According to Future Market Insights, while North America holds almost half of the car rental market share, East Asia is expected to emerge as the most lucrative for companies in the car rental market, attributable to the increasing tourism sector in China & Japan. Growing economic & infrastructural development, foreign investments, and medical tourism in China are other factors expected to boost growth of the car rental market over the forecast period.
On the back of these factors, the global car rental market value is at US$ 116 Bn in 2019 and expected to expand at 7.0% CAGR during the forecast period of 2019-2029.
Key Takeaways of Global Car Rental Market Study
- North America is expected to dominate the global car rental market, owing to high usage rate of car rental services by daily commuters, office-goers, and tourists in the country. Moreover, the growing trend of car sharing also boosts the usage of car rental in this region.
- According to study, the on-airport end use category accounted for the maximum share in the global car rental market, owing to high presence of international/domestic tourists for leisure as well as business.
- In car rental market, online booking platform including mobile applications and other internet services will continue to dominate the car rental market during the forecast period. Mobile applications segment is expected to see a prolific rise with a higher CAGR in car rental. Preferential shift of consumers towards mobile platforms are primarily driven by the growth of mobile users and high internet penetration.
Who is Winning
The global car rental market represents a fairly consolidated competition landscape, where a majority of car rental key players maintain their strategic focus on new innovative service offerings. Some of the key players are Enterprise Holdings Inc., The Hertz Corporation, Europcar Group, and Sixt SE. The car rental market in the U.S. is highly concentrated and top three car rental companies (Enterprise Rent-A-Car, Hertz Global Holdings, Inc. and Avis Budget Group, Inc.) hold more than 62% of market share in U.S. in 2018.
- In May 2019, Enterprise Holdings, Inc., a private holding company with headquarters in the U.S. launched the U.S. car rental industry’s first vehicle-subscription service, which provides flexibility and convenience to customers.
- In Nov 2019, Hertz and Air France jointly launched Hertz DriveU, which was designed to meet all customer transportation needs.
- In Aug 2019, the Europcar Mobility Group, a France-based car rental company, had acquired a 100% stake in the U.S.-Fox Rent A Car company, to expand its customer base of 15 million by 2023.
“Players in the global car rental market can gain significant profits by focusing on intermediate cars in addition to economic cars. The growing popularity of car sharing coupled with the rising disposable incomes are expected to drive the demand for intermediate cars during the forecast period,” says a report analyst.