- 9 September 2019 20:00
Car Rental Market Valuation USD 187.5 Bn by 2026
High total cost of ownership (TCO) associated with personal vehicles and growth in the tourism industry across the globe are two main factors fueling the market.
Increasing number of smartphone users globally and rising dependency on technology for carrying out activities such as booking and paying for rental services have been vital to market growth over the years. A number of vehicle rental companies are rolling out apps to notify their customers about promotional offers, discount coupons, fare, real-time tracking, and availability. As customers demand availability of cars in minimal time, industry players are focusing on enhancing their service convenience and streamlining business processes by utilizing IoT-enabled fleet management solutions.
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Industry participants compete with each other on the basis of fleet size, pricing, location flexibility, and marketing expertise. The market is highly competitive, forcing companies to shrink their profit margins in order to offer better services to customers than their competitors. High intensity of competition within the industry is also encouraging major players to acquire smaller companies in order to strengthen their position in the marketplace. Several prominent service providers have introduced their brands at affordable prices as a strategy to expand their customer base.
Further key findings from the report suggest:
-Along with reduction in fuel prices, there has been a considerable rise in number of international travelers worldwide, thereby resulting in rising demand for rental services
-Rising consumer awareness regarding rental add-ons and availability of affordable solutions is compelling car rental market players to focus on enhancing their services and prioritizing customers' convenience
-Airport transport is anticipated to emerge as the largest application segment over the coming years, owing to a significant increase in number of air travelers across the globe. Numerous small companies are also entering this segment with new technologies and processes, further propelling the revenue generation prospects of the segment
-Bleisure travel, which refers to a combination of a business and leisure trip, is one of the emerging and most promising trends in the travel and tourism industry. This trend is poised to propel the demand for car hiring and renting services among leisure and business travelers.
Global Car Rental market is segmented by booking type, vehicle type, and application.
Based on the booking type, the car rental market is segmented into online access, and offline access. Online access holds the major share in the global market. Based on the vehicle type, the car rental market is segmented into economy/budget cars, luxury/premium car. Economy/budget cars dominate the global car rental market. On the basis of application, the car rental market is segmented into leisure/tourism and business. Leisure/tourism dominates the global car rental market. Leisure/tourism is the major way and application for the car rental which is the reason the market is expected to dominate.
Geographically, the car rental market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America dominates the global Car Rental market owing to the growing adoption of rental vehicles and increased investment in the tourism by countries such as the U.S. and Mexico are driving the market growth in North America. Europe accounts for the second leading share in the global car rental market. Increased number of car rentals in the developing countries such as Japan, Korea, and China are significantly driving the market growth. Moreover, rapid urbanization and growth in buying power have increased the demand for rental vehicles. Continuously increasing tourism activates in Asia Pacific region have supported the growth of the car rental market in Asia Pacific. On the other hand, LAMEA holds the least share in the global car rental market. Middle East holds the major share in the LAMEA market owing to the huge spending power of the people and continuously increasing tourism activities.
Some of the major players in the market 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.