Enjoy complimentary customisation on priority with our Enterprise License!
The automotive rental and leasing market is projected to grow by USD 147.98 billion with a CAGR of 7.46% during the forecast period 2021 to 2026.
The research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the market segmentation by type (passenger car rental, truck utility trailer, recreational vehicle rental and leasing, and passenger car lease) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The market report also offers information on several market vendors, including Aspark Holidays Pvt. Ltd., Avis Budget Group Inc., Carzonrent India Pvt. Ltd., CENTAURO RENT A CAR SLU, DriiveMe Ltd., Drivezy India Travels Pvt. Ltd., Enterprise Holdings Inc., Europcar Mobility Group SA, Expedia Group Inc., Getaround Inc., Green Motion International, Hertz Global Holdings Inc., Localiza Rent a Car SA, Mercedes Benz Group AG, Mex Rent a Car, Movida Participacoes SA, OK Group, SIXT SE, Al Futtaim Group Co., and Zoomcar India Pvt. Ltd. among others.
Get the Automotive Rental and Leasing Market Size Forecast by Downloading the Report Sample
Our researcher studied the historical data for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the market. During the COVID-19 pandemic, the market demand has been impacted greatly. A holistic analysis of drivers will help in predicting exact demands and refining marketing strategies to gain a competitive advantage.
Key Automotive Rental and Leasing Market Driver
Growing urbanization and industrialization is one of the factors driving the market's growth. The global economy is growing rapidly, with cities and countries becoming smarter in terms of infrastructure. Transportation and logistics play an important role in driving the global economy toward industrialization and urbanization. In addition, the rise in global construction and shipping activities has increased the demand for high-performance vehicles. The significant increase in the number of business and leisure travellers in different parts of the world increases the demand for car rental services and thus accelerates the growth of the industry. Thus, due to all such factors, the market is expected to witness high growth during the forecast period.
Key Automotive Rental and Leasing Market Trend
The robust growth of the travel and tourism industry is one of the key market trends fueling the market growth. The COVID-19 pandemic negatively impacted the travel and tourism industry in 2020 and 2021. To stop the spread of COVID-19, numerous nations across the world enacted stringent lockdowns and imposed restrictions on travel and tourism-related activities. However, due to the initiation of COVID-19 vaccination drives, people resumed visiting numerous tourist destinations in 2021. Moreover, with the resumption of domestic travel activities, more people are choosing to use vehicles for their vacations rather than rail transportation and air travel. Thus, with the robust growth of the travel and tourism industry, the market is expected to witness high growth during the forecast period.
Key Automotive Rental and Leasing Market Challenge
Lack of awareness in Tier-II cities is one of the key factors challenging the market's growth. Despite being popular for more than ten years, automotive rental and leasing are still not common in Tier-2 cities where it would have been a wiser decision than buying a car. Semi-urban and rural communities have poor acceptability of car leasing business models. A sizable chunk of the potential market for car leasing still remains unexploited. In developing nations such as India, China, and Indonesia, owning an automobile is seen as a sign of social and economic status. Thus, renting or leasing a car is not considered appropriate. Moreover, customers in semi-urban and rural locations may find certain leasing terminologies daunting and incomprehensible, such as money factor, residual value, and capitalized expenses. Such factors can hamper the growth of the market during the forecast period.
This market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global automotive rental and leasing market as a part of the global trucking market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the market encompasses successful business strategies deployed by the key vendors. The market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.
The report market contains comprehensive market knowledge and an in-depth vendor landscape added to an analysis of the key vendors.
Our report provides extensive information on the value chain analysis for the automotive rental and leasing market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
Get a glance at the market share of various regions by Requesting a PDF Sample now!
36% of the market’s growth will originate from North America during the forecast period. The US is the key market for automotive rental and leasing in North America. Market growth in this region will be slower than the growth of the market in APAC and Europe.
The increased number of leisure and business travellers within the region will facilitate the market's growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID-19 Impact and Recovery Analysis
In 2020, the regional market was severely affected by the COVID-19 outbreak. However, the initiation of vaccination drives led to the lifting of lockdowns in 2021. This resulted in the resumption of business activities, which has increased the demand for automotive rental and leasing in the region. Such factors are expected to drive the growth of the market during the forecast period.
To gain insights on the market contribution of various segments Request a PDF Sample
The market share growth in the passenger car rental segment will be significant during the forecast period. The demand for passenger car rentals has increased significantly as a key vertical in the transportation industry, benefiting not only customers and rental companies but also car manufacturers. Automakers have developed attractive programs, such as auto leasing, which allows small businesses to increase the size of their fleet without incurring significant financial costs. Moreover, the passenger car rental segment is greatly influenced by factors such as the need for economic mobility models and the ageing of old vehicle fleets, which are constantly being purchased with the introduction of new car models in the market and the growing transportation needs of various businesses.
This report provides an accurate prediction of the contribution of all the segments to the growth of the market size and actionable market insights on the post-COVID-19 impact on each segment.
Automotive Rental and Leasing Market Scope |
|
Report Coverage |
Details |
Page number |
123 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.46% |
Market growth 2022-2026 |
$147.98 billion |
Market structure |
Fragmented |
YoY growth (%) |
6.5 |
Regional analysis |
North America, Europe, APAC, South America, and the Middle East and Africa |
Performing market contribution |
North America at 36% |
Key consumer countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading companies, Competitive Strategies, Consumer engagement scope |
Key companies profiled |
Aspark Holidays Pvt. Ltd., Avis Budget Group Inc., Carzonrent India Pvt. Ltd., CENTAURO RENT A CAR SLU, DriiveMe Ltd., Drivezy India Travels Pvt. Ltd., Enterprise Holdings Inc., Europcar Mobility Group SA, Expedia Group Inc., Getaround Inc., Green Motion International, Hertz Global Holdings Inc., Localiza Rent a Car SA, Mercedes Benz Group AG, Mex Rent a Car, Movida Participacoes SA, OK Group, SIXT SE, Al Futtaim Group Co., and Zoomcar India Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.