Car rental industry is a multibillion dollar industry and still undergoing with the major changes from various factors such as new innovations and providing more applications to the consumer. With the increase in the prices of fuel the rental car shares are becoming increasingly popular. Recent research indicates that in the U.S. using car sharing services saves consumers anywhere between USD 14 to 43 per month. Car share technology uses an automated and membership based system to offer an affordable transportation solution. According to the report analysis, ‘Car Rental Market Research Reports’ suggests that car share technology with in vehicle rental market has the capability to decrease the amount of traffic on the roads and save the money of the passengers. Moreover, both Hertz Global Holdings and Avis Budget Group reached substantial financial results last year and it is also expected that in the coming years both the companies are accomplished the positive outcome with the more development in the car rental industry.
Car sharing surge the benefits of auto mobility to individual without bearing the cost and effort of car ownership. Therefore, car sharing has pursuing seen double digit growth over the recent last few years, especially in the metropolitan cities where major portion of population are passing on the costs of car ownership. Moreover, corporate car sharing users are becoming an unavoidable source of additional business for stationary car sharing providers. In Europe this car sharing technology is growing rapidly and most prominently in the Germany and France. Well known providers such as car2go and DriveNow are already introduced, not only in the major cities in Germany or France whereas, all across Europe, the US, and Asia Pacific region. In addition, the developing countries in the Asia Pacific region are being catered the huge market share with the more development in the technology of car sharing and lead the significant market growth to the car rental industry. According to the report analysis, ‘CAR RENTAL INDUSTRY RESEARCH AND MARKET REPORTS’ states that the car rental industry is expected to grow with the more innovation in the technology of the car sharing and in Europe has seen a positive development of the car sharing in terms of number of cars and number of users in the recent past years. In addition, peer to peer car rental makes a majority of the car sharing market which is forecasted to grow in the coming years at a CAGR of over 20% for the period 2017-2024.
In the Asia Pacific region it is expected that the industry of car rental is going to grow rapidly with more development in the various models of the car sharing technology such as Peer-to-Peer car sharing, Stationary car sharing and Free-Floating car sharing. Not only has this, Europe is also working efficiently for acquiring the handsome amount of share in the market with the more innovations in the models.
Moreover, many of the companies are working in this sector of market whereas Enterprise is dominating the huge market share with the efficient working followed by Uber. The Turo in the US and iCarsclub in Singapore are functioning in this market with more different characteristics whereas in the recent trend, Europe accounts for about 50% of the global car sharing market. Therefore, the market of car rental industry will most prominently increase in Europe and grow across the globe with growing concern related to traffic control.
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Ankur Gupta, Head Marketing & Communications