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Car Rental Business - Global Market Trajectory & Analytics

  • ID: 338373
  • Report
  • April 2021
  • Region: Global
  • 454 Pages
  • Global Industry Analysts, Inc
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The increasingly tougher business environment in the travel and tourism sector is sending ripples of disruption, fear and anxiety across the entire value chain including car rentals. Rapid spread of COVID-19 across the globe is having an enormous impact on the travel and tourism industry. From cruise ship quarantines to complete grounding of airlines as countries seal their borders to prevent spread of the disease, the travel industry is feeling the heat of the chaos unleashed by the pandemic. With all of the world's favorite tourism destinations being off-limits to visitors and guests, the worst affected are countries with the highest contribution of travel and tourism to national GDP such as the Caribbean; Maldives; Philippines; Thailand, Italy, Malaysia, Turkey, Sri Lanka, Chile, Peru, Indonesia; China, Egypt; Mexico, among others. The indirect and induced impact of travel bans is felt by sectors such as hotels and hospitality; car rentals, travel agents and tourist guides, among others. Tourism losses are growing bigger in parallel to the rapid spread of the disease. The shelter-in-place orders will cost the global airline industry over US$350 billion for the year 2020. The massive drop in revenues will result in significant job losses. Without fiscal support from governments, several airlines are already staring at bankruptcy. With the world now in recession, the impact on travel will deepen delaying the recovery further. Airlines which have already collapsed due to the pandemic include Virgin Australia (Australia); Compass Airlines (US); Trans States Airlines (US); and Flybe (UK), among others.

The easing of travel restrictions and bans is largely dependent on achieving widespread nationwide testing by countries worldwide. Given the challenges involved in achieving desirable testing rates in both developed and developing countries, a return to normalcy remains fraught with delays and challenges. The delay in recovery will further reduce the oxygen levels for companies to survive. Until a vaccine is developed, it's a long and painful road to recovery for non-essential travel and the decline in average revenue per user (ARPU) will test the survival of car rental companies. Car rental businesses are heavily dependent on air travel since business travelers and vacationers often combine their car rental and flight reservations to save money and make the travel process more efficient, convenient, streamlined and stress-free. With international and domestic vacations on a complete freeze, its tough times for car rentals. The U. S. car rental giant Hertz, for instance, is already dangerously on the brink of bankruptcy as it desperately seeks last-minute extension on debt payments. Against this backdrop, the global car rental business is projected to reach a revised US$89. 6 billion after declining by -31. 7% in the year 2020.

Like all other markets and industries there will be a before and after corona virus scenario and in the post COVID-19 era, resurgence in travel and tourism encouraged by the return of economic stability will help the market recover. In existence long before Mobility Service Providers became the buzzword, rental companies will feel the need now more than ever to reinvent their business model by adopting connectivity technologies, adding dynamic fleet planning capabilities, enabling remote vehicle diagnosis and driver behavior monitoring and implementing location detection technologies to increase customer engagement. App based booking and online booking; competitive service pricing on a subscription basis; increased adoption of car rental software and self-service technologies to boost competitiveness and quality of service (QOS); development of online social platforms to support peer-to-peer (P2P) car sharing; and cloud-based car rental software services and car rental ecommerce platforms will all grow in prominence during the post corona virus period. Select Competitors (Total 131 Featured):
  • Avis Budget Group, Inc.
  • Enterprise Holdings, Inc.
  • Europcar Mobility Group
  • Rent-A-Wreck of America, Inc.
  • Sixt AG
  • The Hertz Corporation
Note: Product cover images may vary from those shown
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I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • Influencer Market Insights
  • World Market Trajectories
  • As Covid-19 Pandemic Decimates the Demand, Car Rental Business Market Set to Incur Huge Losses in 2020
  • Exhibit 1: Monthly Change in International Tourist Arrivals for January, February, & March 2020
  • Exhibit 2: Global Travel &Tourism Industry Revenues (In US$ Billion) for the Years 2019 & 2020
  • Exhibit 3: Global Flight Departures in First Week of April 2020 & 2019
  • Battered Global Travel & Tourism Industry Steals All Hope From Car Rental Businesses
  • An Introduction to Car Rental Business
  • Evolution of Rent-A-Car Concept Over the Years
  • Fleet Ownership Patterns: A Review
  • Classification of Car Rental Business by Location & Sector
  • Car Rental Business by Location
  • Car Rental Business by Sector
  • Car Rental Business: Current Market Scenario and Outlook
  • Developed Regions: Primary Revenue Contributors
  • Exhibit 4: World Car Rental Business Market by Region (2020 & 2027): Percentage Breakdown of Revenues for Developed and Developing Regions
  • High Growth Opportunities in Developing Regions
  • Exhibit 5: World Car Rental Business Market - Geographic Regions Ranked by % CAGR (Revenues) for 2020-2027: China, Asia-Pacific, Middle East, Latin America, Africa, Canada, USA, Japan, and Europe
  • COVID-19 Pandemic Set to Dent Economic Growth Across All Regions, While Inducing Weakness Into Car Rental Business Sector
  • Exhibit 6: World Economic Growth Projections (Real GDP, annual % Change) for 2019, 2020 & 2021
  • COMPETITIVE SCENARIO
  • Car Rental Market: A Diverse Playfield
  • Leading Car Rental Firms across Regional Markets
  • Emphasis on Innovative Strategies
  • Personalized Offers and Specialized Services
  • Subscription Packages: The New Marketing Approach
  • Price Matching Systems for Assuring Customers
  • End-to-End Customer Support Remains Major Focus Area
  • Mergers & Acquisitions (M&A) Gather Steam
  • Recent Market Activity
  • Car Rental Companies Lean Towards Shared Mobility Service
2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS
  • Technology Innovations to Spearhead Growth in Post Covid Environment
  • Automation Steps-In to Augment Car Rental Business Performance
  • IoT Holds Positive Ramifications for Car Rental Automation
  • AI Identified as the New Transformative Vehicle
  • Convenient Bookings and Innovative Payment Options
  • Online Booking Takes Car Rentals to Higher Grounds
  • Smartphones & Mobile Apps Widen Scope & Span of Car Rental Business
  • Exhibit 7: Smartphone Penetration (as a Proportion of Total Mobile Users) by Region for the Years 2018 and 2025
  • Increasing Implementation of GPS & Telematics
  • Cloud-Based Car Rental Software: The Latest 'Tech' Innovation
  • Medical Tourism, Overseas Education, and Large Sporting Events: Among Prominent Demand Drivers
  • Exhibit 8: Breakdown of International Student Enrolments (in %) by Country for the Year 2018
  • Key Medical Tourism Destinations by Region
  • Select Most Attended Sporting Events in the World
  • Young Travelers to Provide Traction to Car Rental Business
  • Apprehensions Remain High on Revival of Luxury Car Rental Market
  • Issues & Challenges
  • Rise of Car Sharing Throws Up Biggest Challenge to Traditional Rent-A-Car Market
  • Peer-to-Peer Ridehailing Drives Momentum in Car Sharing Volumes
  • Car Sharing Attracts New Groups of Enterprises
  • Car Manufacturers
  • Power Companies
  • Micromobility: Another Fast Emerging ‘Muscular’ Competitor
  • Apprehensions Over Hidden and Additional Costs Among Cost Wary and Cost Conscious Consumers
  • A Note on Additional Charges Levied In Addition to Base Rental Charges
  • Growing Role of Video Conferencing and Digital Technologies in Business Communication
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS
  • UNITED STATES
  • The United States: Prime Market for Car Rental Services
  • Exhibit 9: Car Rental Fleet in the US: 2007-2019E (In Thousands)
  • Select Key Locations for Car Rental Services in the US: Grouped by Region
  • Healthy Trajectory in Travel & Tourism Widens Prospects
  • Exhibit 10: Travel Expenditure in the US by Source (2018): Percentage Breakdown of Travel Expenses for Auto, Food & Beverage, Lodging, Recreation, Retail, and Transportation
  • Airport Consumers: A Key Market
  • Neighborhood and Downtown Segments Remain Relevant
  • Luxury Rental Cars: Tapping Into the Premium Segment
  • Select Luxury Car Models Used by Car Rental Firms in the US
  • Car Sharing: A New Concept Igniting Interest
  • Competitive Environment
  • Enterprise Holdings, Hertz and Avis Dominate the Market
  • Reduction of Rental Time: A Key Competitive Variable
  • Emphasis on Connectivity to Improve Customer Experience
  • Price Remains a Competitive Factor
  • Car Rental Firms Stave Off Competition from Ridesharing Entities
  • CANADA
  • Market Overview
  • Market Share Data
  • Exhibit 11: Canadian Car Rental Business Market Share (in %) by Company: 2019
  • JAPAN
  • Market Overview
  • CHINA
  • Growing Economy Boosts Demand for Car Rentals in China
  • Regulations on Online Car Hailing Firms Favor Traditional Rent-A-Car Market
  • EUROPE
  • European Car Rental Market: An Overview
  • Market Trends & Growth Drivers
  • Low Cost Rental Segment Makes Big Gains
  • Rental Car Companies Drive Digital Remarketing
  • Challenges
  • Competitive Scenario
  • FRANCE
  • Market Overview
  • Exhibit 12: French Car Rental Business Market Share (in %) by Company: 2019
  • GERMANY
  • Market Overview
  • Exhibit 13: German Car Rental Business Market Share (in %) by Company: 2019
  • ITALY
  • Market Overview
  • Competitive Scenario
  • Exhibit 14: Italian Car Rental Business Market Share (in %) by Company: 2019
  • UNITED KINGDOM
  • Market Overview
  • Competitive Scenario
  • Exhibit 15: UK Car Rental Business Market Share (in %) by Company: 2019
  • SPAIN
  • Market Overview
  • Competitive Scenario
  • Exhibit 16: Spanish Car Rental Business Market Share (in %) by Company: 2019
  • RUSSIA
  • Market Overview
  • Vladivostock: Hotspot in Car Rentals
  • Issues & Challenges
  • Lack of Well-Structured Legal Framework
  • Low Per Capita Income
  • Rise of Car Sharing Services
  • REST OF EUROPE
  • OVERVIEW OF SELECT MARKETS
  • Austria
  • Belgium
  • Exhibit 17: Belgian Car Rental Business Market Share (in %) by Company: 2019
  • Greece
  • Ireland
  • Norway
  • Romania
  • Sweden
  • Switzerland
  • The Netherlands
  • ASIA-PACIFIC
  • AUSTRALIA
  • INDIA
  • A Challenging yet Promising Market for Car Rental Service
  • SOUTH KOREA
  • Market Overview
  • Exhibit 18: South Korean Car Rental Business Market Share (in %) by Company: 2019
  • REST OF ASIA-PACIFIC
  • OVERVIEW OF SELECT MARKETS
  • Singapore
  • Sri Lanka
  • Taiwan
  • Thailand
  • LATIN AMERICA
  • Market Overview
  • New Infrastructure to Drive Inbound Car Rentals
  • Consolidation Remains a Distant Dream
  • ARGENTINA
  • BRAZIL
  • Market Overview
  • Competitive Forces Governing Brazilian Car Rental Industry
  • Exhibit 19: Leading Players in the Brazilian Car Rental Services Market: 2019
  • MEXICO
  • REST OF LATIN AMERICA
  • MIDDLE EAST
  • IRAN
  • ISRAEL
  • SAUDI ARABIA
  • Market Overview
  • UNITED ARAB EMIRATES
  • Market Overview
  • Competitive Scenario
  • REST OF MIDDLE EAST
  • AFRICA
  • South Africa: A Major Market
  • Exhibit 20: South African Car Rental Business Market Share (in %) by Company: 2019
IV. COMPETITION
  • Total Companies Profiled: 131
Note: Product cover images may vary from those shown
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