Car Rental Market Forecasts to 2028 – Global Analysis By Rental Duration Type (Short-term and Long-term), Booking (Online Access and Offline Access), Vehicle Type (Multi Utility Vehicle (MUV), Luxury Cars, Economy Cars, Sports Utility Vehicle (SUV) and Ex

Car Rental Market Forecasts to 2028 – Global Analysis By Rental Duration Type (Short-term and Long-term), Booking (Online Access and Offline Access), Vehicle Type (Multi Utility Vehicle (MUV), Luxury Cars, Economy Cars, Sports Utility Vehicle (SUV) and Executive Cars), Application (Outstation, Local Usage, Airport Transport and Other Applications), End User and By Geography

According to Stratistics MRC, the Global Car Rental Market is accounted for $75.37 billion in 2022 and is expected to reach $129.93 billion by 2028 growing at a CAGR of 9.5% during the forecast period. A car rental is a corporation that rents autos for a set length of time; the service allows customers who need a temporary vehicle to use the facility. These can be leased through a website that allows online reservations, and are primarily located near airports or city centres, with a choice of vehicle sizes to accommodate a wide range of budgets and space requirements. In addition to the vehicle, the car rental company offers other products such as navigation systems, mobile phones, entertainment systems, portable Wi-Fi, and kid safety seats. It provides the convenience of arriving at the location on time, and it is frequently less expensive than public transportation alternatives, especially when travelling as a pair or in a group.

According to the International Civil Aviation Organization (ICAO), in 2020, the overall reduction of 2,703 million passengers compared to 2019 and a loss of approximately USD 372 billion of airlines' passenger operating revenues affected the airport transport car rental business.

Market Dynamics:

Driver:

Rising need for on-demand transportation services

Increasing vehicle prices, limited parking spots, and high car maintenance costs encourage people to use on-demand transportation services for travel and daily commuting. As a result, rising demand for on-demand transportation is expected to drive market expansion throughout the forecast period. Increased smart phone sales also influence the population's preference for on-demand transportation services. For ride-hailing and rental businesses, smart phone apps allow for easy booking and online payment. As a result, the expanding popularity and use of smart phone apps and online platforms provided by ride-hailing businesses such as Uber, Lyft, and others for car rental services is propelling market expansion.

Restraint:

Surging crude oil prices

Due to high demand and limited supply, crude oil prices are rapidly rising around the world, raising the entire cost of driving a rental car. As a result, rising oil or fossil fuel prices are likely to hinder market growth during the projection period. High gasoline and diesel prices in several developing nations are a major impediment to providing a car for rent. The rental pricing cannot be modified regularly in response to crude oil prices; therefore, the rental firms' revenues will eventually fluctuate. For example, the price of crude oil per barrel in 2000 was USD 17, but it has since risen to USD 45 due to increased worldwide demand. Moreover, government taxes lifted the gasoline and diesel prices, considerably affecting the global industry.

Opportunity:

Overburdened public transport and extensive social distancing guidelines

Overcrowded public transportation in emerging and undeveloped countries, as well as severe social distancing guidelines implemented by the government during the COVID-19 pandemic, led the population to use vehicle rental services for travel and commuting. As a result, the rise in its use for comfortable and safe transportation is projected to accelerate the expansion of the car rental market in the near future. Furthermore, attractive rental subscription plans set out by key providers to offer personal mobility to customers in order to limit encounters and maintain social distance during pandemics fuelled the popularity and uptake of these services globally.

Threat:

Low rate of internet penetration in developing regions

Car rental and ride hailing services, in general, require three parties to operate: drivers, riders, and service providers. All processes, including matching riders with drivers, fare estimation and calculation, ride payment, and reputation management, are carried out utilising smart phones with internet connectivity. Some nations, such as Eritrea, Burundi, Chad, and Somalia, have minimal internet penetration, which concerns the expansion of the ride hailing sector in these areas. A ride driver must have a GPS-enabled smart phone with an active internet connection in order to determine the exact pickup and drop-off location of consumers. As a result, the worldwide car rental sector is hampered by such poor internet penetration in some regions.

Covid-19 Impact

The global car rental market is predicted to witness a low growth rate during the outbreak of COVID-19 pandemic, owing to hard-hit to the tourism industry, extreme revenue losses, massive shutdown, and avoidance of social life. The pandemic had a significant influence on the world's leading rental companies, resulting in market share losses, worse rankings, market instability, and downgrades. Key market competitors, including as Hertz and Avis, have disposed of their older vehicles at a higher rate than typical during the epidemic in order to generate money from these transactions.

The economy cars segment is expected to be the largest during the forecast period

The economy cars segment is estimated to have a lucrative growth, as they are compact, fuel-efficient, and provide adequate comfort. Economy cars are designed for low-cost purchase and operation. Typical economy cars are small, lightweight, and inexpensive to both produce and purchase. Economy cars have lower procurement and maintenance expenses than luxury and executive car sectors, according to rental providers. As a result, the majority of their fleet consists of cars in the low-cost bracket. This group includes the vast majority of airport and intra-city taxis.

The airport transport segment is expected to have the highest CAGR during the forecast period

The airport transport segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increasing air traffic and the number of airports in developing countries worldwide. Furthermore, rising customer disposable income and a growing tourism industry globally help the car rental business near airports. Furthermore, falling air travel rates encourage many individuals to switch from traditional modes of transportation to air travel. In the recent decade, domestic aviation traffic increased by over 35%. As a result, the demand for airport rental taxis is expected to skyrocket during the forecast period.

Region with highest share:

North America is projected to hold the largest market share during the forecast period owing to the increasing number of leisure and business trips across the region, both domestically and globally. The presence of some of the region's largest automobile rental companies, including Avis Budget Group and Enterprise Rent-a-Car, is expected to create attractive expansion potential. Furthermore, the region contains a variety of prominent tourist locations that draw a big number of visitors that demand car rental services, hence driving market growth.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to supportive macroeconomic factors and the introduction of a self-driving car rental fleet from key players. Over the projection period, markets in China and India are expected to rise at an exponential rate. Government limits on car purchases in certain parts of China, in an effort to address rising pollution and traffic difficulties, are expected to encourage people to use car rental services.

Key players in the market

Some of the key players profiled in the Car Rental Market include Renault Eurodrive, Enterprise Holdings Inc., Sixt SE, Avis Budget Group Inc., TT Car Transit, Shenzhen Topone Car Rental Co. Ltd, China Auto Rental, Bettercar Rental, Fast Rent a Car, Europcar Mobility Group, Hertz Global Holdings Inc., ANI Technologies Pvt. Ltd, Carzonrent India Pvt Ltd, Localiza, Toyota Rent-a-Car and Alamo Rent-a-Car LLC

Key Developments:

In January 2022, Sixt announced the expansion of its taxi and rental partner network to Italy. Collaboration with local taxi company itTaxi enables on-demand ride-hailing and rental through the Sixt app.

In December 2021, Enterprise Holdings announced that its subsidiary in Ireland completed the acquisition of Dublin-headquartered Walker Vehicle Rentals. Once integrated, the business will operate as part of Enterprise’s commercial vehicle division, Enterprise Flex-E-Rent. The Walker Vehicle Rental depots in Dublin, Cork, Wexford, Limerick, and Antrim will be rebranded as Enterprise Flex-E-Rent locations.

In November 2021, Hertz rentals partnered with Tesla Motors to supply 100,000 Model 3S by 2022, and half of these vehicles are expected to be rented out to Uber drivers.

Rental Duration Types Covered:
• Short-term
• Long-term

Bookings Covered:
• Online Access
• Offline Access

Vehicle Types Covered:
• Multi Utility Vehicle (MUV)
• Luxury Cars
• Economy Cars
• Sports Utility Vehicle (SUV)
• Executive Cars

Applications Covered:
• Outstation
• Local Usage
• Airport Transport
• Other Applications

End Users Covered:
• Chauffeur-driven
• Self-driven

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements