Car Rental Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026

 

Car Rental Market: Overview

The recovery of the global economy in the past decade played a significant role in the progression of the travel industry. The growing trend and consumers' interest in travel is enhancing the car rental market when companies are providing positive services and output. Some applied innovative fronts such as easy to book over mobile apps, 24x7 availability of the car, and cost affordability is driving rental cars demand. The global car rental market had a market size of $64.47 billion in 2018 and opportunities are poised growing with a compound annual growth rate (CAGR) of 11.53% during the forecast period 2019-2025.

North America is positioned as the leading region in the global car rental market. Burgeoning tourism sector in the region is one of the factor for region's growth. Furthermore, increasing air travelers for business and vacation trips are opting for such services while touring different territories away from home. In 2018, North America served 29.98% of the overall revenue generation in 2018. However, the exponential growth of disposable income among the urban population in emerging economies is cultivating substantial opportunities in the Asia Pacific.

Car Rental Market: Outlook

A car rental or hire a car agency is a company that provides service of renting automobiles for the short-time duration. Car rental companies purchase the number of fleet vehicles and rent them to customers with a fee. ACRISS Car Classification Coding system is important factor to define the car models. The matrix to define car models consist of vehicle type, chassis type, transmission, fuel type according to which four character code is created and assigned to the car.

Economical car and executive car are major segments adding high revenue in the car rental market. The growing usage of these cars for airport service are driving the market owing to which the application segment is growing rapidly with a CAGR of 12.72% going through 2025.

Car Rental Market: Growth Drivers

· Growth of international tourism coupled with increasing cognizance about car rental service is driving the car rental market.

· Several companies are offering mobile apps for booking rental cars or to check for their availability. Moreover, additional promotional strategies such as promotional offers,  discount coupons, wallet cash are some factors inclining consumers towards cost-effective car rental services.

· Various travel agencies are promoting car rental companies that will further promote the value of the car rental market.

· Rising demand for car rental services from students and youth population for road trips, short vacation is influencing the car rental market.

Car Rental Market: Trends

· Offering car rental on hourly basis is one of the trends in the car rental market.

· Many car rentals companies have launched the car hop service which comprises of path-breaking one way, inter-city self-drive. The service provides the option of renting a car from point A to B and again pick up a car from another city at point C from same car rental company. Due to features such as convenience travel option and flexibility, the hopping service is gaining traction from consumers in the car rental market.

· With increases in demand for cars there is a need to match the increasing supply. The increase in the mergers between car manufacturing companies and car rental companies are expanding the fleet and opportunities for both companies to leverage their business revenue.

· Luxury and premium car models always fascinate the customers. The launch of renting luxury cars service is gaining popularity among wide population. Increasing number of booking for hotel travel desk, event transportation, wedding & parties are adding high incentive in the car rental market.

· The growing options of vintage cars renting service is another factor fueling the car rental market.

· The car rental companies are focusing on merging with a local population known as peer-to-peer car sharing. People who own a car but do not use it often can merge with the rental companies to give their own car for renting service and earn the profit. The collaboration between two are gaining immense popularity in the car rental market.

Car Rental Market: Challenge

One of the main challenge faced by car rental companies is to provide superior customer service. Lack of information on payment options, long booking and non-availability of the cars are some factors that can hamper demand in the car rental market. Dire need of technology to overcome the challenges has led to the innovation of mobile software and various mergers among car manufacturers and car rental companies to increase the number of cars. Such developments will determine the car rental market value in the near future.  

Car Rental Market: Key Players Perspective

Some of the major players in the car rental market are Avis Budget Group Inc., Eco Rent a Car, Advantage Rent-a-car, Enterprise Holdings Inc. Global CARS, U-save-Auto-Rental System, Ace Rent-a-car, Eco Rent a Car, Europcar and Budget Rent A Car System, Inc.

Car Rental Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the car rental market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of car rental market, and its segmentation on the basis of product type that includes luxury car, executive car, economical car, sport utility car, and multi utility car.

Global Car Rental Market Report: Industry Coverage

The report analyses the product demands by the car rental market on the basis of rental category that includes on airport and off airport.

The car rental market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:

  • North America: The U.S., Canada, Mexico
  • South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
  • Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
  • APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
  • Middle East and Africa: Israel, South Africa, Saudi Arabia

For more Automotive related reports, please click here

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