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Industry Insights, Market Size, CAGR, High-Level Analysis: North America MUV Rental MarketThe North America MUV rental market size was valued at USD 5.86 billion in 2018 and is anticipated to register a CAGR of 4.0% over the forecast period. The number of travelers in North America for business and leisure purposes has significantly increased in recent years. Although public transport is economical and frequently used in North America, renting a vehicle is beneficial for travelers with additional requirements such as freedom of mobility and preferred vehicle type. There has been a substantial increase in the number of Recreational Vehicle (RV) parks and campgrounds in North America, which has attracted travelers to rent an RV. The number of business trips is gradually surpassing the number of leisure trips in North America, thus driving the need for MUV rental solutions. Business groups require vehicles on rent basis throughout the year; whereas, the demand for these vehicles from the leisure group is limited to peak periods. In an attempt to capture a share of the untapped market, prominent players in North America have started providing premium services by offering discounts and packages to frequent travelers. Additionally, there has been a considerable increase in the number of aggregator vehicle rental platforms across the globe. These platforms help customers compare several aspects of MUVs (provided by various brands), including features, vehicle model, rental plans, and others, for users to better select a vehicle. In recent years, the business of renting passenger vans has witnessed rapid growth. While several global companies have already established their footprint in North America, there is still significant scope for the new entrants to enter the market for North America MUV rental. The market participants are focusing on providing better offers and services to attract customers and get more reservations. As a result, companies in North America have now started integrating advanced technologies in their business processes. The service providers in North America are focusing on implementing various technologies for training, sales & marketing, and customer support and for enabling better communication with their customers & gaining a competitive edge. The prime focus of the market participants is maximizing the utilization of their vehicles. In case of reduced demand, the companies usually reduce the prices to stimulate the demand or reduce the size of their operating fleet of vehicles. A few companies in the market for North America MUV rental, especially those involved in renting passenger vans, are renting out their vehicles on long-term contract basis to maximize their profitability and reduce downtime of vehicles. Van rental operators are increasingly tapping the opportunities generated by recent technological innovations in the mobility sector. Additionally, these operators are increasingly offering improvements in their services. They are now focused on providing various enhanced services to their customers, including online self-booking services, sophisticated in-vehicle amenities such as mobile phones, and express service for regular renters. Optimized customer information management is enabling the operators to deliver improved services to their customers.
Application Insights of North America MUV Rental MarketBased on applications, the market for North America MUV rental is categorized into on-airport and off-airport. The off-airport segment dominated the market in 2018 and is expected to retain its dominance over the forecast period. The growing trend of renting recreational vehicles to commute to remote locations for camping as well as for leisure purposes has significantly boosted the segment growth. Another factor responsible for promoting the demand for passenger van rentals in off-airport applications is the increase in the number of business travelers. Travelers, in this case, require passenger vans on rental basis and on a regular basis throughout the year. The on-airport segment is anticipated to exhibit considerable growth in the North American market over the next six years. The significant factors responsible for the growth of this segment are the increasing number of low-cost carriers and improving standard of living among the masses. Prominent market players in North America have established their offices at major airports to better serve air travelers. Furthermore, they are increasingly seeking to benefit from the increase in number of air travelers by expanding their brand presence & vehicle fleet and promoting their services across all major airports. MUV
Type Insights of North America MUV Rental MarketBased on MUV type, the market for North America MUV rental has been segmented into passenger vehicles and cargo vehicles. The passenger vehicle segment accounted for the largest share of the overall revenue in 2018 and is expected to retain its dominance over the forecast period. The growing number of air travelers and internet-based bookings in North America are some of the crucial factors boosting the growth of the market for North America MUV rental. Additionally, factors such as increased disposable income, consumer confidence, and stable regional economic conditions are also further driving the growth of this segment. Focus on improving customer services such as self-service kiosk, online check-in, and loyalty programs helps make the rental process quicker and optimized. As per the recent trend, the individuals in North America, as well as travelers from other countries, are increasingly availing vehicle rental services through online platforms. Most of the companies in the market provide relevant information regarding their vehicle fleet to the customers, including details on passenger/cargo-carrying capacity. This aids customers in selecting the best possible MUV based on their requirements and convenience.
Country InsightsThe companies operating in the market for North America MUV rental are focusing on implementing various technologies in their business processes to maintain transparency and to improve convenience for customers. A few MUV vehicle rental companies are introducing black box recorders in their fleet of vehicles. This technology incorporates GPS tracking to ascertain the location of the vehicle at any point of time. The companies are adopting this technology as a part of their strategy to limit the number of vehicles lost due to theft and to identify the customers violating speeding regulations during the journey. The U.S. dominated the North America MUV rental market in 2018 and is expected to retain its dominance over the next six years. The upsurge in the number of tourists, coupled with the rise in cargo movement across the country, is expected to drive the countrys growth over the forecast period. Moreover, healthy economic conditions, along with rising disposable income, have also stimulated the growth of the MUV rental market in the country. The key players in the U.S. have started expanding their presence across all major metropolitan as well as micropolitan areas across the country to effectively address the increasing customer base. Canada is anticipated to witness considerable growth, registering a CAGR of over 5% from 2019 to 2025. The country has witnessed an increase in the number of air travelers, the industrys highest-revenue-generating source, along with gains in per capita disposable income and reduction in the rate of unemployment. The MUV rental market in Canada has been witnessing consolidation among the players over the last few years. Rising number of domestic travelers and the growth of the Canadian economy are expected to provide considerable opportunities for the countrys MUV rental market growth over the forecast period.
Market Share Insights of North America MUV Rental MarketThe market for North America MUV rental is moderately fragmented. The key incumbents operating in the market include Enterprise Rent-A-Car, Dollar Rent A Car, Inc.; Budget Rent A Car System, Inc.; Sixt SE; and Alamo. The companies are expanding their geographical presence and upgrading their vehicle fleet size to precisely address the demand for MUV on rental basis across the region and to increase their profit margins. Moreover, the major players have also started launching their mobile applications for enhancing the convenience of customers. In September 2018, Alamo, one of the subsidiaries of Enterprise Holdings, Inc., launched its smartphone app to provide enhanced accessibility, faster reservation, and hassle-free customer experience. Similarly, in March 2019, Sixt SE unveiled a mobile app that provided users with a plethora of services, including car renting, cab-hailing, and car-sharing. Partnerships and collaborations are some of the critical strategies adopted by the players to gain a competitive edge. In February 2019, Budget Truck Rental, LLC partnered with Fetch Truck Rental, a self-service truck startup, enabling the latter companys customers to rent Budgets box trucks, pickup trucks, and cargo vans with flexible terms and various rental options. Recently, Sixt SE commenced its business operations at San Antonio International Airport, Texas, U.S., to expand its geographic presence and enhance its market share. Similarly, in April 2019, Enterprise Holdings, Inc. announced a strategic partnership with a Japan-based company named Nippon Rent-A-Car Service, Inc. to expand its geographical footprint. Prominent players in the market are increasing the rental fleet size of electric & autonomous vehicles and vehicles featuring connected technologies. For instance, in December 2018, Enterprise Holdings, Inc. announced a partnership with General Motors in order to significantly increase the number of connected vehicles in its fleet by the end of 2019. This initiative is expected to enhance and streamline customer experience for Alamo, Enterprise Rent-A-Car, and National Car Rental.
p2 Segments covered in the reportThis report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the North America MUV rental market report on the basis of application, MUV type, and country:
Application Outlook (Revenue, USD Million, 2019 - 2030)
MUV Type Outlook (Revenue, USD Million, 2019 - 2030)
- Passenger Vehicles
- Cargo Vehicles
Table of Contents Chapter 1 Methodology and Scope 1.1 Market Segmentation and Scope 1.2 Market Definitions 1.3 Information Procurement 1.3.1 Purchased database 1.3.2 GVR’s internal database 1.3.3 Secondary sources and third party perspective 1.3.4 Primary research 1.4 Information Analysis 1.4.1 Data analysis models 1.5 Market Formulation and Data Visualization 1.6 Dat | read more...