Global Car Rental market, which was estimated at 70 (USD Billion) in 2019 and is predicted to accrue earnings worth 132(USD Billion) by 2026, is set to record a CAGR of nearly 13.55% over 2020-2026.
The global Car Rental market, which was estimated at 70 (USD Billion) in 2019 and is predicted to accrue earnings worth 132(USD Billion) by 2026, is set to record a CAGR of nearly 13.55% over 2020-2026. The report offers valuation and analysis of Car Rental market on a global as well as regional level. The study offers a comprehensive assessment of the industry competition, limitations, sales estimates, avenues, current & emerging trends, and industry-validated market data. The report offers historical data from 2016 to 2019 along with a forecast from 2020 to 2026 based on value (USD Billion).
Introduction
Car rental business is carried by the agencies who rent the vehicles for a short timespan. The car rental service is associated with the local branches that are situated near airports in the cities and are booked online. Additionally, thriving tourist activities has enhanced the popularity of car rental services in the recent years. Additionally, the car rental service benefits both the consumers and the owners and is user-friendly as they can be booked by customers online through use of smartphones or mobile equipment. With rise in the sale of smartphones and iPhones, the market for car rental is gaining traction in the recent years. Moreover, rapid emergence of ridesharing firms like Uber, Ola, Lyft, and Grab has enhanced the popularity of the car rental services. Additionally, shared mobility sector has not only brought a revolution in the automotive sector, but has also shaped the growth of the car rental industry in the recent years.
Market Growth Dynamics
The concept of improving the service encounters is rapidly gaining popularity among the service providers. Apparently, firms in car rental business are focusing on improving the service designs through efficiently designing of the front-end as well as back-end service processes. For instance, a customer who wants a car on rental basis is disinterested in tedious manual processes like form filling and payment processing. Hence, firms are redesigning their car rental services and eliminating processes like form filling that are considered as non-value adding ones by the customer. All these moves adopted by the players towards enhancing customer satisfaction will contribute immensely towards the market growth in the near future. With lower car ownership rate among the millennial population due to high maintenance charges of the owned cars will steer the market progression over the forthcoming years. Rise in demand for ride-sharing services or car-sharing services across the globe will uplift the market trends over the years to come. Car rental industry has contributed sizably towards global fuel economy and hence is likely to flourish in the foreseeable future.
Furthermore, car rental firms across the globe are offering the travellers with the opportunity for generating their account on the website of the firm through smartphone app. This helps the customer in knowing their past trip details like pick- up and return sites, insurance coverage, car type, billing address, and credit card details. This helps in simplifying the tasks like making new online booking for the customer, thereby helping the firm derive the mileage of customer retention through improvement of service encounter. This, in turn, will prompt the business landscape over the forthcoming years through value creation.
Today, service sector has favorably leverages the overall economy and has accounted for a major share of GDP in both developed regions as well as emerging economies. With car rental being one of the emerging service industries across the globe, it is likely to account majorly towards the economy of the developing as well as developed countries. This, in turn, will proliferate the growth of the car rental industry across the globe in the years ahead.
North America To Account Majorly Towards Global Market Revenue By 2026
The expansion of the industry in North America over the assessment timeline is due to massive penetration of internet & smart technology in the countries like the U.S. Apparently, the surge in the leisure activities and business trips across the sub-continent will further add towards the growth of the regional market over 2020-2026. In addition to this, rise in the utility of electric ride share services will elevate the growth of the industry in sub-continent over the forecast timespan.
Key players contributing towards market profitability are Localiza Rent A Car, Europcar, Carzonrent, GroupSixt Rent-A-Car, Al-Futtaim Enterprise Rent-A-Car, Eco Rent A Car, Avis Budget Group, Inc., and The Hertz Corporation.
This report segments the global car rental market as follows:
Car Rental Market: Car Type Segment Analysis
Car Rental Market: End-users Segment Analysis
By Region
This report is based on in-depth qualitative and quantitative analyses of the global Car rental market. Zion Research has collected and analyzed key data belong to the global Car rental market using a variety of methods. Quantitative analysis has been done following various projection and sampling techniques.
The qualitative analysis involved primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes were validated through experts' opinions. The market dynamics have been determined after conducting a detailed study of the micro and macroeconomic indicators of the market.
Various parameters have been taken into account while estimating market size. The revenue generated by the leading industry participants in from the sales of Car rental across the world has been calculated through primary and secondary research.
Zion Research employs the combination of secondary research followed by extensive primary research. Under secondary research, we refer to prominent paid as well as open access data sources including product literature, company annual reports, government publications, press releases, industry association’s magazines and other relevant sources for data collection. Other prominent secondary sources include STATISTA, trade journals, trade associations, statistical data from government websites, etc.
For this study, Zion Research has conducted all-encompassing primary research with key industry participants to collect first had data. Moreover, in-depth interviews with key opinion leaders also assisted in the validation of findings from secondary research and to understand key trends in the Car rental industry. Primary research makes up the major source of data collection and validation.
Primary Research
We conduct primary interviews with industry participants and commentators on an ongoing basis to validate data and analysis. A typical research interview fulfills the following functions:
Participants who typically participate in such a process include, but are not limited to:
Key opinion leaders specializing in different areas corresponding to different industry verticals
Secondary Research
Secondary research sources that are typically referred to include, but are not limited to:
News articles, press releases and webcasts specific to companies operating in the market
Following a comprehensive secondary and primary research and insights thus gathered, analysts at Zion Research have provided an in-depth analysis of various aspects of the Car rental market.
Models
Where no hard data is available, we use models and estimates to produce comprehensive data sets. A rigorous methodology is adopted, wherein the available hard data is cross-referenced with the following data types to produce estimates:
Car or vehicle rental service is relatively developed in the industrialized economies. A car rental, hire car, or car hire company provides vehicles on rent for short periods of time, generally ranging from a few hours to a few weeks. Car rental providers have a number of local branches and offices near airports, bus stops, railway station, and busy city areas. The key vendors that provide vehicle rental services mainly focus on customer's requirements, growth, innovation, and offers that attract customers and efficiency.
The car rental market is primarily driven by rising tourism industry. Healthy economic growth and rising disposable income in developing countries are expected to propel the market growth during the year to come. Furthermore, high demand of the internet and smart technology helps to drive this market at the fast pace. However, some restraints like the rise in crude oil prices and lack of proper marketing may hinder the growth of the market. Moreover, use of the green vehicle is the most cost-effective way to improve energy efficiency and reduce carbon emissions is likely to open up new opportunities in evolving consumer preference.
In terms of car type, global car rental market is segmented intoMUV cars, SUV cars, economy cars, executive cars, luxury cars. Economy cars dominated the car rental market and accounted for significant share of the market. Economy cars are expected have a faster growth in the future due to the emergence of new companies in the market.
Based on end-users, the car rental market has been segmented into local usage, airport transport, outstation and others. Car rental for airport transport was leading end-user segment in car rental market and accounted for the largest market share in 2016. Growing demand for car rental due to green initiatives was taken by Government and increasing awareness about pollution is expected to drive the car rental market over the forecast period. One of the leading vendors in car rental market i.e. ‘Hertz’ New Zealand offers its customers a carbon calculator to allow potential renters to determine their carbon footprint for various car models.
In terms of regions, North America exhibited the largest share of car rental market in 2016. It accounted for significant share of the market and it is also predicted to remain to prevail over other regions during the forecast period. This is due to the high penetration of smartphones and advancement in technology in the region which helps to improve the convenience of booking a car on rent. North America was followed by Europe and Asia-Pacific region. Asia-Pacific is expected to witness the fastest growth in coming years due to the increasing population and needs for transportation.
Some of the key participants involved in car rental market includeAvis Budget Group, Inc, Sixt Rent-A-Car, Enterprise Rent-A-Car, The Hertz Corporation, Europcar, Al-Futtaim Group, Carzonrent, Localiza Rent A Car, and Eco Rent A Car.
The concept of improving the service encounters is rapidly gaining popularity among the service providers. Apparently, firms in car rental business are focusing on improving the service designs through efficiently designing of the front-end as well as back-end service processes. For instance, a customer who wants a car on rental basis is disinterested in tedious manual processes like form filling and payment processing. Hence, firms are redesigning their car rental services and eliminating processes like form filling that are considered as non-value adding ones by the customer. All these moves adopted by the players towards enhancing customer satisfaction will contribute immensely towards the market growth in the near future.
According to Zion market research report, the global Car Rental market, which was estimated at 70 (USD Billion) in 2019 and is predicted to accrue earnings worth 132(USD Billion) by 2026, is set to record a CAGR of nearly 13.55% over 2020-2026.
North America is likely to make noteworthy contributions towards overall market revenue. The regional market growth over 2016-2025 can be credited to massive penetration of internet & smart technology in the countries like the U.S. Apparently, the surge in the leisure activities and business trips across the sub-continent will further add towards the growth of the regional market over 2020-2026. In addition to this, rise in the utility of electric ride share services will elevate the growth of the industry in sub-continent over the forecast timespan.
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