The global self-drive car rental market is expected to grow at a CAGR of 6.52% during the forecast period, to reach US$86.589 billion in 2025 from US$59.280 billion in 2019. This growth is attributed to the fact that increasing number of people prefer to rent any car like a luxury car or a car they want to drive to travel to long distances like weekend vacations and work trips. Self-drive rental cars are cars that are provided by different car rental companies to people for a fixed or subsidized rate so they can enjoy a premium driving experience. Self-drive cars are provided to customers for different time periods ranging from a day to some weeks depending upon company packages. The cars that are provided can include economy cars such as Honda, Hyundai, Kia etc. and luxury cars like Mercedes, BMW, Audi etc. As the disposable income of people is rising, and people are getting busier they tend to look for weekend vacations to get away from the work-life and tend to rent luxury and other cars for a premium driving experience to the destination which is increasing the demand of self drive rental cars and is expected to boost the market growth.
Self-drive cars are available in many countries and have a fleet of many vehicles to choose from. The cars can be either picked up from airports or some pickup points. The self drive rental cars can be either booked via apps, online websites or the car rental agencies. The self-drive car rental market has been segmented on the basis of vehicle type, vehicle size, mode of booking and geography. The key players are actively involved in making improvements and investments in their offerings to further complement the self-drive car rental market. For example, Hyundai which is one of the largest car sellers in India has invested around $14 Million in the Indian car rental company Revv. Another Dubai-based car rental company Ekar has announced that they would be expanding their operations into Riyadh District of Saudi. Also, the cab-hailing service Ola has announced that it would be entering the self-drive car rental market by investing over US$500 million.
Owing to the increasing number of tourists in various countries, continuously evolving tourism industry and travelers that are out of town who usually use these services the demand for rental cars is increasing, also when people have their cars temporarily in garages or in workshops prefer to use these services, the self-drive car rental market will be significantly bolstered.
By Vehicle Type
By vehicle type, the global self-drive car rental market is segmented as economy and luxury. Luxury car segment holds a significant share as these cars are expensive and many people can’t afford them but as the rental companies provide them at subsidized rates, people who want a premium and luxury driving experience can do so.
By Mode of Booking
On the basis of mode of booking, the market is segmented as online and offline. Online segment is estimated to hold the majority share in the market owing to the rising preference of online booking as it is a more convenient and time-saving and can be comfortably done from home.
North America holds a significant market share owing to the evolving tourism industry and many car rental businesses coming up to support the rising demand for rental cars. Europe also accounts for a healthy market share while the Asia Pacific is expected to witness substantial growth in the near future.
The self-drive car rental market is competitive owing to the presence of well-diversified international, regional, and local players. The competitive landscape details strategies, products, and investments being done by key players in different technologies and companies to boost their market presence.
The global self-drive car rental market has been segmented by vehicle type, mode of booking and geography.
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