The global car rental market is anticipated to witness significant growth owing to easy availability of cars on rent at affordable prices. Car rental is a service that provides vehicles on rent for a short period of time. Conditions and prices of the services may vary by specific locations. Consumers can select the vehicle as per the number of passengers and traveling hours. Service providers are offering mobile applications from where consumers can easily book the vehicle and get information about the estimated arrival time.
Growing population and increasing number of frequent travelers are anticipated to propel demand for cars on rent. People working with marketing companies visit various places for work purposes. Traveling can be hectic for such employees, thereby affecting their work. This, in turn, can impel demand for cars on rent in the coming years. In addition, growth of the tourism sector across the globe is expected to play an important role in market growth. Rising disposable income and improving economic conditions in developing countries are likely to prompt people to travel frequently and explore new places. Increasing use of smartphones and advent of mobile applications to rent a vehicle can augment market growth. Consumers can use these applications to book a car on rent at affordable prices. Growing awareness regarding increasing air pollution can stimulate market growth in the coming years. A group of people working at the same place are likely to book a cab on rent and then pool its fare. This can, in turn, reduce the number of vehicles on road and control air pollution, thereby positively influencing market growth in the coming years.
Rising crude oil prices and stringent government regulations pertaining to harmful carbon emissions from vehicles can hamper market growth. However, growing adoption of vehicles that can run on compressed natural gas (CNG) technology by the service providers to control air pollution can create lucrative opportunities for the market.
The market can be segmented on the basis of type and category. Based on type, the market can be categorized into executive, luxury, economy, sport utility vehicle (SUV), and multi-purpose vehicle (MUV). In terms of category, the market can be classified into airport transport, local usage, and outstation.
North America is anticipated to emerge highly lucrative in the coming years owing to presence of a large number of market players. Shifting consumer preference for taxis or cabs can impel regional market growth. Increasing number of air travelers owing to business or leisure trips can boost demand for such services in the region. For instance, Lime launched car-rental service in Seattle. The company operates bike and scooter-rental services across the globe. However, introduction of cars is likely to expand its business in the coming years.
Asia Pacific is expected to witness significant growth in the coming years owing to growth of the tourism sector. Increasing number of domestic and international travelers in developing countries, such as India, China, and Japan, can augment market expansion. Increasing use of mobile applications to book cab on rent can boost regional market growth in the coming years. Launch of new and innovative services by local companies can gain traction among consumers. For instance, Revv launched OPEN in six different metro cities of India. The company offers 25 different models to consumers. Consumers can subscribe for a monthly plan and get brand new self-drive vehicles for a specific period. Company’s representative can deliver the selected vehicle at the consumer’s doorstep to offer convenience. Consumers can keep the booked vehicle for 12 to 48 months after which the company will reclaim it. Long-term subscriptions to such service can allow consumers to avoid hefty down payments.
Some of the leading companies operating in the car rental market are Europcar, Enterprise Holdings, Avis Budget Group, Hertz, Sixt, and Carzonrent.
Research Support Specialist, USA