May 26, 2024
Mexico Car Rental Market
Ict

The global Mexico Car Rental Market Growth Accelerated by Increased Domestic and International Tourism

The Mexico car rental market provides mobility services to tourists and locals alike through a variety of vehicle classes suited for diverse travel needs. Rental cars offer flexibility, affordability and convenience to visitors exploring Mexico’s varied landscapes, beaches, archaeological sites and bustling cities. They also support the transportation requirements of local populations.

The global Mexico Car Rental Market is estimated to be valued at US$ 1405.47 Mn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The increased domestic and international tourism has been one of the key trends fueling the growth of Mexico car rental market. Mexico has witnessed substantial growth in tourist arrivals over the past few years on account of attractive tourist destinations and government initiatives to promote tourism. According to Mexico’s Ministry of Tourism, tourist arrivals rose by 13.2% year-on-year in 2021. This surge in tourism has increased the demand for rental cars from visitors exploring different areas of the country. The rising tourist inflow is expected to continue driving the rental car business in Mexico during the forecast period. Furthermore, emerging trends such as online bookings and customized rental packages are enabling car rental companies to cater to the diverse mobility needs of Mexican locals and global visitors.

Segment Analysis

The Mexico car rental market is dominated by the airport car rental segment. This segment accounts for nearly 45% of the overall market share owing to the large volume of tourists and business travelers who opt for car rentals while visiting Mexico via airports. The dominance of this segment is expected to further increase during the forecast period supported by the expansion of key international airports in Mexico and the rising number of flights.

Key Takeaways

The Global Mexico Car Rental Market Demand is expected to witness high growth over the forecast period. With an anticipated CAGR of 7.9% between 2024-2031, the market is projected to reach a value of US$ 2656.23 Mn by 2031 from US$ 1405.47 Mn in 2024.

Regional analysis

The northern region of Mexico dominates the overall car rental market and is expected to continue its dominance owing to the presence of tourist hotspots like Cancun and Playa del Carmen attracting maximum visitors. The region captures over 35% of the total market share. The central region is witnessing the fastest growth and is projected to register a robust CAGR of 8.9% during the forecast period supported by urbanization and economic development.

Key players

Key players operating in the Mexico car rental market are Hertz, Sixt SE, Enterprise Holdings, Europcar, and Localiza Rent a Car SA. Hertz commands the major market share of around 20% led by its wide network coverage and strong brand presence in the country. Sixt SE is investing heavily to expand its non-airport locations and upgrade offerings to strengthen its regional footprint in Northern Mexico region.

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