Car rental: Key market research findings
- North America dominates the market geographically
- The airport transport segment accounts for a majority of the market’s revenue
- Key vendors – Avis Budget, Carzonrent, Enterprise Holding, Europcar, Hertz, and Sixt
Technavio’s market research analysts predict the global car rental market to grow at a CAGR of around 16% between 2016 and 2020. Car sharing has become one of the important segments for revenue generation in the market. It is booming in most regions and is becoming a means of revenue generation for companies as well as individuals. During 2015, the global car rental market was dominated by North America with a market share of around 39%. Factors such as a rise in accessibility and affordability of insurance and the growing popularity of car sharing services will fuel the growth of the car rental market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the car rental segments based on the rental category.
“Car rental companies are increasingly adding cars to their fleet that have advanced telematics solutions and navigation functionalities. Technology solution providers and automobile manufacturers are now providing innovative web-based solutions to facilitate the integration of devices such as smartphones with cars. The market is also witnessing the emergence of online mobility booking agencies and payment engines for hassle-free booking and renting of automobiles,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
Currently, the global car rental market is dominated by the airport transport segment with a market share of almost 42%. Companies such as Enterprise Rent-A-Car, Getaround, and RelayRide provide airport car rental services. Small companies are also entering this market and as a result, the competition is intensifying. The vendors also compete based on innovations, processes, and technologies. They also provide many services to car rental customers, including complimentary vehicle insurance.
The key vendors in the market include Avis Budget, Carzonrent, Enterprise Holding, Europcar, Hertz, and Sixt. Intense competition in the market is reducing the profit margins of vendors. As a result, they are exposed to some significant financial risks. Vendors are also acquiring smaller companies to strengthen their foothold in the market. In addition, the dynamic technological environment is a major challenge for vendors. To survive and succeed in this intensely competitive environment, it is imperative for them to distinguish their service offerings through a clear and unique value proposition.
A more detailed analysis is available in the Technavio report, Global Car Rental Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
- Corporate Car-sharing Market in Europe 2015-2019
- Car Fleet Leasing Market in the US: Market Demand and Forecast 2015-2019
- Travel Trailers Market in North America 2015-2019
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