Car rental industry worth $100 billion by 2020
Sunday, 02 Nov, 2015
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Despite the growth of car sharing services like Uber and Lyft, the global car rental market will also expand to more than $100 billion annually within five years.
A new report by Grand View Research, Inc says the market will be a $103.09 billion industry by 2022, fuelled by rising demand for air travel and international tourism.
Grand View Research estimated the global car rental market at $41.6 billion in 2014.
The study found the airport transport segment accounted for more than 43% of revenue in 2014 and will continue to grow at a steady pace.
It said major brands Enterprise, Avis Budget and Hertz will all expand their on-airport services over the next few years.
The Asia Pacific market car rental market is expected to grow annually by about 12.5% over the next five years, especially in China, India, and ASEAN countries.
Rules banning the purchase of new cars in certain parts of China to help ease congestion may spur more car rental business, the study concludes.
This may offset any downturn cause by the current economic uncertainty.
Increasing consumer spending power and pent up demand for more leisure travel will also see gains in the North American and European car rental markets.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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