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The Global Car Rental Market size is estimated to grow at a CAGR of 20.16% between 2022 and 2027. The market size is forecasted to increase by USD 129.71 billion. The growth of the market depends on several factors, including an increase in vehicle ownership cost, the increasing incorporation of advanced digital technologies in car rental services, and the growing interest in self-driving vehicles.
This car rental market report extensively covers market segmentation by mode of booking (offline and online), type (economy cars, executive cars, luxury cars, SUVs, and MUVs), rental category (airport transport, local transport, outstation transport, and other transport), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market growth is significantly driven by the increasing cost of vehicle ownership. Owning a vehicle entails various expenses, including fuel, registration, taxes, finance, maintenance, and depreciation, all contributing to the overall ownership cost. The American Automobile Association (AAA) indicates that depreciation alone accounts for 43% of ownership costs, while maintenance and fuel costs contribute 25%.
In recent years, fuel and maintenance costs have witnessed a substantial rise, and this upward trend is projected to persist in the forecast period. Additionally, urban congestion has made car ownership burdensome. The AAA reported a USD 279 increase in the average cost of owning and operating a new car in 2020 compared to 2019. Consequently, the millennial generation has shown decreased interest in car ownership due to traffic issues and escalating fuel and maintenance expenses. As a result, the rate of car ownership among individuals aged between 18 and 35 has declined over time. These shifts in consumer behavior have led to a rising demand for car rental services, further fueling the growth of the global car rental market in the forecast period.
The market is witnessing a significant trend with the emergence of intermediaries. In the past, customers had to rely on telephone calls to book cars with service providers. However, the widespread availability of the internet has given rise to various online platforms known as car rental brokers. These intermediaries act as aggregators between customers and car rental operators, providing a convenient way to access rental services. Websites like carentals.com, expedia.com, cartrawler.com, and priceline.com are examples of such intermediaries.
Intermediaries offer competitive prices for car rentals, making the market highly price-driven. Customers often choose based on the best deals, resulting in commissions being payable to the brokers. Consequently, direct sales for operators become less favorable compared to sales through intermediaries. Moreover, using intermediaries can pose challenges in brand differentiation, as customers interact with the intermediary rather than the operator directly. These trends are expected to have a potential impact on the market's growth during the forecast period.
The growing popularity of car-sharing services presents a potential challenge to the car rental market's growth. Car sharing has become a trend in mobility, driven by the aim to reduce carbon emissions and alleviate city road congestion. This model enables the utilization of parked vehicles available in various locations, connecting car owners with co-travelers for city-to-city journeys. Car-sharing services have gained traction in both developed and developing urban regions, catering to motorists seeking to share rides during long-distance trips. Europe leads in per capita earnings, while APAC dominates the car-sharing market. Consequently, the increasing adoption of car-sharing services may have an adverse impact on the global car rental market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Car Rental Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Autorent Car Rental LLC - The company offers car rental services such as self-driven car rental service.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. With the help of offline booking, customers can reserve a car in advance without having to rely on Internet connectivity. Customers can provide their information to rental companies via phone, email, or in person.
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The offline segment was valued at USD 38.82 million in 2017 and continued to grow until 2021. The demand for offline booking has grown extensively in recent years owing to the rising preference of customers. In addition, offline booking provides a layer of security to customers. This is particularly important for those who need reliable transportation for business or personal use. Such factors are expected to drive the growth of the offline segment in the global car rental market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in the region is attributed to factors such as low fuel prices, which have reduced the cost of transport by rental cars. In the US, the car rental market in the US is highly consolidated, as the top players account for a major share of the market. Iet in Canada, the market is driven by the growth of tourism in the country. A crucial factor contributing to the growth of the car rental market in Canada is the increasing demand for car rental services for airport transportation. Therefore, the car rental market is expected to grow in North America during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. The demand for car rentals increased in North America, especially in the US, owing to the preference for personal transport due to COVID-19. However, restrictions on air travel negatively influenced the market in the region in 2020. The market is expected to grow during the forecast period as people have started to travel post the lifting of lockdowns due to the initiation of vaccination drives and the revival of the tourism industry. Such developments are expected to increase the demand for air transport rental services, which, in turn, will drive market growth during the forecast period.
The car rental market report forecasts market growth by revenue at global, regional, & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global car rental market as a part of the global trucking market. The parent market, the global trucking market, covers companies engaged in goods and passenger land transportation, including vehicle rental and taxi companies. Technavio calculates the size of the global trucking market based on the combined revenue generated by companies operating in the goods and passenger land transportation sector, including vehicle rental, leasing, and taxi companies. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Car Rental Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.16% |
Market growth 2023-2027 |
USD 129.71 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
18.77 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, China, Germany, Italy, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Autorent Car Rental LLC, Avis Budget Group Inc., Carzonrent India Pvt. Ltd., Centauro Rent a Car S.L.U., DriiveMe Ltd., Enterprise Holdings Inc., Europcar Group UK Ltd., Expedia Group Inc., Getaround Inc., GO Rentals Auckland Ltd., Hertz Global Holdings Inc., Localiza Rent a Car SA, Mex Rent a Car, Movida Participacoes SA, Renault SAS, SIXT SE, Turo Inc., Uber Technologies Inc., Zoomcar India Pvt. Ltd., and Aspark Holidays 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, 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Mode of Booking
7 Market Segmentation by Type
8 Market Segmentation by Rental Category
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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