Philippines Car Rental Market is poised to reach USD 400 million by 2027: Ken Research
GURUGRAM, India, Oct. 3, 2023 /PRNewswire/ -- The Philippines car rental market is booming, riding on the waves of a tourism surge and the widespread embrace of the internet. Booking cars online is now a breeze, making travel more convenient. With growing urban traffic woes, car rentals are becoming the go-to choose for hassle-free mobility. Exciting innovations like vehicle sharing are enhancing accessibility, and the ongoing tourism is expected to keep propelling the Philippines car rental industry forward with strong momentum.
Key Market Findings:
- Leisure travel is estimated to continue being the highest revenue generating segment with the increase in tourism across the country.
- Tourists and Corporate Clients are majority of the customers of the market.
- Players are looking to expand their fleet size to premium cars to offer comfort and luxury to customers.
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Ecosystem of Philippines Car Rental Market
There are five markets in this report: Car Rental, Car leasing, Ride Sharing, Ride Hailing and Self Drive. The Philippines car rental market and self-drive market is highly fragmented with Avis and Diamond Rent-a-Car hold the major share respectively. Philippines car leasing market is moderately consolidated and Orix, is the market leader. Philippines rides hailing market and ride sharing market are highly consolidated where Grab is the market leader.
Online Bookings: With increase in internet penetration and digital adoption in the country, car rental services are shifting to online platforms for direct bookings and confirmations. This makes the entire process hassle-free and contactless.
Tourism Surge Ignites Philippines Car Rental Demand: More and more tourists are coming to the Philippines, and they need an easy way to get around. Renting cars is a great option because it lets them travel around the beautiful places and experience the culture at their own pace. Because of this, we expect a lot more people to rent cars in the future.
Urban Mobility Challenges Fueling Philippines Car Rental: As Philippine cities grow rapidly, traffic jams and limited parking space are becoming real headaches. But here's the good news: more people are discovering the convenience of ride-hailing and ride-sharing. This shift is also making car rentals a hot choice, offering urban folks' hassle-free access to wheels when they need them, fueling the car rental industry's growth.
Evolving Services in Philippines Car Rental: Car rental companies are getting tech-savvy, offering exciting new options. Now, private car owners can share their vehicles on rental platforms, turning idle cars into profit. For customers, it means more car choices, a sense of community, and fits perfectly into the sharing economy trend. It's making car rentals more convenient, flexible, and appealing for everyone.
Unique Business Models: Year-on-Year with the help of technology, unique business models and features are coming up in the market like allowing private car owners to give out their spare vehicles on lease or rent. Ultimately, car rental services are becoming more accessible to customers.
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Increasing Traffic and Congestion in Crowded Areas: Rising traffic congestion in densely populated urban areas, exacerbated by limited parking space and population growth, is driving a shift towards increased reliance on ride-hailing and ride-sharing services. As cities grapple with inadequate parking facilities and heightened traffic, commuters and residents are seeking convenient alternatives. Ride-hailing and ride-sharing platforms offer a solution by providing on-demand transportation, reducing the need for personal vehicle ownership and parking. This trend is expected to continue as urban areas expand, making these services increasingly integral to urban mobility solutions, alleviating congestion, and improving the overall efficiency of transportation networks in crowded city environments.
Increase in Tourism: Lately, the international tourism sector is again increasing in Philippines with more than ~1500% increase in tourist arrivals from 2021 to 2022P. With that, there's only an expectation of the demand to grow in future by tourists.
Conclusion
Analysts at Ken Research in their latest publication "Philippines Car Rental Market Outlook to 2027 - Driven by the increase in tourism and business activities along with deeper internet penetration and adoption of digital services," observed that the Philippines car sharing market is expected to showcase considerable growth in the coming five years. In the upcoming years, it is predicted to expand more rapidly due to increased internet penetration and the adoption of smartphones. The Philippines Car Rental Market is expected to grow at robust CAGR over the forecasted period 2022 -2027. With the Increasing internet adoption leads to a surge in online car rental bookings in the Philippines.
Also, the growth in tourism is driving higher demand for car rentals among travelers. And Urban traffic challenges are making car rentals an attractive option for hassle-free mobility. Innovative tech-savvy services, like vehicle sharing, are enhancing accessibility in the car rental market. The tourism boom in the Philippines is expected to boost car rental demand even further.
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Market Taxonomy
Philippines Car Rental Market
By Type of Car
Small Cars (PHP 3500-7500 / per trip)
Medium (PHP 3500-7500 / per trip)
Luxury (PHP 7500+)
By Type of Booking
Online
Offline
By Purpose
Leisure
Business
Philippines Car Leasing Market
By Type of Region
Manila
Luzon
Visayas
Mindanao
By Time Duration
1 year
2 year
3 year
4 or more year
By Vehicle Price Range
Economical (PHP 20000-35000
Mid-Range (PHP 35000-50000)
Premium (PHP 50000+)
By Type of End User
Corporate
Retail Individuals
Philippines Ride Hailing Market
By Type of Region
Metropolitan
Non Metropolitan
Philippines Ride Sharing Market
By Point of Service
Rest Area
At Airport
By Type of Car
Sedan
SUV
By Type of Distance
Short distance
Long distance
Philippines Self-Drive Car Rental Market
By Type of Region
Metro cities
Non metro cities
By Type of Booking Channel
Online
Offline
By Time Period
1-2 days
A week
A month
By Type of Car
Standard (PHP 1000-4000/24hours)
Luxury (PHP 1500 + / per hour)
By Type of Booking Period
Weekend
Weekdays
By Segment of Car
Standard
Luxury
By Status of Ownership
Owned
Leased
By Point of Service
At Airport
Rest area
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SOURCE Ken Research
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