Poland Car Rental Market - Growth, Trends, COVID 19 Impact, and Forecasts (2022 - 2027)
The Poland Car Rental Market was valued at USD 1.33 Billion in 2021 and is expected to reach a value of USD 2.58 Million by 2027 registering a CAGR of around 10% during the forecast period (2022-2027).
Recent COVID-19 pandemic has disrupted the market growth owing to travel restrictions and the shutdown of several tourist agencies and car rental service providers. For instance, during 2020 the inflow of tourists decreased resulting in a slowdown in demand i.e, according to Central Statistics of Poland, around 43% (14 million) of people who have aged 15 or more traveling for leisure purposes in 2020 which is 32% less compared to 2019. The restrictions have been lifted across the country and the car 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, the expansion of the tourism industry across the country results in an increase in the number of tourists visiting country across the country creating a positive outlook for the market. For instance, In April 2021, around 380 thousand travelers visited the country which is 4 times more than the pandemic year. Such a rise in travelers across the country is likely to increase car rental services.Besides these, attractive rental subscription plans rolled out by the key players to offer personal mobility to the customers to limit interactions and maintain social distancing during pandemic also fueled the popularity and adoption of these services worldwide.
Other factors that are contributing to the growth of car rental market include rising internet penetration, government policies that favor the customers, higher awareness regarding environmental protection, and the higher disposable income of the consumers, etc. For example, The number of mobile phone users across the Poland expected to reach over 30 million by 2026, such increase in use of mobile phone help to increase in use of mobile application for car booking.
In addition, with players growing adoption of latest technologies like car rental software, etc. to improve operations likely to boost the market. Also, the introduction of robotaxis and penetration of car rentals in electric vehicle sectors to offer new opportunities for players operating in the Poland Car rental market.
Key Market TrendsOnline Booking Segment Likely to Drive Demand in the MarketOnline booking is dominating the Poland car rental market in terms of revenue in 2021 and is projected to grow during the forecast period. Poland has a significantly high penetration of internet users, primarily attributed to the availability of high-speed internet at affordable price. In 2021, number of internet users increased and reached to 28.8 million in Poland. This is likely to encourage rental service provider to shift their business model from brick-and-mortar structures to online business model to provide easy and hassle-free experience to its customers.
With the advancement of technology, renting a vehicle through online booking has been the most popular option for clients in recent years. Furthermore, it offers extra features for real-time monitoring of a rental vehicle's operation, performance, and maintenance. Such features are significant benefits for drivers and fleet managers, allowing them to spot dangers and execute timely modifications to their rental services in a more efficient and effective manner.
Rental groups like independent dealers as well as private owners with customers. These platforms are expanding their presence in the country to increase their market share and revenues. For instance,
Online booking systems provide the customer complete control over the rental car for the duration of the rental period. The popularity of the rental platform across markets is the most influential element in the expansion of short-term online rental service providers. Many platforms provide their customers with hourly, daily, or even monthly online rental services. This service is highly handy for travelers who need to rent a car at a tourist spot for a short length of time.
Leisure/Tourism Segment of Market to Witness Notable Growth During Forecast PeriodThough tourism-related activities stalled and have been facing challenges because of the pandemic Poland started recovering from the impact which is mainly driven by domestic tourism. For instance, In 2021, over 10 million domestic trips were taken in August in Poland, making it the most popular month for tourist trips within Poland.
The rise in interest in domestic tourism and short break holidays inspired the Poland Ministry of Sport and Tourism to introduce a new marketing campaign, Poland See More Weekend at half price, such initiatives will attract tourists to travel which in turn is likely to increase the car rental service across the country. For instance, In 2022, around 60% of people across Poland planned a vacation for at least two days. Such an increase in vacations among people is likely to enhance the demand for car rental services across the country.
With growing preference, many rental operators are offering luxury cars for rent to attract customers. These popular vehicles are quite often in very high demand. Furthermore, the easing of visa requirements for visitors has boosted tourism in Poland, which in turn is anticipated to propel car rentals.
The leisure segment, on the other hand, is heavily price-driven and largely made up of occasional renters. As a result, there may be a reluctance to pay for these new services because the perceived value gain is little. Leaving apart such challenges, increasing expenditure capacities of the masses, expected to drive the market further and help market regain its share in coming years. Therefore, leisure and tourism segment of market expected to gain traction in wake of these developments.
Competitive LandscapePoland Car Rental Market is dominated by several players including Avis, Europcar, TOP CARS, The Hertz Corporation, Budget Inc., and Many others. The growing partnership between car rental service providers across the country is likely to witness major growth in the market during the forecast period. For instance,
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