Australia Car Rental Market Size, Share, Opportunities, And Trends By Type (Economy Cars, Luxury Cars, Executive Cars, SUVs, MUVs), By Mode Of Booking (Online, Offline), By Rental Category (Local Transport, Airport Transport, Outstation Transport, Others) - Forecasts From 2023 To 2028

The Australia car rental market is expected to grow at a CAGR of 5.63% from an initial value of US$3,560.080 million in 2021 to US$5,222,254 million in 2028.

Car rental refers to hiring an automobile for a short period of time ranging from a few hours to a few weeks. One of the key developments in the Australian car rental market is the mergers and acquisitions that have taken place in recent years. which have further helped to consolidate the market and increase the dominance of the larger players. Partnerships have also played a significant role in supporting the growth of the Australian car rental market in terms of online booking.

Drivers:

Growing tourism sector in the country

Australia is one of the leading tourist destinations and the country’s tourism sector is one of the largest contributors to the country’s GDP growth. Owing to the travel restriction imposed globally to prevent the widespread of COVID-19 gave a heavy blow to Australia’s tourism sector. The Australian government provided $1 billion during the pandemic period to assist the tourism business. The ease in the lockdown and travel restrictions have been a major factor behind the upliftment of tourism activities in Australia which has positively impacted the sector’s GDP growth. For instance, according to the Australian Bureau of Statistics, in 2021, Australia’s Tourism GDP in chain volume term was valued at $35.1 billion which represented a significant increase of 26.4% in comparison to 2020’s GDP. With the growing tourism sector in Australia, the demand and usage of car rental services are also expected to increase in the country since tourist hire cars for sightseeing.

Favorable initiatives taken by the Australian government.

For instance, in March 2022, the Minster of Trade, Tourism and Investment launched the “THRIVE 2030” long-term national strategy which aimed to boost the activities that promote in tourism business in Australia. The strategy further focuses on reaching the value of the visitor economy to A$230 billion by the year 2030.

Moreover, in November 2022, the Australian Business Growth Fund announced investments of $15 million in HM Consolidated Pty Ltd. which is one of the fastest-growing tourism providers in Australia. Furthermore, in October 2021, the New South Wales government announced an investment of $530 million to boost the hospitality and tourism sector in the state.

Key Developments:

• In June 2021, Toyota launched a short-term car-sharing and rental app “KINTO” in Australia which enables users to rent the company’s automobiles on an hourly basis from any of the company’s dealership locations.
• In October 2022, US-based car-sharing company Turo announced its plans to expand its car rental business in Australia, thereby expanding its presence in the country. Also, in June 2022, Europcar Mobility Group launched new subscription-based car rental services in Australian under its “Innovation Drive” initiative.
• In 2020, Avis partnered with the ride-hailing company, Uber, to offer discounted car rentals to Uber drivers in Australia. This partnership not only increased the visibility of Avis in the market but also provided a new revenue stream for the company.

The online mode of booking is anticipated to expand.

The car rental market in Australia has seen significant growth in recent years due to increasing consumer demand for convenient and efficient ways to rent a car. The online mode of booking car rentals in Australia has become increasingly popular and is now a key channel for car rental companies to reach their customers.

Australia Car Rental Market Scope:

Market Segmentation:

• By Car Type
  • Economy Cars
  • Luxury Cars
  • Executive Cars
  • SUVs
  • MUVs
• By Mode of Booking
  • Online
  • Offline
• By Rental Category
  • Local Transport
  • Airport Transport
  • Outstation Transport
  • Others