by Car rental services provide vehicles on rent for both personal and commercial purposes and offers pickup and drop facilities along with insurance, roadside assistance, and other add-on services. The growing middle-class population, urbanization, and increasing disposable income have boosted demand for car rental services.
The global Car Rental Market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Surge in e-hailing and car share services: The increasing popularity of e-hailing and peer-to-peer car sharing services like Uber and Zipcar have boosted the growth of the car rental market. Millennials and young population increasingly prefer these short-term vehicle rental services over private vehicle ownership owing to their on-demand availability and flexible terms. Major car rental companies are also partnering with these services and launching their own e-hailing operations to leverage the trend of ridesharing and collaborative consumption. This has boosted the demand for short-term car rental services.
SWOT Analysis
Strength: The car rental market has strong brand recognition of established players which enhances customer trust and retains existing customers. There is high demand for rental cars from business and leisure travelers which ensures consistent business.
Weakness: Fluctuating fuel prices can negatively impact profit margins of car rental companies. Changing customer preferences towards shared mobility options like ride-hailing pose a threat.
Opportunity: Growing tourism industry globally is expanding the target audience for car rental services. Companies can leverage new technologies like electric vehicles, connected cars and mobility-as-a-service business models.
Threats: Strict emission regulations across countries can increase operating costs. Entry of new startups offering affordable rental options through asset-light models is intensifying competition.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth over the forecast period driven by increasing international tourism and business travel worldwide. The global Car Rental Market is estimated to be valued at US$ 133.23 billion in 2024 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030.
The Asia Pacific region dominates the market currently owing to robust economic growth, rising disposable incomes and expansion of tourism industries in major countries like China and India.
Key players operating in the car rental market are Aries Shipbroking (Asia) Pte Ltd.,Braemar Shipping Services Plc,BRS Group,Chowgule Brothers Pvt. Ltd.,Clarkson PLC,E.A. Gibson Shipbrokers Ltd.,Fearnleys AS,Galbraiths Ltd.,Howe Robinson Partners Pte Ltd.,INTEROCEAN,Lorentzen & Stemoco AS,Maersk Broker KS,Maritime London Ltd.,McQuilling Partners Inc.,Poten and Partners Inc. Among these, Avis Budget Group, Inc.,Enterprise Holdings, Inc. and Europcar Mobility Group S.A. hold significant market share globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
