Car Rental (Self Drive) Market size is set to grow by USD 3.42 billion from 2024-2028, Growing interest in self-driving vehicles to boost the market growth, Technavio

NEW YORK, July 24, 2024 /PRNewswire/ -- The global car rental (self drive) market  size is estimated to grow by USD 3.42 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 45.08% during the forecast period. Growing interest in self-driving vehicles is driving market growth, with a trend towards use of telematics in self-drive car rentals. However, high cost of self-driving car rental  poses a challenge. Key market players include Aspark Holidays Pvt. Ltd., Aurora Innovation Inc., Autorent Car Rental LLC, Avis Budget Group Inc., DriiveMe Ltd., Enterprise Holdings Inc., Hertz Global Holdings Inc., Localiza Rent a Car SA, Primemover Mobility Technologies Pvt. Ltd., SIXT SE, Volkswagen AG, and Zoomcar India Pvt. Ltd..

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Key Market Trends Fueling Growth

Telematics technology has revolutionized self-drive car rentals by providing real-time data on vehicle location, speed, condition, and usage. This data enables rental companies to monitor mileage, fuel consumption, and identify potential issues before they become major problems. Additionally, telematics simplifies the rental process with automated check-in and check-out, streamlined payment, and accurate billing. It reduces the likelihood of disputes over extra days or miles and enhances vehicle security through GPS tracking and remote disabling. The technology also promotes safer driving habits by analyzing data on speed, braking, and acceleration, providing feedback to renters for improvement. These benefits are expected to fuel the growth of the global self-drive car rental market. 

The car rental market is thriving with trends like complementary services, corporate offices, and service professionals opting for self-drive solutions. Tourists and millennials prefer inexpensive travel, seeking cars for local usage and outstation trips. Airports are major hotspots for car rentals, offering airport transport in economy cars, executive cars, MUVs, and SUVs. Wi-Fi networks, entertainment systems, and GPS systems are becoming essential add-ons. Insurance plans cater to various needs, from short-term to long-term rentals. The tourism and commuting sectors significantly contribute, with urban population and mobility infrastructure driving demand. The car rental sector offers a wide range of vehicles, from compact economy cars to spacious SUVs, catering to diverse consumer needs. Online and offline booking options ensure convenience. Road transportation infrastructure continues to support the growth of this sector. 

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Market Challenges

• Self-drive car rentals can be an enjoyable experience for travelers, but the costs can add up. Daily rental rates, mandatory insurance, taxes and fees, additional services, and deposits are the primary contributors to the high cost. Rates fluctuate based on car type, season, and location, with popular tourist destinations and peak travel times seeing higher prices. Comprehensive insurance is required, covering the car, occupants, driver, and other vehicles or people in an accident, leading to substantial expenses. Taxes and fees vary by location and include airport fees, local taxes, and registration fees. Extra fees for services like GPS, car seats, and toll transponders also increase the total cost. Rental companies require a deposit, typically a credit card hold, ranging from hundreds to thousands of dollars. Lastly, fuel costs depend on the car's efficiency and driving distance. These factors may hinder the growth of the global self-drive car rental market.
• The Car Rental market in India is thriving, particularly in the tourism sector. Rural areas present a significant opportunity, but challenges exist due to the unorganized market. Fleet management for inter-city and intracity travel, including hatchbacks, sedans, SUVs, and MUVs, requires careful planning. International arrivals and tourist arrivals boost demand for car rentals, especially at tourist destinations along national highways. New-age startups offer tech-savvy solutions through websites and mobile applications, enabling e-booking services. Insurance options are crucial, catering to both owned and leased vehicles. The organized market focuses on standard and luxury cars, while the unorganized sector targets quick getaways with local tourist destinations. Booking channels include online portals and physical bookings, with daily packages and lease contracts available for various booking periods. Car portfolio, custom services, and after-sale services are essential for customer satisfaction.

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Segment Overview 

This car rental (self drive) market report extensively covers market segmentation by

1. Vehicle Type
• 1.1 Economy cars
• 1.2 Luxury cars
2. Mode Of Booking
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Economy cars-  Self-driving economy cars are the most popular and affordable choice in the car rental market, particularly for budget-conscious travelers. These vehicles offer fewer amenities and smaller engine sizes, making them more fuel-efficient and cost-effective. The absence of a human driver allows rental companies to offer lower rates, making self-driving economy cars an attractive option for those looking to save on transportation costs. Additionally, their fuel efficiency leads to further savings on fuel expenses. These cars are ideal for individuals and businesses with shorter trips due to their compact size and ease of maneuverability, making them perfect for navigating city streets and tight parking spaces. Their self-driving feature offers travelers the convenience of an automated driving experience while maintaining control over their itinerary. The increasing interest in self-driving technology is expected to fuel the growth of the economy car segment in the global car rental market during the forecast period.

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Learn and explore more about Technavio's in-depth research reports

The vehicle leasing market in Europe is experiencing significant growth, driven by increasing consumer demand for flexible transportation solutions. The self-drive car rental market is also expanding, with advancements in technology enhancing customer experiences. Globally, the car rental market is projected to grow at a CAGR of 7.5% from 2023 to 2028, fueled by rising travel and tourism activities. Key players are focusing on innovation and digital integration to cater to evolving customer preferences, making the car rental industry a dynamic and competitive landscape.

Research Analysis

The car rental market, both online and offline, caters to various segments including tourism and commuting, with options for short-term and long-term rentals. The millennial population's preference for mobility infrastructure has fueled the growth of this market. In the organized sector, tourists and private automobile owners can rent hatchbacks, sedans, SUVs, MUVs, standard, and luxury cars for intra-city and inter-city travel. Economy cars and executive cars are popular choices for business travelers. Unorganized players also exist, offering inexpensive travel solutions. Airports are significant contributors to the market, with rental services available for both short-term and long-term stays. Rentals often come equipped with Wi-Fi networks, entertainment systems, GPS systems, and insurance plans for added convenience.

Market Research Overview

The car rental market caters to both tourism and commuting needs, offering short-term and long-term solutions for consumers. With the growing millennial population and urbanization, mobility infrastructure has become essential, making car rental services an attractive option for personal mobility. The market includes both online and offline players, with new-age startups disrupting traditional car rental businesses. Tourism sector growth, driven by international, tourist, and foreign tourist arrivals, significantly contributes to the car rental sector. Car rental services are available for local tourist destinations, quick getaways, and inter-city and intra-city travel. The car rental sector offers a diverse car portfolio, including hatchbacks, sedans, SUVs, MUVs, standard, and luxury vehicles. Consumers can choose from owned, leased, or rental options. Custom services, after-sale services, and complementary services add value to the rental experience. Car rental services provide insurance options, and the market is segmented into the organized and unorganized sectors. Tech-savvy consumers prefer online portals, mobile applications, and e-booking services for convenience. Car rental companies offer various booking packages, daily packages, and flexible booking periods. Car rental services cater to corporate offices, service professionals, tourists, and private automobile users, providing inexpensive travel solutions. Additional features like Wi-Fi networks, entertainment systems, GPS systems, and insurance plans enhance the rental experience. Car rental services are available at airports, offering airport transport and local usage options. Economy cars, executive cars, MUVs, SUVs, and luxury cars are available for different budgets and needs.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Vehicle Type
• Economy Cars
• Luxury Cars
• Mode Of Booking
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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