Need a report that reflects how COVID-19 has impacted this market and its growth?
Covid-19 hit all the industries of the world and this was no exception. Due to transport halt, the mobility of people was affected and consequently, the market and it's economy was disrupted. On the other hand, the post pandemic situation looks promising for the market. Due to the current environmental movement and people avoiding public transport options, this market serves as a best alternative for the mobility requirements and thus looks prospects look promising for the future.
The United States vehicle rental market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 5.7 % during the forecast period (2021 - 2026).
- Increased concern and awareness of lower emissions has primarily led to the increase in car rental options, where car rental and carpooling significantly helps reduce the number of cars on the road.
- One of the major trends in the United States car rental market is the increased use of electric vehicles in some car rental fleets; this provides considerable options for users to be more environment-friendly in their commuting habits. In addition, car rental also provides the option of increased mobility without the concern of paying the costs associated with vehicle ownership.
- These services are offered via websites and through other online platforms, which has helped the growth of the car rental market. However, increased operational costs has hindered the growth of the market, as consumers deter from the option of choosing luxury vehicles, and end up for more economical and cost-effective vehicle options.
Scope of the Report
The United States vehicle rental market is segmented by application type (Leisure/Tourism, and Business), by vehicle (Luxury/Premium Cars, and Economy/Budget Cars), and by booking (Online Access, and Offline Access)
Key Market Trends
Rise in Tourism Industry Driving the Vehicle Rental Market
North America is one the main tourism industry under which the united states dominated the regional market. The state of New York is located on the northeast part of the United States and is one of the major tourist attractions. New York is the most competitive market for the car rentals due to the presence of numerous car rental providers. Spanning over 140,000sq-km, the state provides its travelers with a lot of historic and scenic tourist destinations, in turn, increasing the demand for rental services.
Additionally, New York has more than 25 notable airports, with a total passenger traffic of over 50 million per annum. The airports also provide a wide selection of car rental service providers to their commuters. The state is one of the most expensive locations to rent a car, with a daily average of around USD 76. This can increase with the rise in rent for luxury cars or renting cars at intercity or interstate travel. Apart from offices at the major airports, car rentals are also present throughout the state, which cater to the local and foreign travelers.
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Online Booking is Dominating other booking type of Platforms
Online access is the most common method of booking a rental car, followed by offline access.
- It includes booking via internet websites and mobile applications.
- Among these, booking via sites is the most common way of booking cars. Online booking allows car booking even from far off places, without the need to be physically present at the location.
- It helps save time and is very convenient for both the car renter and owner
Now-a-days, booking online also serves a variety of purposes, such as verification of documents of the renter, information to the renter regarding the car, ability of drop and pickup of the renting car at a certain place, e-signed contracts, cashless transaction, and many more. These have helped car renting companies to gain a competitive edge over their competitors, during the past few years.
The United States vehicle rental market is majorly dominated by Avis Budget Group, Enterprise Rent-A-Car and Hertz Global Holdings Inc. and among others. The market leaders tried to maintain their strong presence by acquiring other well-known brands such as Dollar, Thrifty, National and Alamo. These companies also tried to employ the franchise model to maintain their global presence. Hertz has its presence in over 145 countries with the licensing model. Dollar and Thrifty from Hertz boasted of over 1410 corporate and finance locations across 75 countries. Avis Group gained licensees in over 160 countries, representing over 50% of the car rental locations across the globe.
Car rental companies in the United States also adopted car-sharing models, which acted as a new product offering and source of competition from entrants as well. Enterprise and Hertz had the first-move advantage with their CarShare and OnDemand services in the country.
With the digital platforms offering more streamlined booking procedure, the industry is looking to digitalize it's booking and sorting procedures. Collaboration with different service providers is being looked into and is bound to inprove the reach and efficiency of the market.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application
5.2 By Vehicle
5.2.1 Luxury/Premium Cars
5.2.2 Economy/Budget Cars
5.3 By Booking
5.3.1 Online Access
5.3.2 Offline Access
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Ace Rent-a-car
6.2.3 Advantage Rent-a-car
6.2.4 Avis Budget Group Inc.
6.2.5 Carzonrent India Pvt.Ltd.
6.2.6 Eco Rent a Car
6.2.7 Enterprise Holdings Inc.
6.2.10 Localiza - Rent a Car SA
6.2.11 Sixt SE
6.2.12 The Hertz Corporation
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The United States Vehicle Rental Market market is studied from 2018 - 2026.
What is the growth rate of United States Vehicle Rental Market?
The United States Vehicle Rental Market is growing at a CAGR of 5.7% over the next 5 years.
What is United States Vehicle Rental Market size in 2018?
The United States Vehicle Rental Market is valued at 16 Billion USD in 2018.
What is United States Vehicle Rental Market size in 2026?
The United States Vehicle Rental Market is valued at 25 Billion USD in 2026.
Who are the key players in United States Vehicle Rental Market?
- Advantage Rent-a-car
- Avis Budget Group Inc.
- Enterprise Holdings Inc.
- The Hertz Corporation
Are the major companies operating in United States Vehicle Rental Market.