Global Car Rental Market Expected To Reach USD$ 99.38 Billion By 2020 With A CAGR Of 16%

Date: 2016-09-18

Global car rental industry is experiencing a major transformation. Car rental is a service that offers automobiles on predefined rent for a short time. Rental period ranges from few hours to weeks. Car rental offers better mobility with no the requirement to pay different costs related with car ownership. It provides flexibility to prefer vehicle depending on requirement and budget. Car rental companies also offer different value added services such as entertainment systems, insurance and GPS navigation systems. Car rental service providers are widely found in the vicinity of busy city center and airports.

The global Car Rental market was estimated at USD$ 47.1 billion in 2015, and is anticipated to reach USD$ 99.35 billion by 2020, expanding at a CAGR of 16% between 2016 and 2020. Increasing participation in outdoor recreational activities is a key factor driving this market. This, in turn, is expected to bolster the sale of Car Rental further promoting the growth of this market.

North America was the major region in car rental market, with approximately more than 35% share in total revenue in 2014. This growth is supported by strong growth in business and leisure travelling in this region. The rental vehicle industry is inextricably connected to the tourism industry. Tourism influences the rental vehicle industry at major tourism destinations and airport. Rental cars at major airports represent a considerable proportion of the overall turnover of this industry. Substantial economical growth, improved road and infrastructure facilities, steep rise in tourism are major supporting reasons for the strong growth car rental market in Asia Pacific region. Europe and Middle East regions are also estimated to witness significant growth of car rental market in the near future.

The US was the leader in the car rental market in terms of both market value (US$30.7 billion in 2014 equivalent to 42.6% share) and fleet size (2 million rental cars). The US also had the highest utilization rate (81% in 2014), rental occasions and rental days. China was the fastest growing market in terms of market size (CAGR 22.42%) and fleet size (CAGR 18.47%) during the historic period. Switzerland topped the list in terms of average revenue per day (US$90.4 in 2014) while the Philippines was the fastest growing market (CAGR 6.32%). Portugal had the highest average rental length of 7.6 days in 2014.
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Joanna | Executive – International Business and partner Relations
E-mail: | Tel: 1-510-400-8520

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