CAR RENTAL MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECAST (2020 - 2027)

Overview of the Market

The car rental market was worth USD 86 billion in 2020 and is predicted to grow to USD 131 billion by 2026, with a CAGR of roughly 7% during that time period.

The global COVID-19 pandemic has wreaked havoc on economies around the world, with firms across industries feeling the brunt of the damage. Transportation services have been particularly heavily struck. In many locations, the challenges that have arisen as a result of the worldwide lockdown are vast and intractable. Due to travel restrictions around the world to control the spread of the virus, demand for rental automobiles has slowed at airports due to lower worldwide air traffic. Furthermore, rising petrol and diesel prices in developing countries are expected to stifle market expansion over the projection period.

The global financial crisis has only encouraged the use of rental automobiles. However, in the aftermath of the epidemic, with safety and hygiene being more important than ever, car disinfection procedures are scrupulously followed. Individual mobility and social distancing norms will undoubtedly improve industry conditions. In recent years, the subscription model has become the face of the car rental industry. Because this model allows customers to experience temporary ownership of a vehicle while avoiding additional fees like as maintenance and insurance premiums,

North America is predicted to dominate the global market in terms of revenue, and this dominance is expected to continue throughout the forecast period, owing to an increase in the number of local and international business trips and holidays across various countries in this region.

Due to increased travel and tourism, as well as increased availability of high-end luxury as well as economy vehicles, the market in Asia Pacific is predicted to rise at a considerable CAGR over the forecast period, particularly in developing nations in the area.