The rental car business has undergone a major transition in recent years, becoming the most important means of fleet transportation due to increasing pollution and population and the movement of villagers to metropolitan areas in search of work.
The rapid spread of coronavirus around the globe and the subsequent lockdowns that have been ordered in several nations have had a severe influence on the market for renting cars around the world. Manufacturers participating in the automobile rental industry are recovering from the losses generated owing to disrupted services caused by a halt in transportation activities and travel restrictions, respectively. Due to the fact that businesses have been able to recover successfully, manufacturers competing in the international market for car rentals are making their presence known in that market. The major players now functioning in the market for car rental are increasing their investments and the scope of their services in order to meet the rising demand from customers. The development of new technologies and the increasing prevalence of digital practices are two elements that are helping market participants keep one step ahead of the competition. Car rental services are frequently supplemented by websites that enable customers to make bookings online. Additionally, car rental facilities are typically situated in close proximity to airports or other bustling urban areas. These additional services can include insurance, entertainment systems, and GPS navigation systems.
North America will dominate the Car Rental Platform Market
Because of an increase in the number of people traveling for work and pleasure in both domestic and international destinations, the market for car rental services is dominated by the North American region. Additionally, a consistent shift in consumer preference toward rental services, as well as the presence of major service providers in the region, such as Avis Budget Group and Enterprise Rent-a-Car, is likely to boost revenue generation opportunities in this region. This is because of the presence of major service providers in the region.
Asia-Pacific will see a stable growth rate in the period of interest
Because of an increase in the number of people using economy and mini cars, the Asia-Pacific market is expected to maintain a stable revenue share in the global market for car rental platforms. These types of vehicles offer an excellent combination of low cost, high levels of comfort, and ease of operation. In addition, the rapid adoption of the internet and smartphone technology in the Asia Pacific is responsible mainly for the region's leadership position in the automatic torque converter business.
Passenger Segment will dominate the Car Rental Platform Market
In 2021, the market share of revenue held by the passenger car segment was greater than 50.0%, making it the segment with the greatest share of the market. The expansion is mostly attributable to rising levels of discretionary income as well as brisk urbanization, particularly in developing nations such as India and China. Additionally, governments around the world are enacting policies designed to encourage tourism, which is further fueling the need for rental automobiles in every region of the world.
Travel convenience and a lack of available parking spaces are two factors that will contribute to continued development in the area. The car rental platform industry has also benefited from the proliferation of smartphones and other digital devices.
An automobile rental business offers customers the opportunity to rent vehicles for shorter periods of time, typically ranging from a few hours to a few weeks. They can rent only the automobile and drive it themselves, or they may also rent a driver along with the car. The majority of car rental businesses begin by purchasing a significant quantity of automobiles, which are then made available to customers on a rental basis for a fee. The market size for car rental platforms was estimated to be 89.80 billion US dollars in 2022 and is expected to reach 125.8 Billion US dollars by 2030, expanding at a compound annual growth rate (CAGR) of 4.3% from 2022 to 2030.
Following the growth of digitization and the expansion of internet use across many countries, web-based service providers have also contributed to the expansion of the market. Now, customers can easily book any automobile based on their needs and desires from the comfort of their homes. The service platform owner may keep track of their vehicles with the assistance of GPS and other tracking methods.
The increasing demand for car rental services is what keeps the global market moving forward. This demand is being driven by a number of factors, including the growing popularity of buying cars and other automobiles as a result of changes in people's lifestyles, increases in people's incomes, and increases in their ability to spend. Increases in disposable income and road infrastructure quality, particularly in newly industrialized nations, have led to a rise in the number of vacations and business trips taken, propelling the market for automobile rental services.
Because of the low-cost services and trend of automobiles, which considerably increase the market share of the car rental platform market, value-for-money car rental services are currently at an all-time high. Smartphones are a key factor in the activities of automobile rental that are performed by personal computers, and this factor is a major contributor to the greatly increased market share that car rental platforms have achieved.
The experience that customers get is also being enhanced by the usage of technology. Among these are the utilization of GPS, sophisticated music systems, various connecting gadgets, and so on. This is laying the groundwork for significant expansion in the global market for car rental services over the course of the forecast period.
In terms of market share, some of the most prominent companies in the global car rental platform industry include Enterprise Holdings, Movida, Sixt, Car2go, Avis Budget Group, National Car Rental, Eco Rent a Car, On-Demand Rental Car, Localiza-Rent-a-car SA, Global Cars, Europcar Group, Hertz Corp, Advantage Rent-a-car, Zoom Car, Ace Rent-a-car, Locamerica, and Hertz Corp.
Recent Developments in the Global Car Rental Platform Market: a Snapshot
- Hertz rentals formed a partnership with Tesla Motors in November 2021, with the goal of supplying 100,000 Model 3s by the end of 2022. It is anticipated that fifty percent of these automobiles will be rented out to Uber drivers.
- In May 2021, Uber announced the debut of a brand-new automobile rental service known as Uber Rent. The service was developed in collaboration with CarTrawler, a car rental firm based in Dublin. As a result of the partnership, CarTrawler will be in charge of Uber's automobile rental technology, which is now being deployed across the United States.
- A partnership between the Indian airline GoAir and the auto rental company Eco Europcar resulted in the debut of car rental services in April 2021 throughout 100 locations in India, including 25 airports. GoAir will be able to provide chauffeur-driven cars ranging from the mid-to the luxury-car sectors through its partnership with Eco Europcar.
- Hertz, a rental car company, started charging an annual membership fee in March 2021 for its 24/7 service, which provides members with contactless rental options for cars and vans.
- The platform is intended for use with vehicles such as electric scooters, bikes, motorcycles, and cars.
- Car-sharing is one of the new business concepts that Zipcar and BlaBlaCar have implemented, along with other technology (telematics).
Car Rental Platform Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 125.8 Billion|
|Growth Rate||CAGR of 4.3 % during 2021-2028|
|Segment Covered||Type, End-User, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Enterprise Holdings, Movida, Sixt, Car2go, Avis Budget Group, National Car Rental, Eco Rent a Car, On-Demand Rental Car, Localiza-Rent-a-car SA, Global Cars, Europcar Group, Hertz Corp, Advantage Rent-a-car, Zoom Car|
Key segments in the Global Car Rental Platform Market
Type Overview, 2019-2029 (USD Million)
End-User Overview, 2019-2029 (USD Million)
Application Overview, 2019-2029 (USD Million)
- Airport Transport
- Local Usage
Regional Overview, 2019-2029 (USD Million)
- North America
- United States of America
- the Netherlands
- The United Kingdom
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- South America
- Rest of South America