Tuesday, 9 August 2016

Surging Air Travel for Leisure, Business to Boost Global Car Rental Market, says TMR

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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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

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