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Car Rental Market size is set to grow by USD 157.34 billion from 2024-2028, rise in vehicle ownership cost to boost the market growth, Technavio

NEW YORK, May 16, 2024 /PRNewswire/ — The global car rental market size is estimated to grow by USD 157.34 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 20.47% during the forecast period. 

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Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Mode Of Booking (Offline and Online ), Rental Category (Airport transport, Local transport, Outstation transport, and Other transport ), Type (Economy cars, Executive cars, Luxury cars, SUVs, and MUVs ), and Geography (North America, Europe, APAC, Middle East and Africa, and South America)

Region Covered

North America, Europe, APAC, Middle East and Africa, and South America

Key companies profiled

Aspark Holidays Pvt. Ltd., Autorent Car Rental LLC, Avis Budget Group Inc., Carzonrent India Pvt. Ltd., Centauro Rent a Car S.L.U., DriiveMe Ltd., Enterprise Holdings Inc., Europcar Group UK Ltd., Expedia Group Inc., Getaround Inc., GO Rentals Auckland Ltd., Hertz Global Holdings Inc., Localiza Rent a Car SA, Movida Participacoes SA, Renault SAS, SIXT SE, Turismo Gargo SA de CV, Turo Inc., Uber Technologies Inc., and Zoomcar India Pvt. Ltd.

Key Market Trends Fueling Growth

The car rental market has evolved significantly with the Internet’s penetration, enabling customers to book short-term rentals for various transportation needs. Websites acting as intermediaries or brokers, such as carentals.com, expedia.com, cartrawler.com, and priceline.com, offer customers lower prices and convenience. However, from operators’ perspectives, sales through intermediaries come with commissions, making direct sales more favorable. Other trends include the use of mobile apps, online booking, verification of documents, e-signing contracts, cashless transactions, and the availability of economy cars, SUVs, electric vehicles, and airport transport for local usage and global travelers. Additionally, the tourism sector, air traffic, and employee retention are influenced by car rental services, telematics, and information technology. Travel restrictions and tourist agencies also impact the market. 

Market Challenges

  • The car rental market is experiencing a transformative shift, driven by urban mobility trends and the rise of shared mobility solutions. Car sharing, which allows the use of freely parked vehicles for short-term rentals, is increasingly popular among global commuters. This model contrasts traditional car rental services, offering convenience, flexibility, and cost savings. Key factors shaping the market include customer experience, global travel, mobile apps, internet penetration, telematics, online booking, and cashless transactions. Additionally, the adoption of electric vehicles (EVs) and various vehicle rental options, such as self-driven and chauffeur-driven, cater to diverse customer needs. The market also encompasses mobility solutions, business and luxury/premium car rentals, and economy/budget car hire agencies.

Research report provides comprehensive data on impact of trend, driver and challenges – Buy Report

Segment Overview 

This car rental market report extensively covers market segmentation by

  1. Mode Of Booking
  • Rental Category
    • 2.1 Airport transport
    • 2.2 Local transport
    • 2.3 Outstation transport
    • 2.4 Other transport
  • Type 
    • 3.1 Economy cars
    • 3.2 Executive cars
    • 3.3 Luxury cars
    • 3.4 SUVs
    • 3.5 MUVs
  • Geography 
    • 4.1 North America
    • 4.2 Europe
    • 4.3 APAC
    • 4.4 Middle East and Africa
    • 4.5 South America

    1.1 Offline- 

    In the Car Rental Market, segmentation by mode of booking plays a significant role in catering to diverse customer needs. Short-term rentals, a popular choice among global commuters and tourists, increasingly rely on online booking through mobile apps for convenience. However, offline access remains essential for those in remote areas or where Internet penetration is limited. Economy cars are a staple in this sector, with transportation demands driven by global travel and tourism. Car rental services adapt to this trend, integrating telematics and information technology for online verification of documents, e-signing contracts, and cashless transactions. Car rental operators prioritize employee retention and customer experience, offering airport transport, SUVs, and electric vehicles (EVs) to accommodate various travel needs. Amidst travel restrictions and air traffic fluctuations, local usage and tourist agencies continue to drive demand for car rental services. Offline booking, though less common, remains a valuable option for customers seeking a car hire agency experience without relying on the Internet.

    For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022) – Download a Sample Report

    Research Analysis

    The car rental market is experiencing significant growth, driven by the increasing global travel and commuting needs of customers. With the widespread use of internet penetration and mobile apps, car rental services have become more accessible than ever. Car rental operators are leveraging information technology to enhance the customer experience, offering online booking, verification of documents, and e-signing of contracts. The integration of telematics and cashless transactions has further streamlined the process. The rise of electric vehicles (EVs) is also transforming the industry, as travel restrictions and tourist agencies adapt to the new norm. Smartphone sales continue to fuel the demand for car rental services, making it a dynamic and evolving market.

    Market Research Overview

    The car rental market is a significant sector within the transportation industry, offering short-term vehicle rentals to individuals and businesses. This service enables customers to use a car for a specified period without the long-term commitment of ownership. The market caters to various customer needs, including leisure travel, business trips, and temporary vehicle replacement. Car rental companies provide a fleet of vehicles, ranging from economy cars to luxury models, to accommodate diverse customer preferences. The market is influenced by several factors, including fuel prices, travel trends, and economic conditions. Additionally, the advent of technology has led to innovations such as mobile apps and online booking systems, enhancing the customer experience. Overall, the car rental market offers flexibility and convenience, making it an essential service for modern mobility needs.

    Table of Contents:

    1 Executive Summary
    2 Market Landscape
    3 Market Sizing
    4 Historic Market Size
    5 Five Forces Analysis
    6 Market Segmentation

    • Mode Of Booking
    • Rental Category
      • Airport Transport
      • Local Transport
      • Outstation Transport
      • Other Transport
    • Type
      • Economy Cars
      • Executive Cars
      • Luxury Cars
      • SUVs
      • MUVs
    • Geography
      • North America
      • Europe
      • APAC
      • Middle East And Africa
      • South America

    7 Customer Landscape
    8 Geographic Landscape
    9 Drivers, Challenges, and Trends
    10 Company Landscape
    11 Company Analysis
    12 Appendix

    About Technavio

    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

    With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

    Contacts

    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: [email protected]
    Website: www.technavio.com/

    SOURCE Technavio

    Originally published at https://www.prnewswire.com/news-releases/car-rental-market-size-is-set-to-grow-by-usd-157-34-billion-from-2024-2028–rise-in-vehicle-ownership-cost-to-boost-the-market-growth-technavio-302147219.html
    Images courtesy of https://pixabay.com

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