and Heavy Duty Truck Leasing Market, North America, 2019–2025

New Truck Rental and Leasing Shipments in the Region Expected to Reach 212,150 Units in 2025 with Strong Demand from Regional Haul Applications

RELEASE DATE
31-Dec-2019
REGION
North America
Research Code: MF2E-01-00-00-00
SKU: AU01942-NA-MR_23963

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Description

The rental and leasing market for medium and heavy duty truck sales in North America is expected to expand at a CAGR of 5.4% from 2019 to 2025. Companies’ financial needs, operational requirements, asset type and utilization including yearly total mileage, desired replacement cycle and usage pattern influencing wear and tear are major factors impacting the methods of truck financing.

Fleets are increasingly adopting safety technologies to raise their Compliance, Safety and Accountability (CSA) scores and reduce insurance premiums. Leasing enables fleets to constantly upgrade fleets with advanced technologies. Additionally, stringent emission regulations are moving fleets towards adopting natural gas and electric trucks. The high initial costs, uncertainty over residual costs, and rapid technological changes in alternate fuel segments are making leasing attractive for fleet managers. Last-mile innovations are driving truck demand in the regional haul and urban delivery segments with a large number fleets preferring full-service leasing to focus on their core competencies. OEMs are enhancing captive leasing with service options, fleet management products, and flexible payment options.

This study sheds light on the market size across medium and heavy duty commercial vehicle and trailer segments and provides sales data for the retail market, as well as operational leasing, and financial leasing of trucks and trailers. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space in North America and offers a detailed account on the key trends, market overview, and outlook.

Operational leasing will experience a 6.4% and 7.2% CAGR during 2019-2025 in Class 4-7 and Class 8 trucks respectively. It will be preferred in segments where fleets try to reduce the amount of capital tied to non-core assets, avoid residual risk, and constantly upgrade to newer vehicle models. Financial lease is preferred in segments where fleets require greater control over asset utilization and disposal with expertise in remarketing. The future of leasing market will see the emergence of digital interaction portals and blockchain based smart contracts providing fleets precise information meeting their requirements. OEMs and leasing companies have already started to explore peer-to-peer digital platforms and Big Data analytics for vehicle maintenance.

Major participants are establishing their dominance by enhancing product portfolios in order to cater to varying Class 4-8 end-user applications. Some of the companies featured in this study are U-Haul, Penske, Ryder, PacLease, National Lease, Idea Lease, Premier Trailer Leasing and Compass Trailer Leasing.

Analyst: Saideep Sudhakar

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Key Takeaways

Key Trends in the Medium and Heavy Duty CV Leasing Market

North American Class 4-7 Trucks Market—Unit Shipment Snapshot

North American Class 8 Trucks Market—Unit Shipment Snapshot

North American Trailer Market—Unit Shipment Snapshot

Key Findings and Future Outlook

Research Scope

Research Aims and Objectives

Key Questions this Study will Answer

Research Background

Research Methodology

Vehicle Segmentation

Market Definitions

Market Definitions (continued)

Market Engineering Measurements

Automotive Market Structure

Truck Funding and Mobility Solutions

IFRS 16—New Financial Accounting Standard

Stakeholders in the Truck Leasing Market

Class 4-7 Trucks—Unit Shipment Snapshot

Class 4-7 Trucks—Leased Vehicles, Asset Financing and Rental

Class 4-7 Trucks—Financial & Operational Lease Unit Shipment Forecast

Class 8 Trucks—Unit Shipment Snapshot

Class 8 Trucks—Leased Vehicles, Asset Financing and Rental

Class 8 Truck Unit Shipments— Financial and Operational Lease

Class 4-7 Regional Delivery Truck Financing Breakdown

Class 4-7 Utility Truck Financing Breakdown

Class 4-7 Construction Truck Financing Breakdown

Class 8 Long Haul Truck Financing Breakdown

Class 8 Regional Haul Truck Financing Breakdown

Class 8 Vocational Truck Financing Breakdown

Class 4-7 Vans—Unit Shipment Snapshot

Class 4-7 Dump Trucks—Unit Shipment Snapshot

Class 4-7 Service Utility Trucks—Unit Shipment Snapshot

Class 4-7 Flatbed Trucks—Unit Shipment Snapshot

Class 4-7 Tank Trucks—Unit Shipment Snapshot

Class 8 Rigid Dump Trucks—Unit Shipment Snapshot

Class 8 Rigid Refuse Trucks—Unit Shipment Snapshot

Class 8 Long Haul Tractors—Unit Shipment Snapshot

Class 8 Regional Haul Tractors—Unit Shipment Snapshot

Class 8 Dry Van Trailers—Unit Shipment Snapshot

Class 8 Reefer Van Trailers—Unit Shipment Snapshot

Class 8 Flatbed Trailers—Unit Shipment Snapshot

Class 8 Low Bed Trailers—Unit Shipment Snapshot

Class 8 Dump Trailers—Unit Shipment Snapshot

Class 8 Tank Trailers—Unit Shipment Snapshot

Asset Financing

Asset Financing Companies

Rental

Rental Companies

Leasing

Leasing Companies

Ryder

Ryder—Service Portfolio and Competitive Landscape

U-Haul

U-Haul—Service Portfolio and Competitive Landscape

Penske

Penske—Service Portfolio and Competitive Landscape

Fleet Preference Towards Safety Technology in North America

Insurance and Use of Data

Impact of Crash Mitigating Technologies on Premiums

Growth of Alternate Fuel Vehicles

Leasing Providers’ Foray into xEV Leasing

Growth of Captive Leasing & Financing Solutions

Digitalization Reshaping Leasing and Vehicle Financing

Emergence of Last Mile Innovations

Average Financed Truck TCO–One Owner

Average Leased Truck TCO–15 Year Period

Growth Opportunity—Medium and Heavy Duty Truck Leasing Market

Strategic Imperatives for Success and Growth

The Last Word—3 Big Predictions

Legal Disclaimer

Partial List of Abbreviations/Expansions Used

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Related Research
The rental and leasing market for medium and heavy duty truck sales in North America is expected to expand at a CAGR of 5.4% from 2019 to 2025. Companies’ financial needs, operational requirements, asset type and utilization including yearly total mileage, desired replacement cycle and usage pattern influencing wear and tear are major factors impacting the methods of truck financing. Fleets are increasingly adopting safety technologies to raise their Compliance, Safety and Accountability (CSA) scores and reduce insurance premiums. Leasing enables fleets to constantly upgrade fleets with advanced technologies. Additionally, stringent emission regulations are moving fleets towards adopting natural gas and electric trucks. The high initial costs, uncertainty over residual costs, and rapid technological changes in alternate fuel segments are making leasing attractive for fleet managers. Last-mile innovations are driving truck demand in the regional haul and urban delivery segments with a large number fleets preferring full-service leasing to focus on their core competencies. OEMs are enhancing captive leasing with service options, fleet management products, and flexible payment options. This study sheds light on the market size across medium and heavy duty commercial vehicle and trailer segments and provides sales data for the retail market, as well as operational leasing, and financial leasing of trucks and trailers. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space in North America and offers a detailed account on the key trends, market overview, and outlook. Operational leasing will experience a 6.4% and 7.2% CAGR during 2019-2025 in Class 4-7 and Class 8 trucks respectively. It will be preferred in segments where fleets try to reduce the amount of capital tied to non-core assets, avoid residual risk, and constantly upgrade to newer vehicle models. Financial lease is preferred in segments where fleets require greater control over asset utilization and disposal with expertise in remarketing. The future of leasing market will see the emergence of digital interaction portals and blockchain based smart contracts providing fleets precise information meeting their requirements. OEMs and leasing companies have already started to explore peer-to-peer digital platforms and Big Data analytics for vehicle maintenance. Major participants are establishing their dominance by enhancing product portfolios in order to cater to varying Class 4-8 end-user applications. Some of the companies featured in this study are U-Haul, Penske, Ryder, PacLease, National Lease, Idea Lease, Premier Trailer Leasing and Compass Trailer Leasing. Analyst: Saideep Sudhakar
More Information
No Index No
Podcast No
Author Saideep Sudhakar
Industries Automotive
WIP Number MF2E-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9813-A6,9B01-A6,9963-A6,9AF6-A6,9B02-A6