Car Rental and Leasing Market Size, Share, Growth, and Industry Analysis, By Type (Offline Access, Mobile Application & Others), By Application (Intercity, Intracity, On-Airport & Others), and Regional Forecast to 2033

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CAR RENTAL AND LEASING MARKET OVERVIEW

The global Car Rental and Leasing Market size stood at USD 130.15 Billion in 2024 and is projected to reach USD 140.72 Billion in 2025, growing further to USD 262.67 Billion by 2033 at an estimated CAGR of 8.12%.

Car Rental and Leasing provide services that are readily available at competitive rates depending on the client's requirements. Regardless of the need, whether it is to have a car for a one- or two-day trip, you need it for projects that will take some time, or you just need more transport for your fleet, then you do not need to worry anymore. Our services include a wide variety of categories of vehicles, from small categories to large and spacious ones. Our simple booking forms, affordable prices, and exceptional customer care are aimed at making your rental or leasing experience a pleasure.

COVID-19 IMPACT

Car Rental and Leasing Industry Had a Negative Effect due to Travel Bans

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

COVID-19 had a very negative effect on these markets. When the COVID-19 breakout occurred across the globe, the government placed restrictions, such as being banned from travelling, which in turn minimised the market for rental cars, hence low revenue for rental firms. This was made worse by a volatile economy and resultant job losses that saw consumers cut back on nondurable goods purchases. Also, there was a shift to working from home; people did not have to commute daily to work, thus affecting the demand for car rentals. 

LATEST TRENDS

Ride-Booking App to Propel the Market Growth

The market for these services was under massive evolution and transformation due to new technologies and shifting consumer behaviour patterns. However, newer services such as the ride-booking app and the growing trend towards electric cars are revolutionising the field. The traditional procedure of renting products with a monthly subscription has even started emerging in many business models, giving affordable service to users. On the same note, the use of sophisticated equipment, including telematics and artificial intelligence, in fleet management is offering a rich customer experience and also increasing operational effectiveness. 

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CAR RENTAL AND LEASING MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Offline Access, Mobile Application & Others

• Offline Access: These refer to places where customers can access services, fill out booking forms, enter into contracts, and drop off or pick up their vehicles. They always link with the rental firms in order to incorporate car rentals, especially within packages that they set forth for touring.

• Mobile Application: These are applications created either by the rental company or by a third-party vendor and let the customers choose, arrange, and pay for a rental through their mobile phones. Certain online travel agencies or airline mobile applications offer car rentals as well; they try to make it convenient for their clients to arrange for all their travelling needs in one place.

By Application

Based on application, the global market can be categorized into Intercity, Intracity, On-Airport & Others

• Intercity: Taxis for travelling to and from cities, states, or countries. Vehicles hired for one day or one week, or for weeks when families embark on vacations. Corporate usage of cars for business travel and meetings.

• Intracity: Daily rentals for employees’ shuttles (to and from work) and schooling (to and fro school). Cars employed in operating chores and shopping within a city. Tourist self-drive cars hired for going round a city to different places of interest.

• On-Airport: Car hire for airport pick and drop services. Cars hired for several hours or a few days when waiting for other flights or a connecting flight. Business meetings cars hired near airports.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Growing Urbanisation to Expand the Market

A factor in the Car Rental and Leasing market growth is the Growing Urbanisation. This is because, with the growing population in cities, there is always a need for more transportation techniques. Consumer preferences for these services as convenient and flexible means for urban inhabitants’ mobility explain the market’s expansion.

Evolving Consumer Preferences to Advance the Market 

The main factors that make consumers opt for these services include changes in consumer tastes and preferences that include flexibility, in which one is able to move around with varieties of cars instead of a single one. I have given the trends as follows: Some new tendencies in forming the market are the subscription-based models and on-demand services.

Restraining Factor

Ride-Sharing to Pose Potential Impediments on this Market

An important limitation to this market is the growing trend of ride-sharing. Examples are Uber and Lyft, which provide cheap means and convenience for transport; hence, people do not require cars or even rent them, especially in urban areas. This could make rental companies uncomfortable with their charges and offer discounts and other bonuses to attract their clients.

Opportunity

Electric Vehicles to Create Opportunity for this Market

The rising focus on electric vehicles (EVs) can be seen as a big growth driver in this market. As the EV vehicle usage rises, so will likely the provision of renting/leasing services. Firms engaged in rental services that invest in EV fleets and charging capabilities can capture market opportunities in the ECC market appealing to customers’ conscious choice values.

Challenge

Regulatory Concerns to Pose Potential Challenge for this Market

Regulatory concerns are another difficult issue that affects this market at the moment. Some of the drastic measures in features of emissions-controlled vehicles, fuel efficiency, and driver safety have led to raised operational costs to governments, hence affecting rental businesses. Furthermore, data and cyber security regulations present challenges in handling client information and ensuring secure business from cyber criminals.

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CAR RENTAL AND LEASING MARKET REGIONAL INSIGHTS

• North America

Since North America is one of the leading economies of the world, it holds the large market share in terms of car rentals. The United States Car Rental and Leasing Market is one of the largest markets in the world, populated and possessing coordinated and sustainably developed infrastructure. Canada is a second-tier supplier that nonetheless plays a role in the regional market.

• Europe

Europe is another region in this industry home to a variety of cultures and economies within individual countries. London, Paris, and Berlin are major cities in Europe, and travellers will always need cars for rent to enhance their mobility.

• Asia

Asia is still a rapidly developing continent of steadily increasing population with a growing middle-income population. China, India, and Japan are also emerging markets for these industries owing to the growing population rate, increased urbanisation rate, and improved per capita income.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Influences

It is therefore pertinent to discover that market giants in this market possess a lot of market power through market share influence, brand image, and product differentiation. Large car rental companies, including Hertz, Avis, Enterprise, and Europcar, normally influence most of the strategies within the market. They also meet their suppliers to gain better deals, fund new technologies, and increase their market around the globe. Equally, such companies have brand loyalty and a larger customer base than the new entrants to the market. 

List of Top Car Rental and Leasing Companies 

• Localiza-Rent a Car (Brazil)
• Eco Rent a Car (India)
• The Hertz (U.S.)
• Europcar (France)
• Al Futtaim (UAE)

KEY INDUSTRY DEVELOPMENTS

2024: Enterprise Rent-A-Car revealed a few weeks ago that it is an electric car supplier for Tesla. This partnership will help expand the capacity for renting EVs so as to enable a shift towards environmentally friendly means of transport as well as filling the need that the current consumer market has been showing for more efficient automotive.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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