Dublin, Aug. 31, 2020 (GLOBE NEWSWIRE) -- The "Automobile Rental and Leasing Global Market Opportunities and Strategies to 2030: COVID-19 Impact and Recovery" report has been added to ResearchAndMarkets.com's offering.
Where is the largest and fastest-growing market for the automobile rental and leasing market? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.
This report describes and evaluates the global automobile rental and leasing market. It covers 2015 to 2019, termed the historic period, and 2019 to 2023 termed the forecast period, along with further forecasts for the periods 2023-2025 and 2025-2030.
The global automobile rental and leasing market is expected to decline from $366.9 billion in 2019 to $239.6 billion in 2020 at a compound annual growth rate (CAGR) of -35%. The decline is mainly due to economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 15.06% from 2021 and reach $421.3 billion in 2023. The market is expected to grow at a CAGR of 8.1% to nearly $492.6 billion by 2025, and at a CAGR of 8.0% to $723.3 billion by 2030.
Growth in the historic period resulted from increased demand for mobility, rise in consumer awareness, growth in the used car market, and emerging markets growth. Factors that negatively affected growth in the historic period were restraints on consolidation in the industry, and driving challenges with overseas travellers.
Going forward, growing popularity of electric vehicles, e-commerce, investment in big data and IoT, and blockchain penetration in automotive rentals and leasing sector will drive the growth. Factors that could hinder the growth of the automobile rental and leasing market in the future include customer service and transparency, the growing popularity of on-demand taxi services, and coronavirus disease (COVID-19) outbreak.
The automobile rental and leasing market is segmented by type into passenger car rental, truck, utility trailer, and RV (recreational vehicle) rental and leasing, and passenger car leasing. The passenger car rental market was the largest segment of the automobile rental and leasing market, accounting for 61.6% of the total in 2019. It was followed by truck, utility trailer, and RV (recreational vehicle) rental and leasing, and passenger car leasing. Going forward, the passenger car leasing segment is expected to be the fastest-growing segment in the automobile rental and leasing market, at a CAGR of 6.2%.
The automobile rental and leasing market is segmented by mode into passenger online and offline. The offline market was the largest segment of the automobile rental and leasing market segmented by mode, accounting for 50.6% of the total in 2019. Going forward, the online segment is expected to be the fastest-growing segment in the automobile rental and leasing market segmented by mode, at a CAGR of 9.1%.
The automobile rental and leasing market is segmented by type of lease into open and close. The open market was the largest segment of the automobile rental and leasing market segmented by type of lease, accounting for 60.2% of the total in 2019. It is also expected to be the fastest-growing segment in the automobile rental and leasing market segmented by type of lease, at a CAGR of 4.3%.
The automobile rental and leasing market is segmented by end-use into industrial and corporate. The industrial market was the largest segment of the automobile rental and leasing market segmented by end-use, accounting for 56.5% of the total in 2019. It is also expected to be the fastest-growing segment in the automobile rental and leasing market segmented by end-use, at a CAGR of 3.7%.
Asia-Pacific was the largest region in the global automobile rental and leasing market, accounting for 31.9% of the total in 2019. It was followed by Western Europe, North America, and then the other regions. Going forward, the fastest-growing regions in the automobile rental and leasing market will be Eastern Europe and the Asia Pacific, where growth will be at CAGRs of 4.3% and 4.1% respectively. These will be followed by Western Europe and South America, where the markets are expected to grow at CAGRs of 3.6% and 3.2% respectively.
The global automotive equipment rental and leasing market is fragmented, with a large number of small players in the market. The top ten competitors in the market made up 22% of the total market in 2019. Major players in the market include Enterprise Holdings, The Hertz Corporation, Avis Budget, Daimler Group, and LeasePlan.
The global leasing market, of which the automobile rental and leasing market is a segment, reached a value of nearly $ 1,398.5 billion in 2019, growing at a compound annual growth rate (CAGR) of 6.5% since 2015. It is expected to grow at a CAGR of 6.2% and reach nearly $1,775.9 billion by 2023. The lessors of nonfinancial intangible assets market were the largest segment in the global leasing market accounting for 38.0% of the total in 2019 and are expected to grow the fastest at a CAGR of 7.9% during 2019-2023. The consumer goods and general rental centers market was the smallest segment of the global leasing market, accounting for 11.1% of the total and was valued at $155.4 billion in 2019.
The top opportunities in the automobile rental and leasing market segmented by type will arise in the passenger car rental segment, which will gain $31.9 billion of global annual sales by 2023. The top opportunities in the automobile rental and leasing market segmented by mode will arise in the online segment, which will gain $75.7 billion of global annual sales by 2023. The top opportunities in the automobile rental and leasing market segmented by type of lease will arise in the open segment, which will gain $40.6 billion of global annual sales by 2023. The top opportunities in the automobile rental and leasing market segmented by end-use will arise in the individual segment, which will gain $32.1 billion of global annual sales by 2023.
The automotive equipment market size will gain the most in China at $8.87 billion. Market-trend-based strategies for the automobile rental and leasing market include investing in big data technology, adopting IoT technology to better manage fleet and reduce costs, adopting blockchain technology to make leasing/renting more reliable, and implementing artificial intelligence in their operations. Player-adopted strategies in the automobile rental and leasing market include expanding through acquisitions, expanding through franchisee partnerships, and driving growth through operational efficiencies.
Amidst the unprecedented outbreak of coronavirus, governments across the world are advising people to stay indoors and practice social distancing, to reduce the spread of the pandemic. This has decreased short term potential growth opportunities for the industry. Restrictions on international travel severely impacted the airport rentals industry. In the US, with the closure of amusement parks and other leisure activity destinations, car rentals for these services have also been negatively affected. To curb the impact of COVID-19 on their businesses, automotive leasing companies can consider adopting various strategies such as de-fleeting to save costs and focusing on delivery and logistical services to meet the revised needs of customers.
Companies Mentioned
- Al Badie Group (ABG)
- Ally Financial Inc.
- Barloworld Limited
- Bidvest Car Rental
- Budget
- Business Lease Group
- CAR Inc. (CAR)
- CHB Ltd.
- ComfortDelGro
- DRD Fleet Leasing
- EHi Auto Services Co. Ltd.
- EuropCar
- Ford Credit
- Gage Car Hire
- GM Financial
- Honda Canada Finance Inc.
- Imperial Truck Rental
- KAMAZ Leasing Company
- Localiza Hertz
- Movida Car Rental
- Orix Auto Corporation
- Ouro Verde
- Paramount Leasing & Car Rental LLC
- PROX CAR RENTAL LLC
- Renault Eurodrive
- Scania Polska SA
- Shenzhen Timshine Car Rental Co. Ltd.
- Shouqi Car Rental Co. Ltd.
- Springs Car Wholesalers (Pty) Ltd.
- The Combined Motor Holdings Group (CMH)
- Toyota Financial Services
- Toyota Rentacar
- Unidas
- Unitrans Automotive SA
- VEB-leasing
- Volkswagen Credit
- Volvo Financial Services
For more information about this report visit https://www.researchandmarkets.com/r/jldtg8
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