Over the past years the car industry has boomed reaching astonishing numbers. There are thousands of car rental companies all over the world, and hundreds of websites, such as AirportsCarHire, where people can hire cars online.
Car rental agencies offer cars for people to rent for a particular period, for a couple of hours to months. Companies offer a variety of vehicles from economy and executive cars to luxury vehicles, MUVs and SUVs. Some people rent a car for airport transfer, local usage, an event, employee transportation or for personal usage during the holiday abroad.
In 2014, the US car rental marked hit record revenues of $26.1 billion, according to Auto Rental News. This represents more than half of the worldwide car rental revenues, which were estimated at $51.2 the same year. A report published by Future Market Insights predicts that by 2020 the global car rental industry will double and hit $106 billion with an annual growth of 12.8%.
But the growth is not expected for the US, which climbed to an average 6% since 2010, nor Europe, which is expected to grow at an average annual rate of no more than 3.85%. The growth is expected from the emerging markets, especially such as Latin America, India, China, Russia and some countries in Eastern Europe. The growth will be triggered by increasing tourism and by the middle class with a small percentage of car ownership.
By 2014, the car rental fleet has grown in Brazil to 5,624 companies and 770,000 units, reaching total revenues of $ 4.8 billion. Car rental revenues in India increased by 20% in 5 years (2010-2014) reaching a revenue of $127 million in 2014. The car rental business in China jumped from $1.72 billion in 2009 to $ 4.78 billion in 2013, with a growth of 20.1% per year. By 2017, the market is expected to reach $9.07 billion. The Russian car rental industry was estimated at $70 million in 2014, steadily climbing from $40 million in 2010.
This aindustry will continue to increase thanks to rising income levels, growing GDP and the high numbers of foreign and domestic tourists. All these add to improving road infrastructure, growing frequency of air travel, demand for leisure and recreation, increasing travelling expenditure, growing urban population and the increasing internet usage.
Some of the major companies in the global car rental market are Enterprise Holding Inc, EuropCar, Sixt and The Hertz Global Holdings, Inc. and Avis Budget Group Inc.