Some of the major factors that are responsible for the growth of the global car rental market include the increasing rate of population, surging number of international air travellers, along with the rising volume of domestic tourists over the coming years. The travel and tourism sector is growing at a significant rate during the forecast period. As per the World Travel and Tourism Council (WTTC), the travel & tourism industry has witnessed 3.5% growth for the year 2019, which amounts to 10.3% of the global GDP and it has offered approximately 330 million jobs around the world.
The emerging of on-demand transportation services, the reduced rates of car rental services, and strong demand for faster modes of transportation among individuals are some other factors that are surging the demand for car rental market. Additionally, the increasing adoption of car rental management software, followed by the growing use of smartphones, and rising preference online booking of cars such as for e-signing contracts, cashless transactions, and e-verification of documents is projected to further propel the market growth over the coming years.
On the other hand, the increasing prices of petrol and diesel, along with the emerging trend of ride sharing, and peer-to-peer car sharing services which include Lyft, Uber, and Ola are projected to hinder the market growth. Furthermore, the emergence of the coronavirus pandemic has negatively impacted the tourism sector growth, which is likely to hinder the demand of the market.
Based on the application, the airport transport application is expected to lead the market over the forecast period. This is mainly due to the increasing number of air travellers along with the various benefits offered which includes increased affordability, ease in choosing desirable car, and improved time efficiency.
Based on the vehicle type, the SUVs vehicle type is projected to experience a faster CAGR during the forecast period. The various benefits offered by this vehicle type such as extra cargo space, extra seating, safety, and improved fuel efficiency is one of the biggest factor that is surging the growth of the market. In addition to this, the growing deployment of electric SUVs in car rental services is further contributing to the market growth. For example, Sixt SE, which is one of the top car rental player, is offering electric SUV car models such as Tesla Model Y, Volvo xc60, and Tesla Model X for renting purposes.
On the basis of regional coverage, Asia-Pacific is anticipated to grow at a higher CAGR during the forecast period. This is mainly due to the rising number of middle income households, enhanced road connectivity, and continuous expansion of the tourism sector in the region. As per the World Travel & Tourism Council (WTTC), Asia-Pacific travel & tourism sector is one the fastest growing region which has increased by 5.5% from the previous year. On the other hand, North America is projected to dominate the market during the forecast period. The rising use of car rental services in the U.S., along with the increasing adoption of electric vehicles, and growing awareness related to reducing carbon emissions among consumers are some of the major factors that are contributing to the regional market growth.
Various notable players operating in the market include Sixt SE, The Hertz Corporation, Budget Rent A Car System, Inc., Enterprise Holdings, Avis Budget Group, Inc., Europcar Mobility Group, Localiza Rent a Car S/A, Carzonrent India Pvt Ltd., GlobalCarRental.It, and Alamo, among others.
The global car rental market has been segmented on the basis of vehicle type, application, end-user, and regions. Based on vehicle type, the market is segmented into luxury cars, executive cars, economy cars, SUVs, and MUVs. Based on application, the market is segmented into local usage, airport transport, outstation, and others. Based on the end-user, the market is segmented into self-driven and chauffeur-driven.
Car Rental Market Segmentation:
Global Car Rental Market by Vehicle Type:
- Luxury Cars
- Executive Cars
- Economy Cars
Global Car Rental Market by Application:
- Local Usage
- Airport Transport
Global Car Rental Market by End-user:
Global Car Rental Market by Region:
- North America Car Rental Market (Option 1: As a part of the free 25% customization)
- North America Market by Vehicle Type
- North America Market by Application
- North America Market by End-User
- United States Car Rental Market
- Canada Car Rental Market
- Europe Car Rental Market (Option 2: As a part of the free 25% customization)
- Europe Market by Vehicle Type
- Europe Market by Application
- Europe Market by End-User
- UK Car Rental Market
- Germany Car Rental Market
- France Car Rental Market
- Spain Car Rental Market
- Rest of Europe Car Rental Market
- Asia-Pacific Car Rental Market (Option 3: As a part of the free 25% customization)
- Asia-Pacific Market by Vehicle Type
- Asia-Pacific Market by Application
- Asia-Pacific Market by End-User
- China Car Rental Market
- India Car Rental Market
- Japan Car Rental Market
- Rest of APAC Car Rental Market
- RoW Car Rental Market (Option 4: As a part of the free 25% customization)
- RoW Market by Vehicle Type
- RoW Market by Application
- RoW Market by End-User
- Brazil Car Rental Market
- South Africa Car Rental Market
- Saudi Arabia Car Rental Market
- UAE Car Rental Market
- Rest of world (remaining countries of the LAMEA region) Car Rental Market
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