Car Rental Market Is Estimated To Witness Steady Growth
Market Dynamics:
Growing Tourism Industry (One driver from heading): The growing tourism industry across the globe is one of the major drivers of the global car rental market. According to the World Tourism Organization, international tourist arrivals grew by 6% in 2017 to reach 1.3 billion. The growing disposable income and increased propensity to travel have propelled the tourism industry growth. Car rentals play a vital role in providing transportation services to tourists at their travel destinations. Tourists prefer renting cars as it provides them flexibility and independence of movement. This rise in tourism is expected to generate significant demand for rental cars, thereby driving the market growth over the forecast period.
SWOT Analysis
Strength: The car rental market enjoys a steady demand for vehicle rentals from business and leisure travelers. Rental companies maintain a large fleet of vehicles to ensure operational efficiency and meet diverse customer needs. Many established players in this market have a global presence with locations across major cities that provide customers with accessibility and convenience.
Weakness: Fierce price competition exists in this market as customers constantly look for best deals. Market concentration is high with a few major players dominating the market. Weather conditions and fluctuations in tourism and business travel can impact demand temporarily in certain destinations.
Opportunity: Rising aspirations of middle-class consumers in developing countries are driving more local and international travel. New mobility options involving car sharing and ride-hailing provide an opportunity for rental companies to partner with such service providers. Advances in connectivity and technologies enable enhanced customer experience through digital solutions.
Threats: Stricter emission regulations pose a challenge for fleet modernization which increases operating costs. Economic slowdowns can significantly lower travel and weaken rental demand. Shared mobility is gaining popularity among urban travelers as an affordable alternative to car rentals.
Key Takeaways
The Global Car Rental Market Size is expected to witness high growth over the forecast period supported by increasing mobility needs of both business and leisure travelers globally. The global car rental market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023 to 2030.
North America currently dominates the car rental market owing to robust travel industry and high vehicle ownership in the US and Canada. Europe is another major regional market for car rentals driven by strong tourism industry in Western and Southern European countries.
Key players operating in the car rental market are Aries Shipbroking (Asia) Pte Ltd.,Braemar Shipping Services Plc,BRS Group,Chowgule Brothers Pvt. Ltd.,Clarkson PLC,E.A. Gibson Shipbrokers Ltd.,Fearnleys AS,Galbraiths Ltd.,Howe Robinson Partners Pte Ltd.,INTEROCEAN,Lorentzen & Stemoco AS,Maersk Broker KS,Maritime London Ltd.,McQuilling Partners Inc.,Poten and Partners Inc. The global car rental industry is highly competitive with major players focusing on expansion into high growth markets through mergers and acquisitions. Innovation in technologies and customer experience is another key area of focus.
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