Car Rentals Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Car Rentals market reached a value of about USD 66.3 billion in 2021. The industry is projected to grow at a CAGR of around 6.5% in the forecast period of 2022-2027 to reach a value of about USD 96.74 billion by 2027.

The global Car Rentals industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is being driven by the rising demand for the service by consumers while travelling. North America is the highest category spender by region, driving the need for the Car Rentals industry.

Industry Definition and Segmentation

A vehicle rental or car hire agent is a business that lends out automobiles for a charge to the public for short periods, usually from a few hours to a few weeks. It is frequently structured with many local branches and is primarily placed near airports or major city centres, with a website that allows online bookings. The Car Rentals industry report comprises segments by region (North America, Europe, Asia Pacific, the Middle East and Africa, and South America).

North American Region is Driving the Growth of the Industry

North America holds the largest share in the industry due to the increasing number of leisure and business journeys across the area, both domestically and globally. The increased use of automobile rental services in the United States, the expanding acceptance of electric cars, and growing concerns and knowledge of fewer emissions among customers in the region contribute to this increase in revenue share. Furthermore, the area contains a variety of well-known tourist spots that draw a considerable number of visitors that demand automobile rental services, encouraging industry growth.

An increase is aiding the market in the number of individuals travelling for business and pleasure worldwide. The benefits of the services like time efficiency, access to see more sights, carrying more luggage, feeling more at ease, and cutting down on waiting time are furthering the industry's expansion. The growing trend of 'bleisure' is a new trend in the travel and tourist sector. Bringing the family on business travels is becoming increasingly common as firms seek to improve employee retention and reduce stress. As a result, the market is expanding. Rising smartphone and internet penetration in both emerging and established nations have aided enterprises in the industry to capture a broader client base by providing specialised mobile applications for customers' convenience. Other factors like growing concern over rising pollution levels Boost demand as automobile rentals significantly reduce pollution by lowering the volumetric sales of owned vehicles.

Best Procurement Practices

The global Car Rentals industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by central international Car Rentals regions, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Automobile rental firms generally make money by buying or leasing a fleet of automobiles and then renting them to consumers for a charge. They assist those who have a temporarily unavailable car or are out of services, such as out-of-town travellers or owners of damaged or destroyed vehicles awaiting repair or insurance settlement. Rental fleets can be structured in many ways. For example, they can be owned outright, leased, or under a guaranteed buy-back programme arranged directly through a manufacturer or manufacturer's financial arm. Rental firms may also service the demands of the self-moving industry by renting vans or trucks. Other vehicles such as motorbikes or scooters may also be available in some regions.

Developments in the Service by Providers, Further Driving the Car Rentals Market

The industry is witnessing growth due to the advent of technology in the sector. Increased information technology use alters the sector and allows operators to provide better services to their clients. Improved customer and company information management and simple internet booking tools are two critical ways vehicle rental companies may offer better service to their clients. As a result, the industry is likely to witness a positive impact.

Despite this, the high price of the service paired with low internet penetration is likely to act as market restraints.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Car Rentals Industry Report

• Enterprise Holdings Inc.
• The Hertz Corporation
• Avis Budget Group Inc.
• Europcar Mobility Group
• Sixt SE

Market Landscape

With various foreign and domestic enterprises operating worldwide, the market is relatively fragmented. The sector, however, is on the edge of consolidation, with only a few competitors acquiring significant market share. Key automobile rental companies are expected to concentrate on expansion initiatives to obtain regional market share, raise brand recognition, and enter new markets. These companies are primarily concerned with improving their offerings to expand their client base and increase profits.

Key Initiatives by Companies

• Hertz, a vehicle rental company, began charging an annual membership fee for its 24/7 service, allowing members to hire cars and vans without using their credit cards.
• Sixt, a vehicle rental firm, announced a partnership with Accor, a French hospitality company, in February 2022. Accor guests and employees will benefit from additional tempting advantages – at no cost — due to the deal.