Delivery

This report comes in PPT.

Key findings

Leisure rentals driving industry recovery

The car rental market has recovered following the COVID-19 pandemic thanks to an improving travel market. In 2023, car rental sales reached USD87 billion, with leisure rentals accounting for 55% of revenues, up from 52% in 2016. It reflects less appetite for business rentals as companies have substituted business travel for online collaboration tools such as Zoom.

Higher rental prices push up operator revenues

Between 2016 and 2023, operator revenues surged by 18%. The price rise arose mainly during 2021-2022, pushed up by increasing demand for car rental, which was simultaneously met with an undersupply in rental vehicles, leading to higher prices. However, operator revenues are stabilising as rental fleets have gradually normalised.

Car rental revenues to reach of USD95 billion by 2030

By 2030, the car rental industry is poised to reach USD95 billion in real revenues (constant 2023 prices). Leisure is projected to continue accounting for a larger share of the industry, though business rentals are expected to bounce back as companies reprioritise business travel.

Enterprise leads the “big 5”, but Sixt and Localiza impress

In 2023, the “big 5” car rental players - Enterprise Holdings, Avis, Hertz, Sixtand Green Mobility Holdings - accounted for 65% of the global car rental industry, led by the former with 29%. Among the “big 5”, Sixtwas the best performing thanks to its increasing exposure in the US, while Brazil’s Localizawas among the fastest-growing car rental companies globally.

Strategic trends in car rental underpin new focus areas for operators

Several trends - flexible ownership models, shift to online bookings, adoption of low-emission car rental vehicles, use of AI and big data and increasing push from Chinese OEMs in car rental - are some of the major trends shaping the future of the industry. Being aware of the following trends can help operators embrace the car rental industry’s shifting business profile.