Indonesia Car Rental Market Size, Share, Opportunities, COVID-19 Impact, And Trends Car Type (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 By Cities - Forecasts From 2022 To 2027

Published:  Apr 2022 Report Code: KSI061610798 Pages: 151

The Indonesia 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 who 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.

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 the 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 the 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 is expected to increase the demand for car rental services in the next few years owing to which the market will see a 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 through 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 has 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 rentals 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 the market growth due to a halt in the 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 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, Blue Bird Group, TRAC, Mitra Pinasthika Mustika Rent, Adi Sarana Armada Tbk, Avis, Europcar Indonesia, Globe Rent a Car
 Customization scope  Free report customization with purchase

 

Market Segmentation

  • BY CAR TYPE
    • 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. Market Segmentation


2. RESEARCH METHODOLOGY  
2.1. Research Data
2.2. Assumptions


3. EXECUTIVE SUMMARY
3.1. Research Highlights


4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis


5. INDONESIA CAR RENTAL MARKET BY CAR TYPE
5.1. Introduction
5.2. Economy
5.2.1. By Service
5.2.2. By Application
5.2.3. By Mode of Booking
5.2.4. By Rental Category
5.2.5. By Contract Type
5.2.6. By Cities
5.3. Luxury
5.3.1. By Service
5.3.2. By Application
5.3.3. By Mode of Booking
5.3.4. By Rental Category
5.3.5. By Contract Type
5.3.6. By Cities
5.4. SUV
5.4.1. By Service
5.4.2. By Application
5.4.3. By Mode of Booking
5.4.4. By Rental Category
5.4.5. By Contract Type
5.4.6. By Cities
5.5. MUV
5.5.1. By Service
5.5.2. By Application
5.5.3. By Mode of Booking
5.5.4. By Rental Category
5.5.5. By Contract Type
5.5.6. By Cities


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


12. COMPETITIVE ENVIRONMENT AND ANALYSIS
12.1. Major Players and Strategy Analysis
12.2. Emerging Players and Market Lucrativeness
12.3. Mergers, Acquisitions, Agreements, and Collaborations
12.4. Market Share Analysis


13. COMPANY PROFILES
13.1. The Hertz Corporation
13.2. Blue Bird Group
13.3. TRAC
13.4. Mitra Pinasthika Mustika Rent
13.5. Adi Sarana Armada Tbk
13.6. Avis
13.7. Europcar Indonesia
13.8. Globe Rent a Car

The Hertz Corporation

Blue Bird Group

TRAC

Mitra Pinasthika Mustika Rent

Adi Sarana Armada Tbk

Avis

Europcar Indonesia

Globe Rent a Car

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