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The multi utility vehicle rental market size is estimated to increase by USD 14.12 billion at a CAGR of 23.59% between 2023 and 2028. The travel and tourism industry has experienced significant growth in recent years, leading to an increase in demand for convenient and cost-effective transportation solutions. Simultaneously, the rising costs of vehicle ownership have made car rentals an attractive alternative for both short-term and long-term use. Multi-Utility Vehicles (MUVs) have gained popularity due to their spacious interiors, versatility, and affordability. Renting an MUV for a family vacation or a group outing is now a common choice, offering comfort, convenience, and cost savings. With the easy availability of MUV rentals, travelers can explore new destinations with ease and flexibility, making their journeys more enjoyable and memorable.
MUV Rental Market Forecast 2024-2028
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The market is a cornerstone of the global tourism sector, providing subscription services and leasing choices that cater to diverse traveler needs. It appeals particularly to infrequent MUV users and cost-conscious customers who prefer renting over automobile ownership. Car rental companies offer MUV models with advanced features like safety systems and connectivity options, ensuring durability and stability for varying terrain and recreational activities at RV parks and campgrounds. The market integrates fleet management systems to optimize logistics and construction operations, supporting vehicle fleet management with specialized MUV configurations. Online registration and self-service kiosks streamline rental processes, enhancing convenience for air travelers and improving living standards through reliable transportation options worldwide. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
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 technologies such as artificial intelligence 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 3.68 billion in 2018. 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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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that 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.
Companies 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 players, 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 market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Sport Utility Vehicle (SUV) Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Japan, Germany - Size and Forecast
Luxury Sports Utility Vehicles (SUV) Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast
Utility Vehicle Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast
The market is evolving with advancements like telematics, real-time tracking, and remote diagnostics, catering to modern tourists and cost-conscious customers through online booking platforms and self-service kiosks. Rental providers offer a range of MUVs from minivans to utility trucks, equipped with GPS tracking systems and driver face verification for safety. This market serves diverse needs including short-term rentals for weekend vacations, road excursions, and group outings, as well as long-term solutions for corporate clients and travel agencies. Eco-friendly options like electric MUV fleets support ecological sustainability, appealing to environmentally conscious travelers and businesses. With AI and predictive analytics enhancing fleet management and customer service, the MUV rental market continues to innovate, ensuring reliable transportation solutions for various commercial and leisure purposes worldwide.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.59% |
Market growth 2024-2028 |
USD 14.12 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.79 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
APAC at 35% |
Key countries |
US, China, Germany, Italy, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market 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. |
Our analysts can customize this MUV rental market trend and analysis report to meet your requirements. We can help! 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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