Car Rental Market Size to grow by USD 157.34 billion between 2024-2028
According to a research report “ Car Rental Market” by Mode Of Booking (Offline, Online) Rental Category (Airport transport, Local transport, Outstation transport, Other transport) Type (Economy cars, Executive cars, Luxury cars, SUVs, MUVs) Geography (North America, Europe, APAC, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 157.34 billion, at a CAGR of over 20.47% during the forecast period. The expense of vehicle ownership is multifaceted, encompassing factors such as fuel, registration, taxes, financing, and maintenance, as well as the annual depreciation rate of approximately 43%. The cost of financing a new car is substantial, with escalating insurance and maintenance expenses contributing significantly to the overall cost. In urban areas, where population density and automobile usage are on the rise, the challenge of owning and maintaining a personal vehicle has become increasingly burdensome. According to recent studies, the average annual cost to own and operate a new car has risen by approximately 14%, with maintenance and fuel expenses accounting for 25% of the total.
Browse market data tables, figures, and in-depth TOC on “Car Rental Market” by Mode Of Booking (Offline, Online) Rental Category (Airport transport, Local transport, Outstation transport, Other transport) Type (Economy cars, Executive cars, Luxury cars, SUVs, MUVs) Geography (North America, Europe, APAC, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By Mode Of Booking, the Offline segment is projected to dominate the market size in 2024
The airport transport segment dominates the global car rental market, driven by the surge in international air travel, which experienced a substantial increase of 154% in 2022 compared to the previous year. This trend has attracted numerous small enterprises to enter the market, leading to heightened competition. In response, leading car rental vendors have expanded their fleets and established a robust presence at major airports, offering round-the-clock services. Moreover, the adoption of advanced technologies, such as big data and the Internet of Things, is on the rise to enhance customer experience through seamless booking processes, passenger safety, and real-time assistance.
By Rental Category, Airport transport segment is expected to hold the largest market size for the year 2024
Offline car rental booking is a valuable service that caters to customers who require reservations without relying on the Internet. This method, which can be initiated through phone, email, or in-person communication, is particularly beneficial for travelers venturing into remote locations or areas with unreliable internet connectivity. The significance of offline booking has escalated in recent years due to its added convenience, leading rental companies to integrate this feature into their standard offerings. By providing essential customer information offline, renters can secure their vehicle reservations with confidence and ease.
North America is forecasted to hold the largest market size by region in 2024
The North American car rental market exhibits a moderate level of consolidation, with Enterprise Holdings Inc., Avis Budget Group Inc. (Avis), and Hertz Global Holdings Inc. (Hertz) being the dominant players in the region. These major companies account for a substantial market share and generate significant revenue. Smaller vendors also exist in the market, but their contribution to the overall revenue is minimal. Factors driving growth in the region include the decrease in fuel prices, which has led to a reduction in transportation costs, making rental cars an attractive option. For instance, in Canada, the combination of lower fuel prices and a weakening currency has resulted in an increase in domestic tourism and spending on car rentals.
The Car Rental Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The car rental market is experiencing a significant shift in the way business is conducted, thanks to the integration of information technology and the increasing use of smartphones. Car rental operators are now offering online booking, cashless transactions, e-signing of contracts, and verification of documents, making the process more convenient for customers. Telematics and real-time data analysis are also being used to optimize fleet management and improve customer experience. The tourism industry's disruption due to travel restrictions has led car rental services to focus on local markets and global commuters. The rise of electric vehicles (EVs) is another trend shaping the car rental industry, with many operators adding EVs to their fleets to cater to the growing demand for sustainable transportation. The use of mobile apps and internet booking applications has become essential for car rental services to stay competitive. The increasing internet penetration and the convenience of making reservations from the comfort of one's home have made online booking the preferred choice for customers. Employee retention is also a key concern for car rental operators, with many offering competitive salaries, benefits, and opportunities for career growth. In conclusion, the car rental market is undergoing a digital transformation, with the integration of technology, the rise of EVs, and the increasing preference for online booking driving growth. Car rental services that can adapt to these trends and provide a seamless customer experience will be the ones that thrive in the future.
Market Research Overview
The car rental market is a significant segment of the transportation industry, offering mobility solutions for both short-term and long-term needs. Economy and budget cars are popular choices for business and leisure travelers seeking flexibility and convenience. Online platforms have streamlined the booking process, allowing customers to access vehicle rental services 24/7 from anywhere in the world. Customer experiences are prioritized with online access to vehicle information, telematics, and real-time booking confirmations. Both self-driven and chauffeur-driven options are available, catering to various preferences and budgets. The market includes a wide range of vehicles, from economy cars to luxury/premium cars, SUVs, and Electric Vehicles (EVs). The tourism sector, international trips, and business travel have been major contributors to the car rental market's growth. The recent trend of cashless transactions, e-signing contracts, and document verification has further enhanced the convenience of car rental services. Car rental operators are adapting to travel restrictions and changing customer needs, offering airport transport, local usage, and mobility solutions for global commuters. Innovations like smartphone sales, mobile apps, and internet booking applications have increased the market's accessibility, with internet penetration playing a crucial role in its expansion. The car rental experience is continually evolving, focusing on customer satisfaction, safety measures such as hand sanitizers, and adapting to air traffic and airline schedules.
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