DUBLIN–(BUSINESS WIRE)–The report “Global Car Rental Market by Application, By Vehicle Type, By Regional Outlook, Industry Analysis Report, and Forecast, 2021-2027” has been added to from ResearchAndMarkets.com offer.
The global car rental market is expected to reach $125.6 billion by 2027, growing at a market growth rate of 4.1% CAGR during the forecast period. With the increase in pollution and population, the auto rental industry has seen a significant change in recent years, becoming the leading industry in fleet transportation.
A huge increase in the number of people traveling for business and pleasure across the globe is driving the demand for car rental services. The growing internet penetration in both emerging and established countries has further helped the market players to capture a wider customer base through the use of dedicated mobile applications for the convenience of the customers.
COVID-19 Impact Analysis
The COVID-19 pandemic has destroyed economies around the world, and the impact is being felt on businesses across all sectors, with transportation services being the hardest hit. In many cases, the challenges resulting from containment are enormous and intractable. Additionally, rising fuel and diesel prices in emerging countries are expected to hamper market expansion throughout the forecast period.
The global financial crisis has only encouraged the use of car rental services. However, in the post-pandemic era, where safety and hygiene are paramount, car cleaning measures are strictly observed.
Market Growth Factors
On-demand transportation services are gaining popularity
Taxis, passenger vehicles, and charter cars with flexibility and other features such as real-time feedback, vehicle monitoring, and end-consumer ratings are examples of on-demand services. Many smartphone apps make it easy to find available cars and compare rates with respective car rental agencies.
Low car ownership among millennials
Due to the high cost of maintaining employee cars, millennials have lower car ownership rates. Additionally, the benefits of millennials are geared towards car rental due to benefits such as cost savings and fuel economy. In industrialized countries, the increase in demand for ride-sharing services and amenities such as car rental, car sharing and station mobility has reduced private car ownership by a significant percentage.
Marketing Limiting Factor
Ever-Rising Crude Oil Prices and Security and Privacy Concerns
The automotive and transportation industries have a direct influence on crude oil price fluctuations. The high cost of gasoline and diesel in many developing countries is a major impediment to renting a car, as rental prices cannot change regularly with crude oil prices, resulting in a fluctuation in rental company revenues. For example, the price per barrel of crude oil in 2000 was $17, but now it has risen to $45 due to increased global demand. In addition, government taxes increase the cost of gasoline and diesel, which has a significant impact on the global sector.
Based on application, the market is segmented into airport transportation, outdoor station, local use, and others. The Outstation segment procured a major share of the revenue of the overall can rental market in 2020. This is due to the growing preference of people to hire can rental services while going out.
Vehicle Type Outlook
Based on vehicle type, the market is segmented into economy cars, executive cars, luxury cars, SUVs and CUVs. The executive car segment has acquired a major share of the car rental market revenue in 2020. One of the main drivers for the growth of the segment is the increasing number of business visitors across the world, especially in emerging countries.
Based on regions, the market is segmented into North America, Europe, Asia-Pacific and Latin America, Middle East & Africa. APAC has displayed the promising revenue share of the overall car rental market in 2020. Rising disposable incomes of consumers and continuously developing economies, along with rising travel spending by businesses, are likely to have a positive influence on the growth of the regional market.
KBV Cardinal Matrix – Analysis of the competition in the car rental market
The major strategies followed by market players are partnerships. Based on the analysis presented in the cardinal matrix; AVR Qatar, Inc. is the forerunner in the car rental market. Companies such as Enterprise Holdings, Inc. (The Crawford Group, Inc.), Avis Budget Group, Inc., SIXT SE are some of the leading innovators in the market.
The market research report covers the analysis of major market players. Key companies profiled in the report include Avis Budget Group, Inc., Europcar Mobility Group, Enterprise Holdings, Inc., Hertz Global Holdings, Inc., Localiza, SIXT SE, Eco Rent a Car, ANI Technologies Pvt. (Ola Cabs) and AVR Qatar, Inc.
Recent Strategies Deployed in the Car Rental Market
Partnerships, Collaborations and Agreements
December 2021: Sixt has entered into a franchise partnership with the National Roads & Motorists Association of Australia, one of the largest car rental companies on the continent. This partnership added 160 branches to Sixt’s international network comprising a rental fleet of 16,000 vehicles.
Dec-2021: Europcar has signed a franchise agreement with AUS Fleet Solutions, a local car rental provider to expand its presence in Western Australia. The partnership is expected to see Europcar’s fleet in Australia grow by around 3,000 vehicles, including vans, trucks, buses and 4x4s, as well as the creation of 14 additional Europcar-branded stations across the state.
September 2021: Sixt has signed a collaboration agreement with Mobileye, a subsidiary of Intel, to start providing autonomous transport services in Munich, Germany in 2022. By combining the services of cooperation partners such as Mobileye, the Mobility platform alone offers SIXT customers worldwide access to more than 200,000 vehicles, 1.5 million drivers, 1,500 cooperation partners and soon even robotaxi services.
September 2021: Enterprise Holdings announced its collaboration with Microsoft to bring connected car technology to the former company’s rental car, commercial truck and exotic vehicle fleets in the US and soon in the UK and Canada . Through this collaboration, Enterprise Holding is expected to advance the simplified rental experience of the future.
June 2021: Sixt announces its partnership with Smart Rent a Car for Azerbaijan. As a result of this partnership, customers are expected to benefit from convenient and comprehensive high-quality mobility services in Azerbaijan and the Baku region in particular.
Apr-2021: Eco Europcar has partnered with GoAir. Together, the companies are focused on providing a comfortable travel experience for GoAir travelers.
Jan-2021: Localiza announced a corporate agreement with CalAmp, a pioneer in technology solutions. The agreement aims to reinvent the car rental experience for fleet operators and consumers in Brazil. Together, the companies are working to add more value-added telematics technologies for all types of fleet management applications around the world.
Acquisitions and mergers
Oct-2021: The Irish subsidiary of Enterprise Holdings has announced an agreement to acquire Walker Vehicle Rentals, a commercial vehicle rental company. Enterprise is active in the commercial vehicle rental market in Ireland and the acquisition has helped the company improve the choice and value of the vehicles and services it provides to organisations.
September 2020: The Canadian subsidiary of Enterprise Holdings announced the acquisition of Discount Car and Truck Rentals, a Canadian car and truck rental company serving customers across Canada. The acquisition has expanded the company’s ability to meet the unique mobility needs of Canadian customers and provide more efficient service.
Product launches and extensions
July 2021: Localiza introduced Zarp Localiza, a new commerce platform. This platform is aimed at application drivers who rent vehicles for work and consolidates services including an application that centralizes all services related to car rental.
Avis Budget Group, Inc.
Europcar Mobility Group
Enterprise Holdings, Inc.
Hertz Global Holdings, Inc.
Eco Rent a Car
ANI Technologies Pvt. ltd. (Ola Cabs)
AVR Qatar, Inc.
For more information about this report, visit https://www.researchandmarkets.com/r/1hp1oh.