The car rental market involves companies that lease automobiles for short periods of time, generally ranging from a few hours to a few months. The main use cases of car rental services are business travel, leisure travel, employee benefits programs, and others. Car rental companies own a fleet of various types of vehicles including economy cars, luxury cars, SUVs, specialty vehicles, moving trucks and more and rent them to individual and corporate customers.
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.
Rising tourism industry is expected to be one of the key drivers for the growth of the car rental market over the forecast period. According to the United Nations World Tourism Organization, international tourist arrivals grew by 4% in 2018 to reach 1.4 billion. This growing number of tourists require transportation services, thereby boosting the demand for rented cars. Moreover, rising disposable income of consumers in developing countries is providing a boost to the tourism industry which is further expected to drive the car rental market. Another driver for the market growth is the increasing trend of renting cars among individuals and corporate entities as a preferred mode of transportation during business and leisure travel due to low maintenance costs and flexibility associated with rentals. The flourishing tourism industry and growing consumer preference for rented transportation are anticipated to propel the car rental market expansion over the forecast period.
The car rental market is segmented based on rental category, mode of booking, vehicle type, end use and rental location. The offline mode of booking dominates the market owing to wide acceptance and availability of rental counters across major cities and airports. The offline segment accounts for over 60% of the total market share.
Political: The car rental market is impacted by various automotive and transportation policies set by governments across countries. Stringent emission norms and electric vehicle promotion plans influence fleet adoption trends.
Economic: Changes in economic growth, tourism & business travel trends have a significant bearing on demand from corporate and leisure customer segments. Higher disposable incomes boost outdoor leisure activities and drive-to destinations.
Social: Evolving customer preferences towards self-drive options, vehicle ownership alternatives and on-demand mobility positively impact the market growth. Popularity of road trips and tourism increase rental needs.
Technological: Advancements in connected car technologies, mobility platforms and online reservation interfaces enhance customer experience. Integrations with ride-hailing and car-sharing networks expand business opportunities.
The Global Car Rental Market Growth is expected to witness high growth over the forecast period. 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.
The Asia Pacific region is projected to be the fastest growing market aided by rising tourism and business travel in major economies like China, India and Southeast Asia coupled with infrastructure developments.
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., and Poten and Partners Inc.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it