The global car rental market was valued at $78.7 billion in 2018, which is projected to reach $122.6 billion by 2024, progressing at a CAGR of 7.9% during the forecast period (2019–2024). Among the various vehicle categories operating in car rental market, economy cars held the largest market share during the historical period.
Historically, the market witnessed the fastest growth in the category of luxury cars, mainly driven by the increased usage of luxury cars by business professionals.
The deployment of electric vehicles in the car rental fleet is a rising trend worldwide, in the car rental market. Various major players are adding fleet of electric cars in their rental services as a result of regulations and policies related to sustainable mobility notified by government in various countries. For example, Zoomcar India Pvt Ltd., in 2018, partnered with Mahindra & Mahindra Ltd. to deploy electric cars in its rental fleet in India.
The car rental market is driven by its convenient mobility feature. Renting a car allows individuals to enjoy the facilities of owning a personal vehicle, without having the need to actually own it. Additionally, owning a private car demands a high investment, which mainly comprises the vehicle cost, fuel cost, parking expenses, maintenance charges, and insurance cost. This is acting as strong growth factor for the car rental market globally.
Furthermore, with growing digitization in the rental services, the users can easily rent a car by booking it directly through the company’s mobile application or website. The mobile application provides every detail and assistance, along with customized rental services to the users while booking the car.
Geographical Analysis of Global Car Rental Market
Together, North America and Europe accounted for over 67.0% revenue of the global car rental market harborough, in 2018. The large market size in these regions is due to presence of major car rental players in both regions and higher car rental length (days).
APAC held significant share in global car rental market in 2018, due to the fact that APAC is the second most preferred regions for travel and visits worldwide. China and Japan were the major revenue generating countries in APAC, in 2018. However, the market size in India is expected to surpass the Japanese car rental market size by 2022. This can be mainly attributed to rising number of car rental companies in India and customized rental services being offered by these companies.
The global car rental market is highly consolidated in nature as major part of the revenue is generated by only few companies. These major companies provide car rental services in many countries. For example, Enterprise Holdings Inc. operates in over 100 countries across North America, Central America, South America, Europe, the Caribbean and parts of Middle East and APAC. Sixt SE, Localiza Rent a Car SA, Europcar Mobility Group S.A., Avis Budget Group, Addison Lee Ltd., Hertz Global Holdings Inc., Zoomcar India Pvt. Ltd. are some of the major players providing car rental and leasing services.
