NEW YORK, July 24, 2024 /PRNewswire/ -- The global car
rental (self drive) market size is estimated to grow by
USD 3.42 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 45.08% during the forecast period. Growing interest in
self-driving vehicles is driving market growth, with a trend
towards use of telematics in self-drive car rentals. However, high
cost of self-driving car rental poses a challenge. Key market
players include Aspark Holidays Pvt. Ltd., Aurora Innovation Inc.,
Autorent Car Rental LLC, Avis Budget Group Inc., DriiveMe Ltd.,
Enterprise Holdings Inc., Hertz Global Holdings Inc., Localiza Rent
a Car SA, Primemover Mobility Technologies Pvt. Ltd., SIXT SE, Volkswagen AG, and Zoomcar India Pvt.
Ltd..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Vehicle Type (Economy
cars and Luxury cars), Mode Of Booking (Offline and Online), and
Geography (North America, Europe, APAC, South America, and Middle
East and Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
Aspark Holidays Pvt.
Ltd., Aurora Innovation Inc., Autorent Car Rental LLC, Avis Budget
Group Inc., DriiveMe Ltd., Enterprise Holdings Inc., Hertz Global
Holdings Inc., Localiza Rent a Car SA, Primemover Mobility
Technologies Pvt. Ltd., SIXT SE, Volkswagen AG, and Zoomcar India
Pvt. Ltd.
|
Key Market Trends Fueling Growth
Telematics technology has revolutionized self-drive car rentals
by providing real-time data on vehicle location, speed, condition,
and usage. This data enables rental companies to monitor mileage,
fuel consumption, and identify potential issues before they become
major problems. Additionally, telematics simplifies the rental
process with automated check-in and check-out, streamlined payment,
and accurate billing. It reduces the likelihood of disputes over
extra days or miles and enhances vehicle security through GPS
tracking and remote disabling. The technology also promotes safer
driving habits by analyzing data on speed, braking, and
acceleration, providing feedback to renters for improvement. These
benefits are expected to fuel the growth of the global self-drive
car rental market.
The car rental market is thriving with trends like complementary
services, corporate offices, and service professionals opting for
self-drive solutions. Tourists and millennials prefer inexpensive
travel, seeking cars for local usage and outstation trips. Airports
are major hotspots for car rentals, offering airport transport in
economy cars, executive cars, MUVs, and SUVs. Wi-Fi networks,
entertainment systems, and GPS systems are becoming essential
add-ons. Insurance plans cater to various needs, from short-term to
long-term rentals. The tourism and commuting sectors significantly
contribute, with urban population and mobility infrastructure
driving demand. The car rental sector offers a wide range of
vehicles, from compact economy cars to spacious SUVs, catering to
diverse consumer needs. Online and offline booking options ensure
convenience. Road transportation infrastructure continues to
support the growth of this sector.
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Market Challenges
- Self-drive car rentals can be an enjoyable experience for
travelers, but the costs can add up. Daily rental rates, mandatory
insurance, taxes and fees, additional services, and deposits are
the primary contributors to the high cost. Rates fluctuate based on
car type, season, and location, with popular tourist destinations
and peak travel times seeing higher prices. Comprehensive insurance
is required, covering the car, occupants, driver, and other
vehicles or people in an accident, leading to substantial expenses.
Taxes and fees vary by location and include airport fees, local
taxes, and registration fees. Extra fees for services like GPS, car
seats, and toll transponders also increase the total cost. Rental
companies require a deposit, typically a credit card hold, ranging
from hundreds to thousands of dollars. Lastly, fuel costs depend on
the car's efficiency and driving distance. These factors may hinder
the growth of the global self-drive car rental market.
- The Car Rental market in India
is thriving, particularly in the tourism sector. Rural areas
present a significant opportunity, but challenges exist due to the
unorganized market. Fleet management for inter-city and intracity
travel, including hatchbacks, sedans, SUVs, and MUVs, requires
careful planning. International arrivals and tourist arrivals boost
demand for car rentals, especially at tourist destinations along
national highways. New-age startups offer tech-savvy solutions
through websites and mobile applications, enabling e-booking
services. Insurance options are crucial, catering to both owned and
leased vehicles. The organized market focuses on standard and
luxury cars, while the unorganized sector targets quick getaways
with local tourist destinations. Booking channels include online
portals and physical bookings, with daily packages and lease
contracts available for various booking periods. Car portfolio,
custom services, and after-sale services are essential for customer
satisfaction.
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challenges - Download a Sample Report
Segment Overview
This car rental (self drive) market report extensively covers
market segmentation by
- Vehicle Type
- 1.1 Economy cars
- 1.2 Luxury cars
- Mode Of Booking
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Economy cars- Self-driving economy cars are the
most popular and affordable choice in the car rental market,
particularly for budget-conscious travelers. These vehicles offer
fewer amenities and smaller engine sizes, making them more
fuel-efficient and cost-effective. The absence of a human driver
allows rental companies to offer lower rates, making self-driving
economy cars an attractive option for those looking to save on
transportation costs. Additionally, their fuel efficiency leads to
further savings on fuel expenses. These cars are ideal for
individuals and businesses with shorter trips due to their compact
size and ease of maneuverability, making them perfect for
navigating city streets and tight parking spaces. Their
self-driving feature offers travelers the convenience of an
automated driving experience while maintaining control over their
itinerary. The increasing interest in self-driving technology is
expected to fuel the growth of the economy car segment in the
global car rental market during the forecast period.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
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reports
The vehicle leasing market in Europe is experiencing significant growth,
driven by increasing consumer demand for flexible transportation
solutions. The self-drive car rental market is also expanding, with
advancements in technology enhancing customer experiences.
Globally, the car rental market is projected to grow at a CAGR of
7.5% from 2023 to 2028, fueled by rising travel and tourism
activities. Key players are focusing on innovation and digital
integration to cater to evolving customer preferences, making the
car rental industry a dynamic and competitive landscape.
Research Analysis
The car rental market, both online and offline, caters to
various segments including tourism and commuting, with options for
short-term and long-term rentals. The millennial population's
preference for mobility infrastructure has fueled the growth of
this market. In the organized sector, tourists and private
automobile owners can rent hatchbacks, sedans, SUVs, MUVs,
standard, and luxury cars for intra-city and inter-city travel.
Economy cars and executive cars are popular choices for business
travelers. Unorganized players also exist, offering inexpensive
travel solutions. Airports are significant contributors to the
market, with rental services available for both short-term and
long-term stays. Rentals often come equipped with Wi-Fi networks,
entertainment systems, GPS systems, and insurance plans for added
convenience.
Market Research Overview
The car rental market caters to both tourism and commuting
needs, offering short-term and long-term solutions for consumers.
With the growing millennial population and urbanization, mobility
infrastructure has become essential, making car rental services an
attractive option for personal mobility. The market includes both
online and offline players, with new-age startups disrupting
traditional car rental businesses. Tourism sector growth, driven by
international, tourist, and foreign tourist arrivals, significantly
contributes to the car rental sector. Car rental services are
available for local tourist destinations, quick getaways, and
inter-city and intra-city travel. The car rental sector offers a
diverse car portfolio, including hatchbacks, sedans, SUVs, MUVs,
standard, and luxury vehicles. Consumers can choose from owned,
leased, or rental options. Custom services, after-sale services,
and complementary services add value to the rental experience. Car
rental services provide insurance options, and the market is
segmented into the organized and unorganized sectors. Tech-savvy
consumers prefer online portals, mobile applications, and e-booking
services for convenience. Car rental companies offer various
booking packages, daily packages, and flexible booking periods. Car
rental services cater to corporate offices, service professionals,
tourists, and private automobile users, providing inexpensive
travel solutions. Additional features like Wi-Fi networks,
entertainment systems, GPS systems, and insurance plans enhance the
rental experience. Car rental services are available at airports,
offering airport transport and local usage options. Economy cars,
executive cars, MUVs, SUVs, and luxury cars are available for
different budgets and needs.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Vehicle Type
-
- Mode Of Booking
-
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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