CAR RENTAL MARKET ANALYSIS

Market Challenges And Opportunities

Global Car Rental Market: Restraints

• Cheaper rates of public transportation: The affordable fares of public transportation options like buses and trains compared to the cost of car rentals, may present challenges to the growth of the global car rental market.  According to the Coherent Market Insights analysis, the average cost of a taxi in Los Angeles, North America is US$ 1.80/km and that of a bus is US$ 1.50/km.
• Rapid change in price of crude oil: Fluctuating prices of crude oil due to the gap between demand and supply is projected to restrict the growth of the global car rental market over the forecast period. Companies are switching from traditional rental cars to electronic rental cars in order to solve the problem by collaborating with other businesses and building an infrastructure for electric vehicles.

Global Car Rental Market: Opportunity

• Increasing improvement in road infrastructure: Improved road infrastructure across emerging economies and the rising number of leisure and business trips are projected to provide potential opportunities to the global car rental market. According to India Brand Equity Foundation 2021, The Indian government has planned to build roads extending 313 km for Rs. 11,000 crore (US$ 1.48 billion) to transform the road infrastructure in Punjab, Haryana, and Rajasthan. The growing adoption of information technology across the industry in order to deliver efficient services and strengthening their regional as well as global presence is projected to shape the market growth over the forecast period.