Car Rental Market

Global Car rental Market is forecast to witness a promising growth over the upcoming years, owing to the accelerating internet penetration across the developing and developed nations.

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Market Dynamic

Key Drivers and Emerging Trends

The factors driving car rental market include the expansion of travel and tourism sector, rapid urbanization, and growing trend of on-demand transportation. For example, in August 2017, Migo, a Seattle-based search engine for on-demand ride services developed a mobile application that helps users in comparing locations and prices of nearby taxi, car-sharing, and ride-hailing companies all in one app. Moreover, with the rising pollution levels, the government across the developing as well as developed nations are emphasizing on reducing the vehicular emissions and are encouraging car rental services, driving the market growth. The growing adoption of car rental services in the form of carpooling for increased mobility and economical traveling is forecast to expand the Car rental market size over the upcoming years.

Further, with the accelerating smartphone penetration, the car rental market is projected to expand, as smartphones provide hassle-free booking and online payment options for ride-hailing and rental services. Thus, increasing number of car booking applications, rise in the air traffic and increasing car prices around the world are other factors strengthening the Car rental Market share. Also, the advent of robotaxis coupled with the rising adoption of car rentals in electric vehicle sectors have bolstered the market growth. For instance, the increase in the adoption of electric ride share services is likely to decrease the number of passenger vehicles on American roads $247 million to $44 million in 2030.

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Vehicle Type – Segment Analysis

SUVs are projected to hold a higher share over the upcoming years, owing to the growing adoption of electric SUVs in car rental services. For example, Sixt SE, the leading car rental companies offers electric SUV car models including Tesla Model Y, volvo xc60, and Tesla Model X for renting purposes. The fuel efficiency, extra seating, more cargo space, and enhanced safety offered by SUVs will further augment the segment’s size.

The economy cars segment is anticipated to dominate the market over the forecast period. The dominance can be majorly attributed to the growing demand for economy cars for intra-city travel and airports, owing to their cost efficiency and compact nature.

Application – Segment Analysis

Airport transport is forecast to lead the market over the upcoming years, owing to the increasing number of airports in the developing countries. With the increasing air traffic, various car rental operators have initiated the expansion of their fleet and are promoting services across major airports, driving the market growth. In addition, a reduction in air travel fares has inclined people towards air travel from conventional travel medium will boost the segment’s growth. Moreover, the accelerating per capita income coupled with the expansion of tourism industry worldwide will expand the car rental business near airports.

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Regional – Segment Analysis:

Asia-Pacific is estimated to expand at a higher CAGR over the forecast period. The regional growth is primarily attributed to the accelerating per capita income, better road connectivity, increasing disbursement on air travel, and expansion of tourism sector. For example, as per the World Travel & Tourism Council (WTTC), in 2019, the travel and tourism industry across the Asia-Pacific is expected to increase by 5.5% as compared to 2018.

North America is predicted to dominate the car rental market over the forecast period, primarily because of the existence of some leading car rental players including Avis Budget Group and Enterprise Rent-a-Car. In addition, the increasing adoption of electric cars aided by the rising concerns pertaining emissions among consumers in the region, will bolster the market growth. Other factors including the sudden surge in business and leisure trips across the region is boosting the market growth.

Top Market Players

Various notable players operating in the market include Budget Rent A Car System, Inc., Sixt SE, The Hertz Corporation, Avis Budget Group, Inc., Enterprise Holdings, Inc., Europcar Mobility Group, Carzonrent India Pvt Ltd., Localiza Rent a Car S/A, GlobalCarRental.It, and Alamo, among others. 

Key Developments:

• • In 2022, SIXT, the leading global mobility providers, declared the expansion of its business across the US and establishment of new branches in Charlotte and Baltimore, in order to provide more rental choices on the East Coast.
  • In 2021, Uber initiated a new car rental service called Uber Rent in Washington DC, and declared the expansion of its Uber Reserve option to some of the US’ biggest airports. According to this announcement the service will be launched in the US capital initially, though it is expected to be rolled out across the country later.
  • In 2021, Humax declared the supply of the WTC Auto Rent RAiDEA mobility service platform to customers in the Middle East by enhancing technology for a round trip, free-floating, and one-way infrastructure primarily designed for cars, including bikes, electric scooters, motorcycles, and cars.
  • In 2020, AirAsia India, an Indian airline, entered into a partnership with Avis India, a leading vendor of mobility solutions for corporate and retail users, with the main emphasis to provide customers with discounted car rental services and other benefits, including self-drive cars, airport transfers, and chauffeur-driven cars.
  • In 2020, AirAsia India partnered with Avis India, a part of Avis Budget Group, Inc., that offer guests discounted car rental services, and other benefits that include complimentary upgrades in India and internationally. With this partnership, AirAsia India guests can opt to hire airport transfers, chauffeur-driven vehicles, and self-drive cars from Avis’s fleet of mid, premium, luxury, and SUV cars.

Segments covered in the Report:

The global car rental market has been segmented on the basis of vehicle type, application, end-user, and regions. Based on vehicle type, the market is segmented into luxury cars, executive cars, economy cars, SUVs, and MUVs. Based on application, the market is segmented into local usage, airport transport, outstation, and others. Based on the end-user, the market is segmented into self-driven and chauffeur-driven. 

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Key questions answered in this research report:

• • At what pace is global Car Rental Market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Car Rental Market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Car Rental Market?
  • Which application generated maximum revenues in 2019 and identify the most promising application during the forecast period?
  • What are the various end-users of global Car Rental Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Vehicle Type, By Application, By End-User, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Budget Rent A Car System, Inc., Sixt SE, The Hertz Corporation, Avis Budget Group, Inc., Enterprise Holdings, Inc., Europcar Mobility Group, Carzonrent India Pvt Ltd., Localiza Rent a Car S/A, GlobalCarRental.It, and Alamo, among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Global Car Rental Market Segmentation

Global Car Rental Market by Vehicle Type

• • Luxury Cars
  • Executive Cars
  • Economy Cars
  • SUVs
  • MUVs

Global Car Rental Market by Application

• • Local Usage
  • Airport Transport
  • Outstation
  • Others

Global Car Rental Market by End-User

• • Self-Driven
  • Chauffeur-Driven

Global Car Rental Market by Region

• • North America Car Rental Market (Option 1: As a part of the free 25% customization)
    • By Vehicle Type
    • By Application
    • By End-User
    • US Market All-Up
    • Canada Market All-Up
  • Europe Car Rental Market (Option 2: As a part of the free 25% customization)
    • By Vehicle Type
    • By Application
    • By End-User
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Car Rental Market (Option 3: As a part of the free 25% customization)
    • By Vehicle Type
    • By Application
    • By End-User
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Car Rental Market (Option 4: As a part of the free 25% customization)
    • By Vehicle Type
    • By Application
    • By End-User
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Car Rental Market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Budget Rent A Car System, Inc.
  • Sixt SE
  • The Hertz Corporation
  • Avis Budget Group, Inc.
  • Enterprise Holdings, Inc.
  • Europcar Mobility Group
  • Carzonrent India Pvt Ltd.
  • Localiza Rent a Car S/A
  • GlobalCarRental.It
  • Alamo