by The Mexico car rental market provides touring and leisure vehicle rental services to both domestic and international travelers. Car rentals offer flexibility, convenience and cost benefits to tourists exploring the various destinations across Mexico. The temporary use of a vehicle helps tourists experience the vast cultural heritage and natural beauty of the country in an independent and affordable manner.
The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The rising tourism economy of Mexico has been consistently driving the growth of the car rental market over the past few years. Mexico has experienced substantial growth in its travel and tourism sector, which welcomed over 40 million international tourist arrivals in 2019. The tourism industry represents an important source of foreign exchange and employment for the Mexican economy. As tourists exploring different parts of the country require convenient transportation options, the demand for car rentals has increased significantly. Additionally, annual events and festivals coupled with improving transportation infrastructure across tourist hotspots have further augmented the need for temporary vehicle rentals among visitors. Leading car rental brands are capitalizing on the booming tourism industry by expanding their fleet sizes and offering competitive rental packages catering to global travelers. This trend is likely to continue propelling the Mexico car rental market over the forecast period.
SWOT Analysis
Strength: The car rental market in Mexico benefits from the large size of the tourism industry in the country. The tourism sector accounts for nearly 9% of Mexico’s GDP and attracts millions of visitors annually which drives demand for car rentals.
Weakness: High dependence on global economic conditions make the market vulnerable to downturns. Slow economic growth in key source markets such as the US and Europe can negatively impact tourist arrivals and thereby car rental demand in Mexico.
Opportunity: Increasing investments in transport infrastructure such as highways and airports are expected to boost mobility and connectivity. This offers scope for car rental operators to expand into newer cities and regions.
Threats: Political and security issues in some parts of the country act as deterrents for tourists. Natural calamities such as earthquakes also pose business disruption risks for car rental companies.
Key Takeaways
The Global Mexico Car Rental Market Size is expected to witness high growth over the forecast period supported by a rising tourism industry in the country. According to estimates, international tourist arrivals to Mexico grew at a CAGR of 2.7% during 2015-19 reaching over 45 million in 2019. The recovery of the tourism sector post COVID-19 pandemic will further aid market expansion. The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030.
Regional analysis: The Mexico City region dominates the car rental market accounting for over 30% of the country’s rental car fleet. Other major centers include Cancun, Los Cabos and Puerto Vallarta. Cancun is growing at the fastest pace benefiting from increased investments to develop the region as a premier tourist destination.
Key players: Key players operating in the Mexico car rental market are Cipla Ltd, Merck & Co., Inc., F. Hoffmann-La Roche Ltd., GlaxoSmithKline plc, Bayer AG, Amgen Inc., Novartis AG, Sanofi S.A., Pfizer Inc., Johnson & Johnson. These companies are focusing on fleet expansion, partnerships with hotels/airlines and enhancing digital/online service capabilities to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
