The Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 13.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The car rental market involves renting automobiles for short periods of time, generally ranging from a few hours to a few weeks. Car rentals allow travellers an alternative to other modes of transport and provide mobility solutions to those not owning vehicles or for those travelling to destinations where their own vehicles cannot be conveniently used. With advancement in on-demand services and digitalization, customers can book, track and manage rentals online through mobile apps or websites.
Market key trends:
One of the key trends driving growth in the car rental market is digitalization. The industry is witnessing steady growth in online bookings through websites and mobile apps. Companies are investing in digital technologies to streamline operations and enhance customer experience. Features such as self-service kiosks for check-in and check-out, connected car technologies for fleet management and infotainment etc are becoming common. Customers are also increasingly comfortable completing the entire rental process digitally from initial booking to final payment and paperless delivery. This has improved transparency and boosted convenience. Penetration of internet and smartphones is enabling broader reach for car rental brands and driving the transition to online models. Digitalization is a major factor expediting adoption across developed and developing regions alike.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as significant capital investment is required to setup operations in terms of car fleet and infrastructure. However, new players can leverage technology and disrupt the market.
Bargaining power of buyers: The bargaining power of buyers is high as there are a number of established players providing similar services. Buyers can easily switch between providers based on prices and benefits offered.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While major car manufacturers act as key suppliers, rental companies can switch between suppliers based on pricing and promotions.
Threat of new substitutes: The threat of new substitutes is low as other modes of transport don’t provide the flexibility of renting cars as per one’s requirements.
Competitive rivalry: Intense rivalry exists among established players.
SWOT Analysis
Strength: Strong brand recognition of top players, global presence and varied fleet offerings. Wide network and digital platforms for easy booking and locating nearby rental counters.
Weakness: Seasonal demand fluctuations, dependency on used car resale market conditions for profitable disposal, high fixed costs structure. Vulnerable to economic slowdowns impacting leisure and business travel.
Opportunity: Growth in leisure travel and corporate mobility needs. Rising popularity of rental cars for short-term, flexible use instead of owning. Expanding ride-hailing services working with rental fleets present an opportunity.
Threats: Strict emission regulations impacting fleet modernization costs. Threat from shared mobility options like Metro and bus services in major cities.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth, exhibiting CAGR of 13.6% over the forecast period, due to increasing leisure travel and flexible mobility solutions.
Regional analysis North America accounted for the largest share of the global car rental market in 2023 due to the well-established rental industry and presence of major international players. However, Asia Pacific is projected to witness the fastest growth over the forecast period supported by rising incomes, developing tourism industry and expanding airport infrastructure in major economies such as China and India.
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.
Read More: https://www.newswirestats.com/car-rental-market-demand-growth-and-regional-outlook-by-2030/
