June 22, 2024
Car Rental Market

The global Car Rental Market Growth is projected to driven by growing transportation needs

The car rental market involves short-term vehicle leasing services for users who may not own personal vehicles or require alternate transportation for travel purposes. Car rental services provide a diverse fleet of vehicles ranging from economy cars to luxury sports cars based on customer budgets and requirements. This allows for flexible self-driving options without long-term vehicle ownership commitments. The increasing international and domestic tourism across the world has boosted travel, creating a rise in demand for car rental services. Additionally, younger demographics prefer utilizing car-sharing platforms rather than investing in personal vehicle loans, which has helped expansion of rental fleets.

The global Car Rental Market is estimated to be valued at US$ 153.49 Mn in 2024 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends: One of the major trends witnessed in the car rental market is the emergence of innovative mobility solutions. Companies are introducing peer-to-peer or directly car rental platforms that allow vehicle owners to list their personal cars for rent when not in use. This provides an alternative to traditional rental services focusing on company fleets. Furthermore, major players are investing in advanced technologies like IoT, big data, and AI to improve fleet management systems, streamline reservations, and offer personalized services. As sustainability concerns rise, some companies have EV rental/subscription options to encourage green transportation. Customized local and niche rental offerings are also gaining popularity to cater varying customer segments.

Porter’s Analysis
Threat of new entrants: The car rental market size has high fixed and setup costs associated with operating a rental fleet and maintaining rental locations, which poses challenges for new companies to enter this market.
Bargaining power of buyers: Individual consumers have moderate bargaining power in the car rental market due to the availability of various rental options. However, large corporate clients have higher negotiating power due to bulk rentals.
Bargaining power of suppliers: A few major automakers dominate global car manufacturing. This concentration gives automakers significant bargaining power over car rental companies in negotiations for fleet purchases and pricing.
Threat of new substitutes: Public transportation and ride-hailing services pose some threat as alternatives to renting cars. However, cars provide greater flexibility for travelling long distances or carrying large groups.
Competitive rivalry: The global car rental market is dominated by a handful of major international brands, intensifying competition. Rental companies compete based on fleet sizes, locations, online accessibility, and additional services.

Key Takeaways

The global car rental market is expected to witness high growth. The global Car Rental Market is estimated to be valued at US$ 153.49 Mn in 2024 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024-2031.

The North American region currently dominates the market owing to frequent business and leisure travel. Europe is another major car rental market led by countries such as Germany, France, and the UK. Asia Pacific is emerging as a high growth region with increasing automobile ownership and tourism activities in countries such as China, India, and Southeast Asian nations.

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.,Poten and Partners Inc. Major players are focusing on expanding their international presence and acquiring regional companies to strengthen their fleet sizes and service coverage globally.

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