Market Research Report
Car Rental Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||356552|
|Published||Content info||85 Pages
Delivery time: 2-3 business days
|Car Rental Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: June 1, 2019||Content info: 85 Pages||
The global car rental market is expected to register a CAGR of ~7.5%, during the forecast period, 2019-2024.
The global car rental market has been segmented by booking type, application type, vehicle type, and geography.
Rise in Tourism Sector
The global travel and tourism sector grew at 3.9% to contribute a record of USD 8.8 trillion to the world economy in 2018. The global tourism industry grew faster than the global economy for the eighth successive year (3.9% for Travel & Tourism versus 3.2% for global GDP).
In 2018, travel and tourism increased its share of leisure spending to 78.5%, up from 77.5% in 2017. Additionally, spending from international tourists increased to 28.8% in 2018. Europe and Asia-Pacific are the major tourist destinations for both domestic and international travels. Both the regions dominated the international tourist's arrivals with Europe reaching 713 million and Asia-Pacific reaching 343 million in 2018. In Europe, France witnessed the highest footfall of international tourists, followed by Spain, and Italy. France is famous for its museums, food, Eifel Tower, palaces, castles, and cathedrals all across the country; Italy apart from Colosseum and the Leaning Tower of Pisa, the country is also famous for its castles, museums, palaces, cathedrals, vineyards, and beaches.
In Europe, car rental companies provide services to tourists who are looking to explore the region on their own and in their own time. Furthermore, with relaxation in the issuing of visas to tourists from the important source markets, such as the United States, Canada, Japan, and Australia, also propelled the tourism in the country, in turn, driving the vehicle rental market.
Tourists majorly prefer online method for booking a rental car. Nowadays, booking online also serves a variety of purposes, such as verification of documents of the renter, information to the renter regarding the car, ability of drop and pickup of the renting car at a certain place, e-signed contracts, cashless transaction, and many more. Additionally, online booking allows car booking even from far off places, without the need to be physically present at the location.
North America - Major Player in the Global Market
North America dominated the global car rental market. In North America, the US dominated the regional market.
Some of the major factors driving the growth of the market are - growing tourism industry, and rise in business opportunities in the country (as many employees are being sent on-site in the US).
Additionally, the car rental companies to maintain their competitive position in the market are expanding their services. For instance, Enterprise has started a CarShare program with Princeton University to encourage faculty and staff to leave their cars at home; and graduate students and undergraduates are also eligible for the program.
US car rental services are present all across the country. Major car renting companies have their fleets in almost all major cities. The size of the fleet depends on the number of domestic travelers preferring to rent a car and the volume of foreign passengers coming to that city.
The state of New York is located in the northeast part of the United States and is one of the major tourist attractions. New York is the most competitive market for car rentals due to the presence of numerous car rental providers. Spanning over 140,000sq-km, the state provides its travelers with a lot of historic and scenic tourist destinations, in turn increasing the demand for rental services.
Additionally, New York has more than 25 notable airports, with total passenger traffic of over 50 million per annum. The airports also provide a wide selection of car rental service providers to their commuters. The state is one of the most expensive locations to rent a car, with a daily average of around USD 76. This can increase with the rise in rent for luxury cars or renting cars at intercity or interstate travel. Apart from offices at the major airports, car rentals are also present throughout the state, which caters to the local and foreign travelers.
After North America, Europe and Asia-Pacific are expected to dominate the car rental market.
Some of the major companies dominating the car rental market are Avis Budget Group Inc., Sixt, Hertz, Enterprise Holdings Inc., and Europcar Group. The market is moderately fragmented with the presence of both global and regional players in the market.