Car Rental Market is projected to be worth USD 200 billion by 2027, registering a CAGR of 9% during the forecast period 2022 - 2030
Size of Car Rental Market is expected to register a CAGR of 9% during the forecast period 2022 – 2030 by serious requirement to increase the availability of car rentals in underdeveloped areas.
Some of the other value-added services are free wifi, entertainment devices and safety seats for children. The global market of car rental is experiencing high demand ever year. Most often, car rental schemes are cost-effective that increases its demand. The car rental global market also curbs the number of self-owned vehicles on the road. It ultimately reduces air pollution and traffic. The economical rates and ease of booking contribute to the market Growth at an exponential pace.
Covid 19 has adversely affected the car rental market. The global market is dependent on the tourism market. The restriction in the tourism has affected the global market. The global shutdowns have reduced the rental cars on-road. Due to a decrease in car rental demand, there is a massive revenue loss in the market. The market volatility during covid 19 has also caused share losses. The impact of covid 19 is moderate in car rental when compared to other vehicle rental market. The losses in the market lead to cost containment and disposal of core assets in the market. However, the post-pandemic market Trends shows high demand in the forecast period 2030.
The car rental market consists of three key-players who hold maximum share. The revenue earned by these competitors is massive. They have extensive markets in North America, Asia Pacific and European regions. The first three key players on the list are the largest shareholders.
Due to the growing economy, the number of individuals preferring car rental is higher. The increase in urbanisation is a demand driving factor for the market. Most of the population thinks that renting a car is the right alternative to owning a car. The government is taking several initiates to regulate traffic and air pollution. It leads to more promotion of the market. The incentives offered by the government encourage new players to enter the global market.
Another demand driving factors for the global market is the advancement in technologies. The increase in the mobile application makes booking car for rent easier. The car booking applications increase the availability of rental cars to the audience. The car booking apps provide transparency to the audience regarding the car rental cost. From cost comparing, car type choosing and passenger limit, exceptional features are available in these apps. The variety of car rental plans and flexibility of booking offer support to the market growth. These are the top driving factors that change the market Outlook in the forecast year 2027.
This market is one of the top growing smart transportation service markets. The adoption of car rental software by the key players provides excellent future scope to the market. Enhancing mobile car rental apps is the key factor in the global market growth. Car rental software improves the efficiency of this market. Some of the other advantages of adopting this are easy fleet optimizations, cost management and custom reports. The adoption of car rental software provides significant growth opportunities for the market.
The car rental industry includes three major parties. Also, crucial parties are the riders, drivers and service providers. Further, the whole car rental process is managed by the service provider. From car bookings, cost estimation and payment are regulated by the service provider. It is the unavailability of service providers in remote areas that act as a major restraint in the market. The underdeveloped regions do not have any access to car rentals. The lack of awareness about car rental in these regions is the major setback in the market.
The car rental owners can only offer the vehicle to the audience. However, the usage and customer experience is beyond their supervision. Moreover, the customer service part of the market is a challenging aspect of this industry. Other challenges in the car rental industry are the cost of crude oil. Fluctuations in the oil price affect rental rates. This fluctuating car rental rate causes several inconveniences to the audience.
Further, the rising crude oil price poses a crucial challenge to the global industry. Due to this, the market requires new strategies to provide cost-effective rental cars for the audience. The entry of more local players creates severe competition in the market. The local players act as a barrier to the entry of quality players.
There is a serious requirement to increase the availability of car rentals in underdeveloped areas. Adopting car rental software is essential to succeed in this market. The top players need to take more initiative to increase the availability of car rental in all regions. The key players can cover the demand for a wide range of audience and earn more revenue in the forecast period. Also, keeping the car rental cost under control is another crucial factor in the market Analysis.
North America holds the largest market Share. The availability of service providers, fuel the market growth in this region. The global market size is estimated to grow by 7.9% in forecasts year 2023. The major contributor to this growth is North America. The US market will dominate the market in the forecast period. The other major countries that have a large are rental market are Europe and Asia pacific.
By mode of booking
By vehicle mode
North America is the biggest car rental industry in the world. Its adoption of car rental software and cost-effective rentals are the driving factors of this market. The US meets the demand for car rentals efficiently. Also, the steady flow of car rental supply and demand trends is the key reason for success. Other regions that share massive markets are Asia Pacific, Europe, and Middle East. The booming tourism market in Europe is the driving factor for car rentals in the region. The increasing urbanization and population are the demand driving factors of market in Asia pacific regions.
|Market Size||2030: Significant Value|
|CAGR||9% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Mode of Booking, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Enterprise Holdings Inc, Avis Budget Group Inc, Hertz Global Holdings Inc, ANI Technologies Pvt. Ltd., Uber Technologies, Inc., Europcar, Carzonrent India Pvt Ltd, SIXT, Eco Rent a Car, Localiza|
|Key Market Opportunities||
|Key Market Drivers||
The global car rental market growth can expand at 14% CAGR from 2020 to 2030.
The global car rental market is driven by the growing urbanization and rise in disposable income levels of customers.
Change in emission standards, volatile crude oil prices, and large number of players can restrain the market growth.
North America can lead in the global car rental market owing to the use of cars for business and pleasure trips.
Eco Rent a Car, Al-Futtaim Vehicle Rentals Company LLC, Avis Budget Group, Sixt SE, Capps Truck & Van Rental, Europcar, Localiza, Enterprise Holdings, Inc., Bandago Van Rental, and The Hertz Corporation are prime players in the global car rental market.