Car Rental Market Research Report – Forecast to 2030

Car Rental Market Research Report: Information by Type (Local, Outstation, Airport, Others), Mode of Booking (Online, Offline), Application (Business, Non-Business), Vehicle Type (Sedan, SUV, MUV, Luxuries, Others), and Region - Forecast till 2030

ID: MRFR/AM/4948-HCR | February 2021 | Region: Global | 100 pages

Car Rental Market Overview:

Car Rental Market is projected to be worth USD 200 billion by 2027, registering a CAGR of 9% during the forecast period (2021 - 2027), The market was valued at USD 200 billion in 2020.

Car rental is a service that includes renting cars for many purposes. The service is offered through both online and offline sources. The car rental duration is in terms of hours or months. The car rental services are useful for individuals who do not have their self-owned vehicles. As part of the services, car rentals offer an insurance policy and car damage service.

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 analysis

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 2023.

Competitive landscape 

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. 

  • 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

Recent developments 

  1. The key players are executing new strategies through effective services and partnerships to improve the competitive edge. 

  2. Some of the key players are introducing their car subscription services. This plan enables the customers to pay monthly fees to select the vehicle that offers them convenience. 

  3. The key players are integrating with aviation groups to provide exclusive services. These services are different from common-car rental services offered for the general audience. 

  4. The top players in the market are enhancing mobile application to improve customer experience. These mobile applications help to book a car with ease and also provide feedback regarding the ride. 

  5. In February 2021- Humax supplied WTC Auto Rent RAiDEA mobility service platform in the Middle East. This technology is perfect for round trip, free-floating, and one-way infrastructures and specifically designed for cars, including electric scooters, bikes, motorcycles, and cars. 

  6. In February 2021- Theeb Rent a Car, a Saudi-based car rental company has extended its car rental fleet in the Kingdom. The company has added more than 1,700 cars from luxury brands such as BMW, Mercedes, and also economic models such as Chevrolet, Kia, Ford, Nissan, Toyota, and Hyundai, including the new 2021 models. The expansion is a tactic of the company to modernize and develop its fleet to provide different car models and brands to cater to the needs of its customers. 

Market dynamics

  • The crucial market drivers

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. 

  • The market growth opportunities 

This market is one of the top growing 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 market restraints 

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 market challenges

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. 

  • Cumulative growth analysis 

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. 

  • The value chain 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. 

Segment overview 

By type 

  • Airpot 

  • Outstation 

  • Local 

  • Others 

By application 

  • Non-business booking 

  • Business booking 

By mode of booking 

  • online 

  • offline 

By vehicle mode 

  • MUV

  • SUV 

  • Sedan 

  • Luxury 

By region 

  • North America 

  • Asia pacific 

  • Europe 

  • Rest of the world 

Regional analysis

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.

Report overview 

  1.   Market overview highlights 

  2.   Analysis based upon COVID 19

  3.   Explanation upon the Market Dynamics

  4.   Value chain analysis

  5.   Market segmentation overview

  6.   The regional analysis

  7.   Competitive landscape analysis

  8.  Recent Developments

Report Scope:
Report Attribute/Metric Details
  Market Size   2030: Significant Value
  CAGR   9% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   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

  • Serious requirement to increase the availability of car rentals in underdeveloped areas
  • Car rental schemes are cost-effective that increases its demand
  •   Key Market Drivers

  • Increase in urbanisation
  • Government is taking several initiates to regulate traffic and air pollution
  • The variety of car rental plans and flexibility of booking

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    Frequently Asked Questions (FAQ) :

    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.