Car rental companies offer automobiles on rent with a suitable fee for a certain duration, which can range from hours to months. Presently, various types of cars including economy cars, executive cars, luxury cars, SUVs, and MUVs are available on rent. These cars are rented for different purposes such as airport transport, local usage, outstation, event transportation, self-drive, and employee transportation. Besides basic vehicle renting, car rental firms often offer additional services such as entertainment systems, GPS navigation systems, and insurance. These companies offer their facilities to people who do not own a vehicle, whose vehicles are out for maintenance or have no access or limited access to personal vehicles. In addition, owners of broken vehicles and tourists & travelers avail of these services. This service is generally structured across various local branches that facilitate customers to easily return vehicles at their preferred locations. The car rental procedure is often managed through websites, making way for customers to book their vehicles online.
The market is anticipated to witness significant growth over the years, owing to the low rate of car ownership among millennials and the increasing trend of on-demand transportation services.
The global car rental market is segmented on the basis of application, rental category, vehicle type, and geography. By application, it is classified into leisure and commercial. By rental category, it is divided into on-airport and off airport. On the basis of vehicle type, it is categorized into a luxury car, executive car, economical car, sports utility vehicle (SUV), and multi utility vehicle (MUV). Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players analyzed in the Car rental market include Avis Budget Group, Inc, EuropeCar, Enterprise Holdings, Inc., Hertz System, Inc., Localiza, Sixt, Carzonrent India Pvt Ltd., Eco Rent a Car, and ANI Technologies Pvt. Ltd.
KEY BENEFITS FOR STAKEHOLDERS
- This study presents the analytical depiction of the global car rental market along with the current trends and future estimations to depict the imminent investment pockets.
- The overall market potential is determined to understand the profitable trends to enable stakeholders to gain a stronger foothold in the market.
- The report presents information related to key drivers, restraints, and opportunities with detailed impact analysis.
- The current market is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the market.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers.
KEY MARKET SEGMENTS
By Application
- Leisure
- commercial
By Rental category
- On airport
- Off airport
By Car type
- Luxury car
- Executive car
- Economical car
- Sports utility vehicle (SUV)
- Multi utility vehicle (MUV)
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
KEY MARKET PLAYERS
- Avis Budget Group
- Europcar
- Enterprise Holdings Inc.
- Hertz System, Inc.
- Localiza
- SIXT
- Uber Technologies, Inc.
- Carzonrent India Pvt Ltd.
- Eco Rent a Car
- ANI Technologies Pvt. Ltd. (OLA TAXI’S)
Table of Contents
Executive Summary
According to the report titled, Car Rental Market: Global Opportunity Analysis and Industry Forecast, 2014 - 2022, the global car rental market was valued at $79,648 million in 2015, and is expected to reach $164,335 million by 2022, growing at a CAGR of 11.6% during the forecast period. The economical car segment is anticipated to dominate the market throughout the analysis period. North America accounted for approximately 40% share of the global market in 2015.
With the growth in pollution level and population, the car rental industry has experienced a drastic transformation over the past few years and is one of the most prominent industries in fleet transportation. Manufacturers and consumers rely on different car rental schemes, which are cost-effective. In addition, car rentals are majorly contributing to curb the pollution level of the atmosphere by reducing the volumetric sales of owned vehicles. Moreover, with an increase in air traffic and growth in the rise in the trend of online booking in the travel industry, car rentals are the preferred option to travel, as cars are the most economical and faster mode of transportation. These advantages are promoting the growth of the car rental industry at an exponential rate.
By the type of car, the car rental market is categorized into a luxury car, executive car, economical car, sports utility vehicle (SUV), and multi utility vehicle (MUV). The economic car segment accounted for the highest revenue in 2015, is anticipated to grow at a CAGR of 12.5%, owing to a high rate of adoption of economy cars in the emerging economies of Asia-Pacific and LAMEA.
By rental category, the car rental market is befitted into on-airport and off-airport. The off-airport category is further divided into local usage, outstation, and others. In 2015, the off-airport rental category segment accounted for over 61% of the market share, and is anticipated to register a CAGR of 12.0%. This is attributed to the development of the travel industry and the rise in disposable income globally. The outstation off-airport rental category is anticipated to witness the fastest growth, registering a CAGR of 12.8%, due to improvement in road infrastructure globally.
Furthermore, North America accounted for the highest revenue in 2015 and is anticipated to grow at a CAGR of 8.8%, owing to the rise in the disposable income of people in countries such as the U.S. and Canada. Asia-Pacific is projected to grow at the highest CAGR of 16.5% owing to a high rate of adoption of the economy and executive cars.
Key Findings of the Car Rental Market
- In 2015, the economical car segment led the overall car rental market, generating revenue of $22,802 million in 2015, and is estimated to grow at a CAGR of 12.5%.
- Off-airport rental category is anticipated to grow at the highest CAGR of 12.0% during the forecast period.
- In 2015, the local usage segment led the off-airport market, accounting for $19,073 million, and is expected to lose the highest market share to the outstation off-airport rental category in 2019.
- North America led the market, generating revenue of $32,248 million in 2015, and is projected to grow at a CAGR of 8.8%.
- Asia-Pacific is anticipated to take over the major market share post 2017, owing to the rise in sales of vehicles.
The key players operating in the market include Avis Budget Group, Inc., Carzonrent India Pvt Ltd., Enterprise Holdings Inc., Europcar, The Hertz Corporation, Sixt Rent a Car, Uber Technologies Inc., Localiza, Eco Rent a Car, Budget Rent a Car System, Inc., German Rent a Car, Tempest Car Hire, DTG Operations, Inc., and Alamo.
Companies Mentioned
- Avis Budget Group Inc.
- Carzonrent India Pvt Ltd.
- Enterprise Holdings Inc.
- Europcar
- The Hertz Corporation
- Sixt Rent a Car
- Uber Technologies Inc.
- Localiza
- Eco Rent a Car
- Budget Rent a Car System Inc.
- German Rent a Car
- Tempest Car Hire
- DTG Operations Inc.
- Alamo
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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