The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 13.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The car rental market involves renting vehicles such as cars, trucks, vans and others for short periods. It provides an alternative to vehicle ownership with operational and financial advantages. The on-demand nature of car rental services offers flexibility and affordability to customers.
arket key trends:
One of the key trends in the car rental market is the evolving customer expectations and demand for digital transformation. With the rise of sharing economy and on-demand transportation services, customers expect a seamless, digitalized rental experience from end-to-end. Companies are increasingly adopting mobility platforms and investing in mobility-as-a-service to integrate physical and digital operations. This allows customers to browse inventory, book and manage rentals online or through mobile apps. It provides transparency and improves customer satisfaction in the car rental market.
SWOT Analysis
Strength: The global car rental market is expected to witness strong growth due to rising tourism and business travel. Companies in this market have large fleet sizes and maintain strong geographic presence which help them tap opportunities.
Weakness: Pricing pressure due to intense competition can negatively impact profit margins of car rental companies. Dependency on fuel prices is also a major weakness as fluctuations in oil prices directly impact operating costs.
Opportunity: Growing preference of individuals to opt for rental cars over owning a personal vehicle provides significant opportunities for market expansion. Developing economies with rising middle-class populations are emerging as highly lucrative markets.
Threats: Economic slowdowns can threaten the overall car rental business as discretionary spending and travel may decline during downturns. Technology disruptions such as shared mobility and ride-hailing services pose threats to conventional car rental business models.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing tourism and business activities across the world.
The North American region currently dominates the global car rental market in terms of revenue share due to strong economic growth and high disposable incomes in the US and Canada.
The car rental market in Asia Pacific region is expected to grow at the fastest rate during the forecast period owing to rising middle-class population and increasing disposable incomes in countries such as China and India. Countries such China, Japan, and India are emerging as highly lucrative markets. Europe holds a significant share in the global car rental market attributed to high prevalence of tourism activities across major countries in the region.
Key players operating in the market are Enterprise Holdings, The Hertz Corporation, Avis Budget Group, Europcar Group, Carzonrent, Sixt SE, Al Futtaim Group, Localiza – Rent a Car, Eco Rent a Car, and GlobalCARS. Key players are focusing on fleet expansion and increasing presence in high growth markets to gain competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.