The global car
rental market size was valued at US$ 93.7 Billion in 2020 and is
projected to reach a value of US$ 144.7 Billion by 2026, growing at a CAGR of
7.2% during the forecast period 2021-2026.
Car rental refers
to the service of renting automobiles temporarily for a specified period via
online or offline channels at certain cost. Car renting is considered to be a
more cost-effective alternative to owning a vehicle as it offers advantages
such of cheaper traveling and greater convenience and are therefore primarily
aimed at serving individuals and travelers who do not own private vehicles. Along
with renting services, the service providers usually also offer various other
facilities including insurance compensation policies, entertainment systems,
child safety seats, car damage repair, navigation systems and portable Wi-Fi
networks, for providing added convenience to user.
COVID-19 has moderately
affected the global car rental market. The lockdowns across all regions
level has had an adverse impact on the global tourism industry which has
resulted in a decline of the overall car rental demand. This has resulted in
considerable loss in the global car rental market; however the losses are
comparatively lesser than that of other vehicle rental markets. Further, the
car rental market is expected to regain momentum and start covering losses due
to increasing demand from the post-pandemic period i.e. 2023 when the
restrictions on tourism across the globe is lifted.
GROWTH DRIVERS AND RESTRAINTS
Factors such as
the burgeoning urban population and pollution levels across the world, the growing
trend of on-demand transportation services, the declining rate of car ownership
among millennials and the economical rates and ease of booking benefits provided
by car rentals primarily drive the growth of the global car rental market.
Additionally, the soaring
inclination of people toward adventure and travel, the developing road
infrastructure, the rising disposable
incomes, especially in developing nations resulting in an increasing frequency
of leisure and business trips are also significantly contributing towards the
growth of the global market.
urbanization & economic development across the globe, the expanding travel
and tourism industry, the introduction of car rental services through websites
and smartphone-based applications, the surging focus of governments of both the
mature and emerging regions on minimizing their vehicular emissions and
promoting car rental services and the adoption of car rental management
software by service providers are expected to further create ample growth
opportunities for the global car rental market during the forecast period of
However, the low
rate of internet penetration, the increasing gasoline and diesel prices, the
unavailability of service providers and the lack of awareness regarding car
rental in the developing regions across the globe may hamper the growth of the
market during the forecast period.
CAR RENTAL MARKET SEGMENTATION
By Car Type
Sports utility vehicle (SUV)
Multi utility vehicle (MUV)
By Rental Category
By Rental Length
According to car
type, the economical car segment held the most dominant position with over
30.0% market share in the car rental market share in 2020. The segment is
anticipated to further retain its position at the top over the forecast period.
On the other hand, the executive car segment is projected grow at the highest
rate in the market over the forecast period of 2021-2026. The escalating number
of business travelers across the globe, especially in emerging countries, is a major
factor driving segment growth. The SUV and MUV car segments are anticipated to
witness considerable growth in the next few years owing to the rising number of
people traveling for leisure and recreational purposes across the globe.
rental category, the airport transport segment held the largest share in the
market in 2020 with revenue generation exceeding the $35 Billion mark in 2020.
The segment is estimated to continue to gather momentum and witness growth at a
tremendous pace over the upcoming years. The segment growth can be accounted to
increasing number of air travelers across the globe. The local usage and
outstation segments are expected to witness substantial growth over the next
few years due to the increasing dearth of route flexibility and standard
timings of public transport services.
According to application, the business segment held the largest share in
the market in 2020 and is expected to further retain its dominance in the
market during the forecast period.
The North American
region accounted for over 50% market share and dominated in the global car
rental market in 2020 followed by Europe. The region is expected to further
retain its dominance in the market over the forecast period. The growth in the
region can be attributed to growing adoption of electric cars, the rising
concerns and awareness regarding lower emissions among consumers, the increasing
number of leisure and business trips across the region, the increasing presence
of key service providers in the region. The U.S. is the major contributor to
the growth of this region.
On the other hand,
the Asia Pacific region is projected to register the highest growth rate of
over 8.0% in the global car rental market from 2021 to 2026. This can be
attributed to the rapidly improving road infrastructure, the growing self-drive
renting trend, the expanding travel and tourism industry and the increasing
availability of high-end luxury as well as economy vehicles, especially across emerging
countries in the region. The major contributors to the region include India and
KEY COMPANIES IN CAR RENTAL MARKET
Avis Budget Group Inc.
The Hertz Corp.
Eco Rent a Car
ANI Technologies Pvt. Ltd.
Advantage OPCO LLC
Shenzhen Topone Car Rental Co. Ltd.
National Car Rental
Enterprise Holdings Inc.
Uber Technologies Inc.
Carzonrent India Pvt Ltd.