Indonesia Car Rental Market Size (2024 - 2029)

Indonesia Car Rental Market Analysis

The Indonesia Car Rental Market size is estimated at USD 0.67 billion in 2024, and is expected to reach USD 1.42 billion by 2029, growing at a CAGR of 16.09% during the forecast period (2024-2029).

The COVID-19 pandemic affected the market studied due to its high dependency on Indonesian tourism. The sector witnessed a steady decrease in passenger and tourist traffic due to the spread of the virus, which reduced the car rental service demand. Although, post-2021, the tourism sector regained its growth phase and portrayed strong demand for car rental services.

Advancing technology is an essential factor expected to boost the market's growth over the forecast period. The increased information technology use is transforming the industry and allowing operators to provide better customer service. It includes optimizing corporate and customer information management and creating user-friendly internet booking applications.

People are becoming more open to traveling light due to their individual mindsets and social shifts. They are more comfortable renting a car than owning one, especially for travel. This shift in society's mindset contributed to unusually high demand for rented cars. Indonesia is no longer a destination for visitors who arrive in their vehicles. Tourists are looking for rental cars for their trips. The reasons why the country is experiencing a car rental crisis are clearly stated. Though speculations are correct, authorities have already expressed concern to all.

The market is attracting impressive investment in the online sales channel, which is slowly increasing. Moreover, with rising internet and smartphone penetration, online booking witnessed a positive growth outlook. A similar scenario is anticipated to register over the forecast period.

Moreover, the electric rental fleets in the country are expected to grow in the coming years, which will also encourage the rental services offered across the country to attract customers and curb greenhouse emissions.

Major players operating in the market are TRAC, Indorent, Bluebird, Adi Sarana Armada Tbk, and others. The companies rely on considerable research and development operations to stay competitive.

Indonesia Car Rental Industry Segmentation

The Indonesian Car Rental Market covers the current and upcoming trends with recent technological development. The report will provide a detailed analysis of various market areas by type, duration, application, and market share of significant car rental companies across the Indonesian market.

The Indonesia Car Rental Market is segmented by booking type (online and offline), by rental duration type (short and long-term), and by application Type (tourism and commuting). The report offers market size and forecast for all the above segments in value (in USD billion).