Car Rental and Leasing Market (Updated Version Available)
Car Rental and Leasing Market | Size, Share & Trends Analysis, By Type (Car Rental, Car Lease (Open-end Lease, Close-end Lease)), Platform (Online (Website, Mobile Application), Offline), Vehicle Type (Sedan, SUV, Luxury Cars, Others (TUVs, etc.)), End Use (Residential, Commercial), By Region and Segment, Forecast Period 2022-2030
Report ID : RI_673820 | Date : October 2024 |
Format : 
Key Market Overview:
Car rental and leasing market size garnered over USD 210.91Â Billion in 2022 and is projected to surpass USD 386.57Â Billion by 2030, growing at a CAGR of 7.6% during the forecast period (2023-2030).
Car rental and car leasing are two separate ways of accessing a vehicle for a specific period of time, and both have related advantages and disadvantages, depending on consumer needs and circumstances. Car rental involves renting a vehicle for a short period, typically ranging from a few hours to a few weeks. Car rental companies offer a variety of vehicles ranging from economy cars to luxury cars and SUVs. Car rentals find favorable demand among customers with a requirement for a vehicle for a short period, such as for a business trip, vacation, or special event. The rental agreement typically includes a daily or weekly rental fee, plus additional fees for optional extras such as insurance, GPS navigation, or additional drivers.
Further, car leasing is a long-term arrangement in which the leaser leases a vehicle for typically, two to four years. Such leasing companies offer a variety of vehicles, and the lease agreement usually includes a monthly payment that covers the cost of using the vehicle, plus additional fees for insurance, maintenance, and repairs. As compared to car rental, car leasing requires a credit check, along with a lease agreement that includes restrictions on mileage and excessive wear and tear. At the end of the lease period, the lessee returns the car to the leasing company or chooses to purchase the same for a predetermined price.
The main difference between car rental and car leasing is the duration of the arrangement. Car rental is ideal for short-term needs, however, car leasing is suitable for long-term arrangements. Car rental is expected to be comparatively expensive than car leasing on a per-day basis. However, car leasing is anticipated to become more expensive over the long term due to additional fees and restrictions. Ultimately, the choice between car rental and car leasing depends on your individual needs and preferences.
Car Rental and Leasing Report Coverage:
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Market Dynamics:
Driver:
Favorable preference by several companies to lease vehicles for business purposes due to business expansions boosts the demand for business vehicle leasing. Also, the growing tourism industry boosts the demand for rental vehicles as the majority of tourists prefer the convenience and flexibility of renting a car to explore a new destination. Moreover, economic factors such as interest rates, inflation, and consumer confidence also propel the car rental and leasing market to navigate through uncertain economic conditions.
Restraint:
Rising advancements in technology, such as the growth of ride-sharing and autonomous vehicles, hampers the market of car rental and leasing due to the uncertain rental of such advanced vehicles at low prices. Also, strict regulations and laws such as vehicle safety standards, licensing, and insurance requirements in terms of rental and leasing operations result in high costs and administrative burdens over market players that limit large-scale market expansion.
Opportunities:
The scope of offering great flexibility and customization as compared to traditional car ownership is expected to create lucrative opportunities for the market players to help customers choose from a wide range of vehicles, rental periods, and other alternatives. Further, the increasing popularity of electric and hybrid vehicles provides an opportunity for businesses to offer eco-friendly car rental and leasing alternatives. Such a trend is driven by concerns about the environment and the rising cost of traditional fuel-powered vehicles.
Car Rental and Leasing Market Segmentation:
By Type
The type segment is bifurcated into car rental and car lease. The car rental segment is expected to witness the fastest CAGR growth during the forecast period in terms of volume. Growing consumer preference for reduced long-term vehicle maintenance and repair costs of vehicles is expected to create favorable conditions for a rental company as major expenses are covered by the company. Moreover, the car lease segment is also estimated to support market growth in terms of volume. Rising demand for used cars for a short period, such as a few months or a year among the majority of the population is expected to result in increased preference for leasing as a cost-effective solution as compared to buying a car in terms of low taxes.
By Platform
The platform segment is divided into online and offline. The online segment accounted for largest share contribution to the car rental and leasing market growth in 2022. Rental and lease platforms offer lower prices as compared to conventional car rental companies due to lower overhead costs and streamlined processes. Also, users of the car rental and lease platforms undergo a verification and screening process that ensures the reliability of website customers, which helps car owners to witness peace of mind when renting out their vehicles. Further, the offline segment is also anticipated to support the market growth in terms of value. The access to rental agent assistance in terms of vehicle selection, reservation, paperwork, vehicle pickup, and return is expected to support the demand for a storefront or rental counter for long-term leasing, corporate rentals, or luxury cars.
By Vehicle Type
The vehicle type segment is separated into a sedan, SUVs, luxury cars, and others (TUVs, and others). The sedan segment is expected to support market growth during the forecast period in terms of value and volume. Favorable demand for sedans as a popular alternative for business travel in terms of a comfortable and reliable mode of transportation for executives and employees is anticipated to support the segmental growth. Also, the growing preference for sedans as an affordable alternative to other types of vehicles is expected to make sedans an ideal choice for budget-conscious renters and lessees. Furthermore, the SUV segment is estimated to contribute substantial shares to the market growth during the forecast period.
By End Use
The end-user segment comprises residential and commercial. The commercial segment is estimated to contribute significant shares to the market growth during the forecast period. High demand among businesses for car leasing over a long period in terms of the daily commute to work for employees along with occasional local business trips is anticipated to fuel segmental growth. Moreover, the residential segment is also expected to support market growth in terms of value and volume. Growing demand for local cab services due to the increased popularity of flexibility to travel to different places without relying on public transportation is projected to support segmental growth during the forecast period.
By Region
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. Asia Pacific is expected to contribute the highest shares to the market growth in 2022. The large presence of the middle-income population especially in countries such as India, Thailand, and Japan supports the demand for used cars as a rental alternative to complete ownership of vehicles. However, in the context of Europe, the high demand for renting luxurious vehicles to maintain the European population\\\'s high standards of living results in a large market for the rental and leasing of such luxurious vehicles.
Moreover, North America is also anticipated to contribute substantial shares to the market growth during the forecast period. Large-scale usage of IoT technology for efficient fleet management is estimated to support market growth.
Car Rental and Leasing Market Competitive Landscape:
The competition in the car rental and leasing market is intense due to high competition among companies on factors such as price, fleet size and quality, service quality, and customer experience. In recent years, there has been a trend towards consolidation in the market, with major players acquiring smaller companies to expand their reach and capabilities. Additionally, there is increasing competition from new entrants, including car-sharing and ride-hailing companies, which are disrupting traditional business models in the industry. Following are major companies that operate in latest market circumstancesâ€\"
• Avis Budget Group National Car Rental
• Ford Credit
• LeasePlan
• Holidays auto
• Uber
• OLA
• Zoomcar
• Alamo
• Auto Europe
• E-Z Rent-A-Car Group
• Dollar
• Easy Car
• Europcar
• Hertz
• Enterprise Holdings
Recent Developments:
• In January 2022, LeasePlan and MForce, the biggest network of self-owned workshops across the country solidified their partnership by offering rental campaigns on the MForce website.
• In August 2022, BYD, the Chinese manufacturer of electric vehicles, entered into a partnership with ORIX Auto Infrastructure Services Ltd. The collaboration is expected to focus on the leasing and fleet operations of the electric multi-utility vehicle called E6 MUV.
• In December 2022, LeasePlan, a prominent company in leasing, fleet management, and car-as-a-service, and NIO, a pioneer in the intelligent electric vehicle market, declared their collaboration in Germany.
Car rental and leasing market size garnered over USD 210.91Â Billion in 2022 and is projected to surpass USD 386.57Â Billion by 2030, growing at a CAGR of 7.6% during the forecast period (2023-2030).
Car rental and car leasing are two separate ways of accessing a vehicle for a specific period of time, and both have related advantages and disadvantages, depending on consumer needs and circumstances. Car rental involves renting a vehicle for a short period, typically ranging from a few hours to a few weeks. Car rental companies offer a variety of vehicles ranging from economy cars to luxury cars and SUVs. Car rentals find favorable demand among customers with a requirement for a vehicle for a short period, such as for a business trip, vacation, or special event. The rental agreement typically includes a daily or weekly rental fee, plus additional fees for optional extras such as insurance, GPS navigation, or additional drivers.
Further, car leasing is a long-term arrangement in which the leaser leases a vehicle for typically, two to four years. Such leasing companies offer a variety of vehicles, and the lease agreement usually includes a monthly payment that covers the cost of using the vehicle, plus additional fees for insurance, maintenance, and repairs. As compared to car rental, car leasing requires a credit check, along with a lease agreement that includes restrictions on mileage and excessive wear and tear. At the end of the lease period, the lessee returns the car to the leasing company or chooses to purchase the same for a predetermined price.
The main difference between car rental and car leasing is the duration of the arrangement. Car rental is ideal for short-term needs, however, car leasing is suitable for long-term arrangements. Car rental is expected to be comparatively expensive than car leasing on a per-day basis. However, car leasing is anticipated to become more expensive over the long term due to additional fees and restrictions. Ultimately, the choice between car rental and car leasing depends on your individual needs and preferences.
Car Rental and Leasing Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Billion) | 386.57 Billion |
| CAGR (2022-2030) | 7.6 % |
| Base Year | 2022 |
| By Type | Car Rental, Car Lease (Open-end Lease, Close-end Lease) |
| By Platform | Online (Website, Mobile Application), Offline |
| By Vehicle Type | Sedan, SUV, Luxury Cars, Others (TUVs, etc.) |
| By End Use | Residential, Commercial |
| By Geography | |
| Key Players | Avis Budget Group National Car Rental, Ford Credit, LeasePlan, Holidays auto, Uber, OLA, Zoomcar, Alamo, Auto Europe, E-Z Rent-A-Car Group, Dollar, Easy Car, Europcar, Hertz, Enterprise Holdings |
Market Dynamics:
Driver:
Favorable preference by several companies to lease vehicles for business purposes due to business expansions boosts the demand for business vehicle leasing. Also, the growing tourism industry boosts the demand for rental vehicles as the majority of tourists prefer the convenience and flexibility of renting a car to explore a new destination. Moreover, economic factors such as interest rates, inflation, and consumer confidence also propel the car rental and leasing market to navigate through uncertain economic conditions.
Restraint:
Rising advancements in technology, such as the growth of ride-sharing and autonomous vehicles, hampers the market of car rental and leasing due to the uncertain rental of such advanced vehicles at low prices. Also, strict regulations and laws such as vehicle safety standards, licensing, and insurance requirements in terms of rental and leasing operations result in high costs and administrative burdens over market players that limit large-scale market expansion.
Opportunities:
The scope of offering great flexibility and customization as compared to traditional car ownership is expected to create lucrative opportunities for the market players to help customers choose from a wide range of vehicles, rental periods, and other alternatives. Further, the increasing popularity of electric and hybrid vehicles provides an opportunity for businesses to offer eco-friendly car rental and leasing alternatives. Such a trend is driven by concerns about the environment and the rising cost of traditional fuel-powered vehicles.
Car Rental and Leasing Market Segmentation:
By Type
The type segment is bifurcated into car rental and car lease. The car rental segment is expected to witness the fastest CAGR growth during the forecast period in terms of volume. Growing consumer preference for reduced long-term vehicle maintenance and repair costs of vehicles is expected to create favorable conditions for a rental company as major expenses are covered by the company. Moreover, the car lease segment is also estimated to support market growth in terms of volume. Rising demand for used cars for a short period, such as a few months or a year among the majority of the population is expected to result in increased preference for leasing as a cost-effective solution as compared to buying a car in terms of low taxes.
By Platform
The platform segment is divided into online and offline. The online segment accounted for largest share contribution to the car rental and leasing market growth in 2022. Rental and lease platforms offer lower prices as compared to conventional car rental companies due to lower overhead costs and streamlined processes. Also, users of the car rental and lease platforms undergo a verification and screening process that ensures the reliability of website customers, which helps car owners to witness peace of mind when renting out their vehicles. Further, the offline segment is also anticipated to support the market growth in terms of value. The access to rental agent assistance in terms of vehicle selection, reservation, paperwork, vehicle pickup, and return is expected to support the demand for a storefront or rental counter for long-term leasing, corporate rentals, or luxury cars.
By Vehicle Type
The vehicle type segment is separated into a sedan, SUVs, luxury cars, and others (TUVs, and others). The sedan segment is expected to support market growth during the forecast period in terms of value and volume. Favorable demand for sedans as a popular alternative for business travel in terms of a comfortable and reliable mode of transportation for executives and employees is anticipated to support the segmental growth. Also, the growing preference for sedans as an affordable alternative to other types of vehicles is expected to make sedans an ideal choice for budget-conscious renters and lessees. Furthermore, the SUV segment is estimated to contribute substantial shares to the market growth during the forecast period.
By End Use
The end-user segment comprises residential and commercial. The commercial segment is estimated to contribute significant shares to the market growth during the forecast period. High demand among businesses for car leasing over a long period in terms of the daily commute to work for employees along with occasional local business trips is anticipated to fuel segmental growth. Moreover, the residential segment is also expected to support market growth in terms of value and volume. Growing demand for local cab services due to the increased popularity of flexibility to travel to different places without relying on public transportation is projected to support segmental growth during the forecast period.
By Region
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. Asia Pacific is expected to contribute the highest shares to the market growth in 2022. The large presence of the middle-income population especially in countries such as India, Thailand, and Japan supports the demand for used cars as a rental alternative to complete ownership of vehicles. However, in the context of Europe, the high demand for renting luxurious vehicles to maintain the European population\\\'s high standards of living results in a large market for the rental and leasing of such luxurious vehicles.
Moreover, North America is also anticipated to contribute substantial shares to the market growth during the forecast period. Large-scale usage of IoT technology for efficient fleet management is estimated to support market growth.
Car Rental and Leasing Market Competitive Landscape:
The competition in the car rental and leasing market is intense due to high competition among companies on factors such as price, fleet size and quality, service quality, and customer experience. In recent years, there has been a trend towards consolidation in the market, with major players acquiring smaller companies to expand their reach and capabilities. Additionally, there is increasing competition from new entrants, including car-sharing and ride-hailing companies, which are disrupting traditional business models in the industry. Following are major companies that operate in latest market circumstancesâ€\"
• Avis Budget Group National Car Rental
• Ford Credit
• LeasePlan
• Holidays auto
• Uber
• OLA
• Zoomcar
• Alamo
• Auto Europe
• E-Z Rent-A-Car Group
• Dollar
• Easy Car
• Europcar
• Hertz
• Enterprise Holdings
Recent Developments:
• In January 2022, LeasePlan and MForce, the biggest network of self-owned workshops across the country solidified their partnership by offering rental campaigns on the MForce website.
• In August 2022, BYD, the Chinese manufacturer of electric vehicles, entered into a partnership with ORIX Auto Infrastructure Services Ltd. The collaboration is expected to focus on the leasing and fleet operations of the electric multi-utility vehicle called E6 MUV.
• In December 2022, LeasePlan, a prominent company in leasing, fleet management, and car-as-a-service, and NIO, a pioneer in the intelligent electric vehicle market, declared their collaboration in Germany.
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| Multi User | : $5460 |
| Corporate User | : $7460 |
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