Car Rental Market

Car Rental Market

Car Rental Market- By Application Type, By Rental Duration and Vehicle Type;

Market Synopsis:

Global Car Rental Market is valued at USD 98.4 Billion in 2021 and is projected to reach a value of USD 126.6 Billion by 2028 at a CAGR of 4.00% over the forecast period.

The market is expected to be driven by innovation, a crucial element. The expanding use of data technology is changing the industry and enabling operators to offer consumers better solutions. Urbanization growth is a market demand-generating phenomenon. One of the fastest expanding markets for transportation services is this one. The market has significant future potential thanks to the leading firms' implementation of vehicle rental software. The main driver of the global markets growth is the improvement of mobile automobile rental apps. Most people believe renting a car is better than owning one. To control traffic and air pollution, the government has taken several actions. More market marketing follows as a result. Government incentives encourage new firms to enter the international market. The demand for automobile rental services is driven by a huge increase in the number of individuals traveling for both business and pleasure around the world, fueling the industrys expansion. Dedicated mobile apps for the convenience of clients have further assisted businesses in the market in capturing a wider customer base thanks to rising internet penetration across emerging and established countries. The impact of technological development has recently transformed the sector. These vehicles also provide consumers with a selection of quality features at competitive prices, which increases demand among business travelers. However, the market expansion is hampered by the low internet penetration rate in developing countries. Additionally, using Car Rental management software is

Market Segmentation

The Car Rental market is segmented based on vehicle type, application type and rental duration. Based on application, the market is segmented as Local Usage, Airport Transport, and Outstation. Based on vehicle type market is segmented as Luxury Cars, Economy Cars, SUVs, Executive Cars, and MUVs. Based on the rental duration, the market is segmented as Long-term and Short-term.

Based on application-

Airport Transport category dominated the market in 2021

On the basis of application, the market is segmented as local usage, airport transport, and outstation. a large rise is helping the segments global revenue stream in air travelers. Diverse operators across the world are progressively making an effort to take advantage of this trend by creating their brands and advertising their services in all of the major airports on the planet. Leading Car Rental companies have locations at airports where customers may rent cars seven days a week, 24 hours a day. This is what is causing the category to flourish. A large increase in those engaging in business and leisure.

Based on vehicle type -

Economy cars category dominated the market in 2021

On the basis of vehicle type, the market is segmented as luxury cars, economy cars, SUVs, Executive Cars, and MUVs. The Economy Cars segment is anticipated to grow at the highest rate during the forecast period. Because they are small, fuel-efficient, and offer sufficient comfort, most buyers prefer economy cars. Most rental companies' fleets are made up of economy cars since they have cheaper acquisition and maintenance costs than luxury and executive vehicles. Most of the taxis at the airport and within the city belong to this category. Additionally, millennials favor car rentals because of their cost savings and fuel efficiency benefits.

Based on Regional Analysis-

North America is estimated to hold largest share in the market during the forecast period.

North America holds a significant share in the market during the forecast period. This can be ascribed to the rise in local and international travel for holiday and business purposes among the numerous nations in this region. Additionally, a consistent shift in consumer preferences toward rental services and the presence of significant service providers in the area, such Avis Budget Group and Enterprise Rent-a-Car, are projected to increase the chances for revenue creation in this area. Additionally, more people are traveling and going on vacation, and more luxury and affordable cars are available, especially in the regions emerging nations.

Competitive Landscape:

The key players in the Car Rental market include- "Avis Budget Group, Europecar, Enterprise Holdings Inc., The Hertz Corporation, Toyota Rent-a-Car, Sixt SE, Alamo Rent-a-Car LLC, Carzonrent India Pvt Ltd, Localiza, ANI Technologies Pvt. Ltd"

Recent Development:

· In February 2021- Humax supplied WTC Auto Rent RAiDEA mobility service platform in the Middle East. This technology is perfect for round trip, free-floating, and one-way infrastructures and specifically designed for cars, including electric scooters, bikes, motorcycles, and cars.

· In February 2021- Theeb Rent a Car, a Saudi-based Car Rental company has extended its Car Rental fleet in the Kingdom. The company has added more than 1,700 cars from luxury brands such as BMW, Mercedes, and also economic models such as Chevrolet, Kia, Ford, Nissan, Toyota, and Hyundai, including the new 2021 models. The expansion is a tactic of the company to modernize and develop its fleet to provide different car models and brands to cater to the needs of its customers.

Segmentation of Car Rental Market: