Canada Car Rental Market Overview, 2028

Canada Car Rental Market Overview, 2028

Canada is currently ranked fourth in the globally market. Car rental is the business of renting cars from rental service providers for a fee. Online tourist vehicle bookings in the country are increasing due to the increased use of smart phones and the growing number of users who prefer the online channel. With the advancement of technology, online booking of a vehicle has become the most popular option for customers in recent years. It also includes features for real-time monitoring of a rental vehicle's operation, performance, and maintenance. Such features are invaluable assets for drivers and fleet managers, allowing them to identify risks and improve their rental services in real time. The revenue generated by car rental companies for self-drive cars for hire is defined as the car rental market. The market value is primarily comprised of car rentals for business and leisure purposes, as well as insurance replacement. The rental vehicle industry is an essential component of the tourism supply chain. The pandemic disrupted many tourism businesses, including car rental companies, as international and business travel in Canada came to a standstill. The passenger car rental market at airports and other locations was severely impacted.

According to the research report, Canada Car Rental Market Overview, 2028, published by Bonafide Research, the market is anticipated to add USD 1.21 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy as it has an effect on operating costs. Because of the low maintenance and procurement costs, most market players prefer economy cars for car rental services. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fueling demand for car rental services and propelling the industry's growth. Employees travelling to Canada for business purposes increase the demand for Canada car rentals as they become acquainted with the country's locations and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a broader range of car types for rental, such as SUVs and MUVs, increases demand for car rental in Canada. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the Canadian car rental market.

There are many different types of rental cars to choose from, but the most popular type when visiting Canada is an SUV. A SUV was chosen by an estimated 24% of users. In Canada, the average cost of a small rental is around $49. In Canada, the cheapest month to rent a small car is February. At around $31 per day, the price is approximately 37% lower than the rest of the year. A small rental is typically 41% less expensive than the average Canadian car rental. The average cost of a vehicle rental in Canada can vary depending on a number of factors, including supply and vehicle popularity. Enterprise is the car rental company with the most locations in Canada. They currently have 558 locations throughout the country, including airports and cities. With 39 Enterprise car rental locations, Toronto is the most popular tourist destination in Canada. Hertz is the most popular rental car company in Canada, with approximately 13% of Momondo users choosing this company in the previous month. Hertz also has 1,855 reviews and a rating of 7.6 out of 10, making it a popular choice among travelers. Ace has the cheapest rental cars in Canada. When booking through Ace, users can frequently find prices as low as $17 per day. Ace offers car rental deals for less than the national average of around $59 per day. Prices may vary depending on the type of vehicle and location.

One of the key factors driving the growth of the car rental industry is the significant growth in the travel and tourism industries around the world. Furthermore, the growing urban population with an increased interest in adventure and travel is fueling market growth. In line with this, people are turning to car rental services such as taxis and carpooling for increased mobility and cost-effective travel. Another growth-inducing factor is the implementation of favourable government policies as well as increased awareness about environmental conservation. Governments in both developed and emerging economies are emphasising the importance of reducing vehicle emissions and promoting car rental services as one of the most cost-effective modes of transportation. Other factors, such as the introduction of car rental services via websites and smart phone-based applications, as well as rising consumer spending power, are expected to drive the market even further. The unavailability of service providers in remote areas is a major market constraint. Car rentals are not available in underdeveloped areas. The market is hampered by a lack of awareness about car rental in these areas.

The key players' adoption of car rental software provides the market with excellent future prospects. Improving mobile car rental apps is a critical factor in global market growth. Car rental software boosts the market's efficiency. Other benefits of using this include simple fleet optimization, cost management, and custom reports. Adoption of car rental software creates significant market growth opportunities. One of the most difficult challenges that car rental companies face is providing superior customer service. Lack of information on payment options, long booking times, and car availability are all factors that can stymie demand in the car rental market. The dire need for technology to overcome challenges has resulted in the development of mobile software and various mergers between car manufacturers and car rental companies in order to increase the number of cars. In the near future, such developments will determine the value of the car rental market.

Considered in this report
• Geography: Canada
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• Canada Car Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By car Type
• Luxury car
• Executive car
• Economy car
• Sports utility vehicle (SUV) car
• Multi utility vehicle (MUV) car

By application Type
• Leisure/Tourism
• Business

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to car rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.