The car rental market stood at about USD 41 billion in 2014. It is anticipated to attain a size of around USD 104 billion by 2022. Some of the factors working in the market’s favor include rising air travel (for both business and leisure purposes), internet usage, and penetration of smartphone applications.
The robust international tourism sector would fuel demand for cars-on-hire. Car rental companies offer different vehicles (luxury, economy, executive, etc) depending on the interests of customers.
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Smarphones are an integral part of people’s lives. Contemporary car rental companies offer their services through convenient and user-friendly mobile applications. Affordable and speedy 3G and 4G LTE internet services have boosted customized online travel reservations. Online portals allow customers to pick rental cars based on their tastes and demands.
Growing focus on environmental protection has led to stringent emission standards across the globe. Volatility in crude oil prices and strict environmental regulations are discouraging people from owning vehicles. This is proving beneficial for the car rental market.
The market is split into vehicles, applications, and regions. Vehicles comprise executive, luxury, economy, SUVs – Sports Utility Vehicles, and MUVs – Multi Utility Vehicles. Executive vehicles are mostly hired by corporate personnel for work and leisure. They are set to grow in the forthcoming years owing to globalization.
Executive vehicles combine economic efficiency with sophistication. Economy vehicles contributed about 30% of the total revenues in 2014. Their main advantages include affordability and fuel economy. The luxury segment caters to niche applications and comprises high-end upscale vehicle models. It may not display high growth in the years ahead. SUVs are mainly used for leisure. However, their low fuel efficiency is reducing their demand.
Applications of the car rental market entail local usage, outstation, airport transport, and others. Airport transport accounted for about 41% of the overall revenues in 2014. Growing air travel has a positive impact on this application. Outstation is poised to grow significantly. Its CAGR would be approximately 12% from 2012 to 2022.
North America dominated the market in 2014. Asia Pacific, particularly India, will be lucrative. Low-budget rentals would hold a significant portion in the region. Leading participants in the global car rental market encompass Carzonrent, The Hertz Corporation, Al-Futtaim Group, and Enterprise Rent-A-Car.
Information Source: Grand View Research