The global car rental market was valued at USD 45.1 billion in 2015. The market is poised to grow with a lucrative CAGR of nearly 13% from 2016 to 2024. The factors such as rise in tourism, growing number of corporate travelers, and increase in leisure and group activities are expected to provide impetus for future expansion of the market.
The car rental market has been evolving rapidly due to technological advancements, increase in per-capita expenditure, and growing demand local and outstation travelers. The car rental operators are extensively utilizing the digital channels for staying relevant, improving service quality; facilitate easy booking, and to promote new products to the customers.
The various trends observed in the market indicate strong prospects of market consolidation, shifting consumer preferences, and the growing demand for large sized vehicles such as SUV’s and MUV’s. Furthermore, the volatility in the crude oil prices is also expected to play a vital role in the market growth over the next few years.
The market consolidation through and joint ventures and mergers and acquisitions (M&A), to tap the emerging markets with high unmet needs is expected to be a key trend over the next few years. The other innovative collaborations using value added services and shared profit models are expected to positively impact the future growth prospects
North AmericaCar RentalMarket, By Type of Vehicle 2014 – 2024 (USD Million)
The car rental market is segmented based on vehicle type, end-use, booking type, and region. The segmentation based on vehicle type includes executive cars, economy cars, luxury cars, SUV’s and MUV’s. In 2015, economy cars accounted for the maximum share, however with the increasing disposable income and growing consumer needs, the SUV’s segment is expected to register the maximum growth rate over the forecast period.
Based on end-use, the market is categorized as on-airport and off-airport. The off-airport categorization includes local rental, outstation rental, leisure rental and other rentals. The market is dominated by the car rental for airport travelling and this segment is anticipated to extend its dominance over the next few years. The rise in air traffic volume due to domestic and international travelers for corporate and leisure activities is a key factor influencing the market growth.
However, the local car rental and outstation rentals are expected to grow rapidly due to surge in tourism, growing demand for office and other institutional transportation, improvement in quality of vehicles, and benefits of hassle free user experience.
“Optimal Price Point (OPP) for Car Rental Market”
Estimated Average solution cost – $ xx globally. The pricing and business models in the car rental market areunique in different regions. With growth in environmental concerns, technological advancements, and shifting consumer preferences, and increasing number of startup’s, the OPP and range of acceptable Prices (RAP) are going to change over the forecast period. We at Ameri Research continuously track these prices with our proprietary pricing model.
“Big data analytics to track consumer behavior and travel patterns”
Big data analytics is used to provide precise and accurate business insights to Enterprises.Using these analytical platforms, big data vendors have built application based solutions such as forecasting models, risk modeling and managing customer relationship. Additionally, the enterprises make extensive use of data visualization tools to understand the passenger demands, seasonal business requirement, and to identify new avenues of growth
“Notable industry participants include Sixt SE, Avis Budget Group, Europcar, GlobalCARS Oracle and Al FuttaimGroup “
Key players include Sixt SE, Avis Budget Group, Inc., Europcar, Localiza Rent a Car SA,Carzonrent India Private Limited (CIPL), Al Futtaim Group, and GlobalCARS, The market participants are deeply relying on technological platforms to improve customer engagement, build new service models, track the consumer travel requirements and estimate the frequency of usage for each customer. The use of technology platforms is also extended to improve vehicle safety, provide high-tech entertainment and real t on traffic and weather patterns. Major industry participants emphasize on seeking correlations across multiple disparate data sources and predicting customer behavior in order to achieve competitive advantage.
The changes in the environmental regulations to curb pollution and to ensure a smooth transition toward green transportation are expected to impact the market over the forecast period.
The changes in environmental laws are a major risk for car rental operators. For instance, the sudden ban on diesel vehicles with engine capacity above 2000 cc in the capital city of India, New Delhi was a rude shock to several automobile manufacturers and car rental operators. The ban was however, lifted after a period of eight months with several restrictions and additional green taxes.
The high consumption of fossil fuels is a great concern across governments across different regions and this factor is encouraging the utilization of renewable sources and less polluting agents as fuel. The market participants can tap the growing concern of environmental pollution by offering vehicles which run on solar, bio-fuels and can use other green concept in their overall business models.