NEW YORK, Nov. 5, 2023 /PRNewswire/ — The car rental market size is expected to grow by USD 129.71 billion between 2022 to 2027, according to Technavio. As per the latest report, the market will progress at a CAGR of 20.16% during 2022-2027. The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. 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, Mex Rent a Car, Movida Participacoes SA, Renault SAS, SIXT SE, Turo Inc., Uber Technologies Inc., Zoomcar India Pvt. Ltd., and Aspark Holidays Pvt. Ltd. are some of the major market participants. View the new Sample Report within minutes!
The increase in vehicle ownership cost is notably driving the market growth. The cost of owning a car depends on several factors, including fuel, registration, tax, finance, maintenance, and annual depreciation. The cost of owning a car is increasing year by year. According to the American Automobile Association (AAA), depreciation accounts for 43% of operating costs. Other costs, such as maintenance and fuel costs, together account for 25%. As a result, the percentage of car owners aged 18 to 35 is decreasing year by year. Such developments are increasing the demand for car rental services and will drive the growth of the car rental market during the forecast period.
Car Rental Market is segmented as below:
- Mode of Booking
- Offline
- Online
- Type
- Economy Cars
- Executive Cars
- Luxury Cars
- SUVs
- MUVs
- Rental Category
- Airport transport
- Local transport
- Outstation transport
- Other transport
- The market share growth by the offline segment will be significant during the forecast period. Offline booking allows customers to book a car in advance without relying on an internet connection. Customers can provide information to rental companies by phone or email. Demand for offline bookings has raised significantly in recent years due to increasing customer preferences. Additionally, offline bookings provide customers with an extra layer of security. This is mainly important for those who need reliable transportation for business or personal use. Such factors are expected to drive the growth of the offline segment in the car rental market during the forecast period.
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Technavio presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources. Our car rental market report covers the following areas:
- Car Rental Market size
- Car Rental Market trends
- Car Rental Market industry analysis
- Car Rental Market five forces analysis
- Car Rental Market competitive landscape
Car Rental Market – Key Challenge
The rising number of car-sharing services may impede market growth. A common trend toward mobility has raised the popularity of car sharing. The concept of car-sharing is gaining attention to reduce carbon emissions and decongest city roads. The car-sharing model allows the free use of vehicles parked in different locations. Moreover, car-sharing services are growing the popularity in urban areas of both developed and developing countries. These services connect car owners with other travelers to share journeys from city to city. This model is designed for long-distance travel and is aimed at motorists looking to fill empty seats during journeys. Thus, the rising adoption of car-sharing services is expected to hamper the growth of the car rental market during the forecast period.
Car Rental Market – Key Trend
The advent of intermediaries is a primary trend in the market. Customers can rent a car cheaply through intermediaries. As a result, the market becomes highly competitive and price becomes the main decision-making factor for customers. Commissions are paid to brokers. Therefore, intermediaries and sales through intermediaries are more disadvantageous to businesses than direct sales. In addition, the point of contact with the customer becomes an intermediary, making it difficult to differentiate the brand. Such trends may hamper market growth during the forecast period.
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- Market presence across multiple geographical footprints – Strong/Active/Niche/Trivial – Buy the report!
We provide a detailed analysis of around 25 vendors operating in the Car Rental Market. Backed with competitive intelligence and benchmarking, our research reports on the Car Rental Market are designed to provide entry support, customer profile and M&As as well as go-to-market strategy support.
- Autorent Car Rental LLC: The company offers car rental services such as self-driven car rental service.
- Avis Budget Group Inc.: The company offers car rental services with hatchbacks, sedans, SUVs.
- Carzonrent India Pvt. Ltd: The company offers car rental services such as one-way airport car rental, luxury car rental, SUV rental.
- 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
- Mex Rent a Car
- Movida Participacoes SA
- Renault SAS, SIXT SE
- Turo Inc.
- Uber Technologies Inc.
- Zoomcar India Pvt. Ltd.
- Aspark Holidays Pvt. Ltd.
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Car Rental Market 2023-2027: Key Highlights
- CAGR of the market during the forecast period 2023-2027
- Detailed information on factors that will assist car rental market growth during the next five years
- Estimation of the car rental market size and its contribution to the parent market
- Predictions on upcoming trends and changes in consumer behavior
- The growth of the car rental market
- Analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of car rental market vendors
Related Reports:
The electric car rental market size is estimated to grow at a CAGR of 12.64% between 2022 and 2027. The size of the market is forecast to increase by USD 11,246.65 million. Furthermore, this report extensively covers market segmentation by type (economy cars and luxury cars), distribution channel (offline and online), and geography (Europe, North America, APAC, South America, and Middle East and Africa). The growing government regulations, incentives, and subsidies on EVs are notably driving the market growth during the forecast period.
The Car Rental (Self Drive) Market is estimated to grow by USD 1,702.15 million between 2022 and 2027 accelerating at a CAGR of 35.8%. Furthermore, this car rental (self drive) market research report extensively covers market segmentation by vehicle type (economy cars and luxury cars), mode of booking (offline and online), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The growing interest in self-driving vehicles is the key factor driving the global car rental (self drive) market growth during the forecast period.
Table Of Contents :
- Executive Summary
- Market Landscape
- Market Sizing
- Historic Market Size
- Five Forces Analysis
- Market Segmentation by Mode of Booking
- Market Segmentation by Product
- Market Segmentation by Rental Category
- Customer Landscape
- Geographic Landscape
- Drivers, Challenges, and Trends
- Company Landscape
- Company Analysis
- Appendix
Technavio is a leading global technology research and advisory company. Their research and analysis focus 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.
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