Major growth predicted for car rental market
Original date of publication: July 6, 2020
Kemwel - Despite COVID-19 disruptions, the market outlook for global car rentals appears sunny with an anticipated 11.6% CAGR (compound annual growth rate) from 2015 until 2022, according to Car Rental Market by Application, Rental Category and Vehicle Type and Multi Utility Vehicle: Global Opportunity Analysis and Industry Forecast, 2020-2027. As reported by Globe News Wire, the value of the sector will allegedly increase from about US$79.65 million in 2015 to US$164.34 million by 2022.
Similarly, the same source asserts that majority of the action takes place in North American markets with over half of the shares. Factors ranging from low rates of car ownership among young people and the influx of on-demand transport services such as car rentals can be attributed to this forecast. By the end of 2022, other experts claim that luxury car rentals will be among the most trending vehicles with a projected value of US$22.5 billion and a 14.5% CAGR.
Cheap car rental breakdown
Although these official reports has a paywall, the publications provide insight into the international car rental market where approximately half of the market shares take place in North America followed by Europe. Kemwel also partners with three of the largest car rental companies that cumulatively represent about 75% of the entire industry such as Enterprise, Hertz and the Avis Budget conglomerate. While Enterprise is privately held, both Hertz and Avis Budget are publicly listed companies. Other cheap car rental suppliers that Kemwel partners with include Sixt, Localiza, Movida, and Unidas. These companies collaborate with Kemwel to furnish travelers with affordable car rentals in over 20,000 international locations.
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Key takeaways of the car rental report
Some of the essential takeaways from this publication range from sales, revenue, and price analysis to in-depth market growth studies. Not only will this include identifying market opportunities, risks and overviews but also valuable information regarding distributors, traders, manufacturers, and other industry players. For example, here is where readers will learn that economic car rentals represented the most transactions in the market back in 2015 with revenue surpassing US$22.8 million. Other insights include the propensity for off-airport car rentals, in addition to the North American markets generating the most capital with US$32.248 million. All the while, the Asia-Pacific region will likely take over the majority of market shares as continental players continue to sell more cars.