According to the report, the global car rental market was valued at approximately USD 58.26 billion in 2016 and is expected to reach approximately USD 124.56 billion by 2022, growing at a CAGR of around 13.55% between 2017 and 2022.
Car or vehicle rental service is relatively developed in the industrialized economies. A car rental, hire car, or car hire company provides vehicles on rent for short periods of time, generally ranging from a few hours to a few weeks. Car rental providers have a number of local branches and offices near airports, bus stops, railway station, and busy city areas. The key vendors that provide vehicle rental services mainly focus on customer's requirements, growth, innovation, and offers that attract customers and efficiency.
The car rental market is primarily driven by rising tourism industry. Healthy economic growth and rising disposable income in developing countries are expected to propel the market growth during the year to come. Furthermore, high demand of the internet and smart technology helps to drive this market at the fast pace. However, some restraints like the rise in crude oil prices and lack of proper marketing may hinder the growth of the market. Moreover, use of the green vehicle is the most cost-effective way to improve energy efficiency and reduce carbon emissions is likely to open up new opportunities in evolving consumer preference.
In terms of car type, global car rental market is segmented intoMUV cars, SUV cars, economy cars, executive cars, luxury cars. Economy cars dominated the car rental market and accounted for significant share of the market. Economy cars are expected have a faster growth in the future due to the emergence of new companies in the market.
Based on end-users, the car rental market has been segmented into local usage, airport transport, outstation and others. Car rental for airport transport was leading end-user segment in car rental market and accounted for the largest market share in 2016. Growing demand for car rental due to green initiatives was taken by Government and increasing awareness about pollution is expected to drive the car rental market over the forecast period. One of the leading vendors in car rental market i.e. ‘Hertz’ New Zealand offers its customers a carbon calculator to allow potential renters to determine their carbon footprint for various car models.
In terms of regions, North America exhibited the largest share of car rental market in 2016. It accounted for significant share of the market and it is also predicted to remain to prevail over other regions during the forecast period. This is due to the high penetration of smartphones and advancement in technology in the region which helps to improve the convenience of booking a car on rent. North America was followed by Europe and Asia-Pacific region. Asia-Pacific is expected to witness the fastest growth in coming years due to the increasing population and needs for transportation.
Some of the key participants involved in car rental market includeAvis Budget Group, Inc, Sixt Rent-A-Car, Enterprise Rent-A-Car, The Hertz Corporation, Europcar, Al-Futtaim Group, Carzonrent, Localiza Rent A Car, and Eco Rent A Car.
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