The global car rental service market is anticipated to reach a value of US$ 307.5 billion by 2033, driven by a robust CAGR of 7.2% from 2023 to 2033. In 2023, the market is projected to achieve approximately US$ 153.4 billion. This growth is largely fueled by an increase in both business and leisure travel, which is boosting demand for car rental services during the forecast period.
The market is notably affected by innovations such as opaque renting, a booking platform where customers bid for travel-related products or services without knowing the brand in advance. The brand is revealed only after the purchase is completed. This model helps car rental businesses optimize their fleet usage and is anticipated to significantly influence the car rental services market. Technological advancements in mobile capabilities and web-based media support the growth of opaque renting, thereby boosting the overall car rental market. Additionally, the widespread internet access in both developed and developing nations has allowed companies to broaden their customer base through mobile apps. The introduction of subscription models by various market players is also expected to drive market growth.
Rapid advancements in technology are anticipated to be an essential factor aiding the expansion of the market size. Technologically-empowered web-based solutions like online sales and booking channels enable consumers to rent a car at their convenience and ease. Technological advancements in this sector have improved customer and corporate information management and enabled hassle-free internet bookings.
These considerations will supplement the growth of the car rental market. Again, the heightened dependency of consumers on smartphones for carrying out myriad tasks- tasks that were conventionally done by computers- has altered the car rental experience for consumers. This is because swift technological progress has helped enterprises in this sector to introduce various applications that will ensure a smooth booking process for consumers which, in turn, drives global market growth.
Key Takeaways:
- Sharp rises in fuel prices will likely serve as an impediment to the global car rental services market.
- Favorable government initiatives like the implementation of policies regarding the reduction of carbon emissions will likely strengthen market prospects.
- The car rental market in the US will be driven by the presence of market leaders like The Hertz Corporation.
- China’s car rental market will dominate the East Asia region with East Asia registering a CAGR of 10.8% from 2023 to 2033.
- By car type, the economy cars segment will dominate the international marketplace.
- Based on end-users, the on-airport segment will account for over 40% of the market share.
Competitive Landscape
Enterprise Holding Inc., The Hertz Corporation, Localiza-Rent A Car, Sixt SE, and Avis Budget Group, among others, are a few of the significant players in the car rental market profiled in the full version of the report.
In a competitive market, key players are keen on capitalizing on ongoing technological advancements. These organizations make use of web and mobile-based advancements to attract a wider consumer base. Strategic service offerings, mergers, and acquisitions are also employed by these participants to gain a competitive edge. For instance, Localiza Rent A Car SA merged with Car Rental Systems in 2020 to meet strategic guidelines for simplification and administrative and financial rationalization.
Car Rental Services Market by Category
By Car Type:
- Economy Cars
- Compact Cars
- Intermediate Cars
- Premium Cars
- Luxury Cars
- Others
By End Use:
- Intercity
- Intracity
- On-Airport
- Others
By Booking Mode:
- Offline Access
- Mobile Application
- Other Internet Access
By Sector:
- Organized
- Unorganized
By Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- Middle East and Africa (MEA)
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