|Status : Published||Published On : Jan, 2023||Report Code : VRAT4071||Industry : Automotive & Transportation||Available Format :||Page : 134|
The global car rental market was valued at USD 86.3 billion in 2022 and is expected to reach USD 133.0 billion by 2030, growing at a CAGR of 7.1% during 2023-2030. The growth of this market is attributed towards the increasing disposable income of the citizens globally, an extensive number of service providers offering car rental services along with evolving lifestyle of the people. Furthermore, improved road infrastructure has led to the enhancement of business and leisure trips across the globe thereby strengthening the growth of the global car rental market.
Car rental service enables consumers to rent cars and automobiles for a specified time period may be limited or for a small time. The time period for renting a car may vary from up to a few hours to weeks as per the need of the customers. These services are gaining immense traction near airports and tourist places. Moreover, evolving trends of making travel convenient and pleasurable are further escalating the growth of the global car rental market.
Insight by Vehicle Type
On the basis of vehicle type, the global car rental market is categorized into executive, luxury, SUVs, economy, and MUVs. Amongst these segments, the executive segment is expected to witness the highest CAGR during the forecast period owing to the increasing number of business travellers globally specifically in emerging economies. Additionally, it has been observed that cost-effectiveness along with sophisticated features of the executive segment thereby makes this segment a more attractive medium of transport amongst business consumers.
Insight by Application
On the basis of application, the global car rental market is categorized into airport transport, outstation, local usage, and others. Amongst these segments, airport transport is expected to generate the largest revenue by 2025. The growth of this segment is attributed towards the extensive growth of air travellers globally also various service providers are seeking airports as most appropriate location for setting up their offices. Moreover, making offices nearby the airport helps in making the car available to the customers on an immediate basis as per their requirement.
The rapid expansion of the tourism industry along with the high total cost of ownership involved with personal vehicles are the key trends anticipated in the growth of the global car rental market.
The rapid expansion of internet and mobile users globally, increase in global air travel, rapid globalization and an extensive number of corporate travellers along with increasing global leisure travellers are the key factors that are pertaining towards the growth of the global car rental market. The rapid expansion of mobile and internet users across the globe and the increasing dependence of users on technology to make payments, book hotels, and flights along with paying for rental services is the key factor that is pertaining towards the growth of the global car rental market.
Furthermore, there are several service providers of rental services that are launching applications in order to make customers accessible with discount coupons, real-time tracking, promotional offers, fare and availability of service. The service providers are rampantly emphasizing their efforts towards streamlining business processes and extending the availability of service convenience as the customers usually book slots for cars in the minimum time span. In order to attain this objective the service providers are excessively using IoT management fleet management solutions, as a result of which the car rental market is gaining momentum at a rapid pace globally.
Volatility in crude oil prices, compliance with stringent emission standards along with extensive growth of low-price public transport are the key factors that are expected to hinder the growth of the global car rental market in the near future.
Geographically, North America is anticipated to contribute the largest revenue throughout the estimated period in the global car rental market. The growth of the car rental market in this region is attributed towards an increasing number of business and leisure trips both domestic and international. Additionally, shifting trends of consumers towards rental services along with the existence of prominent key players in this region such as Enterprise Rent-a-Car are other factors pertaining towards the growth of global car rental market.
Asia-Pacific is expected to witness the highest CAGR during the forecast period owing to improved road infrastructure along with accessibility to high-end luxury vehicles. Furthermore, self-driving renting trends of cars that provide convenience and flexibility to tourists are other factors that are driving the growth of the car rental market in Asia-Pacific.
Key players in the car rental market are catering to the demand for these devices by investing in technologically advanced products in their product portfolio across the globe. Key players such as Avis and Uber have launched mobile applications through which customers get the ease of booking cars and choosing their desired vehicle. Moreover, several players are introducing their rental services at affordable prices in order to enhance their consumer base.
Some of the major players operating in the global car rental market are Sixt SE, Uber Technologies Inc., Carzonrent India Pvt Ltd., Europcar, Avis Budget Group, Inc., German Rent a Car, DTG Operations, Inc., Localiza Rent a Car S.A., Enterprise Holdings Inc., Tempest Car Hire, The Hertz Corporation, Alamo, and Eco Rent a Car.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising consumers are also conducted to understand consumer behaviour.
Source: VynZ Research
Source: VynZ Research