Demand For Car Rental Services is Booming at a CAGR of 9.6%
Rockville , March 13, 2023 (GLOBE NEWSWIRE) — According to Fact.MR, a market research and
Rockville , March 13, 2023 (GLOBE NEWSWIRE) — According to Fact.MR, a market research and competitive intelligence provider, the global car rental market is estimated to touch US$ 200 billion by the end of 2033, rising at 9.6% CAGR from 2023 to 2033.
A car rental service is a business that rents cars fors a fee for brief periods. It is usually organized with several local branches and is mostly found near airports or major metropolitan centers. Car rental companies typically help those who have a vehicle that is out of service or temporarily unavailable, including out-of-town vacationers or owners of destroyed or damaged vehicles waiting for repair or insurance payment.
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A massive expansion in the travel & tourism industry worldwide is one of the key factors driving the growth of the car rental market. Furthermore, the expanding urban population’s interest in travel and adventure is supporting market expansion. Individuals are resorting to car rental services for more mobility and cost-effective travel.
Another factor stimulating market growth is the implementation of beneficial government regulations and improved public awareness of environmental protection. Governments in both developing and developed economies are emphasizing the necessity of lowering vehicle emissions and promoting car rentals as among the most cost-effective modes of transportation. Other aspects, such as the growth of car rental services through websites and smartphone-based applications and rising customer spending power, are estimated to propel global market expansion.
|Forecast Period||2023 – 2033|
|Value Projection (2032)||US$ 200 Billion|
|Growth Rate (2022-2032)||9.6% CAGR|
|No. of Pages||170 pages|
|No. of Tables||80 Tables|
|No. of Figures||227 Figures|
Key Takeaways from Market Study
- The global car rental market is valued at US$ 80 billion in 2023.
- Worldwide demand for car rental services is expected to increase at a CAGR of 9.6% during the forecast period (2023 to 2033).
- The global market for car rental is set to hit US$ 200 billion by 2033.
- North America held 52% share of the global market in 2022.
- Demand for economy/budget cars is projected to rise at a CAGR of 5.4% over the decade.
“A huge increase in the number of individuals traveling for both business and leisure purposes around the world is boosting the demand for car rental services. Moreover, increasing Internet penetration in both emerging and developed countries is aiding market companies in capturing a wider customer base through dedicated mobile apps for customer convenience,” says a Fact.MR analyst.
Why is the US a significant market for car rental companies?
Booming Domestic Travel and Tourism Sector
North America will hold a 52% share of the global market in 2022, according to a study by Fact.MR, a supplier of market research and competitive intelligence. The region’s market is expanding due to the presence of well-known automobile rental businesses as Enterprise Rent-a-Car and Avis Budget Group. Also, the expansion of the regional market is being fueled by the rising number of tourist and business arrivals in the area.
According to data from the United States Travel and Tourism Statistics, 2.25 billion Americans travelled domestically in 2021, making up the lion’s share. In addition, leisure travel made up 72.6% of all tourism in America, with business travel and other types of travel making up the remaining 25.3%.
Key Companies Profiled in Car Rental Market Report
- Toyota Motor Corporation
- Enterprise Rent-A-Car
- Zipcar, Inc
- Enterprise Holdings, Inc
- Sixt SE
- Avis Budget Group, Inc
- Getaround, Inc
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There are numerous domestic and foreign companies operating on the moderately fragmented global market. Major participants in the car rental industry are concentrating on market expansion plans to capture local market share, build brand recognition, and penetrate emerging regions. These players prioritise enhancing their offerings in order to boost profitability and expand their clientele.
Another effective approach that market participants use to increase their market position is strategic partnerships. Moreover, several start-ups are entering the market and competing with prominent players.
- Kovi, a Brazilian start-up, provides an online platform for car rental services. The platform allows customers to search for and book rental cars by providing duration, personal information such as driving license, and so on. It provides services such as a large pool of cars, insured rides, various payment choices, etc.
- Ikenna Ordor’s luxury car rental company ‘Starr Luxury’ announced its entrance into the United States in July 2022. It announced the launch of its services in major cities, including Miami, Los Angeles, Austin, Atlanta, and Houston. Starr Luxury is well-known for being one of the world’s few companies of its sort to collaborate with five-star hotels.
- Uber’s premium electric car service, Uber Comfort Electric, revealed its extension into other United States cities in July 2022, including Portland, Las Vegas, Seattle, Baltimore, Denver, Philadelphia, and Austin.
- Uber introduced a new car rental service named Uber Rent in May 2021 in collaboration with the Dublin-based car rental firm CarTrawler. CarTrawler will manage Uber’s car rental technology, which is being pushed out across the United States as part of the agreement.
North America is dominating the global car rental market. The United States is leading the regional market due to the thriving domestic tourism industry. The market in Asia Pacific is also experiencing strong growth due to the increasing demand for car rental services in South Korea and Japan. Furthermore, Germany is significantly supporting the market expansion in Europe.
Quick Buy & Expand Your Horizons (Get 20% Discount):
- By Vehicle Type :
- Luxury/Premium Cars
- Economy/Budget Cars
- By Booking Type :
- By Application :
- By End User :
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