by The car rental market involves renting automobiles for short periods of time, generally ranging from a few hours to a few weeks. Car rental services provide vehicles to customers who may not own or have access to their own personal transportation. Common types of vehicles available for rent include economy cars, luxury cars, specialty vehicles, vans and sport utility vehicles. The car rental industry allows customers to travel independently and make efficient use of transportation infrastructure when traveling for business or leisure without long-term vehicle ownership commitments.
The global car rental market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the global car rental market is the significant rise in international tourism in recent years. International tourist arrivals worldwide have grown steadily, reaching over 1 billion in 2017 according to the World Tourism Organization. This has increased demand for rental vehicles, especially in popular tourist destinations. Additionally, the emergence of new mobility services and transportation options including peer-to-peer car sharing has expanded the addressable car rental market. Companies are partnering with or acquiring mobility start-ups to integrate alternative mobility solutions into their offerings and better serve evolving customer needs. This is expected to support ongoing expansion of the overall car rental industry over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Global Car Rental Market Size is moderate to high. The capital requirements for entering the car rental business are high due to the need to purchase a large fleet of vehicles. However, companies can enter through franchising or by renting individual vehicles.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Buyers have various car rental providers and options to choose from based on price, location, and fleet availability. Buyers can negotiate on price during off-peak periods.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as major car rental players purchase vehicles directly from automobile manufacturers in bulk. This allows them negotiating power for better deals and pricing.
Threat of new substitutes: The threat of new substitutes is moderate as other transportation options like car sharing platforms, taxis, rented bikes, public transport provide alternatives. However, each alternative caters to a different customer base and requirement.
Competitive rivalry: The competitive rivalry in the car rental market is high due to the presence of numerous global and regional players competing on the basis of fleet size, service networks, brand reputation, and pricing.
Key Takeaways
The global car rental market is expected to witness high growth over the forecast period. The global car rental market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030.
North America currently dominates the market owing to the high car ownership costs and widespread travel and tourism industry in the region. Europe is another major market for car rentals driven by trends of shared mobility.
Key players operating in the car rental market are Avis Budget Group, Europcar Group, Enterprise Holdings, Hertz Global Holdings, and SIXT.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
