Global Car Rentals Market: Handful of Dominant Players try to Outsmart Each Other through Improvised Services
The global market for car rentals is a consolidated one with the top five players accounting for about three-fourths of the market. The top five players are Avis Budget Group Inc., Enterprise Rent-A-Car, EuropCar, the Hertz Corp., and Sixt. Competition among them is stiff as they up their fleet sizes and embed them with modern gadgets such as GPS and music systems to entice more customers.
A research report by Transparency Market Research states that the worldwide car rental market will expand at an impressive CAGR of 14.40% from 2014 to 2024 to attain a value of US$290.07 bn by 2024 from US$87.07 bn in 2015.
Which category of car rental is most popular and why?
Depending upon the category, the global market for car rental can be segmented into outstation, local usage, and airport transport, among others. On account of increasing globalization, which has led to a massive upswing in air travel, the airport transport segment leads the car rental business and will likely continue doing so in the years ahead. Fatigued global travelers are increasingly seeking reliable and good-quality travel services on their outstation tours and most leading car rental service providers are tapping into the opportunity by promoting their brands at important airports.
What factors are facilitating a stellar growth in the global market for car rentals?
Stoking growth in the global market for car rentals is the increase in economic growth worldwide resulting in higher disposable incomes and the substantial growth in the business class, especially in developing economies. Bettering road infrastructure and the green revolution in the automotive sector are also predicted to boost growth in the near future.
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One factor slated to counter the growth in the global car rental market is the volatility in prices of gasoline and petroleum products affecting the fares charged. The not-so-good economic conditions in certain regional pockets is also impacting the market negatively.
What makes North America a dominant player in the global market for car rental?
Depending upon geography, the global market for car rental is segmented into Europe, Latin America, North America, the Middle East and Africa, and Asia Pacific. Among them, North America leads in terms of revenue. In 2015, for example, the North America market generated US$26.40 bn in revenues. This is because of the significant presence of prominent companies in the region such as the Hertz Corp., Enterprise Rent A Car, and Avis Budget Group Inc., along with various regional and domestic enterprises in the U.S. and Canada.
“The Europe market for car rentals, which held the second position in 2015, demonstrates a comparatively fragmented landscape. In this region, France holds the lead and is expected to remain seated in this position in the near future,” states a report by Transparency Market Research.
In the upcoming years, even though Europe and North America will retain their dominant positions, the growth in their markets will likely to slow down on account of becoming saturated. Asia Pacific, on the other hand, will exhibit maximum gain in terms of revenue and market share owing to the robust tourism industry in the region.