Car rental market overview
The trends highlight that the car
rental market accounted
for USD 92.02 billion in 2021, and it is expected to reach USD 139.65 billion,
projecting a CAGR of more than 7% during the forecast period. The trends
highlight the rising need of car rental market in the global scenario and
hence, will add to the market share in the market.
The COVID-19 pandemic outbreak has
devastated economies worldwide, and the impact was felt by businesses across
verticals and hit transportation services particularly hard. Some challenges that
emerged from the worldwide lockdown are immense and impossible in many areas.
With reduced global air traffic, the demand for rental cars has slowed down at
airports as there were travel restrictions worldwide to contain the spread of
the virus. Also, the rising prices of petrol and diesel in developing countries
are likely to hamper the market's growth during the forecast period.
The global crisis has merely accelerated
the adoption of rental cars worldwide. However, post-pandemic practices for
disinfecting cars are followed meticulously, with safety and hygiene becoming
the need of the hour. The need for individual mobility and social distancing
norms is bound to improve industry conditions.
Get Free Sample Report of Car rental
market
Renting a car provides
unparalleled convenience and flexibility for travelers and locals alike.
Whether for a business trip, a vacation, or simply to replace a vehicle
temporarily, the option to rent a car offers numerous benefits. Car rental
agencies offer a wide variety of vehicles to suit different needs, from compact
cars for city driving to spacious SUVs for family trips. When you rent a car,
you gain the freedom to explore new destinations at your own pace without
relying on public transportation schedules. Additionally, the cost of maintenance
and insurance is typically included in the rental agreement, making it a
hassle-free option for many.
The demand to rent a car has
surged with the growth of tourism and business travel. Car rental companies
have responded by enhancing their services, providing more options, and
implementing user-friendly booking systems. Whether you need to rent a car for
a day, a week, or longer, the process is straightforward and can often be
completed online or via a mobile app. Many people prefer to rent a car for the
convenience of picking up and dropping off at different locations, adding to
the flexibility of their travel plans. As a result, choosing to rent a car has
become an essential service in the travel industry, ensuring that individuals
and families can travel comfortably and efficiently.
Market segmentation
The car rental market is segmented by
booking type, that is, offline access and online access, based on the
application type and includes leisure/tourism and business, vehicle type
segmentation that includes luxury/premium car and economy/budget cars, followed
by the end-user that includes self-driven and chauffeur-driven cars. The market
segments further extend to rental length, including short term and long term,
and geography of North America, Europe, Asia-Pacific, South America, and
Africa.
Regional analysis
The market in the Asia-Pacific region is
expected to register significant growth in terms of CAGR over the forecast
period, owing to increasing travel and tourism and increasing availability of
high-end luxury and economy vehicles, especially across developing countries.
The North American region led the overall market in 2019, and it is expected to
retain its dominance over the forecast period. The rising number of leisure and
business trips across the region, both locally and internationally, is among
the prominent factors influencing the regional market's growth. Additionally,
there has been a continuous shift in consumer preference toward rental services
followed by the presence of prominent service providers in the region, like
Avis Budget Group and Enterprise Rent-a-Car, are expected to accelerate revenue
generation prospects.
North America is expected to be the
largest car rental market globally during the forecast period, as the United
States remains the largest country for car rental services. For instance, Uber
Technologies Inc. adopted mobile technologies and other devices to more
efficiently meet consumers' transportation requirements.
Industry news
Technology is a critical component that
is expected to boost the market over the forecast period. It includes the
utilization of optimized corporate and customer information management and the
development of convenient internet booking applications.
Newer players, like Zipcar and BlaBlaCar,
benefit from using innovative business models such as car-sharing and adopting
technologies such as telematics. Uber and Lyft use mobile technologies and
devices to meet consumers' personal transportation needs better.
Read more:
.png)
.png)
No comments:
Post a Comment