Experts believe Car Rental Market to grow to $124.56 billion

Date: 11 JAN 2018posted by Car Rentaledited by WinX

The global car rental market's growth is expected to hit $124.56 billion by 2022. North America is expected to remain at the top over the forecasted period, the region accounted for 44.6% share of the global market revenue in 2016. The internet and growth of smart technology is one of the major reasons that has allowed the industry to flourish in North America. The increase of industrialization and the booming tourism industry of China, Japan and India are expected be behind the driving force of growth in Asia Pacific. Zion Market Research published a report titled "Car Rental Market by Car Type (Luxury Cars, Executive Cars, Economy Cars, SUV Cars and MUV Cars) for Local Usage, Airport Transport, Outstation and Others: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2016-2022." Within the report, the global car rental market was valued at USD 58.26 billion in 2016 and is expected for reach USD 124.56 billion by 2022, growing at a CAGR of around 13.55% between 2017 and 2022. The largest driving factor of growth for the car rental market will be from the growth in international tourism which in return supports the demand for car rental services. Healthy economic prosperity and the increase of disposable income from modernizing countries are expected to have a positive impact on the market. New technologies which utilize the internet and smart technology will increase the convenience of car rental services and is expected to be a key driving factor. Affordable prices of car rental services and the rise of demand on a daily basis are emerging trends of the current market. Car rentals for airport transport dominated the global market and accounted for 41% of the overall market in 2016. This is owed primarily to the increase of international business activities. However, growth of the market has two major obstacles. Rise in crude oil prices and may diminish returns and growth of the market. The other being the rise of ride-hailing and car-sharing services. And while the ride-hailing business such as Uber and Lyft have become major players in the transportation industry, they will never be able to fill the niche which the car rental industry provides.

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