DUBLIN--(BUSINESS WIRE)--The "Global Car Rental Market By Application, By Vehicle Type, By Regional Outlook, Industry Analysis Report and Forecast, 2021-2027" report has been added to ResearchAndMarkets.com's offering.
The Global Car Rental Market is expected to reach $125.6 billion by 2027, rising at a market growth of 4.1% CAGR during the forecast period. With increased pollution and population, the automobile rental sector has seen a significant shift in recent years, thereby becoming the prominent industry in fleet transportation.
A huge increase in the number of individuals traveling for business and pleasure throughout the world is driving demand for car rental services. Rising internet penetration in both emerging and established nations has further helped market players in capturing a wider client base through the use of dedicated mobile applications for customer convenience.
COVID-19 Impact Analysis
The COVID-19 pandemic has destroyed economies throughout the world, and the impact is being felt by enterprises across industries, with transportation services bearing the brunt of the damage. In many instances, the challenges resulting from the lockdown are enormous and intractable. In addition, rising fuel and diesel prices in emerging nations are expected to hamper market expansion throughout the forecasting period.
The global financial crisis has only encouraged the use of car rental services. However, in the post-pandemic era, where safety and hygiene are paramount, measures for cleaning the car are strictly adhered to.
Market Growth Factors
On-demand transportation services are becoming more popular
Taxis, passenger vehicles, and charter cars with flexibility and other features like real-time feedback, vehicle monitoring, and rating to end consumers are examples of on-demand services. Numerous smartphone applications make it easier to find available cars and compare rates with the respective car rental businesses.
Low rate of car ownership among millennials
Due to the high expense of employee car maintenance, millennials have a lower rate of car ownership. In addition, the benefits of millennials are oriented toward car rental due to benefits such as cost savings and fuel economy. In industrialized nations, the rise in demand for ride-hailing services and amenities such as car rental, car sharing, and station-based mobility has reduced private car ownership by a significant percentage.
Marketing Restraining Factor
Ever-increasing Crude oil prices and Security & Privacy issues
The automobile and transportation industries have a direct influence on crude oil price fluctuations. High gasoline and diesel costs in numerous developing nations function as a major impediment to renting a car since rental pricing cannot be modified regularly based on crude oil prices, causing rental firms' revenues to fluctuate. For example, the per-barrel price of crude oil in 2000 was USD 17, but it has now risen to USD 45 owing to rising worldwide demand. Furthermore, government taxes raise gasoline and diesel costs, having a significant impact on the worldwide sector.
Application Outlook
Based on Application, the market is segmented into Airport Transport, Outstation, Local usage and others. The Outstation segment procured a significant revenue share of the overall can rental market in 2020. This is due to the increasing preference among the people to hire can rental services while going outstation.
Vehicle Type Outlook
Based on Vehicle Type, the market is segmented into Economy cars, Executive cars, Luxury cars, SUVs and MUVs. The executive cars segment acquired a significant revenue share in the Car Rental Market in 2020. One of the primary causes driving the segment's growth is the growing number of business visitors across the world, particularly in emerging nations.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The APAC exhibited the promising revenue share of the overall car rental market in 2020. Increased disposable incomes of consumers and continuously developing economies, as well as rising corporate travel spending, are likely to have a positive influence on regional market growth.
KBV Cardinal Matrix - Car Rental Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; AVR Qatar, Inc. is the forerunners in the Car Rental Market. Companies such as Enterprise Holdings, Inc. (The Crawford Group, Inc.), Avis Budget Group, Inc., SIXT SE are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Avis Budget Group, Inc., Europcar Mobility Group, Enterprise Holdings, Inc., Hertz Global Holdings, Inc., Localiza, SIXT SE, Eco Rent a Car, ANI Technologies Pvt. Ltd. (Ola Cabs), and AVR Qatar, Inc.
Recent Strategies Deployed in the Car Rental Market
Partnerships, Collaborations and Agreements
- Dec-2021: Sixt came into a franchise partnership with Australia's National Roads & Motorists Association, one of the largest car rental companies on the continent. This partnership added 160 branches to Sixt's international network comprising a rental fleet of 16,000 vehicles.
- Dec-2021: Europcar signed a franchise agreement with AUS Fleet Solutions, a local car rental provider to expand its foothold in Western Australia. The partnership is expected to see the Europcar fleet in Australia grow by roughly 3,000 vehicles, including utes, lorries, buses, and 4WDs, as well as the establishment of 14 additional Europcar branded stations across the state.
- Sep-2021: Sixt signed a collaboration agreement with Mobileye, an Intel subsidiary to start delivering autonomous ride-hailing services in Munich, Germany in 2022. Through combining the services of cooperation partners such as Mobileye, the one Mobility platform offers SIXT customers globally access to over 200,000 vehicles, 1.5 million drivers, 1,500 cooperation partners, and soon even robotaxi services.
- Sep-2021: Enterprise Holdings announced its collaboration with Microsoft for bringing connected car technology to former company's car rental, commercial trucks, and exotic vehicle rental fleets in the US and soon the UK and Canada. Through this collaboration, Enterprise Holding is expected to advance the streamlined rental experience of the future.
- Jun-2021: Sixt announced its partnership with Smart Rent a Car for Azerbaijan. Following this partnership, the customers is expected to be benefited from convenient and comprehensive high-quality mobility services in Azerbaijan and the Baku region in particular.
- Apr-2021: Eco Europcar teamed up with GoAir. Jointly, the companies focus on providing a comfortable travel experience to GoAir travelers.
- Jan-2021: Localiza announced an enterprise agreement with CalAmp, a technology solutions pioneer. The agreement focuses on reimagining the car rental experience for both fleet operators and consumers in Brazil. Together, the companies are working for adding more value-added telematics technologies for all types of fleet management applications across the world.
Acquisitions and Mergers
- Oct-2021: Enterprise Holdings' Ireland subsidiary announced an agreement to acquire Walker Vehicle Rentals, a commercial vehicle rental company. Enterprise has its presence in the commercial vehicle rental market in Ireland and the acquisition helped the business to enhance the choice and value of vehicles and services it delivers to organizations.
- Sep-2020: Enterprise Holdings' Canadian subsidiary announced the acquisition of Discount Car and Truck Rentals, a Canadian car and truck rental company serving customers across Canada. The acquisition expanded the company's ability to fulfill the unique mobility requirements of Canadian customers and provide more efficient service.
Product Launches and Expansions
- Jul-2021: Localiza introduced Zarp Localiza, a new business platform. This platform is aimed at app drivers who rent vehicles for work and brings together the services comprising an app that centralizes all services related to car rental.
Companies Mentioned
- Avis Budget Group, Inc.
- Europcar Mobility Group
- Enterprise Holdings, Inc.
- Hertz Global Holdings, Inc.
- Localiza
- SIXT SE
- Eco Rent a Car
- ANI Technologies Pvt. Ltd. (Ola Cabs)
- AVR Qatar, Inc.
For more information about this report visit https://www.researchandmarkets.com/r/1hp1oh.
