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The MUV Rental Market size is estimated to grow at a CAGR of 17.6% between 2022 and 2027 and the size of the market is forecast to increase by USD 8,070 million. The market's expansion hinges on several factors, including the growth of the travel and tourism sector, the rise in vehicle ownership expenses, and the convenient accessibility of MUV rentals.
This report extensively covers market segmentation by type (passenger vehicles and cargo vehicles), application (leisure and commercial), 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.
MUV Rental Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growth of the travel and tourism industry is driving growth in MUV rental market vendors. The global MUV rental market is experiencing growth due to the rising popularity of travel and tourism. As more people are traveling for work and leisure, there is an increased demand for efficient and convenient transportation options. MUV rental provides a convenient solution for travelers who prefer to explore their destinations at their own pace. With the ability to easily access MUV through mobile applications, travelers can avoid the hassle of waiting in long lines or dealing with public transportation schedules.
The growth of the global MUV rental market has also been positively influenced by the development of advanced technologies. It is easier for MUV rental companies to offer self-driving GPS options to their customers as a result of improvements in global positioning systems, mapping software, and artificial intelligence. Therefore, the adoption of vehicle rentals during the forecast period is expected to be stimulated by these factors and this will benefit the global MUV rental market.
The growing incorporation of advanced digital technologies in car rental services is a primary trend in the MUV rental market. MUV rental operators are increasingly using technologies such as applications to improve service convenience to tap into large markets. To allow cars to be made available for customers without delay, operators are streamlining their membership procedures.
The major drivers for increasing reliance on technology are the large numbers of Internet users and their subsequent penetration with smartphones. Digital means like Smartphones for advertising are frequently used by many MUV leasing companies. In order to make their customers' lives easier, they add new features on a regular basis as well as updates to their Mobile Applications. This market is expected to be stimulated by these characteristics and developments over the forecast period.
The rising number of car-sharing services is a major challenge in the MUV rental market. Car sharing is part of a larger trend of shared mobility. Urban mobility has been undergoing a significant change during the forecast period. The idea of car sharing has started to gain momentum, with the aim of reducing carbon emissions and congestion on city streets. In contrast to the classic car rental service, wherein a vehicle is rented at a designated location and typically returned after one or more days, the car-sharing model allows the use of freely parked vehicles in city areas or business areas.
However, in cities of both developed and developing economies, car-sharing services are growing in popularity. The economic model of a car-sharing service is designed for long-distance travel and is aimed at drivers who want to fill empty seats during journeys. Therefore, the growing adoption of car-sharing services will negatively affect the global MUV rental market during the forecast period.
The passenger vehicles segment will account for a major share of the market's growth during the forecast period. Passenger vehicles involve significant capital investment by the customers. However, the cost-effective nature of renting a passenger vehicle which includes MUV, rather than buying, is driving the popularity of rental MUV in various regions such as North America and Europe.
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The passenger vehicles segment was valued at USD 3,242.42 million in 2017 and continued to grow until 2021. Their capacity for accommodating a wide range of people is the main reason why MUVs are becoming increasingly popular. The main forces behind the rise in awareness about renting a MUV are urbanization and increasing Internet penetration around the world. Furthermore, after the expiry of a rental period, the customer will be entitled to switch from an existing advanced vehicle model. Vendors operating in the market in focus offer subscription-based car rental programs to augment their revenue and improve the penetration of a particular brand. Premium MUVs vehicles which prove to be capital-intensive to own, are rented out at an affordable rate to customers using the subscription model of car renting.
Based on application, the market has been segmented into leisure and commercial. The leisure segment will account for the largest share of this segment. The growing travel and tourism industry is the major driving factor for the leisure segment. Tourists are traveling to various destinations, and rental cars, including MUV rentals, are one of their preferred modes of transport. In addition, the global tourism industry is booming and is expected to grow further during the forecast period.
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North America is estimated to contribute 41% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The MUV rental market in North America is significantly dominated by car purchases and financing. MUV renting is cost-effective for the user, wherein the user only pays for the vehicle usage rather than incurring the cost of buying a vehicle. MUV renting allows individuals to shift to a new vehicle after the rental period. An increase in consumer awareness and a rise in the number of global automakers joining the car-renting sector have made it a vital industry in North America, which, in turn, will further fuel the growth of the focused market during the forecast period.
In 2020, the MUV rental market witnessed a negative impact from the outbreak of COVID-19. However, with an increase in rental MUV demand, the scenario has been enhanced by the lifting of security restrictions, the resumption of tourism trade activities, and vaccination drives from January 2021. Moreover, the growth of this market will also be supported by a number of advantages over conventional vehicles as regards different types of autonomy. Therefore, the regional MUV rental market is expected to witness significant growth during the forecast period.
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.
Airport Van Rental - The company offers MUV rentals such as cargo vans and passenger vans.
Aspark Holidays Pvt. Ltd. - The company offers MUV rentals such as luxury vans and tempo travelers.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysisv
The MUV 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.
MUV Rental Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.6% |
Market growth 2023-2027 |
USD 8,070 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
16.1 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Germany, Italy, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Airport Van Rental, Aspark Holidays Pvt. Ltd., 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 Mobility Group SA, Expedia Group Inc., Getaround Inc., GO Rentals Auckland Ltd., Hertz Global Holdings Inc., Localiza Rent a Car SA, Movida Participacoes SA, SIXT SE, Turismo Gargo SA de CV, Turo Inc., Uber Technologies Inc., 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 market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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