The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 10 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Mexico Car Rental Market offers customers both short-term and long-term vehicle rental services through various distribution channels. Consumers are increasingly opting for car rental services to conveniently commute to diverse locations while reducing fixed vehicle costs.
Market key trends:
Growing preference for car rental services via mobile apps is a key trend shaping the Mexico Car Rental Market. Leading rental companies are heavily investing in developing innovative mobile technologies to improve customer experience. This allows users to instantly book and locate vehicles using their smart devices. Customers can compare prices, read reviews, track bookings and seek location-based assistance right from their phones. The digital transformation is enhancing convenience and competitiveness in the market.
Segment Analysis
The Mexico car rental market is dominated by the economy car segment which captures around 40-45% of the total market share. The economy car segment is the largest sub-segment owing to demand for cost-effective travel options from price-sensitive customers. Additionally, the easy availability of economy car models from major rental companies and their competitive pricing also contributes to the high demand. Sedan cars form the second largest sub-segment with over 30% share due to increasing demand from corporate travelers and couples traveling together who prefer mid-sized vehicles for door-to-door traveling experience.
Key Takeaways
Global Mexico Car Rental Market Demand is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing infrastructure development and rising tourism. The global Mexico car rental market is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing infrastructure development and rising tourism.
Regional analysis
Regionally, Mexico City accounts for the highest share in the Mexico car rental market currently. This is attributed to the presence of major rental operators as well as high fleet demand arising from business and leisure travelers. However, the Cancun region is expected to exhibit the fastest growth during the forecast period owing to growing tourism inflow, major hotels partnering with local car rental companies, and increasing airport connectivity.
Key players
Key players operating in the Mexico car rental market are National Car Rental, EUROPCAR GROUP S.A, MEX Rent a Car, Budget Rent A Car System Inc., Fox Rent A Car, Thrifty Car Rental Inc., THE HERTZ CORPORATION, Sixt SE, Avis Budget Group Inc., and Alamo. Key players are focusing on expanding service network through partnerships and acquisitions to strengthen their foothold in the lucrative Mexico market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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