New York, USA, May 04, 2022 (GLOBE NEWSWIRE) -- According to the report published by Research Dive, the global car rental market is predicted to generate a revenue of $1,48,129.4 million by 2027, surging exponentially at a CAGR of 15.5% during the forecast period 2020-2027.
Segments of the Market
The report has divided the market into various segments based on vehicle type, sales channel, application, and region.
Vehicle Type: Economic Vehicle Sub-segment to be Most Profitable
The economic vehicle sub-segment is expected to generate a revenue of $47,323.9 million during the forecast period. Growing concerns about environmental pollution has enabled the rapid inclination towards electric vehicles among people. In addition, massive initiatives are taken by the government of various countries for the rapid adoption of electric vehicles so as to reduce the carbon footprint across the globe. These factors are expected to bolster the growth of the car rental sub-segment during the forecast period. Other sub-segments include luxury car, executive car, sports utility vehicle (SUV) and multi utility vehicle (MUV). The global SUV rental market is expected to witness the fastest growth rate. It generated a revenue of $7,532.6 million in 2019, and is further predicted to garner a revenue of $13,131.9 million during the forecast period. Increased conveniency, safety, and comfort in SUVs is expected to drive the growth of this sub-segment during the forecast period.
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Sales Channel: Online Sub-segment to be Most Lucrative
The online sub-segment is expected to generate a revenue of $1,07,144.0 million during the forecast period. An online car renting system provides ease in accepting reservations, seamless scheduling of car for pickup, and pre-requisite car check updates. In addition, they help enterprises to manage and supervise multiple bookings conveniently, track rental statuses and general statuses of cars, and corroborate numerous bookings effectively. These factors are expected to accelerate the growth of the car rental market sub-segment during the forecast period. The offline sub-segment is also expected to witness an ample growth during the forecast period.
Application: Leisure Sub-segment to be Most Beneficial
The leisure sub-segment is expected to generate a revenue of $95,179.0 million during the forecast period. Growing penetration of smartphone, prevalence of online platforms, and increasing disposable income of people is expected to drive the growth of the sub-segment during the forecast period.
Region: Asia-Pacific Region to Dominate the Global Market
The Asia-Pacific region is expected to garner a revenue of $65,651.0 million during the forecast period. Growing sales adoption of car rental services in this region is expected to drive the growth of the market. In addition, rising disposable income and smartphone penetration is this region is further expected to stimulate the growth of the regional car rental market during the forecast period.
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COVID-19 Impact on the Market
The outbreak of COVID-19 has had a negative impact on the growth of the global car rental market, owing to the prevalence of lockdowns in various countries across the globe. The tourism industry witnessed a devastating blow due to the stringent travel and social distancing restrictions imposed the government. In addition, lockdowns led to the large-scale closure of the manufacturing plants of automobiles, in order to curb the spread of the virus. Thus, the automotive industry was also adversely affected. However, significant strategic approaches implemented by the illustrious players of the market is expected to reinforce the market share during the crisis period. Fear of virus transmission in public transport is a major factor driving the demand for care rental companies as various organisations are adopting private rental cabs to guarantee a safe and secure travel for their employees.
Dynamics of the Market
Drivers: High standard of living among people has enabled them to spend lavishly on luxury vehicles for travelling. In addition, growing prevalence of high-performance cars at lower rental rates is further expected to drive the growth of the car rental market during the forecast period.
Restraints: Availability of economical transportation costs in the developed and developing countries is expected to hinder the growth of the market during the forecast period.
Opportunities: Rising prominence of car rental management software in various countries across the globe is expected to create massive opportunities for the growth of the car rental market during the forecast period.
Key Players of the Market
The major players of the market include
- Al-Futtaim.
- Eco Rent a Car.
- Avis Budget Group
- Enterprise Holdings Inc.
- Localiza
- SIXT SE
- Europecar
- The Hertz Corporation
- Bettercar Rental LLC
- Carzonrent.
These players are working on developing strategies such as product development, merger and acquisition, partnerships and collaborations to sustain the market growth.
For instance, in September 2020, Enterprise Holdings, Inc., an American private holding company having extensive investments in car rental business and primary owner of car rental companies including Rent-A-Car, National Car Rental and Alamo Rent A Car brands, closed its acquisition of Discount Car and Truck Rentals, a leading Canadian car and truck rental company, in order to offer a wide range of services at additional locations with a focus on enhanced mobility offerings.
The report also summarizes many important aspects including financial performance of the key players, SWOT analysis, product portfolio, and latest strategic developments.
Region: North America has an Aggressive Growth rate for Car Rental Market (Avail Customization)
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