Car rentals provide transportation services for short term duration and assist people in fulfilling their daily transportation needs. Car rentals are a cost-effective solution for business travelers, tourists and those requiring vehicles for a specific short period of time rather than purchasing or financing their own vehicles. The car rental industry benefits through increased business and leisure travel across various regions of the world.
The global Car Rental Market is estimated to be valued at US$ 153.49 Mn in 2024 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the car rental market is the growing business travel and tourism industries globally. International travel and tourism is growing steadily, benefiting the car rental business. According to United Nations World Tourism Organization (UNWTO), international tourist arrivals worldwide reached 1.5 billion in 2021 and is estimated to surpass 1.8 billion by 2030. Growth in business travel for meetings, conferences and exhibitions is also contributing to increased demand for rental cars near airports and business districts. Car rental companies are expanding their fleet sizes and opening new locations near popular tourist destinations and business centers to cater to this rising demand. Strategic partnerships with hotels, airlines, travel agencies are helping car rental providers boost their customer base.
Segment Analysis
The global car rental market size can be segmented by vehicle type, mode of booking and application. By vehicle type, economy cars form the largest segment, accounting for over 30% of the market. Economy cars are affordable and suit short-term road trips as well as airport travelling needs, making them the popular choice among customers. By mode of booking, online booking is the dominant segment and is expected to witness highest growth during the forecast period. Customers now widely book vehicles online due to convenience offered as compared to offline modes.
Key Takeaways
The global car rental market is expected to witness high growth during the forecast period driven by factors such as rising urbanization, increasing tourism, expansion of multinational corporations and growing preference for shared mobility. The global Car Rental Market is estimated to be valued at US$ 153.49 Mn in 2024 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024 to 2031.
Regional analysis: North America dominates the global car rental market currently. The region accounts for over 35% market share led by the large size of the US car rental industry. Europe is the second largest market. However, Asia Pacific is expected to emerge as the fastest growing regional market during the forecast period supported by strong economic growth in countries such as China and India.
Key players: Key players operating in the car rental market are Aries Shipbroking (Asia) Pte Ltd.,Braemar Shipping Services Plc,BRS Group,Chowgule Brothers Pvt. Ltd.,Clarkson PLC,E.A. Gibson Shipbrokers Ltd.,Fearnleys AS,Galbraiths Ltd.,Howe Robinson Partners Pte Ltd.,INTEROCEAN,Lorentzen & Stemoco AS,Maersk Broker KS,Maritime London Ltd.,McQuilling Partners Inc.,Poten and Partners Inc.
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