Global Car Rental Market Overview, 2023-28

Car rental or car hire agencies are businesses that rent automobiles for a limited time at a set price. This service is frequently organised with many local branches, which are typically located near airports or busy city areas and are supplemented by a website that allows online reservations. With increased pollution and population, the car rental industry has undergone a significant transformation in recent years, becoming one of the most prominent industries in fleet transportation. One of the key factors driving the growth of the car rental industry is significant growth in the travel and tourism industry around the world. Furthermore, the growing urban population with an increased interest in adventure and travel is fuelling market growth. In line with this, people are turning to car rental services such as taxis and carpooling for increased mobility and cost-effective travel. Other factors, such as the introduction of car rental services via websites and smartphone-based applications, as well as rising consumer spending power, are expected to drive the market even further. According to the research report, “Global Car Rental Market Overview, 2023-28” published by Bonafide Research, the market stood at USD 103.79 Billion market size in 2022 which is expected to reach USD 180.75 Billion by 2028. As a result, the market is expected to grow at a 9.87% CAGR between 2023 and 2028. The rise of on-demand transportation services and the low rate of car ownership among millennials are driving growth in the car rental market. However, the low rate of internet penetration in developing countries stifles market growth. Furthermore, the adoption of car rental management software is expected to provide lucrative growth opportunities for car rental market players. Rental companies such as Enterprise, Europcar, and others have also strengthened their position in the sector by expanding their vehicle rental operations in tourist airports. Despite the fact that key companies have a strong presence in the country, there have been no recent developments or active strategies implemented by them, so the van rental market in the country is experiencing slow demand.

Economy cars dominate the car rental market in terms of vehicle type. The majority of consumers prefer economy cars because they are compact, fuel-efficient, and comfortable. Because economy cars have lower acquisition and maintenance costs than luxury and executive cars, they make up the majority of rental fleets. This category includes the vast majority of airport and intra-city taxis. Based on application, the business segment led the market in 2022 and is expected to maintain its dominance throughout the forecast period. However, the expanding tourism industry is expected to increase tourist car rental services. Furthermore, based on booking type, the online segment is expected to lead the overall market in the near future. Young consumers are becoming more interested in the online segment. The online booking option provides the consumer with a diverse selection of luxury vehicles from which to choose. Furthermore, this type of car allows for round-the-clock booking and year-round availability. It allows users to compare prices more easily and provides information on the availability of luxury cars, terms, and offers without requiring a physical inquiry. North America has the world's largest car rental industry by region. This market is being driven by the adoption of car rental software and low-cost rentals. The United States efficiently meets the demand for car rentals. The consistent flow of car rental supply and demand trends is also a key reason for success. Asia Pacific, Europe, South America, and the Middle East and Africa also share massive markets. The region's car rentals are being driven by the region's thriving tourism market. Growing urbanisation and population are driving demand factors in the Asia Pacific region. Furthermore, self-driven rental cars are expected to gain traction among end users during the forecast period. Also, short term rental length is leading the market in 2022 owing to higher adoption of the segment compared long-term travel. The number of corporate workplaces has increased over the last decade. As a result, the number of employees has grown over time. Furthermore, businesses now rely on providing cab or transportation services for their employees, particularly those who live in outlying areas. As a result, there is a greater demand for car rental services. The most recent trend gaining traction in the car rental market is the introduction of low-cost car rental services. Car rental companies should now offer low-cost car rental services, particularly in the leisure market. Small businesses want to use online car rental platforms to expand their geographic reach and customer base. Several well-known car rental companies have created value brands with low prices. Currently, online booking serves a variety of purposes, including document verification for the renter, providing information about the car to the renter, services such as drop-off and pick-up of the rented car at a specific location, e-signing contracts, and cashless transactions. Smartphone sales are another major driver of the market. Customers' increasing reliance on smartphones to perform a variety of tasks previously performed by personal computers has significantly aided in the transformation of the car rental experience. The Hertz Corporation is a car rental company based in Florida. It has approximately 12,000 locations in 160 countries, both domestically and internationally. Hertz has locations in the United States, Europe, South America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. Hertz Corporation operates under the brands Firefly Car Rental, Thrifty Car Rental, and Dollar Rent a Car. Hertz has a large fleet and is attempting to expand in developing economies through mergers and acquisitions. Taxis, passenger vehicles, and charter vehicles with flexibility and other features such as real-time feedback, vehicle tracking, and rating to end customers are examples of on-demand services. Numerous mobile applications make it easier to find available cars and compare rates with the respective car rental companies. Migo, a Seattle-based search engine for on-demand ride services, for example, launched a mobile app in August 2017 that allows users to compare the locations and prices of nearby taxi, car-sharing, and ride-hailing companies all in one app. Furthermore, such car rental services provide customers with a variety of functions. As a result, the growing popularity of on-demand transportation services is propelling the growth of the car rental market.

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Manmayi Raval

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Covid-19 Impacts: COVID-19's rapid spread had a significant impact on the overall tourism sector in 2020, affecting the car rental market. Furthermore, a drop in global air traffic has resulted in a drop in demand for airport car rentals. To ensure safety and prevent virus transmission, car rental companies adhere to hygiene and safety standards such as disinfecting their vehicles after each ride. Some car rental companies offer free hand sanitizers and masks to their customers. Key market competitors, such as Hertz and Avis, have disposed of their older vehicles at a higher rate than usual during the pandemic in order to generate revenue from these transactions. Recent Developments • Sixt SE has released a smartphone app that allows company car drivers to manage their contracts with the touch of a button. From March 2021, Hertz will charge an annual membership fee for its 24/7 service, which allows members to rent cars and vans contactlessly. • Humax announced in February 2021 that it would provide the WTC Auto Rent RAiDEA mobility service platform to Middle Eastern customers by improving technology for a round trip, free-floating, and one-way infrastructure specially designed for cars, including electric scooters, bikes, motorcycles, and cars. • December 2021 - The UAE's Ajman Public Transport Authority (APTA) announced the availability of vehicle rental services in order to support federal institutions in establishing an equitable and comprehensive transportation system, as part of the Emirate's Vision 2021. The change is intended to make it easier for clients to receive high-quality services. This service was developed by the Transport Authority's Vehicle Rental Section as part of the premium vehicle rental services. Major Companies present in the market: Avis Budget Group Inc, Hertz Global Holdings Inc, Enterprise Holdings Inc, Sixt SE, Fast Rent a Car (Emirates National Group), Bettercar Rental LLC, Europcar Mobility Group, TT Car Transit

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Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Global Car Rental market with its value and forecast along with its segments • Region-wise Car Rental market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Regions covered in the report: • North America • Europe • Asia-Pacific • South America • Middle-East & Africa By Car Type: • Luxury car • Executive car • Economy car • Sports utility vehicle (SUV) car • Multi utility vehicle (MUV) car By Application Type: • Leisure/Tourism • Business By End User: • Self-driven • Chauffeur-driven By Booking Type: • Offline • Online By Rental Length: • Short Term • Long Term The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Car Rental industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.