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Car rental market to hit $290.07 billion by 2024

Car rental market to hit $290.07 billion by 2024

As per the recent research report, the worldwide car rental market, which offered an opportunity of US$87.07 bn in 2015, will be rising at a CAGR of 14.40% during the period from 2014 to 2024 and the market’s valuation is likely to touch US$290.07 bn by the end of the forecast period. Thanks to the rising number of air travelers, together with the increasing globalization and industrialization, the airport transport segment is likely to remain the leading car rental category for the next few years.

Thanks to the presence of Enterprise Rent-A-Car, Avis Budget Group Inc., The Hertz Corp., EuropCar and Sixt, the global market for car rentals exhibits a highly competitive and consolidated landscape, finds a new study by Transparency Market Research (TMR). These players, collectively, accounted for more than 75% of the overall market in 2015.

Currently, these players are focusing aggressively on broadening fleet sizes and including technical gadgets, such as GPS and music systems, in order to increase the profitability. This, as a result, is likely to intensify the rivalry between them over the forthcoming years, notes the research study.

Presence of Leading Players to Ensure North America’s Lead

A geographical assessment of the global car rental market has also been presented in this research study. According to analysts, the worldwide market has a presence across Latin America, North America, Europe, the Middle East and Africa, and Asia Pacific. North America, among these, has acquired the market’s lead. It held a share of more than 30% in the overall revenue generated in this market in 2015.

At present, the North America market for car rentals exhibits a concentrated structure, owing to the robust presence of Enterprise Rent A Car, Avis Budget Group Inc., The Hertz Corp., and various other local enterprises, particularly in the U.S. and Canada.

On the other hand, Europe, which stood second in 2015, is demonstrating a fragmented landscape in comparison to that of North America’s. France is expected to drive the Europe car rental market in the near future.

Researchers expect Europe and North America to maintain their lead throughout their forecast period; however, at a declined growth rate due to their maturing state. Asia Pacific, on the flip side, is likely to progress at a higher pace over the next few years, thanks to the significant rise in the tourism industry in this region, states the report.

Rising Number of Air Travelers to Boost Demand for Car Rental Services

“The significant rise in the number of air travelers is having the most prominent impact on the global car rental market,” says the author of this research study. The global travelers are increasingly demanding reliable and high-quality travel services during their outstation tours. Almost all of the leading car rental service providers are trying to benefit from this trend by promoting their brands at major airports, which eventually, is proving to be fruit-bearing for them due to the high number of air travelers.

On the other hand, the volatility in oil prices may limit the growth of the worldwide car rental market to some extent in the years to come, report the research study.

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