by The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 13.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The car rental market involves rental of cars and light utility vehicles for short duration. The cars are rented for personal as well as commercial uses including airport transportation, local commuting, outstation trips, and others. Expanding construction and tourism industries worldwide has augmented the demand for rental cars. Ease of use, cost effectiveness for occasional users, and freedom to choose vehicle as per requirements are some of the key advantages of renting a car.
Market key trends:
One of the major trends in the market is the increasing focus on inter-city mobility. With rising disposable income and changing lifestyle, people are increasingly opting for inter-city travels for leisure as well as work. This has boosted the demand for rental cars from airports and railway stations for local or outstation commute. Market players are focusing on enhancing connectivity between major cities by providing seamless rental services. They are also enabling online bookings, pickup/drop facilities at transit points to make inter-city travelling more convenient. This trend is expected to drive significant growth in the car rental market during the forecast period.
Porter’s Analysis
Threat of new entrants: The car rental market has high fixed costs of operation which poses a barrier to entry. In addition, established players have gained significant brand recognition over the years which new entrants will find difficult to match.
Bargaining power of buyers: Buyers have moderate bargaining power as there are many suppliers in the market providing car rental services. However, switching to another supplier does not require high switching costs for buyers.
Bargaining power of suppliers: The bargaining power of suppliers is low as the raw materials required are commonly available from multiple suppliers.
Threat of new substitutes: New substitutes like taxi and ride-sharing services pose threats to some extent. However, car rentals provide the flexibility of self-driving which is not substitutable.
Competitive rivalry: The global car rental market is dominated by a handful of major players resulting in intense competition.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing urbanization and rise in business and leisure travel.
Regional analysis: North America dominates the global car rental market currently, driven by high business and leisure travel. Asia Pacific is expected to be the fastest growing market owing to rising disposable incomes and development of tourism industry in the region.
Key players: Key players operating in the car rental market are Enterprise Holdings, The Hertz Corporation, Avis Budget Group, Europcar Group, Carzonrent, Sixt SE, Al Futtaim Group, Localiza – Rent a Car, Eco Rent a Car, and GlobalCARS. Enterprise Holdings maintains its leadership position with largest fleet size globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
