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Car Rental Market to Garner USD 137.25 Billion by 2029; Rising Need for On-Demand Transportation Services to Drive the Market Growth

July 15, 2022 | Automotive & Transportation

The car rental market size stood at USD 68.84 billion in 2021. The market value is slated to rise from USD 82.54 billion in 2022 to USD 137.25 billion by 2029 at a CAGR of 7.5% during 2022-2029. Fortune Business Insights™ presents this information in its report titled “Car Rental Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, and MUVs), By Application Type (Local Usage, Airport Transport, Outstation, and Others), By Rental Duration Type (Short-Term and Long-Term), and Regional Forecast, 2022-2029”.


Diagnosis Procedure Demand Boosted Significantly due to COVID-19 Pandemic


As domestic and international travel was restricted during the pandemic, the lockdown resulted in a significant drop in air traffic. Airlines offered only 51% of available seats in order to maintain social distance, resulting in a total passenger reduction of around 2.89 billion and a loss of approximately USD 391 billion in airline revenue. This sharp drop in travelers had a significant impact on the airport taxi industry, with a drop of more than 30% during the pandemic.


Hertz Announced a Significant Investment  


In October 2021, Hertz announced a significant investment to provide the largest EV rental fleet in North America, as well as one of the largest in the world. This includes the first order of 100,000 Teslas by the end of 2022, as well as a new EV charging infrastructure throughout the company's global operations.


To get a detailed report summary and research scope of this market, click here:


https://www.fortunebusinessinsights.com/car-rental-market-105117


Public Transportation Overload and Social Distancing Guidelines are Driving the Market's Growth


Overcrowding in developing and underdeveloped countries, as well as extensive social distancing guidelines enforced by the government during the COVID-19 pandemic, influenced the populace to use car rental services for travel and commuting. As a result, the increased use of car rental services for comfortable and safe transportation is expected to fuel market growth in the near future.


Furthermore, appealing car rental subscription plans rolled out by key players to offer personal mobility to customers to limit interactions and maintain social distance during pandemics have fueled the popularity and adoption of these services globally. During the forecast period, rising oil prices are expected to hamper the car rental market growth.


Notable Industry Development-



  • March 2021: Hertz Global Holdings sold Donlen Corp., Hertz's fleet management & leasing subsidiary. The effort aimed to reduce Hertz's bankruptcy condition due to the COVID-19 pandemic.


List of Key Market Players:



  • Enterprise Holdings Inc. (U.S.)

  • Hertz Global Holdings (U.S.)

  • Avis Budget Group (U.S.)

  • Europcar Mobility Group (France)

  • Lotte Rental Co. Ltd (South Korea)

  • TOYOTA Rent a Car (Japan)

  • Europcar International (France)

  • Sixt SE (Germany)

  • Localiza Rent a Car SA (Brazil)

  • CAR Inc (China)

  • Alamo Rent A Car LLC (U.S.)


Further Report Findings-


North America dominated the global car rental market share. This can be attributed to the lack of flexibility in public transportation routes and a shift to environment-friendly rental vehicles. This increases the demand for rental cars for leisure activities and business trips. Furthermore, rising tourism in North America and Europe is increasing the demand for rental services.


Table of Segmentation















































  ATTRIBUTE



  DETAILS



Study Period



2018-2029



Base Year



2021



Estimated Year



2022



Forecast Period



2022-2029



Historical Period



2018-2020



Unit



Value (USD billion)



Segmentation



By Vehicle Type



  • Luxury Cars

  • Executive Cars

  • Economy Cars

  • Sports Utility Vehicle (SUVs)

  • Multi Utility Vehicle (MUVs)



By Application Type



  • Local Usage

  • Airport Transport

  • Outstation

  • Others



By Rental Duration Type



  • Short-term

  • Long-term



By Geography



  • North America (U.S. and Canada)

  • Europe (U.K., Germany, France, and Rest of Europe)

  • Asia Pacific (Japan, China, India, South Korea, and Rest of Asia Pacific)

  • Latin America (Brazil, Mexico, and Rest of Latin America)

  • Middle East & Africa


Global Car Rental Market

    CHOOSE LICENSE TYPE

  • No prices are available

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