The current state of the Car Rental Market
The car rental market has experienced dramatic changes since the COVID-19 pandemic that began in 2020. The rental industry has gone through many trends that have contributed to its growth. Some of these trends are the inclusion of electric cars into fleets due to fewer emissions, demand for rentals over public transport, etc.
The global car rental market size is predicted to reach USD 214.4 billion by 2027, with a CAGR of 10.7% from 2020 to 2027. The US car rental market is expected to register a CAGR of 5.7% during the forecast period of 2020-2025. Revenue for the year 2021 is projected to reach USD 18,233 million in the US, giving the US the highest revenue globally.
Awareness of the environment and emissions has led people to prefer carpooling and rentals over owning their own cars as this reduces the number of vehicles on the road. The car rental market has shown increased use of electric vehicles in their fleets, making them more environmentally friendly. Rentals also allow people to easily access a vehicle without the added expenses that come with vehicle ownership.
The Market in the US
North America has the largest car rental market in the US, and globally. The State of New York is a major contributor to the local car rental industry. New York is a major tourist attraction and attracts tourists from all over the world.
It is a highly competitive market for car rentals as there are many rental companies, in which the state has 25 airports boasting passenger traffic of 50 million per year. New York also has the highest car rental rates with an average of USD 76 per day.
New York City is quite congested and not everyone owns a vehicle, many depend on public transport, rentals, or ride-sharing services. Many people rely on these services as owning a vehicle within the city is difficult due to issues with parking and traffic. The fact that tourists and locals alike rely on rentals contributes greatly to the US car rental market.
The rental industry in the US has a bright future ahead as more and more people are opting to book a rental vehicle than to have a car of their own.
Have you been to New York? and how was your experience in getting around the city?