Luxury Car Rental Market Forecasts to 2028 – Global Analysis By Rental Type (Leisure and Business), Mode of Booking (Offline Booking and Online Booking), Rental Length (Long Term and Short Term) and By Geography

Luxury Car Rental Market Forecasts to 2028 – Global Analysis By Rental Type (Leisure and Business), Mode of Booking (Offline Booking and Online Booking), Rental Length (Long Term and Short Term) and By Geography

According to Stratistics MRC, the Global Luxury Car Rental Market is accounted for $99.6 billion in 2022 and is expected to reach $152.9 billion by 2028 growing at a CAGR of 7.4% during the forecast period. Luxury car rental is a service that provides customers with access to high-end cars for short-term use. The importance of luxury car rental lies in its ability to provide customers with a convenient and affordable way to enjoy the convenience and comfort of a high-end car and they also offer a wide variety of models to choose from.

According to the latest UNWTO panel of experts most tourism professionals (61%) expect a rebound in 2022, mostly during the third quarter where major contributor to be domestic tourism and , 42% point to a potential rebound in 2023 and 2024 due to full fledged arrival of international tourists.

Market Dynamics:

Driver:

Influence of Technology

Technology has transformed the car rental industry, which enables operators to deliver better services to consumers. Through the internet and mobile booking applications, consumers have better access to luxury car rental companies. Social media platforms also enable more potential consumers to discover the benefits of renting luxury vehicles. In other words, technology innovations have brought car rental companies marketing strategy to a higher level. Thus, these factors are influencing the growth of the market.

Restraint:

Lack of awareness about car rental

The whole car rental process is managed by the service provider. From car bookings, cost estimation and payment are regulated by the service provider. Unavailability of service providers in remote areas act as a major restraint in the market. The underdeveloped regions do not have any access to car rentals. The lack of awareness about car rental in these regions is the major setback in the market.

Opportunity:

Affordable cost of services

The price of renting luxury cars depends on the location of the rental, mileage, unique features, and availability. However, luxury car rentals companies offer an appropriate cost of their services. The price might be higher than those ordinary car rentals. But with the right price and quality service, people prefer to rent these luxury vehicles. Thus, these factors are fueling the expansion of the market.

Threat:

Fluctuations in the oil price

Fluctuations in the oil price affect rental rates. This fluctuating car rental rate causes several inconveniences to the costumers. Due to this, the market requires new strategies to provide cost-effective rental cars for the audience. The entry of more local players creates severe competition in the market. Hence, these are the aspects hampering the market growth.

Covid-19 Impact

The COVID-19 pandemic hindered the growth of the car rental market owing to travel restrictions and the shutdown of several tourist agencies and car rental service providers. The tourism industry as a whole was significantly impacted by the quick spread which in turn had an effect on this industry. The operators of car rentals follow safety and hygiene standards, such as disinfecting their vehicles after each ride, to maintain security and prevent the spread of the virus. Some automobile rental companies provide their clients with free face masks and hand sanitizers.

The leisure segment is expected to be the largest during the forecast period

The leisure segment is estimated to have a lucrative growth, due to rising population, and expanding tourism industry. Leisure rental is a form of short-term holiday letting, usually for periods of one week or less. It is an increasingly popular way to rent accommodation. The most common type of leisure rental is a self-catering holiday cottage. These are usually rented direct from the owner, either through an agent or online. Thus, these are the factors fuel the growth of the segment.

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

The online segment is anticipated to witness the fastest CAGR growth during the forecast period, due to advancement in technologies and increasing penetration of the internet. This segment is gaining popularity amongst young consumers. The consumer gets a wide range of luxury cars to choose from the online booking option. The online app reservation system also enables business owners to easily manage all reservations. Therefore, these aspects will propel the growth of the segment.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to increasing disposable income, rising population, and expanding tourism industry across countries. Moreover, the growing demand for luxury car rental services from corporate travellers is anticipated to drive the regional growth over the forecast period.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the rising number of leisure and business trips across the region, both locally and internationally, is among the prominent factors influencing the growth of the regional market. Additionally, a continuous shift in consumer preference toward rental services and the presence of prominent service providers in the region is expected to accelerate the region growth.

Key players in the market

Some of the key players profiled in the Luxury Car Rental Market include Goldcar, Avis Budget Group Inc., Enterprise Holdings Inc., Hertz Global Holdings Inc., Sixt SE, Fast Rent a Car, Bettercar Rental, Europcar Mobility Group, China Auto Rental, Shenzhen Topone Car Rental Co. Ltd, TT Car Transit, Renault Eurodrive, eHi car Services, Unidas, Movida and Localiza.

Key Developments:

In April 2022, SIXT, one of the leading global mobility providers, is continuing its rapid expansion across the US and announces the opening of new branches in Charlotte and Baltimore, offering customers more rental choices on the East Coast.

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 Types Covered:
• Leisure
• Business

Mode of Bookings Covered:
• Offline Booking
• Online Booking

Rental Lengths Covered:
• Long Term
• Short Term

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