In the US, more than 2.10 million vehicles are engaged in the car rental market, which generates revenue worth of USD 1050/vehicle monthly in the country and is one of the primary markets to witness growth in the car rental services. The market is anticipated to continue growing through the forecast period, driven by an increase in the number of air travelers, and steady growth in the disposable income. North America and Europe constitute the bulk of the market with more than 65% of the market share in the global market.
The leaders in the car rental services are expected to retain their competitive advantage over the regional players, by getting involved in the strategic alliances with airlines and hotels. There is an observed high per capita spending on car rental in the developing markets of Brazil, Australia, and India which is mainly due to the lack of availability of an organized public transport network, lower disposable income, and high tourist destinations which ensures that the holiday maker arriving at their destination, requires a rental vehicle. However, domestic tourism need not necessarily lend itself to the demand for car rental. Technological advancements along with the expansion of leading car rental companies in developing regions, such as Asia Pacific and Latin America, would foster demand for car rental services in the coming years. However, low cost public transportation, and volatility in crude oil prices along with increased operational cost are some of the restraints in the global car rental market.
The Present Scenario
The benefit of changing the vehicle according to one’s convenience is a factor influencing the market. In addition to the customized range of vehicles, the rental services also remove the burden of bearing with ownership cost of the vehicles like the insurance, repair and maintenance etc. With all these advantages, the vehicle rental market has penetrated in countries like US and is finding popularity in other countries like China, Indonesia etc.
Many people benefit by using car rental services because of the reduced total cost of mobility. An essential reason contributing to the development of the market is to offer their own the vehicles and users are free from a load of ownership costs. Consumers also have the flexibility of selecting cars which can meet their daily needs.
Furthermore, insurance costs incurred while renting vehicles are also taken care of users by the rental organizations. Corporate members also have access to a fleet of cars along with hassle-free maintenance and management systems. Moreover, service agreements with car rental providers help companies decrease their fleet costs and deliver their employees with easy access to a range of vehicles.
With the consumers increasingly preferring the availability of cars in minimal time, operators are focusing on streamlining their membership procedures and on enhance service convenience by adopting smart technology. Moreover, car rental operators are also focusing on introducing enhanced features in their mobile applications to cater efficient customer convenience.
The latest trend gaining momentum in the market is introduction of value-for-money car rental services. Players in the car rental industry are focusing on providing low-cost car services, especially for leisure markets. The small players are preferring online car rental platforms to expand their geographical presence and reach a wide customer base. Several popular car rental services have launched their own value brands with moderate and affordable pricing. Such strategies will help players in the car hire market expand their customer base.
Major Players: AVIS, HERTZ, SIXT, GLOBALCARS, amongst others
Reasons to Purchase this Report
- Provides latest insights into the Global Car Rental Market.
- Gives a detailed analysis of key competitors in the Global Automotive Rental Market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- Detailed analysis on the region that is expected to witness the highest growth.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- Three months analyst support, along with the Market Estimate Sheet (in excel).
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1.1 Study Deliverables
1.2 General Study Assumptions
2. Research Methodology
2.2 Analysis Methodology
3. Executive Summary
4. Market Overview and Technological Trends
4.1 Current Market Scenario
4.2 Technology Trends
4.3 Porter's Five Forces Model
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of the Consumers
4.3.3 Threat of New Entrant
4.3.4 Threat of Substitutes
4.3.5 Competitive Rivalry
5. Market Dynamics
5.1.1 Hike in the Tourism Sector
5.1.2 Increase in the Low Cost and Convenient Transportation without ant Headache
5.2.1 More Wait Times and Problem with Pick Up
5.3.1 Alliance with Hotel and Airports
6. Car Rental Market Segmentation, by Application
7. Car Rental Market Segmentation, by Vehicle Type
7.1 Luxury/Premium Vehicle
7.4 Buses/Travel Trailers
8. Car Rental Market Segmentation, by Booking Type
8.1 Offline access
8.2 Online Access
9. Car Rental Market Segmentation, by Geography
9.1. North America
9.1.1 The United States
9.1.4 Rest of North America
9.2.5 Rest of Asia-Pacific
9.3.2 United Kingdom
9.3.5 Rest of Europe
9.4 South America
9.4.3 Rest of South America
9.5 Middle-East and Africa
9.5.1 Saudi Arabia
9.5.3 South Africa
9.5.4 Rest of Middle-East and Africa
10. Competitive Landscape
10.2 Market Share Analysis
11. Company Profile
11.1 Ace Rent-a-car
11.2 Advantage Rent-a-car
11.3 Al Futtaim Group
11.4 Avis Budget Group Inc.
11.5 Carzonrent Pvt.Ltd.
11.6 Eco Rent a Car
11.7 Enterprise Holdings Inc.
11.9 Europcar Group
11.9 Global CARS
11.10 Localiza - Rent a Car SA
11.11 U-save-Auto-Rental System
11.13 The Hertz Corporation
12 Future Outlook of the Market
- Ace Rent-a-car
- Advantage Rent-a-car
- Al Futtaim Group
- Avis Budget Group Inc.
- Carzonrent Pvt.Ltd.
- Eco Rent a car
- Enterprise Holdings Inc.
- Europcar Group
- Global Cars
- Localiza - Rent a car Sam
- U-save-Auto-Rental System
- The Hertz Corporation