Newark, Dec. 20, 2023 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the USD 115.83 billion in 2022 global car rental market will reach USD 329.78 billion by 2032. With a growing emphasis on environmental sustainability, there is an opportunity for car rental companies to expand their fleets with electric and hybrid vehicles. Offering eco-friendly options aligns with the preferences of environmentally conscious consumers and contributes to corporate sustainability goals. The development of autonomous vehicle technology also presents an opportunity for car rental companies to explore and integrate self-driving cars into their fleets. This factor could provide customers a new level of convenience and efficiency, especially in urban areas. Furthermore, investing in advanced digital technologies and online platforms can improve customer experience. Implementing user-friendly mobile apps, seamless booking processes, and personalized services can enhance customer satisfaction and loyalty. Additionally, introducing subscription-based models for long-term rentals can attract customers looking for flexible and cost-effective options. Subscription services provide a steady income stream for car rental companies and cater to the changing preferences of modern consumers.
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Key Insight of the global Car Rental market
Asia Pacific is expected to witness the highest market growth over the forecast period.
Many countries in the Asia-Pacific region, such as China and India, have been experiencing rapid economic growth. This growth has increased disposable income levels, expanded the middle class, and driven demand for various services, including car rentals. Furthermore, ongoing urbanization in APAC countries leads to changing lifestyles and transportation needs. As cities grow, there is an increasing requirement for flexible and convenient transportation options, with car rentals providing a viable solution for residents and visitors. The Asia-Pacific region is a major tourist destination, attracting travellers worldwide. The increasing number of global tourists contributes to a growing demand for rental cars as tourists seek convenient and flexible transportation options to explore various regional destinations. In addition, ongoing infrastructure development, including the construction of highways, airports, and other transportation facilities, enhances the overall connectivity within the Asia-Pacific region. Improved infrastructure supports the growth of the car rental market by making it easier for people to travel and access rental services. The Asia-Pacific region is also a hub for business activities, and the increasing frequency of business travel contributes to the demand for rental cars. Many companies prefer renting vehicles for employees during business trips, conferences, and client meetings.
In 2022, the economy cars segment held the largest market share at 37.19% and a market revenue of 43.10 billion.
The vehicle type segment is divided into executive cars, economy cars, luxury cars, SUVs and MUVs. In 2022, the economy cars segment held the largest market share at 37.19% and a market revenue of 43.10 billion.
In 2022, the leisure/tourism segment dominated the market with the largest share of 62.39% and revenue of 72.26 billion.
The application segment includes business and leisure/tourism. In 2022, the leisure/tourism segment dominated the market with the largest share of 62.39% and revenue of 72.26 billion.
In 2022, the online segment dominated the market with the largest share of 66.15% and revenue of 76.62 billion.
The booking type segment is classified into online and offline. In 2022, the online segment dominated the market with the largest share of 66.15% and revenue of 76.62 billion.
In 2022, the short term segment dominated the market with the largest share of 75.04% and revenue of 86.92 billion.
The rental length segment is split into short term and long term. In 2022, the short term segment dominated the market with the largest share of 75.04% and revenue of 86.92 billion.
In 2022, the self-driven segment dominated the market with the largest share of 74.28% and revenue of 86.04 billion.
The end user segment is classified into chauffeur-driven and self-driven. In 2022, the self-driven segment dominated the market with the largest share of 74.28% and revenue of 86.04 billion.
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Advancement in market
In January 2023: National Car Rental has launched a revamped mobile app featuring enhancements like one-click reservations. Users can now explore additional rental options from Enterprise Rent-A-Car neighbourhood locations when a National location is unavailable.
In October 2022: Carzonrent, the car rental company, has announced its ambitious plan to convert its existing fleet of 5,000 cars to electric vehicles within 12 months. In addition to this, the company has outlined its strategy to broaden its presence across various cities by incorporating 20,000 cars into its fleet over the next five years. They aim to establish a nationwide robust electric vehicle (EV) infrastructure network. This expansion initiative by Carzonrent aims to provide commuters with increased accessibility to transition to EVs as their preferred mode of transportation.
Market Dynamics
Driver: Flexible mobility solutions.
The demand for flexible mobility solutions, including short-term rentals and on-demand services, contributes to the expansion of the car rental market. Consumers appreciate the convenience of renting a car for specific durations without the long-term commitment of ownership. One of the primary drivers behind the demand for flexible mobility solutions is their inherent convenience and flexibility. Consumers appreciate the ability to rent a car on short notice for specific periods, allowing them to adapt their transportation choices to varying needs and circumstances. Short-term rentals and on-demand services present a practical solution in densely populated urban areas, where traffic congestion and parking limitations are common challenges. Commuters may opt for these services for specific journeys, such as weekend getaways or errands, avoiding the hassles of owning a car in the city.
Restraint: Global economic uncertainties.
Economic downturns, recessions, or global uncertainties can significantly impact the travel and tourism industry, creating a ripple effect that directly influences the demand for rental cars. These challenging economic conditions often prompt consumers to reevaluate their spending priorities, leading to a reduction in discretionary expenses, including travel-related activities. Economic uncertainties can lead to a decrease in both business and leisure travel. Companies may implement cost-cutting measures, limiting employee travel for meetings, conferences, and business-related events. Additionally, individuals may postpone or cancel leisure trips as a precautionary measure to manage their finances more conservatively. Additionally, during economic downturns, consumers commonly experience reduced disposable income or heightened financial insecurity. As a result, individuals and households tend to cut back on non-essential spending, and travel-related expenses are often among the first areas to be scrutinized.
Opportunity: Corporate partnerships and business travel services.
Strengthening partnerships with corporate entities in business travel services presents a lucrative opportunity for car rental companies. By providing tailored solutions for corporate clients, including implementing loyalty programs and integrated travel packages, car rental companies can enhance their relationships with businesses and create diversified revenue streams. Implementing loyalty programs specifically designed for corporate travellers incentivizes businesses to choose a particular car rental provider consistently. These programs can offer perks such as discounted rates, priority service, and accumulated rewards that contribute to enhanced client loyalty.
Challenge: Changing consumer behaviour.
Shifting consumer preferences, marked by a growing interest in alternative transportation modes such as ride-sharing and car-sharing, directly impact the demand for traditional car rental services. Ride-sharing services are particularly popular in urban environments where congestion, parking challenges, and the availability of public transportation make on-demand rides an attractive alternative to traditional car rentals. In addition, car-sharing services often operate on community-based models, allowing users to access vehicles conveniently located in their vicinity. This decentralized approach contrasts with the centralized rental facilities of traditional car rental companies.
Some of the major players operating in the global Car Rental market are:
• Avis Budget Group, Inc.
• Al Futtaim Group
• Bettercar Rental
• Carzonrent India Pvt. Ltd.
• China Auto Rental
• Eco Rent A Car
• Enterprise Rent-A-Car
• Europcar
• Fast Rent a Car
• Gataround
• Localiza
• National Car Rental
• OLA
• SOCAR Malaysia
• SIXT
• Shenzhen Topone Car Rental Co. Ltd
• The Hertz Corporation
• TT Car Transit
• Toyota
• Uber Technologies, Inc.
• Zoomcar
• Zipcar
Key Segments cover in the market:
By Vehicle Type
• Executive Cars
• Economy Cars
• Luxury Cars
• SUVs
• MUVs
By Application
• Business
• Leisure/Tourism
By Booking Type
• Online
• Offline
By Rental Length
• Short Term
• Long Term
By End User
• Chauffeur-Driven
• Self-Driven
By Region
• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)
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About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
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