Summary
- • The global car rental market size was valued at USD 98.14 billion in 2020
- • The car rental market is expected to grow at a CAGR of 4.6% from 2021 to 2028
- • North America dominated the global car rental market with a share of 38.3% in 2020
- • The Asia Pacific car rental market is expected to witness the fastest growth rate of 6.3% from 2021 to 2028
- • Enterprise Holdings (Enterprise Rent-A-Car, National, and Alamo) holds the largest market share in the US, with approximately 33% of the market
- • Avis Budget Group holds about 26% of the US car rental market share
- • Hertz Global Holdings accounts for approximately 18% of the US car rental market
- • The average daily rate for car rentals in the US was $66.04 in 2020
- • The US car rental industry generated revenue of approximately $23.22 billion in 2020
- • The leisure segment accounted for 55.7% of the global car rental market in 2020
- • The business segment is expected to grow at a CAGR of 5.1% from 2021 to 2028
- • Economy cars segment held the largest market share of 40.3% in 2020
- • The luxury cars segment is projected to expand at the fastest CAGR of 5.4% from 2021 to 2028
- • Online bookings accounted for 55.9% of the global car rental market in 2020
- • The offline booking segment is expected to grow at a CAGR of 3.9% from 2021 to 2028
Buckle up and get ready for a wild ride through the fascinating world of the car rental industry, where statistics are revving up like never before. From the global market size hitting USD 98.14 billion to North America dominating the scene with a 38.3% share, its evident that the wheels of this industry are spinning faster than ever. With Enterprise Holdings leading the pack in the US market and the luxury car segment poised for accelerated growth, this blog post will steer you through a data-driven journey that proves car rentals are more than just pick-up and drop-off – theyre a powerhouse of trends, numbers, and the occasional road trip getaway.
Booking Channels
- Online bookings accounted for 55.9% of the global car rental market in 2020
- The offline booking segment is expected to grow at a CAGR of 3.9% from 2021 to 2028
Interpretation
In a world where the click of a button reigns supreme, the global car rental market has truly embraced the digital age with online bookings capturing the lion's share at 55.9%. However, let's not count the offline booking segment out just yet, as it plans to march forth at a steady pace with a CAGR of 3.9% until 2028. It's a tale of two worlds: one where convenience is key, and the other where tradition holds its ground. So, whether you're swiping through options on your phone or dialing up the old-fashioned way, the car rental industry ensures there's a ride for everyone in this fast-paced journey towards the future.
Company Market Share
- Enterprise Holdings (Enterprise Rent-A-Car, National, and Alamo) holds the largest market share in the US, with approximately 33% of the market
- Avis Budget Group holds about 26% of the US car rental market share
- Hertz Global Holdings accounts for approximately 18% of the US car rental market
- Sixt SE holds approximately 8% of the European car rental market share
Interpretation
In the fast-paced world of car rentals, the numbers speak volumes, and it seems like Enterprise Holdings is truly living up to its name by holding a staggering 33% of the US market share. Avis Budget Group and Hertz Global Holdings are clearly revving their engines in hot pursuit with 26% and 18% respectively. Meanwhile, Sixt SE may have a smaller slice of the European market, but with 8%, they're proving that good things come in stylish German packages. Whether you're cruising down the highway in an Alamo or zooming through the autobahn in a Sixt, one thing is clear – the car rental industry is a competitive race that's always shifting gears.
Customer Behavior
- The average length of a car rental in the US is 5 days
- The average rental period for business travelers is 3 days
- The average age of customers renting luxury cars is 38 years old
- The average rental period for leisure travelers is 7 days
- The average customer satisfaction rate for car rental companies in the US is 83%
Interpretation
In the fast-paced world of car rentals, where time is money and luxury is a must-have, statistics paint a colorful picture. Business travelers seem to be the efficiency champions with their swift 3-day rentals, while leisure travelers clearly savor every moment, stretching their 7-day adventures. Surprisingly, those cruising in luxury cars are often in the prime of their lives at 38, showing that age indeed comes with a taste for the finer things. As the industry navigates through these varying preferences, one thing shines through - customer satisfaction at a solid 83%, proving that no matter the duration or the model, a smooth ride and good service will always win hearts.
Customer Segments
- The leisure segment accounted for 55.7% of the global car rental market in 2020
- The business segment is expected to grow at a CAGR of 5.1% from 2021 to 2028
- The corporate segment of the car rental market is expected to grow at a CAGR of 4.8% from 2021 to 2028
Interpretation
While the leisure segment continues to cruise comfortably as the reigning monarch of the car rental kingdom, the business segment is revving up its engines for a turbocharged growth spurt, showcasing a promising CAGR of 5.1% from 2021 to 2028. Not to be outdone, the corporate segment is also packing its bags and hitting the road with a respectable CAGR of 4.8%. It seems like in the game of car rental thrones, there's plenty of room for all segments to ride shotgun towards a brighter and more profitable future.
Fleet Management
- The average fleet size of the US car rental industry was approximately 1.7 million vehicles in 2020
- The average age of rental cars in the US fleet is 1.5 years
- The average utilization rate of rental cars in the US was 70% in 2020
- The average rental car in the US travels approximately 25,000 miles per year
- The US car rental industry spends an average of $11.6 billion annually on new vehicle acquisitions
- The average rental car in Europe travels approximately 30,000 kilometers per year
- The average rental car company in the US has a fleet size of 500 vehicles
- The average rental car in the US is kept in the fleet for 13 months before being sold
Interpretation
With over 1.7 million vehicles cruising the roads in the US, it's safe to say that the car rental industry is in high gear. These car-rental darlings, at a sprightly age of 1.5 years, whirl around at a rate that would make even race car drivers envious, covering a staggering 25,000 miles annually. With a utilization rate of 70%, these rental gems are truly the road warriors of the industry. Averaging 13 months in the spotlight before a graceful exit, the journey of a rental car is a tantalizing tale of adventure and allure. Behind the scenes, a whopping $11.6 billion is invested annually in keeping this fleet fabulous. In Europe, they take things up a notch, gliding through 30,000 kilometers a year. So buckle up and enjoy the ride because in the world of car rentals, the mileage may vary, but the excitement is always guaranteed.
Industry Employment
- The US car rental industry employs approximately 160,000 people
- The US car rental industry has an annual turnover rate of approximately 50%
Interpretation
It seems like the US car rental industry is living up to its reputation of providing a fast and efficient service - not just for customers, but apparently for employees as well! With a turnover rate hovering around 50%, it's no wonder there's always a new face behind the counter. In a business where the cars move quickly, it seems the staff might be also keeping up with the pace. With around 160,000 people employed, it's a constant game of who's in, who's out - just like a game of musical chairs, but with rental cars.
Market Size and Growth
- The global car rental market size was valued at USD 98.14 billion in 2020
- The car rental market is expected to grow at a CAGR of 4.6% from 2021 to 2028
- The global car rental market is expected to reach USD 140.17 billion by 2028
- The global peer-to-peer car rental market size was valued at USD 5.38 billion in 2020
- The global car rental market is expected to reach 1.2 billion users by 2025
- The global car-sharing market size was valued at USD 2.5 billion in 2019
- The global car rental market is expected to have 1.5 billion transactions by 2025
- The global car rental market penetration rate is expected to reach 16.3% by 2025
- The global car rental market is expected to have a user penetration rate of 15.7% by 2025
- The global car rental market is expected to have 1.1 billion users by 2023
- The global car rental market is expected to have a transaction value of $95.7 billion by 2025
- The global car rental market is expected to have a user penetration rate of 14.5% in 2021
- The global car rental market is expected to have 1.3 billion transactions by 2023
- The global car rental market is expected to have a transaction value of $84.8 billion in 2021
- The global car rental market is expected to have 957.1 million users in 2021
- The global car rental market is expected to have 1.1 billion transactions in 2021
- The global car rental market is expected to grow at a CAGR of 6.7% from 2021 to 2026
- The global car rental market is expected to reach a value of $144.21 billion by 2027
Interpretation
The car rental industry’s future seems to be accelerating faster than a sports car on an open highway, with projections showing a turbocharged growth trajectory. By 2028, the global market is poised to hit a jaw-dropping USD 140.17 billion mark, drawing in a hefty 1.2 billion users by 2025. It seems clear that the car rental industry is not just cruising along but shifting into high gear, with an expected 1.5 billion transactions and a robust market penetration rate of 16.3% by 2025. With numbers like these, it’s safe to say that the car rental business is revving up for a dazzling performance that will leave other industries eating its dust. Watch out, world – the car rental market is on a collision course with success!
Pricing and Revenue
- The average daily rate for car rentals in the US was $66.04 in 2020
- The US car rental industry generated revenue of approximately $23.22 billion in 2020
- The average revenue per rental day in the US was $45.63 in 2020
- The average cost of insurance for rental cars in the US is $31 per day
- The average revenue per user (ARPU) in the global car rental market is expected to be $74.90 in 2025
- The US car rental industry has an average profit margin of 8.5%
- The global car rental market is expected to have an average revenue per user (ARPU) of $71.40 in 2021
- The average daily rate for luxury car rentals in the US is $100-$150
- The average cost of fuel for rental cars in the US is $0.15 per mile
Interpretation
Ah, the car rental industry, where the price of a day’s freedom on the road can fluctuate as wildly as an Uber surge fare. In 2020, the average daily rate for a car rental in the US was $66.04, but with the industry raking in a whopping $23.22 billion in revenue, it seems there's more to this game of wheels than meets the eye. That $45.63 average revenue per rental day might sound like small fry, but the $31 cost of insurance per day adds a spicy twist to the mix. Looking ahead, with an expected global average revenue per user of $74.90 in 2025, it's clear that the car rental business is cruising towards some serious cash. And let’s not forget those luxury car renters willing to splash $100-$150 a day for the finer things in life, while the rest of us penny-pinchers grumble at the $0.15 per mile cost of fuel. With an average profit margin of 8.5%, the US car rental industry is proving that there’s gold in them thar car fleets, and the battleground of pricing strategies is definitely not for the faint-hearted.
Regional Analysis
- North America dominated the global car rental market with a share of 38.3% in 2020
- The Asia Pacific car rental market is expected to witness the fastest growth rate of 6.3% from 2021 to 2028
- Europe held a market share of 33.6% in the global car rental market in 2020
- The Middle East and Africa car rental market is projected to grow at a CAGR of 5.7% from 2021 to 2028
Interpretation
In the high-speed world of car rentals, it seems North America is the undisputed road king at the moment, cruising along with a hefty 38.3% market share in 2020. Meanwhile, over in the Asia Pacific region, things are revving up with a projected growth rate of 6.3%, suggesting a pedal-to-the-metal approach to expansion. Not to be outdone, Europe boasts a respectable 33.6% market share, proving that they too have their foot firmly on the gas. And let's not forget the Middle East and Africa quietly accelerating with a promising 5.7% growth rate, proving that every region has a unique road map to success in the fiercely competitive car rental industry.
Rental Locations
- Airport rentals account for approximately 50% of the US car rental market
- The on-airport car rental segment held a market share of 49.7% in 2020
- The off-airport car rental segment is projected to grow at a CAGR of 5.1% from 2021 to 2028
Interpretation
The battle of the (airport) Titans continues in the car rental industry, with on-airport rentals flexing their dominance at nearly 50% market share. It's a turf war where convenience and accessibility reign supreme, but let's not count out the off-airport underdogs just yet. With a projected growth rate that could rival a high-speed chase (5.1% CAGR from 2021 to 2028), these off-airport renegades might just be gearing up for an industry upset. Buckle up, folks - this race is far from over.
Vehicle Types
- Economy cars segment held the largest market share of 40.3% in 2020
- The luxury cars segment is projected to expand at the fastest CAGR of 5.4% from 2021 to 2028
- The SUV segment in car rentals is expected to grow at a CAGR of 5.2% from 2021 to 2028
- The global electric car rental market size was valued at USD 7.14 billion in 2020
- The global luxury car rental market size was valued at USD 22.54 billion in 2020
- The compact car segment in rentals is expected to grow at a CAGR of 4.5% from 2021 to 2028
Interpretation
In the world of car rentals, it seems that economy cars hold the throne with a solid 40.3% market share, proving that sometimes practicality trumps luxury. However, don't count out the luxury cars segment, set to sprint ahead with a projected 5.4% growth rate, leaving a trail of sophistication in its wake. Meanwhile, the SUV segment is gearing up for a 5.2% growth spurt, showing that size does matter, especially on the road. Let's not forget the eco-conscious trend as the global electric car rental market hits a cool USD 7.14 billion mark in 2020. And for those who prefer a touch of opulence, the luxury car rental market shines bright at USD 22.54 billion. As for compact cars, they may be small in size, but their 4.5% growth forecast proves they pack a punch in the rental game. Whether you're cruising in an economy car or gliding in a luxury sedan, the car rental industry is revving up for an exciting ride ahead.
