Digitization of the truck leasing & rental services and high cost of truck ownership are expected to drive the demand for Iran truck leasing & rental market in the forecast period, 2023-2027.
According to TechSci Research report, “Iran Truck Leasing & Rental Market By Region, Competition Forecast & Opportunities, 2027”, the Iran truck leasing & rental market is anticipated to grow at a rate of steady CAGR for the forecast period, 2023-2027. Factors such as the growing e-commerce industry and the need to optimize the operational risks while driving trucks drive the market demand. Also, the truck leasing & rental service are working to improve the services relating to diagnostic technologies and applications that can generate real-time insights about the performance of the truck are expected to create lucrative growth opportunities for the Iran truck leasing & rental market in the forecast period.
Increased Awareness about Benefits of Truck Leasing & Rental Services Drives the Market Growth
In 2021 around 23.89 thousand units of trucks were sold in Iran. The massive ongoing economic activity across the country is boosting the demand for commercial vehicles. Lowering the oil prices has adversely impacted the purchasing capability of the market players. Truck leasing & rental services eliminate the hidden costs of buying, as owning or investing in the purchase of trucks comes with associated expenses of towing, taxes, licensing and fueling, acquiring substitute vehicles, and other hard costs. As with the prolonged ownership of the trucks, the truck's maintenance and operational cost also grow, including routine inspection, oiling requirements, and replacement of tires. Availing the truck leasing and rental services eliminates the maintenance and repair expenses involved with the ownership of vehicles, as the service provider must bear all these costs. Fleet ownership includes indirect costs and issues such as indirect compliance issues, fees associated with driver training and costs and replacing drivers, and other costs. Older leased trucks can be exchanged with their newer versions, ensuring better services and reduced costs. Therefore, the advantages of availing of truck leasing and renting services and the entry of new market players are expected to accelerate the growth of the Iran truck leasing and rental services over the next five years.
However, the lack of sufficient truck leasing and rental service providers and cost and operational difficulties may restrain the market growth in the forecast period.
Browse over XX market data Figures spread through 70 Pages and an in-depth TOC on " Iran Truck Leasing & Rental Market"
The Iran truck leasing & rental market is segmented into type, lease type, truck type, end use industry, booking, vehicle type, regional distribution, and competitive landscape.
Growing Automotive Industry Supports the Market Demand
Iran is the second-largest economy after Saudi Arabia in the Middle East region. The government of the country supports higher education and promotes domestic industrial production and novel engineering technologies. The 2025 grand economic plan introduced by the leading authorities is to make the country the number one automotive industry in the Middle East region. The automotive industry is growing due to the rise in the skilled workforce in the country and the huge potential for foreign direct investments in the country. Massive support from the government promoting the automotive industry and an increase in the production of automotive parts and components are further boosting the automotive industry in the country. Truck manufacturing companies are working on technological advancements and are introducing new features to increase the fuel efficiency, carrying capacity, and performance of trucks. Thus, the launch of novel trucks in the market and the strong growth of the automotive industry are expected to propel the Iran truck leasing & rental market growth in the coming years.
Based on type, the market is divided into lease and rental. The leasing type is expected to account for a significant market share in the forecast period, 2023-2027. Time duration is long in leasing as compared to rental services. The majority of the big companies have strong budgets to acquire new vehicles and technologies to sufficiently provide for the company's requirements. Leasing a truck lowers the maintenance and operational costs. They also lower the risks from the seasonal transportation demands and provide cost-effective solutions to the end-user companies.
Based on lease type, the market is divided into the financial lease, full service/operational lease, and third-party lease. The full service/operational lease segment is expected to hold the largest market share in the forecast period. Leasing or booking trucks with full services eliminate the servicing, maintenance, and replacement cost.
Based on truck type, the market is divided into light duty, heavy duty, and medium duty. Heavy duty truck dominates the market and is expected to maintain their dominance through the next five years. Growing regulations on the vehicle emissions, logistics, and the retail and e-commerce industry are driving the demand for heavy duty trucks.
Based on end use industry, the market is divided into oil & gas, FMCG, e-commerce, mining, construction, and others. The oil & gas industry is expected to capture the highest market share in the forecast period. The oil & gas industry is the largest revenue-generating industry in the country. Oil & gas reserves are extracted and transported to other locations for processing by using the trucks, as the construction of pipelines is not feasible at every location.
Based on booking, the market is bifurcated into offline and online. The offline segment is expected to hold the largest market share in the forecast period. The presence of a large number of offline stores providing truck leasing and rental services is driving the segment demand.
Major market players operating in the Iran truck leasing & rental market are:
- Europcar Bandar Abbas
- Iran Trucking
- Fars Transport
- EramTarabar Int'l Transport Co
- Nik Tak Co. Ltd.
- TLM Logistics
- Khadem Logistics
- Arnica mehr Kish co.
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“Growing smartphone penetration and availability of high-speed internet connection has increased the dependency on technology to pay for and book rental services, which is expected to create numerous growth opportunities for the market players. Adoption of online sales channels by the market players has increased their presence across remote locations and made the consumer aware of the benefits of availing of truck services. Consumers are looking for truck leasing and rental services at affordable rates and can easily avail the services by comparing the prices and choosing the best option for them. An increase in the number of market players providing services on online sales channel and a shift in consumer preference to buy through online platforms is expected to propel the Iran truck leasing & rental market growth till 2027” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
“Iran Truck Leasing & Rental Market By Type (Lease, Rental), By Lease Type (Financial Lease, Full Service/Operational Lease, Third Party Lease), By Truck Type (Lighuty, Heavy Duty, Medium Duty), By End Use Industry (Oil & Gas, FMCG, E-Commerce, Mining, Construction, Others), By Booking (Online, Offline), By Vehicle Type (Fully Build, Customizable), By Region, Competition Forecast & Opportunities, 2027”, has evaluated the future growth potential of Iran truck leasing & rental market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Iran truck leasing & rental market.
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