The Global Car Rental Market was valued at US$ 118.2 Billion in 2022, exhibiting a CAGR of 15% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 361.6 Billion by 2030. Car Rental Market, By Category (Intercity/Local Usage, On-Airport, Intra-City/Outstation, and Other), By Car Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, and MUVs), and By Region (North America, Europe, Asia Pacific, and Rest of the World) - Size, Share, Outlook, and Opportunity Analysis, 2023 - 2030 Published by: Coherent Market Insights.
Market Drivers
Growth in the tourism industry
One of the main factors propelling the global car rental market is expansion in the tourism sector, resulting in the preference for rental cars for trips for both business and pleasure. For instance, according to Invest India, the tourism industry is expected to make a significant contribution of $250 billion to the GDP of the country by 2030, creating employment opportunities for approximately 137 million people and generating Foreign Exchange Earnings (FEE).
Market Opportunities
Shifting toward electric vehicles
The advent of electric and hybrid vehicles is projected to represent potential growth opportunities for the global car rental market. The demand for an electric and hybrid vehicle is expected to create significant demand over the forecast period, and this is attributed to the strict emission rules set by the government. According to a report published by International Energy Agency, the global electric vehicle market experienced significant growth in 2021, with sales nearly doubling to 6.6 million units, representing a sales share of around 9%. The total number of electric cars sold were 16.5 million.
Market Restraints
Standards imposed for the CO2 emission by the cars
The government imposed CO2 emission standards for cars, thus hampering the global car rental market growth, this requiring rental companies to meet stricter environmental regulations. These measures have introduced additional costs and operational challenges for rental companies while influencing the availability and pricing of rental cars.
Key Takeaways:
On the basis of region, due to rising disposable income and constantly expanding economies, Asia Pacific is the region with the fastest increasing market for automobile rentals.
On the basis of category, the on-airport segment dominated the global car rental market in terms of revenue, followed by intra-city/outstation and others, respectively.
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https://www.coherentmarketinsights.com/market-insight/car-rental-market-3901
Market Trends
Cost efficient service
The advent of value-for-money car rental is a major trend in the market and this trend is expected to accelerate the growth of global car rental market. Various players are introducing low-cost service with attractive schemes and discounts for customers, driving the market growth. Growing sales of smartphones along with the rapid urbanization across developing regions is further expected to foster the market growth.
Expansion of companies geographically
The growing focus of manufacturers to expand their geographical presence and to cater to the rising demand for car rental services is expected to be a major trend in the market. For instance, in October 2022, Enterprise Holdings, one of the largest vehicle rental companies, announced a new franchise location in South Africa, featuring car rental options from companies like Enterprise Rent-A-Car, National Car Rental, and Alamo Rent a Car through the Woodford Group in South Africa.
Global Car Rental Market - Impact of Coronavirus (Covid-19) Pandemic
The global car rental market experienced a significant decline during the COVID-19 pandemic, primarily due to government imposed travel bans aimed at curbing the spread of the virus. These restrictions severely limited travel opportunities, resulting in a reduced demand for rental cars worldwide.
Competitive Section:
- Key Companies
- Enterprise Holdings
- The Hertz Corporation
- Avis Budget Group
- Europcar Group
- Carzonrent
- Sixt SE
- Al Futtaim Group
- Localiza - Rent a Car
- Eco Rent a Car
- GlobalCARS
