United Kingdom Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United Kingdom Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

United Kingdom car rental was valued at USD 1.37 billion in 2021 and expected to surpass a net valuation of USD 3.02 billion by 2027 end, registering a solid CAGR growth of 13.70% during the forecast period.

Moreover, covid-19 has partially affected the market for the United Kingdom car market with strict lockdown and a decrease in traveling to restrain the spread of the virus. Moreover, the recovery has been accepted by the market soon after Q2 2021, demand is seen turning around on the positive side.

Consumer preferences shifted as a result of a variety of circumstances. Most notably, health concerns drove people and families to hire vehicles rather than use public transportation. The rise of digital platforms in the marketplace has also facilitated the selection of cars for hire or leasing.

Internet penetration among the generation has been identified as a key pivot role in driving the demand for car rental market in United Kingdom. Several players in car rental business operating in the segment are expansing thei roots in countries to elevate the demand for the same. For instance;

Key Highlights

• In Jul 2022, Theeb Rent A Car has opened its second branch in Hail city, north-western of Saudi Arabia, in line with its expansion plans to cover all the Kingdom cities, areas, and provinces.

Thus, rising leisure and tourism activties in the country has helped market to grow positively during the forecast period.

Key Market TrendsGrowing Demand for Tour and Travel Activities

In May 2022, Visit London launched the USD 12.5 million campaign with a celebration in New York City that included London Mayor Sadiq Khan and other English celebrities and personalities after the coronavirus-related travel restrictions were lifted between the United States and the United Kingdom.

Up to one in five employees in London are related to tourism, which accounts for over 12% of the city's GDP. The initiative will coincide with the country's ongoing national marketing effort, which has already generated an extra USD 101.8 million in sales and welcomed 330,000 tourists to London every year.

With rising tourism in the United Kingdom, demand for effective car rental services is expected to boost the market segment demand during the forecast period. Many of the car rental providers in United Kingdom are looking forward for effective discounts and offers for tourist to rent them their choice of cars during their vistis to nearby places. In addition, fleet operator are regularly revising their fleet in order to make the market more attractive.

Considering these factors, demand for United Kingdom car rental services is expected to remain positive side during long term forecast period.

Online Booking Services Helping Business to Grow

Car rental provides booking options on a mobile app or website of a cab company. Further, the option of an online mode of payment has eased the process. The prominent factors driving this ecosystem are affordability and ease of access to the services. The demand for car rental is escalating due to on-demand payment from customers for convenience and affordability.

Online booking has attracted several investments in recent years including business expansion, offering and etc. Demand for online booking has taken a steep rise with ongoing discounts and offers provided by fleet operators. Furthermore, consumers witness seamless experiences during their vehicle renting owing to the wide horizon of fleet size available to choose from. In addition, compliance policies, rules, regulations, and terms and conditions are followed, which often differ from one company to the other. Furthermore, the payment process for booking is managed by mediators or any third-party organization. With more entities engaged, this becomes a problem and creates a lack of transparency. For instance:

• In May 2022, Jaguar Land Rover offers three different ownership options for its car rental business in the United Kingdom. Jaguar and Land Rover provides a variety of models that you may buy, rent, or subscribe to over an extended period of time through JLR's online customer platform in the UK.

Considering the aforementioned factors, demand for online booking mode is expected to witness more prominence during the forecast period.

Competitive Landscape

Some of the prominent players in the United Kingdom Car Rental Market are SixtSE, The Hertz Corporation, and AVIS Rent a Car, among others. As the rental car demand is growing in the country, car rental service providing companies are expecting development in terms of online and offline services to felicitate the consumer shifting behaviors.

Moreover, several strategies have been adopted by the players to robust their connectivity for car rental and update their present fleet with more vehicles to address rising consumers demand in the United Kingdom.

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• The market estimate (ME) sheet in Excel format
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