Global Car Rental Market Size & Share, Sector / Industry Report & Analysis, 2025 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Car Rental Market


The global Car Rental market size is projected to reach US$ 131.31 billion by 2026, from US$ 97.43 billion in 2020, at a CAGR of 5.1% during 2021-2026. Upsurge in travel and tourism activities across the globe is expected to drive the industry over the coming years. Improved road infrastructure, coupled with increased disposable incomes, especially in emerging economies, has resulted in growing frequency of leisure and business trips, which is further driving the market.

Technology is a critical component expected to boost the market over the forecast period. Increased adoption of information technology is transforming the industry and enabling operators to deliver improved services to their customers. This includes utilization of optimized corporate and customer information management and development of convenient internet booking applications.

Introduction of value-for-money car rental services is a trend that is gradually gaining momentum in the industry. Market players are focusing on the introduction of low-cost services, particularly for the leisure market. Smaller players majorly prefer online platforms for strengthening their geographical presence and gaining a wide customer base. Furthermore, various prominent car rental service providers are introducing attractive schemes with affordable prices, thereby strengthening their customer base.

Increasing sales of smartphones is another major factor propelling the market. Rising dependence of users on smartphones for carrying out a variety of activities traditionally done by personal computer has significantly helped transform the car rental experience for customers. This is further enhanced by increased availability of comprehensive demand-oriented mobility solutions. Industry players such as Sixt SE, Uber, and Avis have launched their mobile apps through which customers can easily choose vehicles from a portfolio and carry out bookings.
Key market players such as Sixt SE are focusing on overcoming the challenge of fleet management by replacing their fleet after a specific interval to make sure their customers have access to the latest vehicles. Additionally, plug-in vehicles are emerging as another disruptive trend as they help address increasing environmental concerns associated with pollution caused by conventional vehicles. Stringent emission regulations are also encouraging the uptake of plug-in vehicles and market players such as Hertz and Enterprise Rent-A-Car are introducing electric vehicles in their fleet primarily to comply with emission norms.

Efforts made by industry participants to bring technological innovations in their existing services is exerting a significant impact on the mobility of these vehicles and is resulting in rapid growth of the market. The incorporation of advanced technologies has made the industry lucrative among market participants. Furthermore, advances in telematics technology and IoTplatforms are expected to improve industry potential over the coming years.

Market Segmentation, Outlook & Viewpoint: Global Car Rental Market

Vehicle Type Market Segmentation & Outlook (USD Million, 2014 - 2025)

  
Luxury
  
Executive
  
Economy
  
SUVs
  
MUVs

Application Market Segmentation & Outlook (USD Million, 2014 - 2025)

  
Local usage
  
Airport transport
  
Outstation
  
Others

Key Players, Recent Developments & Regional Insights: Global Car Rental Market

Revenue generated through car rental services for airport transport surpassed USD 35.0 billion in 2018 and is projected to grow substantially over the coming years. A considerable rise in air travelers across the globe is expected to further propel the revenue stream generated from the segment in the next few years. Various operators across the world are increasingly seeking to benefit from this trend by expanding their brands and promoting their services across all major airports globally. Prominent car rental companies have their offices at airports, where customers can avail round-the-clock hiring services, thereby accelerating segment growth.

Local travel and outstation applications are expected to witness substantial growth over the next few years. Lack of route flexibility and standard timings of public transport services have resulted in shifting preference of travelers toward car rental services for day-to-day travels, majorly propelling the market. In addition, industry players are focusing on providing the option of choosing vehicles as per customer convenience. The outstation segment is poised to register high growth through 2025 owing to increasing demand for such services for weekend travels and inter-state business transport requirements.

Regional Insights

North America dominated the overall market with a revenue share of over 50.0% in 2018 and is expected to retain its dominance over the forecast period as well. Rising number of leisure and business trips across the region, both locally and internationally, is among the prominent factors influencing the growth of the regional market. Additionally, a continuous shift in consumer preference toward rental services, along with the presence of prominent service providers in the region, such as Avis Budget Group and Enterprise Rent-a-Car, is expected to accelerate the revenue generation prospects.

Asia Pacific is anticipated to emerge as the fastest growing regional market, exhibiting a CAGR of more than 8.0% from 2019 to 2025. The region has witnessed considerable economic growth, along with enhanced road infrastructure, over the past few years. Furthermore, rising availability of high-end luxury as well as economy vehicles, particularly in developing nations, is providing a major boost to the car rental industry in the region. A significant portion of the market revenue is generated from low-budget rentals, on account of the cost-sensitive nature of the economy. Moreover, the self-drive renting trend across the region is expected to witness high traction in the coming years.

Car Rental Market Share Insights

The market is moderately fragmented in nature, with numerous international and domestic companies operating across the globe. However, the industry is on the verge of consolidation with few players capturing the majority of the market. Key participants include Enterprise Rent-A-Car, The Hertz Corporation, Sixt SE, Europcar, and Avis Budget Group. The primary focus of these players is on enhancing their services in order to gain customer base and maximize profitability.

In March 2019, Sixt SE launched a mobility app that facilitates customers with services such as vehicle renting or sharing and cab hailing. Similarly, in December 2018, The Hertz Corporation, in partnership with CLEAR, launched an online platform called the Hertz Fast Lane. This platform uses biometrics to carry out and speed up the entire vehicle rental process for convenience of customers.

Collaboration is another key strategy implemented by industry players to strengthen their position in the market. For instance, in January 2019, Enterprise Rent-A-Car announced a collaboration with Premier Group for expanding its car rental service portfolio in Egypt. In December 2018, the company partnered with the University of Delaware for providing on-demand transportation services on campus.

Key Insights Covered: Global Car Rental Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Car Rental industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Car Rental industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Car Rental industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Car Rental industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Car Rental industry.

Research Methodology: Global Car Rental Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other