by The car rental market allows customers to rent automobiles for short periods of time, ranging from a few hours to a few months. It caters to both leisure and business travelers who require a vehicle for local or one-way transportation needs without purchasing or maintaining their own automobiles. Customers can choose from a variety of vehicle classes including economy cars, compact cars, mid-size cars, luxury cars, sports utility vehicles, and trucks. In addition to basic rental contracts, the market also offers optional services such as GPS navigation, child seats, additional drivers, and luxury upgrades. The global car rental market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the growth of the car rental market is the rising demand for flexible mobility solutions. Younger generations prefer the flexibility and affordability of short-term rentals over the costs and hassles of long-term ownership. In addition, the high costs of purchasing and maintaining a personal vehicle has shifted consumer focus towards pay-per-use options. The car rental service provides an on-demand alternative to travelers and urban professionals moving between locations frequently. This driver, coupled with increasing private travel and tourism activities globally, is expected to support the market growth over the forecast period.
SWOT Analysis
Strength: Car rental allows more mobility and flexibility than car ownership. It avoids costs of maintaining and repairing a car. Customers can choose from a wide range of car models based on their needs. Some key rental companies have large fleet sizes and presence across major cities and airports globally which provides convenience to customers.
Weakness: Customers have little control over vehicle quality, features or cleanliness as selection depends on availability. There is risk of additional costs for damages during rental period if accidental. Online bookings and prepaid rates are usually non-refundable which can be a drawback.
Opportunity: The market is expected to grow with rising tourism and business travel activities globally. New mobility options like car sharing and rentals on demand through apps provide growth opportunities. Developing regions especially in Asia Pacific are witnessing rising disposable incomes and travel which will drive future growth in car rentals.
Threats: Increased popularity of ride-hailing apps may pose a threat especially for airport transfers. Strict emissions norms in some countries can adversely impact fleet expansion plans of key players. Economic slowdowns can negatively impact travel and demand for vehicle rentals.
Key Takeaways
The Global Car Rental Market is expected to witness high growth over the forecast period of 2023 to 2030. The market stood at a size of US$ 133.23 billion in 2023 and is anticipated to grow at a CAGR of 6.1% during the forecast period.
Regional analysis: North America currently dominates the global market accounting for over 35% share in 2023 due to high business and leisure travel. However, Asia Pacific is expected to emerge as the fastest growing regional market attributable to rising middle class population and increasing disposable incomes in major countries like India and China which will propel domestic and international travel in the coming years.
Key players: Key players operating in the car rental market are Nobel Biocare Services AG, DIO Corporation, Ivoclar Vivadent AG, GC Dental, Modern Dental Group Limited, COLTENE Group, SHOFU Dental GmbH, VITA Zahnfabrik, Holmes Dental Co., Lasak, Institut Straumann AG, Derby Dental, and Anthogyr SAS. They are focused on expanding fleet sizes and operations across major global airport locations and cities through mergers, acquisitions and partnerships.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
