by The car rental market consists of companies that provide automobile rentals for a period ranging from few hours to a few months. Cars leased through car rental companies are used for travel, commuting, airport transportation, and other utility purposes. Renting cars provides flexibility and affordability compared to owning a vehicle.
The global car rental market is estimated to be valued at US$153.49 Mn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing travel and tourism industry has been a major factor driving the car rental market. International tourist arrivals have nearly doubled over the last 20 years and this trend is expected to continue over the forecast period supported by rising incomes and easier travel regulations in several countries. Car rental services provide a convenient mode of transportation for both leisure and business travelers exploring new locations. As international tourism activities increase, the demand for vehicles on rent is also expected to rise significantly.
SWOT Analysis
Strength: The car rental market size has a large customer base with increasing demand for rental cars for tourism and business purposes.
Weakness: Fluctuations in fuel costs affect the operating costs of rental car companies.
Opportunity: Growth in travel and tourism industry globally increases the demand for rental cars.
Threats: Stringent emission regulations on vehicles pose a challenge for fleet modernization and upgradation.
Key Takeaways
The global car rental market is expected to witness high growth over the forecast period of 2024 to 2031. The global car rental market is estimated to be valued at US$153.49 Mn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2024-2031.
Regional analysis comprises the North America region dominated the car rental market in 2024 with a share of over 35%. The region is expected to continue its dominance due to high business and leisure travel.
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 US and European markets account for over 60% share of the global car rental market owing to large fleet sizes and widespread branch networks of key players.
