What Has Been The Evolution of the SelfDrive Car Rental Market in Recent Years?
The selfdrive car rental market has seen considerable growth due to a variety of factors.
• The market size for rental cars you drive yourself has seen significant growth in the past few years. It's projected to grow from $60.81 billion in 2024 to $65.52 billion in 2025, indicating a compound annual growth rate (CAGR) of 7.7%.
Factors such as a surge in tourism, increases in smartphone usage, the expansion of urban mobility, a growing middle-class income, and increased demand for affordable transportation can all account for the growth observed during the historical period.
How Will the SelfDrive Car Rental Market?
The selfdrive car rental market is expected to maintain its strong growth trajectory in upcoming years.
• The self-drive car hire industry is predicted to undergo substantial growth in the forthcoming years, expanding to $87.57 billion by 2029 with a compound annual growth rate (CAGR) of 7.5%.
The growth projected in the forecast period is mainly because of the wider acceptance of electric cars, an increased demand for touch-free rental services, a growing predilection for subscription-based transportation, a greater fusion of Artificial Intelligence and Internet of Things, and a burgeoning culture of car-sharing. Forward-looking trends for the projection period encompass sophisticated fleet management systems, advanced AI-enabled customer assistance, the acceptance of connected car technology, broader application of telematics for monitoring purposes, and the growth of partnerships with ride-hailing services.
Which Factors Are Boosting Growth In The SelfDrive Car Rental Market?
The self-drive car rental market is anticipated to witness significant growth as a result of the expansion of the travel and tourism industry. The travel and tourism industry comprises services including travel, lodging, transportation, and recreational activities for tourists or voyagers. Factors contributing to the growth of this sector include advancements in technology, infrastructural improvements, governmental support, economic growth, and surging worldwide connectivity. Self-drive car rentals contribute to this sector by enabling travelers to visit places at their own speed and offering affordable, convenient transportation services. For example, figures revealed by the World Travel and Tourism Council in August 2022, a UK-based global representative of the travel and tourism industry, showed that in 2023, the sector was responsible for 9.1% of the global GDP, marking a 23.2% rise from 2022. Thus, the burgeoning travel and tourism industry is a crucial driving force behind the expansion of the self-drive car rental market.
What Key Areas Define The Segmentation Of The Global SelfDrive Car Rental Market?
The self-drive car rental market covered in this report is segmented –
1) By Type: Hatchback, Sedan, Sports Utility Vehicles, Luxury, Convertible, Vans
2) By Rental Length: Long Term, Short Term
3) By Application: Airport Transport, Local usage, Outstation, Other Applications
4) By End-User: Individual, Corporate
Subsegments:
1) By Hatchback: Compact Hatchback, Mid-Size Hatchback, Electric Hatchback, Performance Hatchback
2) By Sedan: Compact Sedan, Mid-Size Sedan, Full-Size Sedan, Luxury Sedan, Electric Sedan
3) By Sports Utility Vehicles (SUVs): Compact SUV, Mid-Size SUV, Full-Size SUV, Off-Road SUV, Electric SUV
4) By Luxury: Luxury Sedans, Luxury SUVs, Exotic Sports Cars, Limousines
5) By Convertible: Soft-Top Convertible, Hard-Top Convertible, Luxury Convertible, Sports Convertible
6) By Vans: Passenger Vans, Cargo Vans, Minivans, Electric Vans
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What Trends Are Shaping The SelfDrive Car Rental Market?
Major companies operating in the self-drive car rental market are leveraging advanced innovations, such as state-of-the-art mobile apps, to gain a competitive edge in the market. State-of-the-art mobile apps leverage cutting-edge technologies to enhance user experience, streamline functionality, and optimize performance. For instance, in May 2023, IndusGo, an India-based self-drive car rental startup, launched its advanced app, IndusGo 2.0. The new app features an improved user interface, real-time vehicle tracking, and seamless booking options. It also includes AI-powered vehicle recommendations and flexible pickup or drop points. This launch is significant as it enhances customer experience and positions the company in the self-drive car rental industry. By integrating advanced technology, IndusGo aims to provide a superior, streamlined, and personalized experience for all users.
Who Are the Key Players In The SelfDrive Car Rental Market?
Major companies operating in the self-drive car rental market are:
• Avis Budget Group Inc.
• The Hertz Corporation
• Localiza Rent a Car S.A.
• Budget Rent A Car System Inc.
• Europcar Mobility Group
• eHi Car Services Limited
• Kayak Inc
• Carzonrent India Private Limited
• Getaround Inc.
• Bolt Technology OÜ
• CarDekho
• Eco Rent A Car Private Limited
• U Drive Ltd
• Kendall Cars
• Myles Automotive Technologies Pvt. Ltd.
• Zoomcar Inc.
• MyChoize Self Drive Cars
• Rentrip Services Pvt. Ltd.
• DriveNow
• Saxons Self Drive Hire.
What Is The Most Dominant Region In The SelfDrive Car Rental Market?
North America was the largest region in the self-drive car rental market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the self-drive car rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
