The global car rental market could be worth an astonishing $106.211 billion by 2022, according to a new report on market trends.
A compound annual growth rate of 9.18% will see the sector’s total for 2017 of $68.463 billion expand rapidly in the forthcoming years.
The in-depth study from Report Sellers, titled Global Care Rental Market Forecasts, reveals that expanding travel and tourism industries will be key to the anticipated growth.
With growth in the sector expected across the globe, it will be driven by a number of factors, including improved infrastructure and the growth of megacities.
Emerging nations including Australia, China, Brazil and India are key drivers of the growth thanks to rising demand in both their leisure and business sectors.
The car rental sector is also set to benefit as more regions connect to the internet, and those with existing connections make improvements to their connectivity.
This is expected to drive a huge increase in online bookings and reservations, as well as a rise in customisable holiday trips that include cars as add-ons.
Further advancements in communications and telematics are also expected to mean that more customers integrate smartphones and other devices when hiring vehicles.
When looking at current popular car types, the global car rental market is dominated by economy cars – perhaps unsurprising given their good fuel economy, effectiveness and low costs.
Despite this, the coming years are expected to see growth among multi-utility vehicles as they are deemed to be suitable for car sharing services and carpooling.
North America dominates the global market, taking the largest overall share – again this is perhaps predictable given the prominence of carpooling and business activities, alongside a number of high-profile hire firms.
However the greatest growth is expected in the Asia-Pacific region as the report suggests that a rising middle-class population will see the use of air travel expand rapidly, which in turn will drive growth in the car hire markets.
Of course if you intend to hire a vehicle and be part of this global growth trend in the year ahead, you’ll want to ensure that you have adequate insurance cover.
One option that protects against the excess you’ll need to pay if your vehicle is damaged or stolen comes in the form of car hire excess insurance and it can provide added peace of mind in case something goes wrong.
Get a quote today, as you might be surprised at how little the added extra can cost.
Date Created: 18/04/2018