Albany, NY: The global car rental market is highly consolidated with the presence of a handful of
companies, observes Transparency Market Research (TMR). The top five companies,
namely Enterprise Rent-A-Car, The Hertz Corporation, Europcar, Avis Budget
Group Inc., and Sixt collectively held more than 75% of the market in
2013.
“Expanding into new markets partnering with local players is the
key growth model that top companies in the car rental market are adopting,”
says a TMR analyst. The objective is to strengthen their global presence, which
in turn will help increase business revenue. An excellent example is Avis
Budget Group. With a presence in 175 countries, the company is strategizing for
further expansion in new rental locations such as India, China, and Brazil due
to the increasing demand for car rentals in these regions.
Strategically
accelerated growth is the focus of key companies in the global car rental
market. Companies are formulating plans for increasing the fleet size and
incorporating a mix of vehicles to their fleet to keep up with customer demand.
Offering differentiator services is also a key growth model that top companies
in this market are focused on.
Asia Pacific to Emerge as Key Regional Market
in Future
An expeditious
increase in air travel is one of the major factors driving the growth of the
global car rental market, points out a TMR analyst. In the last decade, surging
air travel for both business and leisure has led to an increasing demand for
reliable and high-quality car rental services for comfort and safety reasons.
Thus, top players in the car rental market are striving to leverage this trend
by offering services across all major airports worldwide.
At present, Asia
Pacific is witnessing a high growth in the tourism industry. Post the global
economic slump of 2007-2008, global car rental companies are expanding their
operations in China and India to serve both international and domestic
tourists.
The increasing number
of Internet users that carry out online travel bookings is also boosting the
growth of the car rental market. This is because the process is reliable, easy
and can be customized as per the need. Online booking is convenient for both
customers and car rental providers as it saves times and is cost-effective as
well.
Concerned About Environmental Degradation
Hamper Market Growth
Strict regulations for
curbing emissions and volatility in crude oil prices are hampering the growth
of the global car rental market. The high utilization of non-renewable energy
sources for power generation releases large amounts of carbon dioxide into the
atmosphere. To counter this, environmental regulations are in place in several
countries for lowering emissions from vehicles and industries. In this regard,
the International Energy Agency have laid out mandates for generating green
energy in order to reduce carbon dioxide emissions and control environmental
pollution. Consequently, top companies such as Enterprise Rent-A-Car are
adopting green car rentals.
The global car rental
market is expected to reach a valuation of US$79.46 bn by 2019. On the basis of
car type, executive cars and multi-utility vehicles are anticipated to display
a faster growth rate than other segments due to rapid globalization. The
airport transport segment by category is expected to be valued at US$34.48 bn
by 2019. The dominance of this segment is mainly due to the increasing number
of air travelers for both business and leisure reasons.
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