Why Infrastructure & Travel Activities Are Key Factors For Car Rental Growth
The travel and tourism industry will continue to progress, reaching its global market connectivity. This growth is backed by the constant improvement of travel and tourism competitiveness across several regions, which stems in part from the expanding aviation capacity, increased international openness and reduction in travel cost.
It is recorded that a significant rise in the number of people travelling choose business and leisure travel is directing the demand for car rental services across the region that is set in motion for the industry’s growth.
In general, car rental is the process of renting a car or a vehicle for a particular period of time for any purpose, usually with bookings in a few hours or even a few days and weeks. As per the customers’ demand and budget, car rental companies worldwide offer a wide range of vehicle options such as executive cars, luxury cars, SUVs, MUVs and economy cars.
Global Car Rental Market Insights
Across growing economies, the key factor for the car rental growth in the global car rental market is the rising demand for the travel and tourism industry activities and improved road infrastructure. In addition, some of the factors anticipated to fuel the growth of the focused market over the prediction period are the increasing adoption of information technology and technological advancements.
Additionally, the key players’ increasing focus on the development of the low-cost services and the improvement in quality and the continence travel-related services are some of the other such factors that are anticipated to expand the growth of the target market over the forecast period.
The demand for large vehicles is increasing, and volatility in crude oil prices is anticipated to set in motion its target market development over the forecast period. However, The huge operational expenses and varying products like gasoline and petroleum prices are the key factors looking forward to restraining the development of the global car rental market over the forecast period.
In the target market, the ongoing trend in the travel industry, as witnessed, is the developing digitization, autonomous vehicles, and innovative technologies in the car rental services; this recent trend is anticipated to support the growth of the target market across the forecast period.
The frequent use of the internet for customization of travel, bookings and innovations in technology in the evolving global car rental market is anticipated to generate possible revenue chances for the players performing in the target market. In the target market, the key players are working towards improving their business model and the services and products offered through various business strategies like a new product launch, agreements, acquisitions, mergers, etc.
Among the divisions of vehicle type, the economy cars division is anticipated to influence the global car rental market due to its compact nature and cost-effectiveness of economy cars that are being chosen for airport services and intra-city travels. Among the divisions of application, the airport shuttle division is anticipated to record a remarkable growth over the forecast period, owing to the developing number of travellers in the aviation sector globally.
The car rental market in North America is most anticipated to influence the global car rental market concerning the revenue, and over the forecast period, it is expected to carry on with its dominance. Due to this, a large number of business trips and vacations in local and international are associated across many other countries in North America.
Vehicle Segmentation Insights
The car rental market in the Asia Pacific is anticipated for a record of remarkable growth regarding the CAGR (Compound annual growth rate) over the forecast period that possesses an increasing travel and tourism sector and also the increasing availability of all vehicle segmentation from high-end luxury vehicles to economic vehicles, especially across the region’s developing countries.
The global car rental market comprises the segmentation of different vehicle types, including luxury cars, executive cars, economic cars, MUVs, & SUVs. The segmentation by application includes the local transportation services, outstation, airport transport, and others. The global car rental market segmentation by region includes North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.