February 25, 2024
Car Rental Market

Car Rental Market Is Projected To Driven By The Growth Of Mobility-As-A-Service

The car rental market provides temporary access to vehicles for a diverse range of transportation needs on an as-needed basis. Car rentals allow for increased mobility whether for personal travel, business trips, special events or temporary vehicle replacement. By renting vehicles through established car rental companies, individuals and organizations can rely on well-maintained fleets of late-model vehicles that come equipped with important safety and communications features. Customers are assured of quality vehicles that can be rented for a day, week or month with competitive rental rates and coverage for accidents and liability.

The global car rental market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends impacting the car rental market is the growth of mobility-as-a-service (MaaS). As consumers increasingly prefer accessing transportation services on demand using their smartphones instead of owning private vehicles, car rental companies are expanding offerings to encompass a range of multimodal mobility services. This allows customers to choose from options like ride-hailing, taxi, car sharing, electric scooters, bikes and public transit in addition to traditional rental car services. Companies are investing in digital platforms and partnerships that facilitate integrating these mobility services through a single interface. This emerging MaaS ecosystem enables car rentals to play an integral role in sustainable, shared and data-driven transportation of the future.

Porter’s Analysis

Threat of new entrants: The car rental market has moderate barrier for new entrants with high capital requirement to establish fleet of cars.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like cab services and public transportation.
Bargaining power of suppliers: A few large automakers dominate the supply market giving them higher bargaining power over car rental companies.
Threat of new substitutes: Emergence of ride-hailing services provide stiff competition to car rental market.
Competitive rivalry: Intense competition exists among established car rental brands to attract customers and gain market share.

Key Takeaways

The Global Car Rental Market Demand is expected to witness high growth. The global car rental market is estimated to be valued at US$ 133.23 billion in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030.

Regional analysis shows North America dominates the market currently owing to high car ownership and tourism in countries like the US and Canada. Europe is another major car rental market led by countries like Germany, UK and France. Asia Pacific car rental market is fast emerging led by countries like China, India and Japan due to rising tourism and economic growth.

Key players operating in the car rental market are Aries Shipbroking (Asia) Pte Ltd.,Braemar Shipping Services Plc,BRS Group,Chowgule Brothers Pvt. Ltd.,Clarkson PLC,E.A. Gibson Shipbrokers Ltd.,Fearnleys AS,Galbraiths Ltd.,Howe Robinson Partners Pte Ltd.,INTEROCEAN,Lorentzen & Stemoco AS,Maersk Broker KS,Maritime London Ltd.,McQuilling Partners Inc.,Poten and Partners Inc. The market is dominated by few global brands like Hertz, Enterprise, Avis Budget along with regional players. These players are focusing on fleet expansion, digitalization and meeting evolving customer demands to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it