Throughout the projected period, the market is anticipated to increase as a result of the rising demand for vehicle rental services from both business and leisure travelers. Furthermore, it is anticipated that factors including evolving lifestyles, rising disposable income, and a greater emphasis on tourism would fuel market expansion in the ensuing years. It is also anticipated that a growing proportion of urban commuters will choose to rent a car rather than own one, which will accelerate market expansion. A significant growth driver for the global market for automobile rental services is also anticipated to be the growing accessibility of these services through different online platforms as well as mobile applications. Further, throughout the anticipated period, market growth is anticipated to be aided by the rising popularity of car-sharing programs.
Convenience and affordability needs are what are driving the global market for automobile rental services. Growing demand from business travelers who need flexibility and a variety of services, like on-site vehicle pick-up or drop-off, at competitive pricing, is another factor driving market expansion. A significant growth driver for the market is also anticipated to be the increased consumer preference for long-term automobile rental services. A need for the industry has been created by the expanding accessibility of automobile rental services via several online technology and mobile applications.
Car rental services encompass the short-term leasing of automobiles for both private and professional use. Vehicle rental firms like Uber, Ryanair, Hertz, and Budget frequently offer the option. Customers have a variety of alternatives when renting a car, including daily, weekly, and monthly options, allowing them to borrow a car as needed. When you're on vacation, using car rental services is a terrific way to travel around. Vehicles such as automobiles, trucks, vans, and SUVs are among the selection they have. There are several rental firms to pick from, and the majority will give you a map of the neighborhood. Roadside assistance and insurance are additional features of car rental services. Additionally, a lot of businesses provide discounts to AAA and other similar participants.
The global market for car rental services is anticipated to increase at a CAGR of roughly 6.5% from 2021 to 2031, with a projected value of USD 331.3 billion. The main driver fueling the market's expansion is the increased demand for automobile rental services from both business and leisure travelers. Additionally, elements like rising disposable income, shifting lifestyles, and a growing emphasis on tourism are anticipated to propel market expansion throughout the course of the research period.
One of the biggest difficulties faced by market competitors is the high expense of owning and maintaining a fleet of cars. The expansion of the global market for car rental services is also anticipated to be hampered by strict government restrictions on safety standards and environmentally friendly practices. Additionally, it is anticipated that the growing availability of ride-hailing services like Uber and Lyft would put automobile rental firms in fierce competition, stifling industry expansion. However, it is anticipated that the growing market for automobile rental services in developing nations will offer profitable opportunities for participants. Further, it is anticipated that as electric cars gain popularity, the cost of automobile rental services will drop, making them more affordable for a wider spectrum of customers.
The Offline Access Segment emerged as the Most Lucrative Type
Due to the variety of services and convenience, it provides clients, the offline access segment is anticipated to have a sizable part of the market. This segment's expansion as well as that of the market as a whole is being fueled by other elements like affordability, adaptability, and safety.
The Most Prominent Application is the Intracity Segment
In terms of applications, the intercity sector is anticipated to rule the global market for car rental services and hold a sizable market share. Its widespread use among businesses is primarily to blame for this. The rising demand for automobile rental services among leisure travelers is another factor boosting this market sector.
The North American Region to render Ample Financing Opportunities
Considering its large client base and the presence of reputable service providers like Hertz, Avis, and Europcar, North America is predicted to dominate the global market for automobile rental services. The market is expanding as a result of the region's rising demand for automobile rental services.
COVID-19 Impact and Market Status
Due to travel bans and lockdowns implemented by governments in many nations, the COVID-19 epidemic has had a detrimental effect on the global market for car rentals. However, it is anticipated that the pandemic situation will improve over the next several years, and as a result, the market will soon bounce back from its current slowness and return to its pre-COVID levels. Moreover, the expansion of ride-sharing and carpooling services will assist in somewhat making up for the lost income from automobile rentals.
Some of the major companies that dominate the global car rental services market are Enterprise Holdings Inc., Avis Budget Group Inc., Hertz Global Holdings Inc., and Europcar. To offer customers better services, these businesses are making significant investments in technology upgrades. The market's position has been further strengthened by the expanding accessibility of car rental services via a variety of online platforms and mobile applications. Chinese Auto Rental Holdings Inc., Localiza Rent a Car SA, and Sixt SE is additional significant players in the world market for car rental services.
Recent Developments in the Car Rental Services Market
• Creating a new brand called "Avis Signature Series" was announced by Avis Budget Group, Inc. in 2020, a well-known provider of car rental services. The assortment of cars includes amenities like leather upholstery, radar and lane departure warning systems, rearview cameras, onboard Wi-Fi, and improved audio systems.
• Hertz Global Holdings, Inc. announced in 2020 that it would collaborate with Amazon, a retailer and cloud computing provider, to offer car rental services for delivery drivers. The delivery drivers can reserve cars on the Hertz website and pick them up from specific Hertz locations using the Amazon Flex app thanks to this partnership.
Car Rental Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2031||USD USD 331.3 billion|
|Growth Rate||CAGR of 6.5% during 2022-2031|
|Segment Covered||by Type, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Enterprise Holdings Inc., Avis Budget Group Inc., Hertz Global Holdings Inc., and Europcar. Chinese Auto Rental Holdings Inc., Localiza Rent a Car SA, and Sixt SE|
Key Segments of the Global Car Rental Services Market
Type Overview, 2021-2031 (USD Billion)
- Offline Access
- Mobile Applications
Application Overview, 2021-2031 (USD Billion)
Regional Overview, 2021-2031 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa