Global Car Rental Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, and MUVs), By Rental Duration Type (Short-Term, Long-Term), By Application Type (Local Usage, Airport Transport, Outstation and Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The Global Car Rental Market is projected to grow from USD 92.02 billion in 2021 to USD 149.99 billion by 2030 at a CAGR of 7% during the forecast period.  

The demand for automobile rental services is being driven by a considerable increase in the number of individuals traveling for business and pleasure around the world, accelerating the industry's growth. Increasing internet penetration in both emerging and developed countries has aided companies in the market in capturing a wider client base by providing dedicated mobile apps for customers' convenience.

Technology is thought to be a key driver of market expansion. In recent years, the impact of technological breakthroughs has changed the sector. Improved customer and company information management, as well as simple internet booking software, are two key approaches to help vehicle rental companies provide better service to their clients.   

COVID-19 ANALYSIS         

Most major economies, including the United Kingdom, Japan, China, Germany, and parts of the United States, have been placed on lockdown as a result of the COVID-19 epidemic. International travel was prohibited for about seven to eight months, having a huge impact on the worldwide tourism economy. As a result, the rental industry has been badly impacted. The pandemic had a significant influence on the world's leading rental companies, resulting in market share losses, rankings drops, market volatility, and downgrades.

LATEST TREND  

Growing Demand for Online Car Rental Services

Increased information technology use is altering the sector and allowing operators to provide better services to their clients. This includes the development of user-friendly internet booking tools and the use of improved corporate and customer information management. The order online or pick-up approach is at the forefront of detecting beacon and near-field communications applications (NFC). Newer players, such as BlaBlaCar, and Zipcar are benefiting from innovative business strategies such as car-sharing and the adoption of telematics technologies.

Increasing Corporate Traveler Demand to Boost Market Growth

The number of business travelers has increased significantly as organizations expand abroad. The demand for luxury executive automobiles in the rental market has grown as the number of business travelers has increased. Executive automobiles provide convenience and comfort on a budget, which is why the demand for them is increasing around the world. Given the tremendous business opportunities and growth potential presented by this sector, several organizations are focusing solely on the corporate segment. The growing popularity of ride-sharing services is likely to enhance demand for car rental services.

Increasing Crude Oil Prices to Limiting Market Growth

Crude oil price changes are directly influenced by the automobile and transportation industries. Because rental pricing cannot be adjusted on a regular basis in reaction to crude oil prices, resulting in profit fluctuations for rental companies, high gasoline and diesel prices are a major hurdle to renting a car in many developing countries.

SEGMENTATION     

The Global Car Rental Market is segmented by Vehicle Type, Rental Duration Type, Application Type, and Region. Based on the Vehicle Type, the market is categorized into Luxury Cars, Executive Cars, Economy Cars, SUVs, and MUVs. Based on Rental Duration Type, the market is categorized into Short-Term, Long-Term. Based on Application Type, the market is categorized into Local Usage, Airport Transport, Outstation and Others. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.        

REGIONAL INSIGHTS    

North America is expected to dominate the global car rental market due to the rising demand for rental automobiles in the region for pleasure and business excursions. Furthermore, rising tourism in North America and Europe is growing demand for automobile rental services in these areas. In comparison to North America, the situation in Asia Pacific and Latin America is significantly different.

Increasing automobile prices, as well as rising fuel costs, are driving demand in these areas. Because the majority of the population in the region has a middle-class discretionary income, renting a car is the most convenient way to meet travel needs. The Middle East and Africa is expected to develop at the quickest CAGR throughout the projection period, owing to the region's growing commercial and tourist sectors.

KEY INDUSTRY PLAYERS   

With various foreign and domestic enterprises operating around the world, the market is moderately fragmented. However, the sector is on the edge of consolidation, with only a few competitors acquiring significant market share. Enterprise Holdings Inc., Hertz Global Holdings, Sixt SE, Europcar Mobility Group, and Avis Budget Group are among the key participants. These companies are primarily concerned with improving their offerings in order to expand their customer base and increase profits.    

LIST OF KEY COMPANIES PROFILED:

• Enterprise Holdings Inc. (Missouri, U.S.)
• Hertz Global Holdings (Florida, U.S.)
• Avis Budget Group (New Jersey, U.S.)
• Europcar Mobility Group (Paris, France)
• Lotte rental co.ltd (Gyeonggi Province, South Korea)
• TOYOTA Rent a Car (Aichi, Japan)
• Europcar International (Paris, France)
• Sixt SE (Pullach, Germany)
• Localiza Rent a Car SA (State of Minas Gerais, Brazil)
• CAR Inc (Beijing, China)
• Renault Eurodrive (Boulogne-Billancourt, France)
• Alamo Rent A Car LLC (Missouri, U.S.)

KEY INDUSTRY DEVELOPMENTS:    

In January 2019, Enterprise Rent-A-Car partnered with Premier Group to expand its car rental service offerings in Egypt.

In November 2021, Hertz Rentals announced a partnership with Tesla Motors to supply 100,000 Model 3S vehicles by 2022, with half of these vehicles scheduled to be rented out to Uber drivers.   

SEGMENTATION

By Vehicle Type

• Luxury Cars
• Executive Cars
• Economy Cars
• SUVs
• MUVs

By Rental Duration Type

• Short-Term
• Long-Term

By Application Type

• Local Usage
• Airport Transport
• Outstation
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa