May 22, 2024
Ict

The Growing Demand for Flexible Mobility Options is Driving the Global Car Rental Market

The car rental market has witnessed significant growth over the past few years due largely to an increased demand for flexible mobility options globally. Car rental services allow customers to rent vehicles for short periods, ranging from a few hours to a few months. This offers flexibility and affordability for those who do not require long-term vehicle ownership or access. Car rental services offer vehicles for various needs including leisure travel, business trips, vacations, airport transport, temporary replacements for servicing vehicles, and more. Customers can choose vehicles as per their requirements, budgets, locations, and durations.

The global car rental market offers a variety of vehicles from economy category cars suitable for local travel to luxury cars for premium use. Customers can opt for cars, sports utility vehicles, vans, limousines, and other specialty vehicles. Car rental services offer round-the-clock assistance including roadside support, insurance coverage, unlimited mileage, optional extras like baby seats and navigation systems, and convenient delivery and collection options. This provides traveling customers assurance and convenience. The flexibility and cost-saving aspects of vehicle rentals have increased their popularity as an alternative to vehicle ownership.

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 2.9% over the forecast period 2023 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends in the car rental market is the growth of mobility-as-a-service (MaaS). MaaS platforms allow customers to plan, book, and pay for multiple mobility services like public transport, taxis, rental cars, and bike/scooter sharing, all in one digital interface. This offers greater convenience than separate booking and payments. Major car rental companies are investing in MaaS platforms to offer integrated transportation services and expand their business models. For example, Europcar Mobility Group acquired a leading European MaaS platform in 2021 to build its mobility marketplace and strengthen its presence.

Porter’s Analysis
Threat of new entrants: Low- The car rental industry requires large capital investments and has dominant players that enjoy economies of scale making it difficult for new players to enter.

Bargaining power of buyers: Moderate- Buyers have moderate bargaining power due to presence of substitute modes of transportation and availability of multiple rental companies.

Bargaging power of suppliers: Low- Few automobile manufacturers that dominate supply give low bargaining power to suppliers.

Threat of new substitutes: Moderate- Public transportation, taxis, ride-hailing services provide substitutes.

Competitive rivalry: High- Market is dominated by few major players intensifying competition.

Key Takeaways

The Global Car Rental Market Size is expected to witness high growth.

Regional analysis comprises Regional analysis related content The North America region dominates the car rental market owing to high mobility demand. Developed road infrastructure and affordable rental rates drive growth.

Key players related content comprises Key players operating in the car rental market are Avis Budget Group, Europcar Mobility Group, Enterprise Holdings, Hertz Global Holdings, and Sixt SE.

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