April 20, 2024

Global Car Rental Market Growth is Accelerated by Increasing Demand for Luxury and Exotic Cars

The car rental market consists of companies offering rental of passenger cars, light commercial vehicles, trucks, buses and other utility vehicles for a short period of time, generally ranging from a few hours to a few weeks. Car rental services offer flexibility and accessibility to vehicles as and when required without any long-term ownership obligations. The growing popularity of car sharing has further boosted the car rental market. Moreover, advancements in telematics and car connectivity have enabled companies to diversify into new mobility business models like chauffeur services. The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Car rental companies have recognized this shifting consumer demand and are diversifying their fleet offerings to include high-end luxury brands as well as exotic sports cars to attract more customers. Companies now provide a wide selection of premium vehicles including Mercedes, BMW, Audi, Porsche, Ferrari, Lamborghini etc. across major cities. This shift is encouraging more affluent travelers to choose car rentals over taxis or their own vehicles when visiting new destinations.

Segment Analysis
The global car rental market is dominated by the Economy segment. This segment accounts for over 40% share of the overall market. Customers generally prefer renting an economy car as it is affordable and sufficient for their daily use. Moreover, several local travels and office commutes do not need spacious and luxury vehicles. Therefore, the economy segment remains the highest revenue generating in the car rental market.

Key Takeaways
The Global Car Rental Market is expected to witness high growth. The market size is projected to reach US$ 133.23 Bn by 2023, growing at a CAGR of 6.1% during the forecast period of 2023 to 2030.

Regional analysis: North America dominates the global car rental market with over 30% share. This is attributed to high business and tourism activities in the US and Canada. Additionally, presence of major car rental brands and availability of various vehicle classes drive the market growth. Europe holds the second largest share led by countries like Germany, UK, and France. Growth in regional travels and tourism industry support the market expansion.

Key players: Key players operating in the car rental market are Nobel Biocare Services AG, DIO Corporation, Ivoclar Vivadent AG, GC Dental, Modern Dental Group Limited, COLTENE Group, SHOFU Dental GmbH, VITA Zahnfabrik, Holmes Dental Co., Lasak, Institut Straumann AG, Derby Dental, and Anthogyr SAS. Nobel Biocare Services AG and DIO Corporation collectively account for over 15% market share due to their vast service network and diverse fleet options across major cities.

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