Global Car Rental Market to Grow Substantially and Reach worth USD 189.3 billion by 2026
Global Car Rental Market is expected to be USD 189.30 billion by 2026 from USD 92.92 billion in 2019, at a CAGR of 10.7% from 2020 to 2026.
Global Car Rental Market depends on number of car rental services, preference for leisure travel, need for regular commutations and increasing spending power of the people. Increasing tourism activities and continuously expanding tourism budget have supported the growth of the car rental market. The growing dependence of travellers on smartphones for carrying out a variety of activities traditionally done by personal computers has significantly helped transform the car rental experience for customers. Besides, the penetration of smartphones drives the market growth in a big way. Many governments have been focusing on developing the tourism sector to attract more visitors, adding to the demand for car rental. But, high car rentals for extended counters may restrict market growth.
Car rental agencies provide automobiles for a short period at a specific cost. The car rental services are usually provided by operators with many local branches, generally situated near airports or busy areas in the city and are accompanied by a website to allow online reservations. The rental period may vary from a few hours to weeks as per the requirement of the customer. During the last few years, the trend of online booking, easily accessible car rental services for daily or occasional travel and preference for leisure travel have changed the scenario of the car rental market.
"Economy/Budget Car Segment dominates the Car Rental Market."
The car rental market is divided into Economy/budget cars and Luxury/premium cars based on vehicle type. Economy/budget cars lead the Global Car Rental Market due to its high fuel-efficiency. And, this segment is expected to secure a major market share in the projection period, also owing to its more adoption among fleet owners and customers. Moreover, increasing gasoline prices and growing environmental concerns have driven the demand for these cars globally, because of its low environmental effect.
"The Key Drivers of the Global Car Rental market are Increasing Demand for Online Car Rental Services and Increasing sales of smartphones."
Online tourist vehicle bookings are increasing globally due to the expanding usage of smartphones and the rising number of travellers aged between 25 and 34, who prefer to book vehicle rentals by online channels. Online booking and usage of smartphones serve a variety of purposes, including verification of the renter’s documents, offering details of the rental vehicles, pick and drop services, e-signing contracts, and cashless transactions.
With the rising trend in technology, renting a vehicle through online booking has become the most favoured choice of customers over the past few years. Moreover, it provides additional facilities to monitor a rental vehicle’s operation, performance, and maintenance. Such features are tremendous assets for drivers and fleet managers, allowing them to recognize risks in advance and implement timely modifications in their rental services.
"North America dominates the Global Car Rental Market."
North America is expected to be the most prominent car rental market globally, in the forecast period. North America Car Rental Market is characterized by the strong presence of many car rental operators, and the use of advanced apps supported progressive technology. In 2018, the usage of these services increased in several cities, fuelled by increased initiatives by the service operators. For instance, Uber Technologies Inc. adopted mobile technologies and other devices to meet consumers’ transportation requirements more efficiently.
“The leading players” operating in the Global Car Rental Market are the leading players considered for market analysis are Avis Budget Group Inc., Eco Rent a Car, Enterprise Holdings Inc., Europcar Group, Car2go, Hertz Corp., Sixt, Movida, Ace Rent-a-car, Global Cars, Localiza–Rent-a-car SA, Advantage Rent-a-car, National Car Rental, Locamerica, and others.