Car Rental Market

Market Synopsis:

The Global Car Rental Market was valued at USD 102.12 Billion in 2022 and is expected to reach a value of USD 141.93 Billion by 2030. The Global Market is forecast to grow by exhibiting a Compound Annual Growth Rate (CAGR) of 4.20% over the forecast period.

Car Rental is the service of renting automobiles for a set period through online or offline channels. Car Rental services chiefly serve travelers and folks who do not own personal vehicles. Renting a car/vehicle is more cost-effective than owning one because it allows for greater mobility, lower-cost travel, and avoidance of high ownership costs. Due to increased vehicle prices, a shortage of parking places, and high maintenance costs, the general public is urged to use on-demand transportation services for travel and daily commuting. The demand for automobile rental services is being driven by a massive increase in the number of individuals traveling for both business and pleasure around the world, fueling the industry's expansion.

Other factors, such as the availability of automobile rental services via websites and mobile applications like Uber, and Ola, to name a few, fuel market growth and rising consumer spending power. In addition, improved corporate technical services and hassle-free internet booking tools are the two main strategies helping automobile rental service providers offer their customers improved services. Finally, the market for renting cars is projected to undergo significant change due to the advent of technology innovations like self-driving cars. Therefore, the market expansion is assumed to be significantly influenced by technology.

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Market Segmentation:

The Car Rental market is segmented based on Application, Rental Category, Car Type, and Region. Based on the segment Application, the market is sub-segmented as Leisure and Commercial. Furthermore, based on the Rental Category, the market is sub-segmented as On Airport and Off Airport. Finally, based on the segment Car Type, the market is sub-segmented into Luxury Cars, Executive Cars, Economical Cars, Sports Utility Vehicles (SUVs), and Multi Utility Vehicles (MUVs).

Based on Rental Category:

Based on the Rental category, the market is sub-categorized into On Airport and Off Airport. The expansion of the On-Airport sub-segment is predicted to be boosted by a significant rise in air travel across the globe in recent years. Many vehicles rental companies are growing their fleets and advertising services at important airports in light of this trend. The sub-category is increasing due to significant airport market players where clients can use 24-hour automobile rental services. In addition, leisure travel will increase air travel and domestic tourism, impacting the On-Airport Car Rental Market. This idea is constructive for overseas business visits because employees can familiarize themselves with locales, especially for crucial commercial information.

Based on Car Type:

Based on segment Car Type, the market is sub-segmented into Luxury cars, Executive Cars, Economical Cars, Sports Utility Vehicles (SUVs), and Multi Utility Vehicles (MUVs). Over the forecast period, the segment of economy automobiles is anticipated to continue to rule. This segment is growing due to several key characteristics, including its compact design, fuel efficiency, and comfort level. In addition, economy cars have lower acquisition and maintenance costs than luxury and executive cars. As a result, inexpensive automobiles are increasingly favored for the airport and intra-city transport.

Asia Pacific is Forecast to Grow at the Highest CAGR Forecast Period

Asia Pacific is accounted to grow at the highest Compound Annual Growth Rate (CAGR) during the forecast period (2022-2028) owing to increasing air passenger traffic, increasing disposable income, and new airports. Over the expected time frame, it is anticipated that the markets in China and India will expand dramatically. Rising consumer spending power, continuously developing economies, and increasing business travel costs are expected to affect regional market growth positively. Government restrictions on car purchases in some regions of China, which are an effort to address the escalating traffic and pollution issues, are likely to influence people's decision to use Car Rental services. Rising fuel prices and automobile pricing fuel the demand in places like India. Renting a car/vehicle is the most popular option for meeting travel needs because the majority of the population in the region belongs to middle-class fixed-income groups. In addition, the region's rapid infrastructural development is increasing the demand for rental services in areas like India and China.

Competitive Landscape:

The key players in the Global Car Rental market include- Avis Budget Group, Europcar, Enterprise Holdings Inc., Hertz System Inc., Localiza SIXT, Uber Technologies Inc., Carzonrent India Pvt Ltd., Eco Rent a Car, Ani Technologies Private Limited (Ola Cabs.Com) and others.

Segmentation of the Global Car Rental Market: