The car rental market provides mobility solutions through rental of passenger cars, light commercial vehicles and others for both business and leisure travellers. These rental vehicles offer flexibility, convenience and cost-effectiveness compared to vehicle ownership. With rising disposable incomes, more people are opting for leisure travelling by road. Additionally, growing business needs have increased demand for temporary vehicle rental solutions. Car rentals help meet occasional vehicle requirements of individuals and fleets in a affordable and hassle-free manner.
The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the car rental market is the growing popularity of online booking platforms. Various international and local rental service providers have developed robust online platforms to book vehicles from anywhere. Customers can browse through vehicle categories, check rates and availability, compare options and complete bookings with just a few clicks. This has enhanced convenience while also allowing companies to effectively manage fleet and optimize pricing. The increasing internet and smartphone penetration worldwide is further propelling the online car rental trend.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the car rental market is moderate. Significant capital investment required to develop and maintain large fleets of vehicles, obtain licenses, set up infrastructure across regions pose as a entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high. Large customer base along with availability of numerous service providers allows buyers to negotiate on prices and service offerings.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major vehicle manufacturers focus on bulk sales to fleet operators and leasing companies to counter pricing pressures.
Threat of new substitutes: Threat of new substitutes is low. New transport modes take time to emerge and pose a competitive threat to established car rental services.
Competitive rivalry: Competition is intense among major players to strengthen regional presence, upgrade fleet with latest models and expand service portfolios.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth.
Regional analysis: Europe is another major market for car rentals driven by high penetration of rental services across countries particularly the UK, Germany, France and Spain. Favorable government initiatives to improve airport connectivity and tourism promotion aid market expansion.
Key players: Key players operating in the car rental market are Nobel Biocare Services AG, DIO Corporation, Ivoclar Vivadent AG, GC Dental, Modern Dental Group Limited, COLTENE Group, SHOFU Dental GmbH, VITA Zahnfabrik, Holmes Dental Co., Lasak, Institut Straumann AG, Derby Dental, and Anthogyr SAS. These players focus on expanding service networks and fleet size through acquisitions and partnerships to consolidate their market presence.
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