Global Car Rental Market – Industry Trends and Forecast to 2031

Car Rental Market Analysis and Size

Business travel represents a significant application of the car rental market, catering to the transportation needs of professionals on work-related trips. The largest car rental companies often serve as reliable partners for businesses, providing convenient and cost-effective transportation solutions for employees traveling to meetings, conferences, or client sites. These companies offer a wide selection of vehicles, allowing businesses to choose options that suit their specific needs and budgets. In addition, renting vehicles for business travel eliminates the need for employees to rely on public transportation or taxis, ensuring efficient and reliable transportation to and from various destinations.

The global car rental market size was valued at USD 109.34 billion in 2023 and is projected to reach USD 188.93 billion by 2031, with a CAGR of 13.70% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Car rental is a service where individuals or companies can temporarily rent vehicles, typically automobiles, for a specific period, usually ranging from a few hours to several days. It provides flexibility and convenience for customers who require transportation for various purposes, such as business trips, vacations, or temporary replacement vehicles. Car rental companies maintain fleets of vehicles of different types and sizes to accommodate diverse customer needs.

Car Rental Market Dynamics

Drivers

• Increasing Urbanization

Many people are migrating to cities, which leads to higher population density and limited space for private vehicle ownership. In urban areas there is scarcity of parking spaces, and public transportation are not sufficient due to which individuals often turn to car rental services for short-term transportation needs. Additionally, urban dwellers may opt for car rentals for specific purposes, such as weekend getaways or running errands in areas not well-served by public transit. The convenience and flexibility offered by car rentals in urban settings make them an attractive alternative to car ownership, driving demand and growth in the market. Moreover, as cities continue to expand and develop, the demand for car rental services is likely to increase further, especially in densely populated urban centers.

• Growing Technological Advancements

Innovations in reservation systems, mobile applications, and vehicle tracking technologies enhance the efficiency and convenience of renting vehicles for both customers and rental companies. Mobile apps enable seamless booking, payment, and vehicle pickup processes, simplifying the rental experience and reducing wait times. Moreover, advancements in vehicle connectivity and IoT enable features such as remote vehicle locking/unlocking and real-time monitoring, improving fleet management and security. Integration of advanced navigation and infotainment systems in rental vehicles enhances the overall driving experience for customers, contributing to customer satisfaction and loyalty.

Opportunities

• High Infrastructure Developments

Expansion of transportation infrastructure such as airports, highways, and tourist destinations increases the demand for rental vehicles as travelers seek convenient and flexible transportation options upon arrival. Improved road networks and connectivity to tourist attractions or business hubs stimulate the need for temporary transportation solutions, driving the utilization of car rental services. Furthermore, infrastructure investments in urban areas often coincide with the growth of car rental facilities, providing travelers with easy access to rental vehicles for their transportation needs. Overall, infrastructure developments create favorable conditions for the expansion and sustainability of the market.

• Growing Government Regulations

Government regulations encompass various aspects such as licensing requirements, vehicle safety standards, environmental regulations, and taxation policies. Compliance with these regulations is essential for car rental companies to operate legally and maintain the safety and quality standards of their fleets. Changes in regulations, such as updates to emission standards or taxation policies on rental vehicles, can impact the operating costs and profitability of rental companies.

Restraints/Challenges

• High Fuel Prices

High fuel prices directly impact operational costs for rental companies. Higher fuel prices lead to increased expenses for maintaining and refueling rental fleets, which can squeeze profit margins and necessitate adjustments in rental rates to offset the additional costs. Moreover, rising fuel prices may deter potential customers from opting for car rentals, as they may perceive them as less economical compared to alternative transportation options.

• Shifting Consumer Preferences

The rise of alternative transportation options such as ridesharing, bike-sharing, and public transit, coupled with the increasing popularity of urban living, has led to a decline in the reliance on traditional car rentals for short-distance travel. Moreover, the emergence of mobility-as-a-service (MaaS) models offers integrated transportation solutions that cater to diverse needs, further challenging the demand for standalone car rental services.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market, contact data bridge market research for an analyst brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In November 2023, MakeMyTrip entered the car rental market by acquiring Savaari, an Indian intercity car rental company, marking a strategic move into expanding its travel services portfolio with a small ticket investment
• In August 2023, Avis Budget Group collaborated with Albatha Automotive Group to integrate Budget Rent a Car and Payless Car Rental brands into Albatha's mobility services division, offering a range of self-drive and chauffeur-driven options, including rental and leasing for both passenger and commercial vehicles
• In March 2023, IndusGo, backed by its parent company Indus Motors, secured INR 200 crore in funding, aiming to extend its self-drive car rental services from South India to Bengaluru and Hyderabad, strengthening its presence in the regional market
• In April 2022, SIXT will expand its footprint in the U.S. market with new branches in Charlotte and Baltimore, enhancing rental options for customers on the East Coast as part of its ongoing global expansion strategy
• In May 2021, Uber launched Uber Rent in Washington DC, its car rental service, alongside an expansion of Uber Reserve to major US airports, initially focusing on the nation's capital with plans for broader rollout across the country in the future

Car Rental Market Scope

The market is segmented on the basis of type, application, booking, end-use, fair price, and rental length. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the Users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Luxury Cars
• Executive Cars
• Economy Cars
• SUVs
• MUVs

Application

• Local Usage
• Airport Transport
• Outstation
• Others

Booking

• Offline Booking
• Online Booking

End-Use

• Self-Driver
• Chauffeur –Driven

Fare Price

• Economy/Budget Cars
• Luxury/Premium Cars

Rental Length

• Short Term
• Long Term

Car Rental Market Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, type, application, booking, end-use, fair price, and rental length as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E., Israel, Egypt, South Africa, rest of Middle East and Africa, Brazil, Argentina and rest of South America.

North America is expected to dominate the market primarily due to its sophisticated technological infrastructure and widespread implementation of smart city initiatives. The region's dominance is further reinforced by the significant presence of key industry players and a burgeoning research landscape. These factors collectively contribute to North America's position as a frontrunner in shaping the future of the market, offering ample opportunities for innovation and growth within the region.

Asia-Pacific is expected to have substantial growth in infrared biometrics solutions, fueled by factors such as rapid urbanization, burgeoning infrastructure development, and technological advancements in nations such as China, Japan, and India. The region's thriving automotive and consumer electronics sectors add to the demand for such solutions. Additionally, supportive government policies and investments in smart city initiatives bolster market expansion, making Asia-Pacific a key region for the advancement and adoption of infrared biometrics technology.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Car Rental Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to the market.

Some of the major players operating in the market are:

• Avis Budget Group (U.S.)
• SIXT (Germany)
• Enterprise Holdings, Inc (U.S.)
• Europcar (France)
• Localiza (Brazil)
• The Hertz Corporation (U.S.)
• Carzonrent India pvt ltd (India)
• Eco Rent a Car (India)
• Advantage OPCO, LLC (U.S.)
• Shenzhen Topone Car Rental Co. Ltd (China)
• Bettercar Rental (Dubai)
• National Car Rental (U.S.)

SKU-55744