Car Rental Market 2022 – Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Market Size & Forecast 2030

The global car rental market size was valued at US$ 93.7 Billion in 2021 and is projected to reach a value of US$ 144.7 Billion by 2030, growing at a CAGR of 7.2% during the forecast period 2022-2030.

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 IMPACT

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.

Furthermore, rapid 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 2022-2030.

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

·         Luxury car

·         Executive car

·         Economical car

·         Sports utility vehicle (SUV)

·         Multi utility vehicle (MUV)

By Rental Category

·         Local usage

·         Airport transport

·         Outstation

·         Others

By Booking Type

·         Offline Booking

·         Online Booking
 

By Application

·         Leisure/Tourism

·         Business

By Rental Length

·         Short Term

·         Long Term
 

By End-User

·         Self-Driven

·         Chauffeur-Driven

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 2021. 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 2022-2030. 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.

According to rental category, the airport transport segment held the largest share in the market in 2021 with revenue generation exceeding the $35 Billion market in 2021. 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 2021 and is expected to further retain its dominance in the market during the forecast period.

REGIONAL OULOOK

The North American region accounted for over 50% market share and dominated in the global car rental market in 2021 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 2022 to 2030. 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 China.

KEY COMPANIES IN CAR RENTAL MARKET

·         Avis Budget Group Inc.

·         The Hertz Corp.

·         Eco Rent a Car

·         ANI Technologies Pvt. Ltd.

·         SIXTSE

·         Advantage OPCO LLC

·         Shenzhen Topone Car Rental Co. Ltd.

·         Bettercar Rental

·         National Car Rental

·         Enterprise Holdings Inc.

·         Europcar Group

·         Enterprise Rent-A-Car

·         Localiza

·         Uber Technologies Inc.

·         Carzonrent India Pvt Ltd.

·         Other Players