Indonesia Car Rental Market Size, Share, Opportunities, COVID-19 Impact, And Trends Car Type (Electric, Gasoline, Economy, Luxury, Suv, Muv), By Service (Self-Driven, Chauffeur-Driven), By Application (Leisure Activity/Trips, Corporate/Business Trips), By Booking (Online, Offline), By Rental Category (Local Transport, Airport Transport, Outstation Transport, Others, By Contract Type (Long-Term, Short-Term), And By Cities - Forecasts From 2022 To 2027

  • Published : Jul 2023
  • Report Code : KSI061610798
  • Pages : 157

The Indonesian car rental market is projected to witness a CAGR of 7.25% to reach US$3,769.527 million in 2027 from US$2,309.771 million in 2020. Significant growth in the travel and tourism industry of the country is one of the key factors driving the growth of the market. Additionally, the rising number of foreign tourists in the country is the major driver of the Indonesian car rental market. International tourists prefer booking cars in advance in order to avoid any inconvenience during their trip. The growth in the number of international tourists is expected to positively boost the market demand. Furthermore, the rising population across the country, growth in the economy, and increasing inclination towards travel and adventure are projected to boost the market growth in the coming years. Moreover, favorable government policies to reduce emissions and conserve the environment are acting as another growth driver for the market growth. Moreover, favorable government policies to reduce emissions and conserve the environment are supporting the car rental companies like Grab which are pushing to move from gas to complete E-vehicles. The company is planning to introduce 200 BYD e6 Car rentals by 2025, which in turn is expected to have a positive impact on the overall market growth.

Growing demand for online car rental services and rising tourism.

The rising penetration of smartphone-based online rental car booking apps is significantly contributing to the overall market growth. Increasing usage of the internet has helped companies in the market to capture a large customer base with the help of online booking mobile applications for the convenience of customers. Moreover, cities such as Bali and Jakarta are seeing growth in their tourism sectors which is anticipated to have a positive impact on market growth. The Initiative taken by the government to attract tourism to the country is projected to contribute to the overall market growth. For instance, the Indonesian Tourism and Creative Economy Ministry are making investments in its national tourism sector and are aiming to develop sustainable and community-based tourism. The investments are expected to boost the development of five super-priority tourism destinations, eight special economic zones, and 12 sustainable tourism projects which are expected to increase the demand for car rental services in the next few years owing to which the market will see tremendous growth during the forecast period.

For instance, Zoomcar which has dominated the self-drive car rental market in India has expanded its operations to other markets such as Indonesia and Vietnam to improve personal mobility across the two countries.

Leisure activities and trips are projected to create promising demand

Indonesia is the world's biggest archipelago country, making it one of Southeast Asia's most popular tourist destinations for both international and domestic vacations. Over the years, the number of international visitors to Indonesia has steadily increased. Indonesia's leisure travel economy is made up of a diverse range of industries, including but not limited to logistics, lodging, cuisine, retail, recreation, and other tourism-related activities. Companies in related industries, whether large or small, are constantly striving to create experiences by bringing people together, helping communities, and strengthening Indonesia's economy. Significant tourism investment had multiplier impacts on the Indonesian economy, including infrastructure development, private investment stimulation, and aggregate demand. In recent years, there has been a paradigm shift away from products and toward experiences. Consumer durables and clothes expenditure have slowed, while experiential spending on recreation, travel, and eating has increased dramatically. As a result, the demand for commodities is surpassing the need for travel. Now, the development has coincided with an increase in the number of both domestic and international outbound tourists. The aforementioned factors act as key drivers for the leisure activity market in Indonesia, which further will boost the growth in the car rental service market in Indonesia.  Furthermore, because Jakarta is one of the most popular convention destinations, the leisure activity segment has a large market potential throughout the forecast period.

COVID-19 Impact on Indonesia Car Rental Market:

The Indonesia car rental market had been growing at a healthy pace before the outbreak of the COVID-19 pandemic. Indonesia has a lesser number of personal cars with respect to its population when compared to other developed nations, and hence car rentals have turned out to be a prominent mode of mobility in Indonesia. However, the pandemic had a negative impact on market growth due to a halt in activities owing to the lockdowns, and travel & transport restrictions implemented by the government of Indonesia to curb the spread of the coronavirus. Furthermore, as the tourism industry, both international and domestic, suffered a major blow amid the pandemic, the demand for car rentals decreased as well, as car rental services are widely used by tourists. According to data from the World Bank, the number of arrivals in Indonesia in international tourism declined from 16.107 million in 2019 to 4.053 million in 2020. Moreover, the WFH policies implemented by companies all around Indonesia further plummeted the demand for car rental services from the corporate sector.

Indonesia Car Rental Market Scope:

 

Report Metric Details
Market Size Value in 2020 US$2,309.771 million
Market Size Value in 2027 US$3,769.527 million
Growth Rate CAGR of 7.25% from 2020 to 2027
Base Year 2020
Forecast Period 2022–2027
Forecast Unit (Value) USD Million
Segments Covered Car Type, Service, Application, Booking, Rental Category, Contract Type, and Cities
Regions Covered Jakarta, Surabaya, Bali, Yogyakarta, Others
Companies Covered The Hertz Corporation, Bluebird Group, Pt Serasi Autoraya (Sera), Mitra Pinasthika Mustika Rent, Adi Sarana Armada Tbk, Avis Budget Group, Europcar Mobility Group, Globe Rent A Car
Customization Scope Free report customization with purchase

 

Market Segmentation

  • BY CAR TYPE
    • Electric
    • Gasoline
      • Economy
      • Luxury
      • Suv
      • Muv
  • BY SERVICE
    • Self-Driven
    • Chauffeur-Driven
  • BY APPLICATION
    • Leisure/Activity Trips
    • Corporate/Business Trips
  • BY BOOKING
    • Online
    • Offline
  • BY RENTAL CATEGORY
    • Local Transport
    • Airport Transport
    • Outstation Transport
    • Others
  • BY CONTRACT TYPE
    • Long-Term
    • Short-Term
  • BY CITIES
    • Jakarta
    • Surabaya
    • Bali
    • Yogyakarta
    • Others
 

1. INTRODUCTION

1.1. MARKET OVERVIEW

1.2. COVID-19 SCENARIO

1.3. MARKET DEFINITION

1.4. SCOPE OF THE STUDY

1.5. CURRENCY

1.6. ASSUMPTIONS

1.7. SEGMENTATION

1.8. BASE, AND FORECAST YEARS TIMELINE

2. RESEARCH METHODOLOGY

2.1. RESEARCH DESIGN

2.2. SECONDARY SOURCES

2.3. VALIDATION

3. EXECUTIVE SUMMARY

3.1. RESEARCH HIGHLIGHTS

4. MARKET DYNAMICS

4.1. DRIVERS

4.1.1. LARGE POPULATION AND GROWING INTERNATIONAL TOURISM

4.1.2. CHANGE IN NATIONAL CAPITAL CITY, GROWING URBANIZATION, AND DIGITALIZATION

4.1.3. RISING TOURISM COUPLED WITH THE GROWING DEMAND FOR ONLINE CAR RENTAL SERVICES

4.2. RESTRAINTS

4.2.1. TRAFFIC CONGESTION, MASS RAPID TRANSIT, AND INTER-ISLAND TRAVEL

4.3. PORTERS FIVE FORCES ANALYSIS

4.3.1. BARGAINING POWER OF SUPPLIERS

4.3.2. BARGAINING POWER OF BUYERS

4.3.3. THREAT OF NEW ENTRANTS

4.3.4. THREAT OF SUBSTITUTES

4.3.5. COMPETITIVE RIVALRY IN THE INDUSTRY

4.4 INDUSTRY VALUE CHAIN ANALYSIS

5. INDONESIA CAR RENTAL MARKET BY CAR TYPE

5.1. INTRODUCTION

5.2. ELECTRIC

5.3. GASOLINE

5.3.1. ECONOMY

5.3.2. LUXURY

5.3.3. SUV

5.3.4. MUV

6. INDONESIA CAR RENTAL MARKET BY SERVICE

6.1. INTRODUCTION

6.2. SELF-DRIVEN

6.2.1. BY CONTRACT TYPE

6.3. CHAUFFEUR-DRIVEN

6.3.1. BY CONTRACT TYPE

7. INDONESIA CAR RENTAL MARKET BY APPLICATION

7.1. INTRODUCTION

7.2 LEISURE/ACTIVITY TRIPS

7.3 CORPORATE/BUSINESS TRIPS

8. INDONESIA CAR RENTAL MARKET BY BOOKING

8.1. INTRODUCTION

8.2. ONLINE

8.3. OFFLINE

9. INDONESIA CAR RENTAL MARKET BY RENTAL CATEGORY

9.1. INTRODUCTION

9.2. LOCAL TRANSPORT

9.3. AIRPORT TRANSPORT

9.4. OUTSTATION TRANSPORT

9.5. OTHERS

10. INDONESIA CAR RENTAL MARKET BY CONTRACT TYPE

10.1. INTRODUCTION

10.2. LONG-TERM

10.3. SHORT-TERM

11. INDONESIA CAR RENTAL MARKET BY CITIES

11.1 INTRODUCTION

11.2. JAKARTA

11.2.1. BY CONTRACT TYPE

11.3. SURABAYA

11.3.1. BY CONTRACT TYPE

11.4. BALI

11.4.1. BY CONTRACT TYPE

11.5. YOGYAKARTA

11.5.1. BY CONTRACT TYPE

11.6.  OTHERS

11.6.1. BY CONTRACT TYPE

12. INDONESIA’S ELECTRIC VEHICLE MARKET

13. COMPETITIVE ENVIRONMENT AND ANALYSIS

13.1. MAJOR PLAYERS AND STRATEGY ANALYSIS

13.2. EMERGING PLAYERS AND MARKET LUCRATIVENESS

13.3. MERGERS, ACQUISITIONS, AGREEMENTS, AND COLLABORATIONS

13.4. MARKET SHARE ANALYSIS

14. COMPANY PROFILES

14.1. THE HERTZ CORPORATION

14.1.1. OVERVIEW

14.1.2. PRODUCTS AND SERVICES

14.1.3. FINANCIALS

14.1.4. KEY DEVELOPMENTS

14.2. BLUEBIRD GROUP

14.2.1. OVERVIEW

14.2.2. PRODUCTS AND SERVICES

14.2.3. FINANCIALS

14.2.4. KEY DEVELOPMENTS

14.3. PT SERASI AUTORAYA (SERA)

14.3.1. OVERVIEW

14.3.2. PRODUCTS AND SERVICES

14.3.3. FINANCIALS

14.3.4. KEY DEVELOPMENTS

14.4. MITRA PINASTHIKA MUSTIKA RENT

14.4.1. OVERVIEW

14.4.2. PRODUCTS AND SERVICES

14.4.3. FINANCIALS

14.5. ADI SARANA ARMADA TBK

14.5.1. OVERVIEW

14.5.2. PRODUCTS AND SERVICES

14.5.3. FINANCIALS

14.5.4. KEY DEVELOPMENTS

14.6. AVIS BUDGET GROUP

14.6.1. OVERVIEW

14.6.2. PRODUCTS AND SERVICES

14.6.3. FINANCIALS

14.6.4. KEY DEVELOPMENTS

14.7. EUROPCAR MOBILITY GROUP

14.7.1. OVERVIEW

14.7.2. PRODUCTS AND SERVICES

14.7.3. FINANCIALS

14.7.4. KEY DEVELOPMENTS

14.8. GLOBE RENT A CAR

14.8.1. OVERVIEW

14.8.2. PRODUCTS AND SERVICES


THE HERTZ CORPORATION

BLUEBIRD GROUP

PT SERASI AUTORAYA (SERA)

MITRA PINASTHIKA MUSTIKA RENT

ADI SARANA ARMADA TBK

AVIS BUDGET GROUP

EUROPCAR MOBILITY GROUP

GLOBE RENT A CAR