Car Rental Market Forecast from 2015 till 2025
Market Scenario:Car rental has emerged to be one of the most prominent services in the recent years. Rental service can enhance flexibility for any trip, be it business or of leisure. A car rental means hiring a car or car hire companies providing vehicles for a short period of time generally from few hours to few weeks. Car rental service is mostly utilized in the urban areas and industrialized economies. Car rental providers have a number of offices near the airport, bus stop, busy city areas, and railway stations as well as are offered via websites and online reservations.
Customers also have the flexibility of choosing cars that can meet their daily needs. Major benefits offered by car rental service are the reduction in total cost of mobility and ease in the burden of ownership costs including insurance, repair, and maintenance, etc. In recent years, car rental providers have enhanced services by improving response rates, becoming completely transparent, and improving the booking process with new technologies.
Rising global tourism industry, increasing number of internet users, healthy economic growth, and rising disposable income in developing countries are the major driving force for global car rental market. The global tourism industry is witnessing the healthy growth in recent years. Many tourists prefer the rental car service to visit and explore places. The main reason behind choosing car rental service over taxi is freedom, privacy, along with the safety and flexibility of the trip. In addition, increasing adoption of advanced digital technologies in car rental services is one of the growth factors driving the market growth.
Factors like increasing number of internet users and growing number of smartphone users helping several car companies to use mobile-based applications to communicate the fare, discount coupons, promotional offers, availability of cars, and real-time tracking details to the consumers are additionally driving the growth of the market. Consumers increasingly preferring the availability of cars in minimal time, quality and reliable service for inbound and domestic traveling are some of the key factors for market growth.
Increasing businesses and cultural events in the corporate industries, the introduction of the eco-friendly and electric car, and transportation in affordable price are some of the latest trends that help in preventing environmental pollution and transportation of a large number of passengers.
However, the presence of stringent emissions norms by governments in several developed and developing countries is likely to impede the market growth to some extent. Also, providing superior customer service is a major challenge for companies, especially when it comes to customer complaints, due to the lack of information on additional payments and excess amount as well as waiting for hours in line to get the car they already booked.
Recent Developments:09 Feb 2018- Didi Chuxing, Chinese car-rental service operator, is taking over Uber’s China operations. This deal will help Didi Chuxing strengthen market share and possibility to expand abroad.
June 14, 2018- Phone pay digital payment platform announced the partnership with Ola, rental car service, where the customer can use Phone PE app for booking Ola cab.
Regional Analysis:North America has the most advanced and highly developed car rental service market. Consumer spending on airport car rentals and increasing leisure trips and business trips, both domestic and international, has led to an increase in demand for such services in the region. Technological developments, increasing online presence of car rental companies, high adoption rates for car-sharing services, high consumer spending, and growth in tourism are some of the major factors responsible for the increasing demand for car rental services in the region. The US car rental industry has major players such as Enterprise-Rent-A-Car which also operates the National Car Rental and Alamo brands, Hertz Global Holdings, Avis Budget Group, and Dollar Thrifty Automotive Group.
The European car rental market remains reasonably fragmented. In the European region, car preferences are different with different consumers such as a large car, small car, cheap, premium etc., which represents a real challenge for service providers in this region. The car rental market in Europe is mainly driven by the internet and e-commerce, growing importance of online brokers and travel agents as a distribution channel, and automation of rental process through new technology.
Asia Pacific car rental market is growing rapidly in recent years due to increasing consumer base, change in the lifestyle of people, the rise in middle-class population, high standard of living, and advancements in technologies in emerging countries such as India and China. A steep rise in tourism is expected to drive the growth over the forecast period. In the recent years, a large number of local players have entered in the market, and are constantly increasing the car renting amenities and fleet type to provide best quality service and ensure maximum comfort to the customers.
Domestic players are dominating in the Asia Pacific region; for example, despite more than 150 million rides per month and huge investment, Uber sold its car rental operation to the market leader Didi Chuxing. Major players in car rental markets are Eco Rent A Car, Carzonrent and Al-Futtaim Group in the Asia Pacific region.
Global Car Rental Market: SegmentationOn the basis of Vehicle Type:
l Multi Utility Vehicles (MUVs)
l Sports Utility Vehicles (SUVs)
l economy cars
l executive cars
l luxury cars
On the basis of Application:
l Local usage
l Airport Transportation
On the basis of Customer:
On the basis of Region:
Middle East and Africa
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