Car Rental Market Size to Hit US$ 244.59 Billion by 2032

The car rental market size is expected to hit around US$ 244.59 billion by 2032 from valued at US$ 110.71 billion in 2022, growing at a CAGR of 8.3% from 2023 to 2032.

Car Rental Market Size 2023 to 2032

Key Takeaway:

By vehicle type, the economy cars segment has held a market share of around 35% in 2022.
The executive cars segment is expected to grow at a CAGR of 5.8% from 2023 to 2032.
By application, the airport transport segment accounted for 43% of the total revenue share in 2022.
The local usage segment is registering growth at a CAGR of 6.8% between 2023 to 2032.
The North America region has captured a market share of around 53% in 2022.
The Asia Pacific region is expanding at a CAGR of 8.4% from 2023 to 2032.

The increase in technological advancements is driving the growth of car rental market. The growing popularity of online car rental booking applications is also fueling the market growth. Furthermore, the features such as time saving and cost-effectiveness provide lucrative opportunities for the development and growth of car rental market. The car rental also helps to control pollution by reducing sales volume of self-owned cars. Moreover, the infrastructure development in the developing regions is paving new way for the growth of market. In addition, rise in internet penetration across developed regions will help market to grow during the forecast period.

Get the sample copy of report@ https://www.precedenceresearch.com/sample/1452

Regional Snapshot

North America is the largest segment for car rental market in terms of region. The U.S. is considered as the leading country due to major market players operating in this region. These market players had adopted car rental software in smart-phone applications, which is driving the growth of car rental market in North America region. The companies such as Avis, Alamo, Hertz, Enterprise, Thrifty, and Dollar are the leading market players of car rental in the U.S.

Asia-Pacific region is the fastest growing region in the car rental market. The countries such as China, Japan, India, and South Korea show the highest growth in the region. The people, who cannot afford to buy their own car, rent a car for their trips and journeys. The companies such as Guangzhou Refine Car Rental, NTours and Dollar Car Rental, Niconico Rent-a-car, Smile Rental Car, and SKY Rent-a-car are some of the leading car rental companies in the Asia-Pacific region.

Scope of the Car Rental Market

Report Coverage	Details
Market Size in 2022	USD 119.34 Billion
Market Size by 2032	USD 244.59 Billion
Growth Rate	CAGR of 8.3%
Largest Market	North America
Fastest Growing Market	Asia Pacific
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	Vehicle, Application, Rental Duration, Region
Companies Mentioned	Avis Budget Group, Europecar, Enterprise Holdings Inc., The Hertz Corporation, Toyota Rent-a-Car, Sixt SE, Alamo Rent-a-Car LLC, Carzonrent India Pvt Ltd, Localiza, ANI Technologies Pvt. Ltd

Report Highlights

Based on the vehicle type, the economy cars segment dominated the global car rental market in 2020 with highest market share. This is mainly attributed to low maintenance costs of economy cars. The economy cars are fuel-efficient cars which help to save cost on fuel or gasoline.
Based on the rental duration, the short-term segment is estimated to be the most opportunistic segment during the forecast period. This is attributed to short trips and journeys. The rental cars are mostly used to travel short distance places.

Drivers

Increase in number of corporate workplaces

The number of corporate offices had increased over the decade. The population of employees had also increased over the period of time. Initially, the number of male employees was high, but now the scenario has been changed. For the safety and security of female employees, the corporate companies have started providing cab or transportation services for the distant locations. This has increased the demand for car rental services. The corporate hire the car from the car rental companies for their employees. As a result, the increase in number of corporate workplaces is driving the growth of car rental market.

Restraints

Surge in crude oil prices

The demand for gasoline or crude oil has increased over the period of time. But there is shortage of fossil fuels and cannot meet the global demand. Therefore, this has increased the price of crude oil. This had significant impact on the transportation and automotive industry growth. Also, the government taxes have increased on the gasoline and crude oil. This has also increased the price of fuel. Thus, the surge in crude oil prices will restrict the growth of car rental market during the forecast period.

Opportunities

Rise in the tourism sector

The growth in tourism sector has contributed for the economic development in developing regions, by driving the growth of automotive and transportation industry. The traveling and tourism trend has increased in millennial generation. The people of millennial generation are more interested in trips and rides. The long distant trips and short group journeys require vehicle. Due to this fact, the demand for car rental services has increased among this generation group. Also, the millennials can’t own their own car, which has also increased the demand for car rental services. As a result, the rise in tourism sector is creating lucrative opportunities for the growth of the car rental market.

Challenges

Low rate of internet penetration

The car rental service is mostly operated through online bookings with the help of smartphone applications. This requires good internet connection. But the countries such as North Korea, Eritrea, South Sudan, Comoros, Central African Republic, Somalia, Burundi, Niger, Kiribati, and Liberia has low rate of internet penetration. This restricts market players to operate in these regions. The drivers require GPS to track location of passengers. This has increased the importance of internet penetration for car rental service providers. The high price of internet connection also hampers the growth of market. Thus, the low rate of internet penetration in developing and underdeveloped regions is a huge challenge for the growth of the car rental market.

Some of the prominent players in the global car rental market include: