Covid-19 Impact Has Declined the Tourism Industry Around the Globe
Due to the national wide lockdown, the pandemic had a severe impact on the tourism industry resulting in a major loss for rental industries. Moreover, the lockdown had a drop in both domestic as well as international travel. Many airline companies only allowed 51% of the passenger seat to maintain social distancing. These factors decreased the number of travelers to the other countries which gradually decreased the market share of rental vehicles.
The global Off-highway Rental Vehicle market is expected to develop USD 141.17 billion by 2028, at a compound annual increase in price (CAGR) of 4.6% throughout the forecast period.
Increasing Number of Corporate Travelers Business Application Segment to Hold the Largest Profits
As business are expanding widely, the amount of business travelers is increasing over the past decade. The increasing population of business travelers has increased the demand for luxury vehicles in the market of off-highway rental vehicles. Many corporate companies are focusing on considering the fast growing business opportunity and potential growth in the market, these demand from the various corporate companies for the ride is expected to boost the market furthermore for the off-highway rental vehicle in the business.
By Rental Duration, Short Term Duration Will Dominate The Market
short term rental vehicles are used widely for local and airport transportation, as many individuals prefer a private rental vehicle as it is considered as the fastest mode of transportation. The rental services are in the form of taxis or cabs which can be accessed through the smartphone and are cost-effective. These factors are expected to dominate the growth in the forthcoming period of the global off-highway rental vehicle market.
By Vehicle Type, Economic And Luxury Vehicles Are Expected To Dominate The Market
The economic vehicles are comfortable and cost-effective, therefore it is preferred more by high number of individuals. Compared with luxury and executive vehicle, economic vehicle has less procurement and maintenance charge. Many taxis for airport and local falls under this category. The demand for SUV and MUV also increases by side due to the large passenger capacity and premium features.
On the other hand, luxury vehicles are flourishing in many parts of the globe as the high-income group of people are increasing. The developed countries with high-income people have moderate demand for luxury vehicles. As many business and corporate travelers prepare luxury vehicles.
By Booking Type, Online Booking the Most Lucrative Segment
The decreasing rate of smartphones has boosted the sales of smartphones. The online booking platform has made it easy for the customer to book a rental vehicle through smartphones, just by verifying his/her document for once in the application. In addition, the app includes features such as flexible payment methods, numerous vehicle choices, and monitoring the vehicle location remotely. All these lucrative features make the online booking platform the dominant player in the market.
North America to Hold the Largest Revenue Share through the Forecast Era
North America is expected to hold the upper hand in the market share. The growth can be driven by the increasing demand for rental vehicle due to an increase in business trips and tourism. In this region, tourism has gradually increased in the past decades which drives the growth of rental vehicles in the market.
The Global Off-Highway Rental Vehicle Industry has gained considerable attention due to the increase in penetration of online-based rental services
The technology advancement in the past decade has become a crucial factor for the growth of Global Off-Highway Rental Market
Off-highway rental vehicle services are the agencies that rent vehicles for a particular period of time with certain charges, the services are offered by local agencies which are often located near airports or tourist places in busy cities. There has been significant growth in the travel industry for the past decade across the globe which has driven the demand for off-highway rental vehicles amidst flourishing travel and tourism industry.
Both manufactures and customers rely on the cost-efficient rental scheme, relatively the rental vehicle industry is an economic platform, it provides pocket-friendly and cost-effective schemes to the customer with a hassle-free experience. Furthermore, off-highway rental vehicle offers free wi-fi services connected with entertainment devices.
Global commuters are highly seeking for high quality off-highway rental vehicles with familiar and reliable travel services for the customers during the travel period. Some of the vehicle rental operators tend to leverage this practice by expanding the brand and platform across the globe which anticipates the operators in managing the vehicle rental system geographically.
Technology has become the crucial factor that boosts the market for the forecast period, the increase in penetration of online-based rental services such as, online booking for rental vehicle, offering information about the renter with the verification documents of the renter and the vehicle, and services like pick and drop of the rental vehicle at certain places, cashless and e-signing contracts and transactions are encouraging large scale adoption across developed and developing countries alike.
Smartphones have become the core propellants for steering lucrative growth in the global off-highway rental vehicles market. Smart device access to rental services has been playing critical role in fostering growth. This is also supported by improved internet penetration and affordable availability of smart devices. These enhanced services have increased the availability for the rental vehicle. At the same time, mobile oriented solutions to the customers are projected to further aid global adoption and growth for the global off-highway rental vehicles market.
When it comes to drawbacks of off-highway rental vehicle market, not being advanced is one of the major drawbacks for rental agencies in the market. Unavailability of additional vehicles choices or flexible payment methods are still restricting overall market progression in the global off-highway rental vehicles market.
This report offers a detailed information and quality insight with market intelligence. This report is structured in a way that it offers maximum business value and information and provides critical market dynamics and will enable in the process of decision making for the current market players and those who are willing to enter the market. This report studies the forecast period of 10 years.
Proceeding ahead, this report contains information regarding the major key players and the competitive areas and strategies used by the leading companies in the market of off-highway rental vehicle and the growth trends in the markets and in forthcoming years are discussed. In addition to it the impact of COVID—19 is discussed with industry’s initial response and tactics used by the companies to overcome the impact.
Key companies in the market include BorgWarner, Inc., Delphi Technologies, Continental AG, GKN PLC, Denso Corporation, Hitachi Ltd., Robert Bosch GmbH, Schaeffler AG, ZF Friedrichshafen AG, and Valeo SA. Market players have been described using financial overviews, business strategies, corporate descriptions, and current events.
Off-highway Rental Vehicle Market Scope
|Revenue forecast in 2028
|USD 141.17 billion
|CAGR of 4.6% during 2018-2028
|Vehicle Type, By Application,Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|Enterprise Rent-A-Car, The Hertz Corporation, Sixt, Europcar, Avis Budget Group
- Europcar partnered with Go Air and rental vehicle services in 100 cities in India, including 25 airports in major cities. In April 2021
- Hertz has joined a partnership with Tesla motors, by 2022 to supply 10000 model 3s. in Nov 2021
- Humax signed up an announcement to supply a mobility service platform for middle east customers by improving the technology. Including bikes, motorcycles, and electric scooters. In February 2021.
Key Segments of the Global Off-highway Rental Vehicle Market
Off-highway Rental Vehicle Market, By Application
- Tourism and
Off-highway Rental Vehicle, By Rental Duration
- Long Term
- Short Term
Off-highway Rental Vehicle Market, By Vehicle Type
- Luxury Vehicle
- Executive Vehicle
- Economical Vehicle
- Sports Utility Vehicle (SUV)
- Multi-Utility Vehicle (MUV)
Off-Highway Rental Vehicle Market, By Booking Type
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa