Rental car industry analysis

Industry Insights

The vehicle leasing marketplace dimensions was valued at USD 72.74 billion in 2015. A’s growth over the last several years can be attributed to the growth and progression of this global vacation and tourism business. The globally increasing disposable incomes together with enhanced road infrastructure tend to be regarded to be one of the keys aspects having propelled the sheer number of leisure and business trips, thereby improving the development.

The worldwide automobile leasing business happens to be experiencing an important change over the past several years. Extreme competitors and exigent economic conditions prevalent around the world have actually driven transformation in the industry over the historic duration. The providers have actually encountered an important improvement in their business models to remain competitive and enhance profitability.

The impact of information technology into the industry has driven the transformation of the car rental services. The developing trend of using the world-wide-web for customizing travel trips and on line bookings & bookings is anticipated to propel employing technology on the market. The implementation of technology during these services makes the entire process safe, quick, reliable, and easy for customers. Additionally, the hassle-free procedure of online bookings and bookings increases convenience both for, the providers and consumers.

An emerging trend in the industry is the advancement of global operators towards industry consolidation as the top five key companies accounted for a substantial share of the overall industry in 2015. Prominent operators are increasingly undergoing mergers and acquisitions as well as forming joint ventures in order to expand their business territory, capture new emerging market potentials, and enhance the overall profitability. However, the tightening stringent vehicle emission regulations and high volatility in the crude oil prices worldwide are anticipated to challenge the growth over the forecast period.

The United States Car Leasing Marketplace By Application, 2013 - 2024 (USD Million)

Application Insights

The programs are mainly classified into on-airport and off-airport rentals. The on-airport application includes airport transport, whereas off-airport applications consist of outstation, local usage, yet others comprising mainly leisure activities. The airport transport portion is expected to remain the highest revenue producing portion in the impending many years. The development in this part may be related to the rise in environment people one of the international population. The rise into the number of atmosphere travelers is anticipated to propel the need for automobile rentals within the airport transport.

The area vacation and outstation programs tend to be presumed to witness a higher penetration into the market across forecast duration. The rise in regional travel may be related to having less time and course flexibility displayed by the trains and buses, which has culminated in individuals switching toward rental companies for the day-to-day intra-city navigation. The outstation portion is expected to contribute to the development notably whilst provides the week-end taking a trip activities regarding the populace plus facilitates the inter-state company transport needs.

Others application portion includes staff member transport solutions and occasion transport solutions. Increased expansion of businesses and cultural activities inside leisure portion are anticipated to affect the development of this segment positively when you look at the impending many years. The effective use of vehicle rentals within the staff member and occasion transportation solutions is an inexpensive much less polluting alternative whilst facilitates the transportation of most people; the portion accounted for over 10% associated with the entire industry share in 2015 and is likely to witness constant growth throughout the forecast duration.