Car Rental Business Market: Industry Analysis and Forecast (2022-2029) by Vehicle Type, by Application, by Rental Duration Type

Car Rental Business Market size was valued at US$ 97.6 Bn. in 2021 and the total revenue is expected to grow at 7.6% (CAGR) through 2022 to 2029, reaching US$ 175.37 Bn.
Car Rental Business Market Overview:
An automobile rental service is a company that rents out cars for a fee for short periods of time. It is typically organized with many local branches and is primarily located around airports or big city centers, with an online reservation system. Car rental firms generally assist those who have a car that is temporarily unavailable or out of service, such as out-of-town vacationers or owners of damaged or destroyed vehicles awaiting repair or insurance settlement. Car rental applications may also cater to the needs of the self-moving business by hiring vans or trucks, and in some areas, other types of vehicles such as motorcycles or scooters may be accessible. Car rental firms generally offer additional services such as insurance, GPS navigation systems, entertainment systems, and even mobile phones in addition to the basic rental of a vehicle.

The COVID-19 pandemic has impacted negatively on economies around the world, in addition to having an especially negative impact on the car rental business market. The issues that followed the global shutdown are significant and, in many cases, insurmountable. Since travel was restricted due to the virus's spread, there is less demand for rental automobiles at airports due to decreased global air traffic. Additionally, the car rental business market's growth during the Forecasts period is projected to be hampered by the rising cost of petrol and diesel in developing nations.

The global financial crisis has only sped up the use of rental automobiles. However, methods for disinfecting autos are strictly observed in the post-pandemic era since safety and hygiene have become imperative. The demand for personal mobility and social distance standards will lead to an improvement in market conditions. Since this makes the consumer enjoy temporary ownership of the vehicle without worrying about additional costs like maintenance and insurance charges, etc.To know about the Research Methodology :- Request Free Sample Report
Research Methodology
Primary and secondary data sources both play a significant role in the study report. The research process involves the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and the technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All possible elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the impact of rising economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

The secondary source referred for the research are press releases, company annual reports, government websites, and research papers related to the market. Moreover, quantitative and qualitative data are extracted from paid databases like Reuters, Bloomberg, Hoovers, etc. The secondary research carried out at the primary level is verified by primary research.
Car Rental Business Market Dynamics:
Rental car results in the consumption of fewer resources. To a certain extent, this also holds true for car sharing, less raw materials and energy are used in production and assembly when two persons share a car instead of purchasing two brand-new cars. However, a drop in emissions compared to private car ownership can only be achieved if car sharing extends to ride-sharing (with multiple passengers) or if the shared car has a lower fuel consumption than the private car.

Increasing demand for online car rental service

The sector is changing as a result of increased online technology usage, which also makes it possible for operators to provide their clients with better services. This includes the use of enhanced corporate and customer information management techniques and the creation of practical online booking tools. The sector is changing as a result of increased information technology usage, which also makes it possible for operators to provide their clients with better services. This includes the use of enhanced corporate and customer information management techniques and the creation of practical online booking tools.

Online order or pick-up models are at the forefront of discovering uses for beacons (NFC).

Some of the new key players like Zipcar and BlaBlaCar, drive by using innovative business models such as a car on ranting and adopting technology such as telematics. Mobile technologies and devices are being used by Uber and Lyft to better serve customers' individual transportation needs. The car rental business market is being disrupted in part by these initiatives. Industry key players such as uber, avis, SE, and Sixt have launched their mobile apps through which customers can easily choose vehicles from portfolios and carry out bookings.

Market Restraints

There are three main stakeholders in the rental car industry are, passengers, drivers, and service providers. The service provider oversees the entire car rental process. The service provider controls cost estimation and payment for car reservations. One of the main car rental business market growth restraints is the lack of service providers in outlying areas. There are no car rental options in impoverished areas. The biggest obstacle in the market is the lack of knowledge regarding car rentals in these areas.
Car Rental Business Market Segment Analysis:
Demand for luxury cars is flourishing among car rental companies because people prefer Luxury cars over any other comfortable range of cars on the market. High-standard luxury cars are not just used for traveling but it is a way to present and feel high standard to others. Feeling lavish while driving luxury cars. While choosing luxury car rental, clients often choose cars that look exotically luxurious and give a feeling of lavish while driving luxury cars. People want Jaguar, Ferrari, Tesla, Porsche, and Mercedes because of their performance.

For going to a cafe to meet your friends or planning a trip with your family, one thing which looks the best is the car you are driving and the place you are going to enjoy the day. This wide selection of cars gives everyone the option and the reason why it’s in high demand.



Luxury car
Par day pries
Company


Range Rover
$255
Orlando, Florida


Range Rover Sport
$310


Bugatti Chiron
$11,889


Rolls Royce Dawn
$2,449


Lamborghini Aventador SV
$2,149
Houston, Texas


Ferrari 458
$280,000


Lamborghini
$1,599


Rolls Royce Phantom
$999


Lamborghini Urus
($1,789)
Florida Miami


Mercedes Benz G 63 SUV
$1,289



Economy Car held the second largest car rental business market share in 2021. Fuel economy is one of the most important factors to consider while choosing a rental car. Because it impacts operating costs. This is especially a concern when with record-level gasoline prices that may continue to rise. Car rentals save you from the concerns of maintenance-free and reduction loss. . Hybrid cars can be the most fuel-efficient option because they have excellent city and highway fuel economy. Economical car tyres are made to reduce the amount of energy lost during rolling. Up to 5% more miles can be obtained from your car by reducing the resistance by 20%. Whenever possible, driving at a slightly slower speed will increase your fuel efficiency by roughly 10%. The widespread opinion is that automobiles with automated transmissions use more fuel than those with manual transmissions. However, as technology improves, cars with automatic transmissions are gradually beginning to surpass those with manual transmissions. In some circumstances, automated vehicles outperform manual vehicles in terms of mileage.



Car
Petrol
Diesel 


Honda Civic
16.5 km
26.8 kmpl


Hyundai Electra
14.59 kmpl
22.54 kmpl


Toyota corolla
16.7 kmpl
21.3 kmpl


corolla
16.5 kmpl
21.3 kmpl


Kia Rio
12.5 Kmph
23.75 kmpl


Honda WR-V
17.5 kmpl
25.5 kmpl



Based on Application type, the means of transportation are always growing. Formerly popular public transport is increasingly giving way to ride-hailing, ride-sharing, car-renting, and other options. A private vehicle is required if need to go to a nearby city or to several sites inside the city, which is why car sharing systems are currently becoming popular. In that case, renting an automobile is necessary, which is what led to the emergence of car rental companies.

The rental car is beneficial for both those who hire a car and those who reserve a car online will benefit from getting a car for rental purposes. Online auto rental is advantageous in some circumstances, such as traveling or during work travels when traveling to the airport. Flying to a new location is possible, but getting to a local location requires a significant amount of travel. Renting a car is always the best option.

Reaching the resident is required as soon as gets to the place. Renting a car in this situation is one such option and it is more practical. It is one of the cost-effective methods that keep from using exorbitant taxis and annoying public transportation. Check out the automobile booking script for additional information.

Based on Duration time type

Based on car rental short term and long term are rental services whereas short term holds the highest share during the forecast period. The short-term car is more beneficial because it is a flexible, affordable, and convenient
Choosing short-term automobile rental allows access to a huge selection of vehicles as opposed to being constrained by a fixed and outdated fleet. The selection will most likely be even wider than it would be were to purchase a new fleet outright.

In the event of short-term employment, maintenance, repairs, and periodic inspections of vehicles won't cost more money or thought as these all fall under the purview of the rental firm. Experience that reliable transportation service is of the utmost importance to our customers, and accordingly we are committed to keeping you on the road 24 hours a day, 365 days a year.
Car Rental Business Market Regional Insights:
Based on region, North America expected to dominate the global car rental business market in the forecast period. In the medium term, demand in the market is projected to be driven by growing awareness of benefits including time-saving and cost-effectiveness of vehicle rentals, as well as the growing popularity of online car rental booking applications. Additionally, expanding rental companies' vehicle rental portfolios with the newest and eco-friendly products will help the market grow even more throughout the course of the projection period. In addition to these, increased internet usage in developed nations will fuel market expansion during the projection period. Additionally, the expansion of the infrastructure in developing nations is creating new opportunities for market expansion. Given the attractive business opportunities and growth potential provided by this market, the aforementioned variables are anticipated to foster an upbeat environment and, as a result, encourage important organizations in the market to concentrate primarily on the corporate segment.

More than 250 Enterprise Rent-A-Vehicle airport rental car locations may be found in all the main US cities, from Los Angeles to New York City. With more than 1,600 airport facilities in the United States and more than 1,300 airport sites abroad, Hertz is the largest global provider of general-use airport car rentals.
Therefore, it is projected that the aforementioned events and situations would increase the demand for car rental services throughout the United States over the projection period.

Due to significant market players operating in this region, the United States is anticipated to play a prominent role in the North American region. Enterprise Rent-A-Car is the largest rental car company in the United States, with more than 9,000 "home city" locations, and 419 airport locations. The rise of the vehicle rental business in the North American region is being driven by market participants who have integrated automobile rental software into mobile applications.
Car Rental Business Market Scope: Inquire before buying



Global Car Rental Business Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 97.6 Bn.


Forecast Period 2022 to 2029 CAGR:
7.6%
Market Size in 2029:
US $ 175.37 Bn.


 Segments Covered:
by Vehicle Type
• Luxury Car
• Executive Car
• Economy Car
• Sports Utility Vehicle (SUVs)
• Multi Utility Vehicle (MUVs)


by Application
• Local Usage
• Airport Transport
• Outstation
• Other


by Rental Duration Type
• Short Term
• Long Term


by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)



Key Companies in the Car Rental Business Market are:
• Avis Budget Group (US)
• Enterprise Holdings Inc (US)
• Hertz System, Inc. (US)
• Uber Technologies Inc. (US)
• Budget Rent A Car System, Inc. (US)
• Dollar Rent A Car (US)
• Enterprise Holdings Inc. (US)
• National Car Rental (US)
• Zipcar, Inc (US)
• Auto Europe (US)
• Holiday Autos (US)
• Torq Car Rental (Canada)
• Eligo Cars (Canada)
• Carzonrent India Pvt Ltd. (India)
• Eco Rent a Car (India)
• ANI Technologies Pvt. Ltd. (India)
• ORIX Auto Corporation (Japan)
• U-DRIVE Luxury Car Rentals (Australia)
• DriveMyCar Rentals Pty., Ltd. (Australia)
• LOTTE Rental Co., Ltd. (South Korea)
• Europcar Mobility Group(France)
• Sixt SE (Germany)
• Share Now GmbH (Germany)
• Goldcar.es (Spain)
• Autonom Services SA (Romania)
• Localiza Rent a Car S/A (Brazil)

Frequently Asked Questions:

1. What is the forecast period considered for the Car Rental Business Market report?
Ans. The forecast period for the Car Rental Business Market is 2021-2029.

2. Which key factors are hindering the growth of the Car Rental Business Market?
Ans. service providers in outlying areas are hindering market growth.

3. What is the compound annual growth rate (CAGR) of the Car Rental Business Market for the forecast period?
Ans. 7.6% (CAGR) is the annual growth rate of the car rental business market.

4. What are the key factors driving the growth of the Car Rental Business Market?
Ans. Increasing demand for online car rental service driving car rental market

5. Which are the worldwide major key players covered for the Car Rental Business Market report?
Ans. Enterprise Holdings, Inc,Budget Rent A Car System, Inc,Dollar Rent A Car, Inc.,Torq Car Rental,Eligo Cars,U-DRIVE CAR RENTAL