Car Rental Market Analysis Report By Vehicle Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global car rental market size was accounted for USD 88.2 billion in 2018. It is projected to grow at the CAGR of 5.1% during the forecasted period, 2019 to 2025. The growing tourism and travel industry are projected to surge the demand for rental services in the next few years. In addition, a rising number of business trips & leisure activities coupled with the rising number of self-driven car rental companies are expected to boost the market growth.

Advanced technology innovations are expected to support market growth. Technological development helps to provide enhanced services using technology information through electronic media. It includes management of consumer information internet booking of car rental service solutions.

Key players in the market are focusing on offering low-cost services. Major companies prefer online channels to reach out to a wider consumer base across the globe. Some of the players are providing attractive schemes at reasonable prices, which are expected to surge the market growth.

Increasing penetration of smartphones & media is also projected to bolster the demand for rentals services. Consumers prefer smartphones over computers owing to their convenience. Furthermore, increasing demand for demand-oriented mobility solutions is contributing to market growth. Companies such as Uber, Avis, and Sixt SE have introduced their services through mobile apps.

Companies such as Sixt SE engage in managing fleet management solutions by making them available for a specific time to meet consumer needs. Moreover, plug-in vehicles are gaining traction among consumers due to various environmental concerns.  This has led to key players like Enterprise Rent-A-car and Hertz introduce electric vehicles in their product lines.

Technological innovations are anticipated to have a positive impact on market growth. Additionally, IoT solutions and telematics technology is projected to create huge opportunities for market growth.

Vehicle Type Insights

Based on the vehicle type, the car rental market is split into executive, luxury, economy, MUVs, and SUVs. In 2018, the economy car segment held a market share of more than 30.0% in the overall market. Cost-effectiveness and better compact structure are expected to increase the demand for economy cars, especially in intra-city, and airport travels.

The executive cars type segment is projected to grow at the fastest CAGR during the forecasted period. Increasing consumer preference for executive cars in medium transport and greater cost-effectiveness are fostering the demand for car rental services.

Rental services for MUVs and SUVs are projected to propel significant growth in the coming few years. In addition, SUVs are highly used in outstation applications mainly due to their large carrying capacity. Luxury cars are anticipated to grow at a good pace in developing countries such as India, and China.

Application Insights

In 2018, airport transport services attributed to revenue of around USD 35.0 billion in the overall market. An increasing number of air travelers worldwide is expected to proliferate segmental growth. Several companies have their facilities at the airport and offer round-clock services, which is projected to spur market growth.

Outstation and local travel applications are anticipated to grow at a healthier pace in the coming few years. The absence of standard timing and route flexibility in public transportation have enforced travelers to look for car rental services. The outstation application segment is estimated to grow at the fastest CAGR from 2019 to 2025.

Regional Insights

In 2018, North America led the market with the highest market share of more than 50.0% in the overall market. The increasing number of business and leisure trips in international & local places is proliferating the demand for car rental services. Moreover, the growing preference for car rental services and the presence of global players in the region are expected to bolster the market growth.

Asia Pacific is projected to grow at the highest CAGR of over 8.0% during the forecasted period. The growing availability of economy vehicles and high-end luxury vehicles in countries such as China, and India is contributing to segmental growth. Additionally, rapid infrastructure development across the region is also boosting the demand for rental services.

COVID-19 Impact Insights

The COVID-19 pandemic has negatively impacted the growth of the car rental market. The lockdown restrictions imposed by the government across the world and inter-state travel ban have mainly impacted the market growth. For example, Hertz Corporation has witnessed a decline in its sales. The company generates the largest revenue from car rental services at airports. Also, due to the coronavirus crisis, all major airports were closed due to a lockdown situation.

However, the market is projected to grow at a rapid pace once the lockdown restriction eases out. Several U.S. states have been re-opened although customers are still avoiding the crowded areas. In the U.S., Kayak a travel website has foreseen high demand for car rental services than air travel.

Car Rental Market Share Insights

The market is fragmented owing to the presence of domestic & international players across the world. Some of the key players in the market include Europcar, Sixt SE, Avis Budget Group, Enterprise Rent-A-car, and The Hertz Corporation.

The companies in the market focus on improving their rental services to meet consumer demand. For example, in 2019, Sixt SE has introduced a mobility app to provide vehicle sharing and renting services.

Several players engage in strategic collaboration to remain competent in the industry. For example, in 2019, Enterprise Rent-A-car has collaborated with Premier Group to expand its business in Egypt.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global car rental market report on the basis of Vehicle Type, Application, and region:

• Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)
    • Luxury
    • Executive
    • Economy
    • SUVs
    • MUVs

• Application Outlook (Revenue, USD Million, 2014 - 2025)
    • Local usage
    • Airport transport
    • Outstation
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
    • Europe
        • France
        • Germany
        • U.K.
    • the Asia Pacific
        • Japan
        • Korea
        • China
        • India
    • South America
    • Middle East &Africa (MEA)