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The global luxury car rental market is set to reach US$ 60.37 BN by 2032, at a 8.00% CAGR between years 2023-2032. The luxury car rental market is characterized by the constant motion of several factors having a direct impact on its growth and development. The driving force behind the dynamics of this market is increasing demand for a superior and VVIP travel service among consumers. With the rise in disposable income worldwide, people do not simply demand transportation but a premium level of it.
The demand is, therefore more driven by the need and desire to achieve status symbolization together with a passion for living an affluent lifestyle. The growing popularity of experiential spending is one major market driver for the luxury car rental business. There is a move away from consumption of luxury assets toward the experience, thus creating demand for such prestigious rental vehicles.
This behavioral change is evident in the market dynamics since rental companies also adjust by increasing their fleet sizes to include a variety of luxurious cars, from high-performance sports car and prestigious sedans to SUV’s. In addition, the advent of sharing economy has greatly influenced on market dynamics. The integration of luxury car rental services into sharing platforms has also emerged, thus providing the consumers with more available options on flexible access to premium vehicles without having ownership themselves.
This move towards shared mobility reflects the evolving behaviors of a modern, tech-centric population for whom convenience and experience are more important than ownership. Global trends in tourism also contribute to the development of demand for luxury car rental. With the growing accessibility of international travel, visitors are looking for more than just lavish hotel facilities; they also demand high-end transportation options.
However, the trend of adventuring in style has significantly increased luxury car rental demand to be a potential business market opportunity for players. Nevertheless, the market dynamics are not without challenges. Economic uncertainties, volatile fuel prices and regulatory challenges could alter the growth path of luxury car rental market.
Further, the world is constantly moving towards sustainable practices and environmental awareness which remains a challenge for luxury car rental firms to accommodate eco-friendly choices in their fleets. It is important for market players to keep a close eye on such evolving consumer needs and the associated regulatory environment.
With regards to competition, the market for luxury car rentals is a highly competitive one with both incumbents and entrants seeking market share. Companies must have differentiation with a diversified fleet, excellent customer service and strategic partnerships to gain market share in this competitive environment.
Luxury Car Rental Market Highlights:
Luxury Car Rental Market Overview
Luxury Car Rental Market Size was valued at USD 30.2 Billion in 2022. The Global Luxury Car Rental industry is projected to grow from USD 32.62 Billion in 2023 to USD 60.37 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2023 - 2032). Digitization of the luxury car rental booking, payment, and management processes are the key market drivers boosting the expansion of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Luxury Car Rental Market Trends
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Increasing Amount of Air Travelers is driving the market growth
Market CAGR for luxury car rental is being driven by the increasing amount of air travelers. Services for hiring luxury cars include doing so for travel or business. Globally, people's standards of living have increased in tandem with population growth. The growing need for comfort, luxury, and upholding high standards has led to an expansion in the market for luxury car rentals. Hiring a car allows one to travel to their location without having to drive because these vehicles are chauffeur driven. The upcoming years will see a surge in this new rental business because of its many advantages, which include decreased traffic, lower air pollution, increased convenience when traveling, and economical methods.
The demand for automobile rental services at airports is expected to increase due to an increase in air travel due to falling airfares, rising disposable income, and the developing leisure and tourism industry throughout developed and emerging economies. Additionally, companies are growing internationally, which has an impact on the rise in business travel. The demand for luxury executive cars in the car rental sector is therefore rising due to the changing demographics of corporate or business travelers. Globally, this market is growing at a very quick pace. Through enhancing their operational effectiveness and implementing novel automated technologies, all industry players provide superior offerings and incentives to augment reservations. One of the automated technologies that is currently popular is digitization, which is having a big impact on all industry sectors, including the rental car sector.
Luxury passenger cars and charter cars with features like real-time feedback, vehicle tracking, and rating for end users are included in demand-responsive transport services. It is now simpler to locate luxury vehicles and compare costs with the many car rental businesses thanks to a plethora of mobile applications. Furthermore, as a result of digitalization, rental businesses have changed to become more profitable while enhancing client satisfaction. Software for managing rental cars is used by these companies to enhance customer service and streamline business processes. Additionally, operational efficiency is increased and management chores are decreased with automobile rental management software.
For instance, Global air travel could double to 8.2 billion people by 2037, according to an estimate made by the International Air Transport Association (IATA) in October 2018. Thus, result in driving the Luxury Car Rental market revenue.
Luxury Car Rental Market Segment Insights:
Luxury Car Rental Type Insights
The Luxury Car Rental Market segmentation, based on Rental Type includes Business, and Leisure. The business segment dominated the market. For many years, the majority of government and private companies have rented expensive cars to their top executives. Based on the employees' annual advancement and classification, the corporations change the cars that are rented to them. While enabling the executives to use these opulent vehicles for meetings and client trips, it also helps the company avoid having to add fixed assets and inventory costs.
Figure1: Luxury Car Rental Market, by Rental type, 2022&2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Luxury Rental Cars Market Booking Mode Insights
The Luxury Car Rental Market segmentation, based on Booking Mode, includes Online, and Offline. The online category generated the most income. The online market is becoming more and more popular with younger customers. The online booking option offers the customer a large selection of premium vehicles to pick from. Additionally, year-round availability and 24/7 booking are made possible by these autos.
Luxury Car Rental Market Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Luxury Car Rental market area will dominate this market. The demand for car rentals surged above pre-pandemic levels as the countries resumed travel and the markets opened up again.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: LUXURY CAR RENTAL MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Luxury Car Rental market has the second-largest portion of the market. This is because the area is well-known for its tourism attractions and jobs. Further, the German Luxury Car Rental market had the biggest market share, and the UK Luxury Car Rental market was the European market with the quickest rate of growth.
The Asia-Pacific Luxury Car Rental Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. Another factor contributing to the growth is the rising number of billionaires in Asia Pacific. Moreover, China’s Luxury Car Rental market had the biggest market share, and the Indian Luxury Rental Cars market was the Asia-Pacific region's fastest-growing market.
Luxury Car Rental Key Market Players & Competitive Insights
Leading market players are making significant investments in R&D to broaden their product ranges, which will contribute to the growth of the luxury car rental sector. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Luxury Car Rental industry must provide reasonably priced goods.
One of the main business strategies employed by manufacturers is to manufacture locally in order to reduce operating expenses in the global Luxury Car Rental industry to help customers and expand the market segment. In recent years, the Luxury Car Rental industry has provided some of the biggest benefits to medicine. Major players in the Luxury Car Rental market, including Sixt (Germany), Enterprise Holdings (U.S.), Movida (Brazil), Hertz (U.S.), Avis Budget Group (U.S.), Localiza (Brazil), Car Inc. (China)., Europcar Mobility Group (France), and others, are engaging in research and development activities in an effort to boost market demand.
Avis Budget Group is based in Parsippany, New Jersey, and operates rental cars. Avis Car Rental, Budget Rent a Car, Budget Truck Rental, Payless Car Rental, and Zipcar are just a few of the brands that it is the parent business of. The business also manages a number of smaller, regional brands, such as TurisCar, TurisPrime, Maggiore Group, AmicoBlue, France Cars, ACL Hire, and Apex Car Rentals. It is one of the three major holding companies for rental cars in the US. It was trailing both Hertz Global Holdings and Enterprise Holdings in 2021 with a 26% market share.
Founded in Paris in 1949, Europcar Mobility Group is a French automobile rental firm. The headquarters of the holding company, Europcar Group S.A., are located in Voisins-le-Bretonneux (Saint Quentin en Yvelines), France, in the Val Saint-Quentin industrial park. Currently, Europcar is present in 140 nations in Western Asia, Africa, North America, and Europe. Green Mobility Holding, S.A., a group headed by the Volkswagen Group, Attestor, and Pon Holdings, has been the owner of Europcar since July 2022. The Europcar recreational rental sub-brand is called Keddy.
Key Companies in the Luxury Rental Cars market include
- Avis Budget Group (U.S.)
- Sixt (Germany)
- Enterprise Holdings (U.S.)
- Movida (Brazil)
- Hertz (U.S.)
- Localiza (Brazil)
- Europcar Mobility Group (France)
- Car Inc. (China)
Luxury Car Rental Industry Developments
July 2022: Starr Luxury, Ikenna Ordor's luxury car rental brand, has announced its U.S. expansion. Major cities like Los Angeles, Miami, Houston, Atlanta, and Austin were the places where it declared the beginning of its operations.
July 2022: Uber Comfort Electric, the company's premium electric vehicle service, has announced plans to expand into additional US cities, including Portland, Seattle, Las Vegas, Denver, Austin, Baltimore, and Philadelphia.
December 2021: Ajman Public Transport Authority (APTA) has declared that car rentals are now available in order to fulfill the Emirate's Vision 2021 of assisting federal institutions in creating a fair and all-encompassing transportation network.
Luxury Car Rental Market Segmentation:
Luxury Car Rental Rental type Outlook
- Business
- Leisure
Luxury Car Rental Booking Mode Outlook
- Online
- Offline
Luxury Car Rental Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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