Business Analysis of Car Rental Market 2020
One of the key factors responsible for the boom in the demand for rental cars is the flourishing travel and tourism industry across the world. As per the World Travel and Tourism Council (WTTC), the global travel and tourism industry observed a growth of 3.9% from 2017 to 2018, which is considerably higher than the global GDP growth rate of 3.2%. In addition to this, there has been a signifiant increase in the disposable income of the people throughout the world, which is also contributing toward the increasing adoption of rented vehicles.
Car Rental MArket 2020
Due to the above-mentioned factors, the revenue generated from the provision of rental services stood at $78.7 billion in 2018 and is predicted to reach $122.6 billion by 2024. The car rental market is projected to advance at a 7.9% CAGR during the forecast period (2019–2024). There are three types of vehicles available for rent purposes namely economy, executive, and luxury. Amongst these, the economy vehicles, owing to their high fuel efficiency and low environmental impact, recorded the highest usage for rent purposes in 2018.
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The other important factor boosting the demand for rental cars is the convenient mobility features offered by these vehicles. By renting a car, a person can enjoy all the facilities that come with the ownership of a personal vehicle. Moreover, a rented vehicle doesn’t require the various kinds of additional investments that come with the ownership of a personal vehicle such as fuel costs, vehicle maintenance costs, insurance costs, and parking expenses. These features and advantages of rental cars make them highly-sought after, thereby pushing their demand across the globe.
Globally, North America is expected to record the highest demand for rental cars during the forecast period. In North America, the U.S. is expected to register the higher demand for car rental services during the forecast period mainly, on account of the increasing initiatives adopted by several car rental service providers in order to promote the utilization of rental cars.
For instance, Uber Technologies Inc. adopted modern mobile technologies and many other devices in their vehicles in order to meet the soaring transportation requirements of consumers, more efficiently.Therefore, due to the burgeoning demand for rental cars, especially for travelling purposes and the soaring government initiatives in many countries promoting the use of car rental services, the demand for rental cars is expected to increase significantly in the coming years.
