Car Rental Market Analysis

Car Rental Market Analysis

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The short-term segment held over 72% of the car rental market share in 2022, propelled by the flexibility and convenience they offer. This approach allows individuals to secure a vehicle for precisely the duration they require, ranging from a few hours to a single day. This level of adaptability appeals particularly to those looking for a transportation solution that aligns with their immediate needs, eliminating the constraints of traditional long-term rental agreements. Short-term rentals cater to the modern on-the-go lifestyle, presenting a compelling alternative to permanent car ownership.
 

The economy cars segment accounted for 34% of the car rental market share in 2022, attributed to these vehicles’ features including affordability, fuel efficiency & ease of maneuverability making a good choice for both cost-conscious travelers and urban commuters. Moreover, their lower rental rates make them an attractive option for short-term rentals, business travelers, and leisure trips, increasing their appeal across a wide range of customers and strengthening their position within the vehicle type segment.
 

North America car rental market with a share of over 49% in 2022, due to the increase in tourism and business trips. As travelers embark on leisure getaways and corporate professionals attend meetings, conferences & site visits, the need for convenient & flexible transportation is necessary. Car rentals provide the ideal solution, catering to diverse traveler preferences and requirements.
 

Also, companies operating in the market are launching innovative car rental services in the U.S. For instance, in January 2023, Hertz, a car rental company started a public partnership, under which the company collaborated with cities in the U.S. to speed up the transition to battery electric vehicles using its own fleets and charging infrastructure. The company launched the program in Denver, Colorado.