In terms of revenue, the Global Car Rental Market is expected to reach USD 126.6 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.3% from 2022 to 2028.
Key Highlights from Report:
- Based on Car Type, the marketplace is bifurcated into Luxury, Executive, Economy, Sports Utility vehicles (SUV), and Multi-Utility Vehicles (MUV). Economy Cars is the dominant segment of the Car Rental Market. The majority of customers select Economy cars for the reason that they may be compact, fuel-efficient, and offer good enough comfort. Because Economy cars have decreased acquisition and upkeep prices than Luxurious and Executive cars, most rental firms' fleets are made up of those vehicles. This institution consists of the majority of the airport and intra-city taxis.
- Based on Application, the marketplace is bifurcated into Leisure and Commercial. Airport Transport is the dominant section and holds the biggest marketplace share. A giant boom in air tourists around the sector is boosting the section's sales stream. Various operators for the duration of the sector are regularly trying to capitalize in this fashion with the aid of using growing their brands and promoting their offerings in all the world's foremost airports. In addition, leading vehicle rental corporations have centers at airports, wherein customers might also lease motors 24 hours a day, seven days a week, driving the section growth.
- Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. The Middle East & Africa is anticipated to grow at the fastest Compound Annual Growth Rate (CAGR) over the forecast period, primarily due to the increasing businesses and tourism in the region.
As organizations are increasing globally, the wide variety of business travelers has been developing considerably in the last decade. The growing populace of company travelers has reinforced the call for top-class executive automobiles withinside the rental industry. Executive automobiles provide ease of journey and luxury on a cost-effective budget; consequently, the call for such automobiles is developing worldwide. Many companies focus only on the corporate segment, considering this marketplace's beneficial business opportunities and increased capacity. The ride-sharing call is anticipated to further increase the marketplace call for automobile rental organizations.
The automotive & transportation industry directly affects the fluctuation in crude oil prices. High fuel and diesel prices in numerous growing international locations act as a key restraining factor for presenting an automobile on a hire because the rental fees cannot be modified regularly relying on the crude oil fees, and ultimately the rental agencies face fluctuation withinside the profits. For instance, the per-barrel charge for crude oil became USD 17 in 2000, which improved to USD forty-five in 2020 because of a growing call globally. Moreover, authorities' taxes lift the fuel and diesel prices, appreciably affecting the worldwide enterprise.
North America held the largest shares in 2021. North America is anticipated to dominate the worldwide marketplace in 2021. The increase may be attributed to the growing call for rental motors for entertainment sports and business journeys withinside the region. Moreover, the growing tourism in North America and Europe is riding the call for vehicle rental offerings in those regions.