Luxury Car Rental Market Size, Share & COVID-19 Impact Analysis, By Rental Type (Business and Leisure), By Booking Mode (Online and Offline), and Regional Forecast, 2022-2029

全球豪华汽车租赁市场大小的值d at USD 29.95 billion in 2021. The market is projected to grow from USD 39.54 billion in 2022 to USD 65.42 billion by 2029, exhibiting a CAGR of 7.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with luxury car rental services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of 55.0% in 2020 as compared to 2019.

A luxury car is more expensive than a standard car and offers better performance, levels of comfort, quality, and status. The term refers to both the characteristics of the car and the manufacturer's brand recognition. Luxury car rentals are growing in popularity. There are companies or groups that rent out high-end vehicles for a fee. Depending on the person, this arrangement may endure for an hour, a day, or even weeks. Luxurious transportation, the ability to choose from a variety of models, and assistance in projecting the appropriate image for particular events are some of the main factors driving exotic vehicle rentals' appeal.

COVID-19 IMPACT

Lockdown Restrictions Dented Growth Prospects For Luxury Car Rental Market

的COVID-19 pandemic-induced锁定和永川市c crisis significantly impacted various manufacturers' financials in 2020. The COVID-19 crisis caused market uncertainty, supply chain disruption, panic among customer segments, and business decline. However, the market only recovered after the lockdown was lifted in most countries and government affairs resumed normally. Due to lockdowns, as a measure to control the spread of the virus, rental car companies were obliged to go into survival mode, selling off as many cars as they could. Furthermore, significant corporations, such as Hertz (the parent company of Thrifty and Dollar car rental brands) and Advantage Rent a Car, and Europcar, declared bankruptcy in 2020. However, it came out of bankruptcy by June 2021.

On-airport rentals account for a large share of the market. The reduced passenger traffic congestion at airports and decreased tourism overall resulted in a direct drop-in revenues of major rental companies. As tourism declined globally, rental car operators were compelled to sell large parts of their fleets. For instance, in 2020, the number of cars rented in 2020 in the U.S. amounted to 17.3 million, representing a significant drop compared to 44.5 million rented in 2019. In 2021, around 29.2 million vehicles were rented, which is still lower than pre-pandemic levels. Hence, more than 770,000 vehicles were sold by key rental operators in 2020. For instance, according to AAA’s Leisure Travel Index, average dailycar rentalrates nearly doubled from USD 142 in June 2020 to USD 258 by July 2021. Hence, these factors will influence the market’s growth during the forecast period.

LATEST TRENDS

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Change in Rental Preference from Normal Cars to Luxury Cars to Witness Positive Growth

According to Autocar, Rolls-Royce achieved the best performance in its 116-year history, delivering 1,380 cars, up 62% from 2020, surpassing its previous high from 2019. Porsche's revenue surpassed the 2019 value by more than USD 100 million in 2020, reaching an all-time high of USD 34 billion. Bentley was an exception, shutting down for seven weeks only at the cost of USD 10 million per week and still delivering more cars than ever before.

According to Luxe Digital, when the crisis ends, the luxury sector would be among the first to recover while before the COVID-19 pandemic, the luxury vehicle market was thriving. According to the future analysis of a luxury lifestyle magazine, luxury car sales will grow tremendously between 2019 and 2023. Hence, the inherent tendency of this market to grow is anticipated to influence the rental preference of these cars over normal cars.

DRIVING FACTORS

Rise of Demand-Responsive Transport to Provide Significant Boom to the Market

Demand-responsive transport services encompass luxury passenger vehicles and charter vehicles equipped with features, such as real-time feedback, vehicle tracking, and rating, to end consumers. Numerous mobile applications make it easier to find luxury cars and compare prices with the respective car rental companies.

For instance, in February 2021, Humax announced that it would supply the WTC mobility service platform the 'Auto Rent RAiDEA', allowing users to compare nearbytaxi, luxury car rental, and ride-hailing prices companies in a single app. In addition, in April 2021, GoAir collaborated with Eco Europcar to launch rental services in 100 Indian cities, including 25 airports. Further, GoAir will offer cars that are chauffeur driven ranging from mid-range to luxury car segments through Eco Europcar. Furthermore, such exotic car rental services provide customers with various functions. As a result, the demand-responsive transport trend is on the rise.

Digitization in the Booking Process, Payment Process, and Management of Luxury Car Rental to Propel Market Growth

On a global scale, this market is expanding rapidly. By improving their efficiency and adopting new automated technologies, all market participants provide better services and discounts to increase bookings. Digitization, one of the automated technologies trending presently, is having a significant impact on every industry segment, including the car rental industry. Moreover, rental companies have evolved due to digitalization to increase profitability while improving customer experience. These rental companies use car rental management software to improve their services and automate their operations. Also, the car rental management software reduces management tasks and increases operational efficiency.

Furthermore, management software includes favorable payment management, fleet optimizations, and custom reports, which assist these companies in expanding their businesses. For instance, Hertz and Fox Rent-a-car, two car rental apps, are usually the main contenders for obtaining this information. As a result, the application of car rental management software represents a significant growth opportunity for the market players.

Rising Number of Air Travelers to Fuel the Market Growth

Rising number of air travelers due to decreasing fares, growing disposable income, and expanding leisure & tourism industry across emerging and developed economies are likely to fuel the demand for car rental services across airports. For instance, according to the International Air Transport Association (IATA) forecast in October 2018, the number of air travelers globally could double to 8.2 billion by 2037.

Moreover, businesses are expanding globally, further influencing the growth of business travelers. Therefore, rising demography of corporate or business travelers is surging the car rental industry's demand for premium executive cars.

RESTRAINING FACTORS

High Deposit Amounts and Rental Costs Could Limit the Market Growth

The market involves obtaining a large deposit, ranging from USD 2,500 to USD 50,000, financial information and vetting, and installing GPS devices in the cars to follow them if something goes wrong during the rental. It also means checking to confirm whether the renter has personal insurance coverage, which will secure liability and the car's worth or at least a portion of it. For instance, fleet insurance on a USD 200,000 car can cost USD 400 to USD 1,300 per month, yet many policies have high premium and do not cover customer theft. In addition, limited shares to opt for these services also hinder the market growth in some regions. Therefore, these cost factors are expected to restrain the market growth rate during the forecast period.

SEGMENTATION

By Rental Type Analysis

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Business Segment to Dominate the Market Due to Growing Preference from Corporate Consumers

The market is segmented into business and leisure based on rental type.

The business segment is anticipated to hold the largest share globally over the forecast period. Most private enterprises and government corporations have been renting luxury cars for their top executives for many years. The corporations update the cars to be rented to the personnel based on their designation and annual advancement. It also facilitates the firm to not add fixed assets and inventory cost of theseluxury carswhile facilitating the executives to use these luxurious cars while going for meetings and client visits. As a result, current luxury car rental market trends are expected to drive the market expansion over the forecast period.

休闲段是预期的展览highest CAGR during the forecast period. Consumers desire access to luxury cars rather than buying and owning them, and they prefer to pay for the privilege of momentarily using them. This desire is anticipated to propel the luxury car rental market growth. For example, a few years ago, the percentage of new Hyundai, Ford, Kia, and GM cars rented rather than purchased was minuscule but has now become at least 20%, according to J.D. Power & Associates research. These factors are expected to drive the growth of the leisure segment during the forecast period.

By Booking Mode Analysis

Online Segment to Capture the Maximum Market Share Due to High Demand from Consumers Especially Millennial Consumers

Based on booking mode, the market is segmented into online and offline.

The online segment is expected to exhibit the highest CAGR during the forecast period. The online segment is gaining popularity amongst young consumers. The consumer gets a wide range of luxury cars to choose from the online booking option. In addition, this type of cars facilitate booking round the clock and year-round availability. It facilitates users to flexibly compare the prices and provides information on the availability of luxury cars, conditions, and offers associated without physical inquiry. The online app reservation system also enables business owners to easily manage all reservations. The reservations made online are recorded and addressed directly. Hence, advancements in technologies and increasing penetration of the internet among buyers will propel the growth of the online segment.

The offline segment is expected to project steady growth during the forecast period. While online bookings are gaining traction, some consumers still prefer offline booking of luxury cars. The dominance can be attributed to customers’ convenience to rent cars in person rather than surfing online. Unlike customers who book online, offline consumers can inspect and examine the exotic car and even enquire with the staff. Hence, the offline segment will progress steadily during the forecast period.

REGIONAL INSIGHTS

Asia Pacific Luxury Car Rental Market Size, 2021 (USD Billion)

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Improving Standard of Living to Drive the Market in Asia Pacific

亚太地区市场站在11.40美元的法案ion in 2021. The region is expected to dominate the global market due to consumers choosing to rent over buying. Huge population in China and India, which accounts for more than 38% of the world population, is a crucial element driving the region's market growth. The growth can also be attributed to the increasing number of billionaires in Asia Pacific. According to Forbes, Asia Pacific continues to be the frontrunner, with a staggering 1,149 billionaires in 2021, which is 370 more than the previous year, owing mostly to entrants from China and India. According to Forbes, exotic car rental is still an emerging business category in the region compared to Europe and North America; nevertheless, given the trends mentioned above, it is expected to increase significantly throughout the projected period. Imported luxury cars costing more than USD 90,830 are growing trendier in Japan among affluent individuals who cannot travel overseas due to the coronavirus outbreak but are prepared to spend money.

North America holds the second-largest position in the market. The market in North America suffered during the pandemic and sold most of its vehicles during the lockdowns due to COVID-19. However, with the countries resuming travel activities and market opening up again, the demand for car rental increased more than its pre-pandemic level. According to Kayak, a travel search engine, searches about automobile rentals and pricing for luxury automobile rentals have surged during the holiday period from 12/11/2020 to 07/01/2020 compared to 2019. As per the search engine, the searches for luxury cars in 2021 were up by 230% from 2019 and 243% from 2020. Meanwhile, the average rental daily cost is 75% higher than in 2019 and 66% higher than in 2020 rates. Porsche Cars North America and Wheels Up, a private aviation firm, collaborated to provide high-end clients with road-to-sky VIP service and lifestyle experiences. The partnership grants Wheels Up members entry to Porsche Drive on-demandvehicle subscriptionperks and a 10% discount on short-term rentals.

Europe currently holds the third-largest luxury car rental market share; however, it is expected to exhibit the highest CAGR during the forecast period. Europe also faced the problem of selling the inventory during pandemic amidst rising demand after the pandemic. For instance, thousands of tourists visit the city of Malaga in Spain each year as their gateway to Spain's famed Costa del Sol. These tourists are used to spending no more than USD 600 on luxury car rental per week.

The rest of the world consists of Latin America and the Middle East & Africa. The Middle East is anticipated to contribute significantly to the market's growth. This can be attributed to the region’s wealth and the developed travel & tourism industry. In 2021, Amazon started offering car rentals in Sharjah, Dubai, Abu Dhabi, Ajman, and Ras Al Khaimah.

KEY INDUSTRY PLAYERS

Hertz Corporation’s Focus on Fleet Electrification to Enhance Its Market Share

Hertz Corporation is an American car rental company headquartered in Florida. It operates at around 12,000 locations, both domestically and internationally in 160 countries. Hertz operates in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. Hertz Corporation functions through Firefly Car Rental, Thrifty Car Rental, and Dollar Rent a Car brands. It has a vast fleet size, and Hertz is trying to expand in developing economies through mergers and acquisitions.

LIST OF KEY COMPANIES PROFILED:

• Avis Budget Group(U.S.)


• Sixt(Germany)


• Enterprise Holdings(U.S.)


• Movida (Brazil)


• Hertz (U.S.)


• Localiza (Brazil)


• Europcar Mobility Group(France)


• Car Inc. (China)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 -Ikenna Ordor’s luxury car rental brand ‘Starr Luxury’, announced its expansion in the U.S. It announced its start of operation in major cities such as Los Angeles, Miami, Houston, Atlanta, and Austin. Starr Luxury is known for being one of the few companies of its kind in the world to have a collaboration with five-starhotels.


• July 2022 -Uber’s premium electric car service Uber Comfort Electric announced its expansion in more U.S. cities, including Las Vegas, Portland, Seattle, Denver, Baltimore, Austin, and Philadelphia.


• December 2021 -Ajman Public Transport Authority (APTA) of the UAE announced the availability of vehicle rental services to achieve the Emirate's Vision 2021 of supporting federal institutions to establish an equitable and comprehensive transportation system. The change is intended to provide clients with high-quality services conveniently. The Transport Authority's Vehicle Rental Section developed this service as part of the premium vehicle rental services.


• June 2021 -Amazon started online car rental services in the UAE, including luxury cars. Customers in Abu Dhabi, Dubai, Ajman, Sharjah, and Ras Al Khaimah will be able to rent cars from the world's largest e-commerce company. The rent will vary from a day to a month, with dispatches to the chosen address taking as little as 2 to 3 hours from the time of reservation.


• September 2021 –Corsa HQ, an exotic car rental company, partnered with Ritz-Carlton in Orlando, Grande Lakes. Guests can rent luxury automobiles from the Corsa HQ portfolio during their stay, including Lamborghini, Rolls-Royce, Ferrari, and Bentley. A Ritz-Carlton gift card worth USD 50 is included with premium SUV rentals and a USD 100 gift card is included with exotic luxury rentals.

REPORT COVERAGE

An Infographic Representation of Luxury Car Rental Market

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, rental type, and booking mode. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2018-2029
Base Year	2021
Estimated Year	2022
Forecast Period	2022-2029
Historical Period	2018-2020
Unit	Value (USD Billion)
	By Rental Type Business Leisure
	By Booking Mode Online Offline
	By Geography North America (By Rental Type, By Booking Mode) U.S. (By Rental Type, By Booking Mode) Canada (By Rental Type, By Booking Mode) Mexico (By Rental Type, By Booking Mode) Europe (By Rental Type, By Booking Mode) U.K. (By Rental Type, By Booking Mode) Germany (By Rental Type, By Booking Mode) France (By Rental Type, By Booking Mode) Rest of Europe (By Rental Type, By Booking Mode) Asia Pacific (By Rental Type, By Booking Mode) China (By Rental Type, By Booking Mode) Japan (By Rental Type, By Booking Mode) India (By Rental Type, By Booking Mode) South Korea (By Rental Type, By Booking Mode) Rest of APAC (By Rental Type, By Booking Mode) Rest of the World (By Rental Type, By Booking Mode)