Global Car Rental Market By Type (Economy, Executive, Luxury, MUV, and SUV), By Application (Business, and Leisure), By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2020-2029
- Published date: Oct 2023
- Report ID: 62087
- Number of Pages: 275
- Format:
- keyboard_arrow_up
Quick Navigation
- Report Overview
- Driving Factors
- Restraining Factors
- Growth Opportunities
- Latest Trends
- Type Analysis
- Application Analysis
- By Rental Category Analysis
- Key Market Segments:
- COVID-19 Impact Analysis
- Regional Analysis
- Key Regions and Countries Covered in this Report:
- Market Share & Key Players Analysis:
- Report Scope
Report Overview
The Global Car Rental Market size is expected to be worth around USD 275 Billion by 2032, From USD 121.9 Billion by 2023, growing at a CAGR of 8.70% during the forecast period from 2023 to 2032.
The demand for car rental services is being driven by a significant uplift in the number of people traveling for both business and pleasure all over the world, which is propelling the industry’s expansion. With the help of specialized mobile apps designed to make customers’ lives easier, companies in the market have been able to expand their customer base thanks to rising internet penetration in both developed and developing nations. Market expansion is thought to be largely driven by technology.
The sector has recently undergone a radical transformation as a result of technological advancements. The two most prominent methods of advice car rental service providers in offering enhanced services to their customers are simpler internet booking applications and improved customer and corporate information management. The customer’s experience renting a car has changed as a result of customers’ growing reliance on smartphones for a variety of tasks previously performed by computers.
Over the past ten years, there has been a significant rise in global travel. Travel services that are familiar, dependable, and of high quality are becoming increasingly important to global commuters. By expanding their global brand and distribution platforms, some of the major car rental industries are attempting to capitalize on this trend. It is anticipated that these businesses will be able to manage their geographically dispersed business operations when an integrated global car rental system is implemented.
The evolution of “pleasure” is a new trend in the travel and tourism industry. A growing number of people around the world are using this relatively new term to describe a trip that combines leisure and business travel. Companies are following this trend to help retain employees and alleviate some of the key road warriors’ stress by allowing employees to bring their families on business trips. As younger employees typically travel for business, this incentive becomes increasingly appealing to recruits. This idea is especially useful for international trips where employees can learn about new places and important business information.
Driving Factors
Rise In Demand for Responsive Transport, And Digitalization In Booking And Payment To Boost The Growth Of The Market.
Luxury passenger cars and charter vehicles can be used to provide demand-responsive transportation services. These vehicles are equipped with features such as vehicle tracking and rating and real-time feedback. Many mobile apps make it easy to compare prices and find luxury cars.
Humax, for example, announced in February 2021 that it would provide the WTC mobility platform with the ‘Auto Rent RAiDEA. This allows users to compare taxi, luxury car rental, and ride-hailing rates companies within a single app. GoAir and Eco Europcar teamed up to launch rental services in 100 Indian towns, 25 of which are airports, in April 2021. Eco Europcar will also offer chauffeur-driven cars from the mid-range to high-end segments of GoAir’s fleet. These exotic car rental services offer customers a variety of functions. The demand-responsive transportation trend is growing.
This market is growing rapidly on a global level. All market players can offer better services and lower prices to increase their bookings by improving efficiency and using new automated technology. The trending technology of digitization is having a major impact on all industries, including the rental car industry.
Digitalization has allowed rental companies to grow and improve their customer experience while increasing profitability. This software is used by rental companies to automate their operations and improve their services. The car rental management software also reduces administrative tasks and improves operational efficiency.
Management software also includes fleet optimizations, custom reports, and favorable payment management. These features help these companies expand their business. This information is usually available through two main competitors, Fox Rent-a-Car and Hertz. The market is seeing significant growth opportunities in the use of car rental management software.
Restraining Factors
High Deposit Amounts And Deposite Cost To Restraint The Market Growth Globally.
The market involves making a large deposit of between USD 2,500 and USD 50,000, providing financial information, vetting, and installing GPS devices on the cars so they can be tracked if anything goes wrong. You will also need to verify that the renter has insurance, which will protect the car’s value and liability. A fleet policy for a car worth USD 200,000 can run between USD 400 and USD 1,300 per month.
However, many policies do not cover theft because they have high premiums. These services are also limited in number, which can hinder market growth in certain regions. These cost factors will likely limit market growth during the forecast period.
Growth Opportunities
The Growing Importance Of Car Rental Management Software In The Future Could Create Enormous Opportunities For The Global Rental Market.
Due to an increase in tourism and urban population, the car rental market size is expanding at a rapid pace. There are lucrative opportunities in the car rental market due to the increase in tourists traveling internationally and nationally in countries such as India, Indonesia, and Indonesia is providing various opportunities for the car rental market. The best car rental companies offer great services to travelers and connect people.
Car rental companies look forward to car rental management software in order to offer better and more efficient services to customers. It reduces repetitive tasks and allows them to focus on creating new business models and strategies. It also makes it easy to book online or offline for people who are looking for services for business, leisure, and other purposes. The forecast period sees huge potential for car rental management software penetration.
Latest Trends
Increasing Demand For Online Car Rental To Play A Key Role In The Market Globally.
The market will see significant growth in technology over the forecast period. The industry is changing and operators are able to offer better services to customers thanks to the increased adoption of information technology.
This includes optimizing corporate and customer information management and developing convenient Internet booking apps. Currently, online booking also serves a variety of functions, including e-signing contracts, cashless transactions, confirming renter documents, providing renter information about the vehicle, and services like drop-off and pick-up at a specific location.
The market is also being driven by smartphone sales. Customers’ car rental experience has significantly improved as a result of the growing reliance on smartphones for a variety of tasks previously performed by personal computers.
Type Analysis
The Economical Cars Segment Dominates The Market Globally.
The market can be divided by vehicle type into executive cars, luxury cars, economy cars, SUVs,s and MUVs. The economy cars segment held the largest market share and will continue to dominate the market for the forecast period. These cars are compact and affordable, which is a key factor in their growth. Economy cars are becoming more popular for intra-city and airport travel.
The segment of executive cars is expected to grow during the forecast period. This is due to the growing number of business travelers, especially in developing countries, which has boosted the segment’s growth. These vehicles also offer premium features at a reasonable price, which has accelerated their popularity among corporate travelers.
Application Analysis
Business Segment To Dominate The Market Growth Globally.
Based on the application, there are two segments of the market: business and leisure. Over the forecast period, the business segment will hold the largest market share. For many years, most private companies and government agencies have rented luxury cars to their top executives. Based on the advancement of their staff members and their designation, the corporations rent the cars.
This allows the company to avoid adding fixed assets or inventory costs to these luxury cars, while also allowing executives to use these cars for client visits and meetings. The market growth is expected to be driven by the current trends in the luxury car rental markets.
The highest CAGR is expected in the leisure segment during the forecast period. Luxury cars are more desirable than owning them. Consumers prefer to rent them for a moment rather than buy them. This will drive the growth of luxury car rentals. These factors will drive growth in the leisure sector during the forecast period.
By Rental Category Analysis
The Airport Transport Segment Dominates The Market Growth Globally.
The market can be divided based on Rental Category: local usage, airport transportation, outstation, and others. The airport transport segment was the dominant market and accounted for over large part of the total revenue share. It is expected that it will continue to dominate the market for the forecast period.
The segment is expected to grow due to a significant rise in global air travel in recent years. Many car rental companies are expanding their services and increasing their presence at major airports to take advantage of this trend. Market leaders are present at airports where customers can access round-the-clock car rental services. This drives segment growth.
The standard timings and inflexibility of public transport have led to tourists shifting their preference towards car rental services for daily navigation. This has driven the segment’s growth. Many market players offer customers the opportunity to choose the vehicle they prefer.
Key Market Segments:
Based on Car Type
- Executive car
- Luxury car
- Sports utility vehicle (SUV)
- Economical car
- Multi-utility vehicle (MUV)
Based on Application
- Leisure
- Commercial
Based on the Rental Category
- Airport transport
- Local usage
- Outstation
- Others
COVID-19 Impact Analysis
Lockdown Restrictions Lowered The Growth Of The Market Globally.
In 2020, the financial results of various manufacturers were significantly affected by the COVID-19-induced lockdown and an economic crisis. The COVID-19 crisis triggered market uncertainty, disruptions in supply chains, panic among customer segments, and economic decline.
The market recovered only after the lockdown in most countries was lifted and government affairs resumed as normal. As a precaution against the spread of the virus rental car companies were forced to enter survival mode and sell as many cars as possible. In 2020, major corporations such as Hertz, the parent company of Thrifty, Dollar, Advantage Rent a Car brand, and Europcar declared bankruptcy. It was able to emerge from bankruptcy in June 2021.
A large portion of the market is accounted for by on-airport rental. Major rental companies saw a drop in revenues due to reduced passenger traffic at airports and a decrease in overall tourism. Rental car companies were forced to sell large portions of their fleets as global tourism declined. In 2020, 17.3 million cars were rented in the USA. This is a substantial drop from the 44.5 million that was rented in 2019. Around 29.2 Million vehicles were rented in 2021.
This is still lower than the pre-pandemic levels. Key rental companies sold more than 770,000 vehicles in 2020. These factors will have an impact on the market’s growth over the forecast period.
Regional Analysis
Asia Pacific Dominates The Market Growth Globally.
The Asia Pacific region dominates the market growth globally. The region’s growth is driven by the huge population of China and India which together account for over 38% of the global population.
Asia Pacific’s growing number of billionaires can also explain the region’s growth. The popularity of imported luxury cars that cost more than USD 90,830 is increasing in Japan, where it is popular among the wealthy who can’t travel abroad due to the coronavirus epidemic but are willing to spend money.
North America is the second largest market. North America’s market suffered from the pandemic. Most of its cars were sold during lockdowns caused by COVID-19. The market is now open and countries are resuming their travel activities, so the demand for car rentals has increased beyond its pre-pandemic levels. The average daily rental cost is 75% more than in 2019, and 66% less than the 2020 rates.
Porsche Cars North America and Wheels Up collaborated to offer high-end clients road-to-sky VIP services and lifestyle experiences. Wheels Up members receive access to Porsche Drive subscription perks, as well as a 10% discount for short-term rentals.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
With numerous domestic and international businesses operating worldwide, the market is moderately consolidated. However, few companies are capturing a significant portion of the market, and the sector is on the verge of consolidation. The Hertz Corporation, Enterprise Rent-A-Car, Europcar, Sixt SE, and Avis Budget Group are among the primary participants. In order to expand their customer base and increase their profitability, these players’ primary focus is on improving their services.
Top Key Players in the Car Rental Market:
- Avis Budget Group
- Europcar
- Enterprise Holdings Inc.
- The Hertz Corporation
- Toyota Rent-a-Car
- Sixt SE
- Alamo Rent-a-Car LLC
- Carzonrent India Pvt Ltd
- Localiza3
- ANI Technologies Pvt. Ltd
- Others
Recent Developments:
- July 2022 – Starr Luxury, Ikenna Ordor’s luxury car rental company, announced its expansion to the U.S. It has opened its doors in major cities like Los Angeles, Houston, Atlanta, and Austin. Starr Luxury is one of the few companies in the world that has a partnership with five-star hotels.
- July 2022 – Uber Electric, the premium electric car service, announced an expansion to more U.S. cities including Las Vegas and Seattle.
- December 2021 – The Ajman Public Transport Authority of the UAE (APTA), announced that vehicle rental services are now available to help achieve the Emirate’s Vision 2021, which aims to support federal institutions in establishing an equitable and comprehensive transport system. This change will provide clients with convenient, high-quality services. This service was developed by the Vehicle Rental Section of the Transport Authority as part of its premium vehicle rental services.
- June 2021: Amazon launched online car rental services in UAE. This includes luxury vehicles. Customers in Abu Dhabi Dubai, Sharjah, and Ras Al Khaimah can rent cars from the largest e-commerce firm. The rental period will be between a day and a month. Deliveries to the selected address can take as little as two to three hours after the reservation.
Report Scope
Report Features Description Market Value (2022) US$ 121.9 Bn Forecast Revenue (2032) US$ 275 Bn CAGR (2023-2032) 8.7% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Car Type: Executive car, Luxury car, Sports utility vehicle (SUV), Economical car, and utility vehicle (MUV); By Application: Leisure, and Commercial; By Rental Category: Airport transport, Local usage, Outstation, and Others. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Avis Budget Group, Europcar, Enterprise Holdings Inc., The Hertz Corporation, Toyota Rent-a-Car, Sixt SE, Alamo Rent-a-Car LLC, Carzonrent India Pvt Ltd, Localiza, ANI Technologies Pvt. Ltd, Others Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of Car Rental Market in 2023?The Car Rental Market size is USD 121.9 Bn in 2023.
What is the projected CAGR at which the Car Rental Market is expected to grow at?The Car Rental Market is expected to grow at a CAGR of 8.7% (2023-2032).
Which region is more appealing for vendors employed in the Car Rental Market?Asia Pacific region dominates the market growth globally.
Name the key business areas for the Car Rental Market.The US, Canada, China, India, Brazil, South Africa, Malaysia, Australia & New Zealand, Argentina etc., are leading key areas of operation for the Car Rental Market.
List the segments encompassed in this report on the Car Rental Market?Market.US has segmented the Car Rental Market by geography (North America, Europe, APAC, South America, And Middle East and South Africa). The market has been segmented Based on Car Type Executive car, Luxury car, Sports utility vehicle (SUV), Economical car, and Multi-utility vehicle (MUV). Based on Application Leisure and Commercial. Based on the Rental Category Airport transport, Local usage, Outstation, and Others.
- Avis Budget Group
- Europecar
- Enterprise Holdings Inc.
- The Hertz Corporation
- Toyota Rent-a-Car
- Sixt SE
- Alamo Rent-a-Car LLC
- Carzonrent India Pvt Ltd
- Localiza3
- ANI Technologies Pvt. Ltd
- Others
- settingsSettings
Our Clients
Single User $4,599 $3,499 USD / per unit save 24% | Multi User $5,999 $4,299 USD / per unit save 28% | Corporate User $7,299 $4,999 USD / per unit save 32% | |
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,499) | Buy Now ($ 4,299) | Buy Now ($ 4,999) |