The global car rental market size attained a value of approximately USD 104.03 billion in 2023. The market is projected to grow at a CAGR of 5.4% in the forecast period of 2024-2032, reaching a value of around USD 166.61 billion by 2032.
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Flourishing Travel and Tourism Sector to Favour the Car Rental Industry Analysis
The thriving travel and tourism sector is bolstering the demand for car rental services as travellers and tourists are increasingly preferring the flexibility and independence offered by renting a car. Improvements in road infrastructure and the increasing awareness regarding the benefits of car renting in new cities are also aiding the market.
Through rental cars, tourists can explore new regions at their own pace and at a reduced cost. The rising frequency of business travel is also contributing to the car rental market demand as companies actively invest in renting cars for their employees.
Through a car rental company, users can rent automobiles for short periods of time through online or offline booking modes. Car rentals enhance the flexibility of travellers, eliminate the requirement for transfer of ownership, and reduce car insurance and maintenance charges.
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Based on booking type, the market is bifurcated into:
On the basis of application type, the car rental market segmentation includes:
By vehicle type, the market is segmented into:
The report by EMR looks into the regional markets for car rental like North America, Latin America, Europe, the Middle East and Africa, and the Asia Pacific.
With increasing population, the market for car rentals has experienced a significant growth over the past few years. car rental market analysis systems, such as three-year car leasing from their owners and then renting them through app-based reservations, are emerging as a convenient and affordable means of transportation.
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The growing adoption of smartphones for leasing a vehicle is one of the key car rental market trends. Online vehicle booking is specifically becoming a preferred choice for car rentals, as cars can be booked remotely, which is particularly beneficial for tourists and business travellers.
The luxury car rental market share is witnessing steady growth as customers are renting high-end luxury cars for special occasions such as weddings and birthday parties. Providers are also leveraging the potential of social media and influencer marketing to enhance customer awareness regarding the benefits and experiences of renting luxury cars.
Car rentals also aid in reducing air pollution decreasing owned-vehicle volumetric sales.
Rising Focus on Sustainability to Propel the Market Expansion
Sustainability has become an indispensable area of concern in the automotive and transportation sectors and environmentally friendly customers are increasingly preferring sustainable and low-emission transportation modes. This is prompting car rental industry players to switch to hybrid, electric, and alternative fuel vehicles.
For instance, in October 2021, Carzonrent, a car rental firm, launched an EV platform to create an EV ecosystem and introduce nearly 20,000 EVs in different sectors like hospitality, government, and aviation in India.
The electric car rental market growth can also be attributed to their affordability and safety. Customers in regions like Europe are renting electric vehicles to access low-emission zones in various areas.
Technological Advancements and Innovations to Fuel the Rental Car Market in the Forecast Period
Car rental service providers are adopting innovative technologies while investing in software solutions and mobile apps that can streamline the renting process, improve customer experience, and increase overall efficiency. Technologies like intelligent tracking systems and big data are also increasingly utilised by such companies to monitor their fleet performance, surge fuel efficiency, optimise operations, and lower maintenance costs.
The car rental market revenue is also expected to surge in the coming years due to the increasing deployment of artificial intelligence (AI) by key players to facilitate predictive maintenance, offer personalised and on-demand services, predictive responsiveness of clients, and enhance the safety of customers.
North America holds a significant share of the market, driven by the increasing demand for car rental services for tourism and business purposes in the region. The presence of a well-established roadways network in the region and substantial distances between locations are further increasing the demand for rental cars. The presence of key market players, high driving proficiency, and increasing costs of car ownership are expanding the car rental market size.
The report presents a detailed analysis of the following key players in the global car rental market, looking into their capacity, competitive landscape, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:
The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s five forces.
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
