Global Car Rental Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs), By Application (Local Usage, Airport Transport, Outstation), By Region (North America; Europe; Asia Pacific; Latin America; MEA), And Segment Forecasts, 2021 – 2030Industry: Automotive & Transportation
The Global Car Rental Market size was valued at USD 98.14 billion in 2021, and it is expected to USD 137.25 billion CAGR of 4.6% from 2021 to 2030.
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The demand for automobile rental services is being driven by a huge increase in the number of individuals travelling for both business and pleasure around the world, which is fuelling the industry's expansion. Dedicated mobile apps for the convenience of clients have further assisted businesses in the market in capturing a wider customer base thanks to rising internet penetration across emerging as well as established countries. Technology is thought to be a key element fuelling industry expansion.
The impact of technological development has recently transformed the sector and improved the management of business and consumer information. With the increase of online Car rental booking Apps, the industry has gained sufficient attention. Companies use to offer Cars for short-term or Long-term rental based on the customers requirement. Most of the services are available in tourist places and tier 1 & 2 cities. The Car manufacturers have come up with Profitable schemes such as car Leasing, which small companies avail to increase their fleet size without hampering their budget.
Global travellers are becoming changing their travel needs, expecting services that are reputed, dependable, and of the best quality. Some of the major car rental companies are trying to take advantage of this development by expanding their brands and distribution networks on a global scale. It is expected that these operators would be able to manage their globally dispersed company activities with the installation of an integrated global car rental system
Increasing Vehicle prices, reduction of parking Spaces, and Expensive car maintenance influence people to opt for on-demand transportation services for travelling and daily communication. Therefore, during the anticipated period, the market expansion is predicted to be boosted by consumers' growing choice of on-demand transportation.
The two most effective approaches to aiding automobile rental service operators to provide improved services to their consumers are improved customer and corporate information management and hassle-free internet booking software. Customers' experiences with car rentals have changed as a result of consumers' growing reliance on smartphones to complete a variety of functions previously completed by computers.
Global Car Rental Market Report Coverage
|Market Size in 2021:||USD 98.14 Billion|
|Forecast Period:||2021 - 2030|
|Forecast Period 2021 - 2030 CAGR:||4.6%|
|2030 Value Projection:||USD 137.25 Billion|
|Historical Data for:||2017 - 2020|
|No. of Pages:||198|
|Tables, Charts & Figures:||119|
|Segments covered:||By Vehicle Type, By Application, By Region|
|Companies Covered:||Hertz Global Holdings, Enterprise Holdings Inc., TOYOTA Rent a Car, Europcar Mobility Group, Avis Budget Group, Sixt SE, Lotte Rental Co. Ltd., CAR Inc., Localiza Rent a Car SA, Other|
|Pitfalls & Challenges:||COVID-19 Empact, Challenge, Future, Growth, & Analysis|
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The increasing demand and shortage of supply of crude oil results in the rise in the prices of crude oil which surges the overall cost of driving a rental car. This rapid increase in the cost of fuel is anticipated to hamper the overall market growth over the coming years.
In 2020, the tourism industry as a whole was significantly impacted by the quick spread of COVID-19, which in turn had an effect on the car rental industry. Additionally, there is less of a need for airport automobile rentals due to a decline in global aviation traffic. The operators of car rentals follow safety and hygiene standards, such as disinfecting their vehicles after each ride, to maintain security and prevent the spread of the virus. Some automobile rental companies provide their clients with free face masks and hand sanitisers. In order to turn these transactions into a source of income generation, major competitors in the market, like as Hertz and Avis, have sold their older automobiles at a higher rate during the epidemic than usual.
The Global Car Rental Market is segmented into Vehicle type, Application, Region
Global Car Rental Market, By Vehicle Type
Based on the vehicle type Car rental market is segmented into Luxury Cars, Executive Cars, Economy Car, Sport Utility Vehicles (SUV), Multi Utility Vehicles(MUV)
The demand for luxury cars especially SUVs and MUVs as it has the capacity of more people so families and friends for long term rental or for outstation outing prefer this type of vehicles as it has nominal rate and easily available.
The Executive Car segment is anticipated to be the fastest growing segment in the forecast period as it offers maximum comfort and feature value at a low cost. With the increasing corporate traveller, the demand for premium executive cars has uplifted the Car rental industry.
Economy cars have a low cost of acquisition and maintenance compared to other segments of cars. Therefore, the majority of inter-city cabs and Airport taxis are from economy car segments.
Global Car Rental Market, By Application Type
The Car rental market, is divided into four segments based on application: local use, airport transportation, outstation, and others. Recent massive increases in air travel across the globe are expected to accelerate segment growth. Numerous automobile rental companies are growing their fleets and advertising their services at significant airports in view of this trend.
Demand for local transport taxis is growing steadily but with the increasing use of shared cabs affects the demand for local cars.
Global Car Rental Market, By Regional
With the U.S. being the largest market, North America held the greatest market share, or over 52.0%, in 2020. The presence of several of the industry's top car rental companies in this area, like Avis Budget Group and Enterprise Rent-a-Car, is expected to open up fruitful growth potential.
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The market in the Asia Pacific region is anticipated to grow at the greatest CAGR, or over 8.0%, between 2021 and 2030. Over the anticipated time frame, the markets in China and India would expand rapidly. People are likely to choose car rental services as a result of government restrictions on car purchases in some areas of China, which are an effort to solve the growing traffic and pollution problems.
Recent Developments In The Global Car rental Market
-June 2022: Carro, an online Used car marketplace in Southeast Asia, has a 50% of stake in Indonesian car rental companies.
-January 2022: Sixt announced the expansion of its taxi and rental partner network to Italy
-December 2021: Enterprise Holdings announced that its subsidiary in Ireland has completed the acquisition of Dublin headquarters Walker Vehicle Rentals.
-August 2021: Zoomcar, an Indian car rental startup, announced its expansion plans worth USD 100 million in south Asia.
-July 2021: MBK Partners, a private equity fund manager, acquired a 100% stake in china’s top vehicle rental company CAR Inc.
List of Key Market Players
- Hertz Global Holdings
- Enterprise Holdings Inc.
- TOYOTA Rent a Car
- Europcar Mobility Group
- Avis Budget Group
- Sixt SE
- Lotte Rental Co. Ltd.
- CAR Inc.
- Localiza Rent a Car SA
By Vehicle Type
- Luxury Cars
- Executive cars
- Economy cars
- Local usage
- Airport transport
- North America, by Country
- North America, by Vehicle Type
- North America, by Application
- Europe, by Country
- Rest of Europe
- Europe, by Vehicle Type
- Europe, by Application
- Asia Pacific, by Country
- South Korea
- Rest of Asia Pacific
- Asia Pacific, by Vehicle Type
- Asia Pacific, by Application
Middle East & Africa
- Middle East & Africa, by Country
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- Middle East & Africa, by Vehicle Type
- Middle East & Africa, by Application
- South America, by Country
- Rest of South America
- South America, by Vehicle Type
- South America, by Application
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