The car rental market provides mobility services through renting of cars and vehicles on an hourly, daily, weekly or monthly basis. Car rentals offer flexibility and freedom of movement to customers. With growing preferences for shared and on-demand transportation over private vehicle ownership, the car rental services are witnessing higher demand.
The global Car Rental Market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Shared mobility is gaining widespread popularity as an affordable and sustainable transportation alternative. Growing adoption of shared transportation modes such as ride-hailing and car-sharing has boosted the car rental market. especially among the youth and middle-aged population who prefer access over ownership of private vehicles. Major car rental brands are also exploring partnerships with ride-hailing platforms to expand their fleet coverage. This is expected to drive higher fleet utilization and revenue growth in the car rental market over the forecast period.
SWOT Analysis
Strength: The car rental market benefits from a large customer base due to the growing business and leisure travel. It also has strong brand recognition of major players like Hertz, Enterprise and Avis.
Weakness: High dependency on external macroeconomic factors like fluctuations in oil prices, economic downturns make the market vulnerable. Fragmented nature of local players is also a challenge.
Opportunity: Growth in tourism and business travel across regions presents new opportunities. Emergence of ride-hailing and car-sharing business models opens up innovative business models.
Threats: Risk of substitution threat from emerging shared mobility solutions. Stringent environmental norms raise operational costs.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth over the forecast period owing to revival of business and leisure travel post pandemic. The global Car Rental Market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023-2030.
The North America region currently dominates the car rental market with the largest share. USA and Canada have strong presence of international car rental brands and account for majority of the regional car rental fleet. The car rental market is concentrated in nature with top 5-6 international players accounting for over 50% of global car rentals. Local players have substantial share in domestic markets of emerging regions. Adoption of electric vehicles, self-driving technologies and mobility-as-a-service models can disrupt conventional rental business models in the long run. Strong brand identity, diversified fleet and partnerships will be crucial for car rental companies to sustain growth amid emerging business models.
Key players operating in the car rental market are Hertz Global Holdings, Enterprise Holdings, Avis Budget Group, Europcar, and Sixt SE. Hertz, Enterprise and Avis dominate global car rental business with presence across major airports and cities worldwide. They are investing in fleet diversification, digital platforms and partnerships to strengthen market leadership.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it