The global Car
Rental Market is highly consolidated with the presence of a
handful of companies, observes Transparency Market Research (TMR).
The top five companies, namely Enterprise Rent-A-Car, The Hertz
Corporation, Europcar, Avis Budget Group Inc., and Sixt collectively
held more than 75% of the market in 2013.
“Expanding into
new markets partnering with local players is the key growth model
that top companies in the car rental market are adopting,” says a
TMR analyst. The objective is to strengthen their global presence,
which in turn will help increase business revenue. An excellent
example is Avis Budget Group. With a presence in 175 countries, the
company is strategizing for further expansion in new rental locations
such as India, China, and Brazil due to the increasing demand for car
rentals in these regions.
Strategically
accelerated growth is the focus of key companies in the global car
rental market. Companies are formulating plans for increasing the
fleet size and incorporating a mix of vehicles to their fleet to keep
up with customer demand. Offering differentiator services is also a
key growth model that top companies in this market are focused on.
Asia Pacific to
Emerge as Key Regional Market in Future
An expeditious
increase in air travel is one of the major factors driving the growth
of the global car rental market, points out a TMR analyst. In the
last decade, surging air travel for both business and leisure has led
to an increasing demand for reliable and high-quality car rental
services for comfort and safety reasons. Thus, top players in the car
rental market are striving to leverage this trend by offering
services across all major airports worldwide.
At present, Asia
Pacific is witnessing a high growth in the tourism industry. Post the
global economic slump of 2007-2008, global car rental companies are
expanding their operations in China and India to serve both
international and domestic tourists.
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The increasing
number of Internet users that carry out online travel bookings is
also boosting the growth of the car rental market. This is because
the process is reliable, easy and can be customized as per the need.
Online booking is convenient for both customers and car rental
providers as it saves times and is cost-effective as well.
Concerned About
Environmental Degradation Hamper Market Growth
Strict regulations
for curbing emissions and volatility in crude oil prices are
hampering the growth of the global car rental market. The high
utilization of non-renewable energy sources for power generation
releases large amounts of carbon dioxide into the atmosphere. To
counter this, environmental regulations are in place in several
countries for lowering emissions from vehicles and industries. In
this regard, the International Energy Agency have laid out mandates
for generating green energy in order to reduce carbon dioxide
emissions and control environmental pollution. Consequently, top
companies such as Enterprise Rent-A-Car are adopting green car
rentals.
The global car
rental market is expected to reach a valuation of US$79.46 bn by
2019. On the basis of car type, executive cars and multi-utility
vehicles are anticipated to display a faster growth rate than other
segments due to rapid globalization. The airport transport segment by
category is expected to be valued at US$34.48 bn by 2019. The
dominance of this segment is mainly due to the increasing number of
air travelers for both business and leisure reasons.
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