The growth of car rental market can be attributed to the expansion and progression of the travel and tourism industry worldwide. Growing GDP, rising income levels of individuals and an increasing number of domestic and foreign tourists are some of the other drivers of the car rental market. Moreover, increasing traveling expenditure, raising awareness regarding car rental service, shifting preferences of people towards leisure and recreation spending along with the rising population of high net worth individual (HNI) are also expected to trigger the market growth.
As per the latest report added by Value Market Research, the Global Car Rental Market was valued USD 129.48 BN (by revenue) in 2023 and is anticipated to reach USD 316.73 BN by 2032 with a CAGR of 10.45%.
ECONOMY CARS DOMINATED THE OVERALL MARKET
Economy cars dominated the segment owing to people opting for the inter-city transport or for a shorter time span are usually preferred economy cars over other vehicle types. Also, they are comparatively cheaper and offer high mileage over others, therefore the growth of this segment is completely driven by the cost-effectiveness of these cars.
AIR TRANSPORT SEGMENT EMERGED AS THE HIGHEST REVENUE GENERATING SEGMENT
Air transport is dominating the segment owing to the rising number of air travelers coupled with the increase in the number of airports across the globe. Also, rising expenditure on the air travel industry in order to enhance the experience of passengers is further propelling the segment growth.
NORTH AMERICA REGION IS RULING THE OVERALL MARKET OF CAR RENTAL
North America has emerged as the predominant region owing to the rising number of domestic and international tourist coupled with the people are spending more on leisure and business trips in this region is fueling market growth. Also, the rising number of air travelers in this region is further augmenting the regional market growth.
PLAYERS INVOLVED IN THE MARKET
Avis Budget Group, Enterprise Rent-a-car, and Hertz among others.
The global demand for Car Rental Market is presumed to reach the market size of nearly USD 316.73 Billion by 2032 from USD 129.48 Billion in 2023 with a CAGR of 10.45% under the study period 2024 - 2032.
Car rental refers to hiring the car facility mostly from few hours to few weeks. Basically, it offers temporary vehicle such as car, trucks, and vans to serve the purpose of traveling and transporting. Renting a car is usually offered from the local branches of the provider or near airports through online reservation. The rent mainly includes base price, distance charges, and other related surcharges.
Market Dynamics
Growing international tourism along with increasing demand for reliable local transportation system is driving the market growth. Various attractive schemes and discounts offered by the providers are further contributing in the market growth. Also, the rise in disposable income, growing awareness regarding car hire, increasing usage of smartphones and Internet within the potential population is again boosting the market growth.
This detailed market study is centered on the data obtained from multiple sources and is analyzed using numerous tools including porter's five forces analysis, market attractiveness analysis and value chain analysis. These tools are employed to gain insights of the potential value of the market facilitating the business strategists with the latest growth opportunities. Additionally, these tools also provide a detailed analysis of each application/product segment in the global market of car rental.
Market Segmentation
The broad car rental market has been sub-grouped into product and application. The report studies these subsets with respect to the geographical segmentation. The strategists can gain a detailed insight and devise appropriate strategies to target specific market. This detail will lead to a focused approach leading to identification of better opportunities.
By Product
- Luxury Cars
- Executive Cars
- Economy Cars
- SUVs
- MUVs
By Application
- Local Usage
- Airport Transport
- Outstation
- Others
Regional Analysis
Furthermore, the report comprises of the geographical segmentation, which mainly focuses on current and forecast demand for car rental in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report further focuses on demand for individual application segments in all the regions.
Global Car Rental Market Share by Region (Representative Graph)
The report also covers detailed competitive landscape including company profiles of key players operating in the global market. The key players in the car rental market include AVR Qatar, Inc., Avis Budget Group, Inc., Carzonrent India Pvt. Ltd., Eco Rent A, Car, Enterprise Holdings, Inc., Europcar, Localiza, The Hertz Corporation, SIXT. An in-depth view of the competitive outlook includes future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launches, new product developments and other developments with information in terms of H.Q.
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