The global car rental market is estimated to be valued at US$ 119.28 Bn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2022-2027, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The car rental market involves renting vehicles like passenger cars, light commercial vehicles, sport utility vehicles and others for short periods. Rental cars provide flexibility and convenience to users for traveling, commuting and various other purposes. Rental cars save users the expenses related to owning a vehicle such as maintenance, repairs, insurance and taxes.
Market key trends:
One of the key trends in the car rental market is the emergence of connected cars and vehicle telematics. The integration of advanced technologies like GPS, sensors and connectivity solutions in rental cars help operators track, monitor and manage fleet effectively. Real-time location, fuel levels, mileage, driver behavior data allows operators to optimize operations and resource allocation. Telematics also enable features like remote diagnostics, emergency notifications and roadside assistance. This improves safety, customer service and return on investment for car rental companies. The rising adoption of technology in mobility is a significant trend driving the car rental market growth.
Segment Analysis
The global car rental market is segmented by car type, application, and geography. Based on car type, the market is segmented into luxury cars, executive cars, economy cars, SUVs, and MUVs. Among these, the economy car segment dominated the market with a share of around 35% in 2021. Economy car rentals are preferred by customers as they offer basic car features at affordable prices suitable for regular commutes and daily usage.
Key Takeaways
The Global Car Rental Market size was valued at US$ 119.28 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11% during the forecast period. Factors such as increasing business and leisure travel and rising tourism activities are expected to drive market growth.
Regional Analysis
North America accounted for the largest share of around 35% in the global car rental market in 2021. This was attributed to the presence of major rental car companies in the US and Canada and high passenger mobility in the region. Asia Pacific is expected to be the fastest-growing regional market, expanding at a CAGR of over 13% during 2022-2027. Rising middle-class income and increasing travel & tourism are anticipated to surge the demand for car rentals in emerging Asia Pacific countries.
Key Players
Key players operating in the car rental market are Enterprise Holdings, The Hertz Corporation, Avis Budget Group, Europcar Group, Carzonrent, Sixt SE, Al Futtaim Group, Localiza - Rent a Car, Eco Rent a Car, and GlobalCARS. Enterprise Holdings leads the market with a global fleet of over 2 million vehicles and having operations in more than 80 countries. The Hertz Corporation focuses on expanding its global network through acquisitions.
Read More - https://www.marketwebjournal.com/car-rental-market-propelled-by-rising-tourism-industry-growth/
