Limousine Car Hire Or Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Limousine Car Hire Or Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The limousine car hire/rental market was valued at USD 9 billion in 2021 and is projected to grow to USD 13.50 Billion by 2027, registering a CAGR of 7% in terms of revenue during the forecast period.

The recent COVID-19 pandemic has disrupted market growth owing to travel restrictions and the shutdown of several tourist agencies and car rental service providers. The restrictions have been lifted across the globe and the Limousine Car Hire Or Rental market started recovering by end of 2021 owing to consumer inclination toward rental services owing to its affordability and advantages like easy maintenance and availability.

Over the medium term, Increased concern and awareness of lower emissions have primarily led to an increase in car rental options. Limousine Car rental and carpooling provide luxury and comfort to the user, the safety of driving from a professional chauffeur, and owing to these factors, the market for limousine car hire/rental will grow during the forecast period.

Limousine rental provides the option of increased mobility, without the concern of paying the costs associated with car ownership. These services are offered via websites and through other online platforms, which has helped the growth of the limousine rental market.

Faster adoption of new technology like digital payment systems, collision repair management systems, and ADAS is fueling the growth of the market. Players like Sixt SE timely replace their fleet to make sure their customers get the latest vehicles to drive.

Due to a lack of standard safety mechanisms and features, irregular inspection systems in different geographies, etc., the market for stretch limousines is facing degrowth. A survey by Insurance Institute for Highway Safety found that people are less concerned about safety such as seat belts in the hired vehicle than those driving a personally owned vehicle.

Key Market TrendsRise in Tourism Sector and leisure travelling

The global travel and tourism sector contribute around 21% to the global gross domestic product (GDP) in 2021. The airport service accounts for the largest share of nearly 25% followed by corporate services which hold a 22% market share. Business travels account for a major portion of global tourism and the majority of business travelers prefer luxurious hotels for stay, conferences, meetings, etc.

Around the globe, security concerns have increased due to the rise in terrorism activities. It has become important for authorities, governments, and firms to safeguard human assets such as CEOs, ministers, generals, and other high-ranking officials from terrorist attacks. This factor is causing the growth in bulletproof limousines that are now used by less developed countries.

The growth in the digitalization trend is propelling the growth of the market and the majority of rental services are now using limousine dispatcher software and limousine management software. Some of the advantages of this software are multiple booking management, asset tracking, seamless trip scheduling, airport transfers, geofencing, etc.

Other driving factors of the market are, comfort, quality of life, freedom of moment, affordability, and low cost of traveling. The luxury vehicles rentals are expected to grow at the fastest pace during the forecast period owing to increased travel budgets of tourists around the world.

North America is the largest Market

In North America, the United States of America has the largest fleet of limousines. In 2021, there were more than 110,000 registered chauffeured vehicles in the United States of America. North America is witnessing significant adoption of the vehicle with autonomous features such as Advanced driver assistance systems (ADAS), Lane Departure Warning systems (LDWS), etc. and this change will be reflected in the limousine industry as well. People can rent a Tesla Model S P 85 limousine from various online platforms.

The adoption of advanced Limousine Management Software is on the rise. This software has features such as flight tracking which helps in providing on-time limousine services at airports even if there is a change in flight arrival time. The use of mobile applications is helping limousine businesses in North America with Chauffeur analytics, booking management, customer feedback, payments, navigation, etc.

However, the North American Limousine Hire/Rental market is struggling with the problem of inadequate chauffeurs. Chauffer licenses are issued to only a few drivers and the industry is also facing competition from ride-hailing services such as Uber and Lyft.

Followed to North America, Europe hold a significant market share in terms of revenue during the forecast period. The growing popularity of limousine car rental services across the region is likely to witness major growth in the market during the forecast period.

Competitive Landscape

The market for limousine car hire/rental services is a moderately fragmented market with players such as DiDi, and Sixt SE dominating the market. Key players are expanding their presence across different countries to cater the growing demand.

• In December 2021, SIXT entered into a strategic partnership with NRMA, Australia’s largest automobile club. Through this expansion, Sixt SE adds 160 branches to its international network, including a rental fleet of 16,000 fleets.

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