Car Rental Market to Reap Lucrative Gains from Adoption of Advanced Digital Technologies
The competitive landscape of the global car rental market is fairly consolidated as the leading five players accounted for a massive share of upward of 75.0% in 2015, finds Transparency Market Research (TMR). These top companies are Enterprise Rent-A-Car, Avis Budget Group, Inc., the Hertz Corporation, Sixt SE, and Europcar. These players are engaged in expanding the size of their fleets to hold their sway throughout the assessment period. Moreover, they are offering high technology gadgets for vehicle users, with an aim to consolidate their shares in the market.
TMR notes that the market is highly competitive with the presence of notable rivalry between prominent players. Over the years, the adoption of various strategic moves to remain at the fore will further up the intensity of competition and raise the ante higher for new entrants. A growing number of players are focused on consistently offering better services tailored to meet a wide spectrum of needs among inbound as well as domestic travelers.
The global car rental market is prognosticated to expand at an impressive CAGR of 14.40% during the forecast period of 2014–2024. The valuation of the market is projected to touch a valuation of US$290.07 billion by the end of the assessment period.
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The various regional markets for car rentals are the Middle East and Africa, North America, Europe, Latin America, and Asia Pacific. Of these, North America leads the pack with a major share in 2015 and is expected to retain its dominance through the forecast period. This is attributed largely to the marked presence of key companies in the region.
The various categories that car rental service providers cater to are for airport transport, local usage, and outstation. Of the three, the airport transport segment holds the sway. The substantial demand for car rental services stems from the rising global air passenger traffic and the rapid strides taken by industrialization in several parts of the world are boosting the segment.
Rising Demand for Reliable and Convenient Travel from Inbound and Domestic Travelers fueling Growth
The global car rental market is primarily driven by the substantial demand for quality and convenience travel services coming from inbound and domestic tourism. A burgeoning air passenger traffic in several industrialized nations is a notable factor accentuating the market. The growing popularity of outstation tours in developing economies is also bolstering the demand for car rental services.
Efforts to bring technological innovation in the car rental market is exerting a profound impact on their mobility of these vehicles and helping the market evolve rapidly. The integration of advanced technologies has gathered steam among corporate travelers and is sustaining a culture of diverse offerings. In this regard, the advent of game-changing digital technologies and the giant leaps being taken by internet of things (IoT) platforms are trends opening lucrative prospects for market players.
Furthermore, advances in telematics technology augurs well for the market. Industry efforts to make the booking easier through online apps has stoked the popularity of car rental services. The substantially rising demand for car pool services among urban consumers is substantially adding to the global revenues.
Advent of Green Car Rental Services open New Revenue Streams for Service Providers
The growth of the market is catalyzed by the growing availability of a variety of cars to suit the needs and preferences of consumers. However, the demand for carpool and other car rental services is hampered by the stringent governmental emission curbs in various developing and developed nations. Nonetheless, the rising focus of regulatory agencies to exhort car rental providers to provide eco-friendly, green car rental services has expanded the avenue in the market. In this regard, the rising advent of hybrid vehicles is creating room for lucrative avenues in the market.