Global Car Rental Market Size, Share, Forecast Report, 2020-2027
Car rental is a service provided through online and offline platforms that involves renting out automobiles. The companies commonly offer service for a few hours to a few months. The company serves travelers who are out from their town or who do not own their individual vehicles. Car rental service also includes car damage repair and insurance compensation policy for the consumers. The companies also offer extra products such as WiFi, mobile phones, entertainment systems, and child safety seats.
Global car rental market has seen remarkable growth; expected to rise at a CAGR of ~14% between 2018 and 2023. The rise in purchasing power of the consumers due to the growing economy of the regions will drive the global car rental market. Increase in per capita disposable income of the consumers and rapid growing urbanization will further enhance the car rental market in the global aspects. Massive increase in the industrialization and growing population will make it difficult to drive own vehicle on the road. Additionally, favorable government norms and increase in awareness regarding environmental protection through vehicles will create opportunities for the new entrants in the global market for car rental. Avis Budget Group (US) and Enterprise Holdings, Inc. (US) are the biggest companies in the market. The acquisition of widely present local players is the key strategy adopted by the major players in the market. However, there is high competition in the market owing to the presence of a high number of players, which may restrain the growth of the market. Customer service and continuous changing crude oil prices will be major concerns for the prominent and new players in the global car rental market.
Global car rental market is segmented on the basis of type, mode of booking, application, vehicle type, and region. On the basis of type, the market has been segmented into local, outstation, airport, and others. On the basis of mode of booking, the market has been segmented into online and offline. On the basis of application, the market has been segmented into business and non-business. On the basis of vehicle type, the market has been segmented into sedan, SUV, MUV, luxuries, and others.
Geographically, the global car rental market has been segmented into the four major regions of North America, Europe, Asia-Pacific, and the Rest of the World. North America will dominate the market in terms of both, value and volume during the forecast period followed by Europe. In North America, increase in the number for business and non-business trip will enhance the car rental market. In Europe, growth of tourism and stringent government policies will further fuel the growth for the car rental market.
The prominent players in the global car rental market include Avis Budget Group (US), Enterprise Holdings, Inc. (US), Europcar (France), The Hertz Corporation (US), and Sixt SE (Germany). Localiza (Brazil), Eco Rent a Car (India), Al-Futtaim Vehicle Rentals Company LLC (Qatar), Capps Truck & Van Rental (US), and Bandago Van Rental (US) are among others.