Self-Drive Car Rental Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Vehicle Type (Economy Car, Luxury Car), By Mode Of Booking (Online, Offline), And By Geography - Forecasts From 2022 To 2027

The global self-drive car rental market size is expected to grow at a CAGR of 6.88% during the forecast period, reaching US$91.407 billion by 2027 from US$57.389 billion in 2020. This growth is attributed to the fact that an increasing number of people prefer to rent any type of car, like a luxury car or a car they want to drive to travel long distances, like weekend vacations and work trips.

Self-drive rental cars are cars that are provided by different car rental companies to people for a fixed or subsidized rate so they can enjoy a premium driving experience. Customers are provided with self-drive cars for different time periods, ranging from a day to several weeks depending upon company packages. The cars that are provided can include economy cars such as Honda, Hyundai, Kia, etc., and luxury cars like Mercedes, BMW, Audi, etc.

Rising income and easy availability to boost the market growth

As the disposable income of people is rising, and people are getting busier, they tend to look for weekend vacations to get away from their work-life and tend to rent luxury and other cars for a premium driving experience to the destination, which is increasing the demand for self-driving rental cars and is expected to boost the market growth.

Self-drive cars are available in many countries and have a fleet of many vehicles to choose from. The cars can be picked up either from airports or some pickup points. The self-driving rental cars can be booked either via apps, online websites, or car rental agencies. The self-drive car rental market has been segmented on the basis of vehicle type, vehicle size, mode of booking, and geography.

Companies investing in the business

The key players are actively working to improve and invest in their offerings in order to further complement the self-drive car rental market.  For example, Hyundai which is one of the largest car sellers in India has invested around $14 million in the Indian car rental company Revv. Another Dubai-based car rental company, Ekar, has announced that it would be expanding its operations into the Riyadh District of Saudi Arabia. Also, the cab-hailing service Ola has announced that it will be entering the self-drive car rental market by investing over US$500 million.

Owing to the increasing number of tourists in various countries, the continuously evolving tourism industry and travellers that are out of town who usually use these services the demand for rental cars is increasing, also when people have their cars temporarily in garages or in workshops prefer to use these services, the self-drive car rental market will be significantly bolstered.

By Vehicle Type

By vehicle type, the global self-drive car rental market is segmented into economy and luxury. The luxury car segment holds a significant share as these cars are expensive and many people can’t afford them but as the rental companies provide them, at subsidized rates, people who want a premium and luxury driving experience can do so.

By Mode of Booking

On the basis of the mode of booking, the market is segmented as online and offline. The online segment is estimated to hold the majority share of the market owing to the rising preference for online booking as it is more convenient and time-saving and can be comfortably done from home.

By Geography

North America holds a significant market share owing to the evolving tourism industry and many car rental businesses coming up to support the rising demand for rental cars. Europe also accounts for a healthy market share, while the Asia Pacific is expected to witness substantial growth soon.

Key Developments

• April 2022: SIXT is expanding their self-drive car rental service market in Canada. The brand will open in Vancouver first, then Toronto, covering the country's two largest car rental destinations that account for a significant share of the market.
• October 2021: Zoomcar, which dominates the self-drive car rental market in India, has invested $25 million in the launch of its operations in Cairo, Egypt as they are trying to enter the MENA region. They have planned to add another 5000 cars to reach a total of 20,000 cars by March 2022 as per Comesa Regional Investment Agency.

Impact of the COVID-19 pandemic on Self-Drive Car Rental Market

COVID-19 pandemic circumstances have had a profound impact on the travel and tourism industry, which took a major hit amid the unprecedented lockdowns. The travel restrictions across the world to contain the spread of the virus and the rising prices of petrol and diesel in developing countries affected the growth of the self-drive car rental market to a very high level. A lot of people were concerned about safety and hygiene after the pandemic had hit and thus avoided using the self-drive rental cars as much as they can therefore, it took time for its market to gain momentum. However, the market has experienced an increase in post-pandemic due to people wanting to leave after being restricted at home, while also being concerned about safety from COVID. Since most people now have to go to their offices for work, the need for individual mobility and social distancing norms are improving the industry’s conditions as well. One of the factors increasing the growth of the market is the subscription models as they offer customers the liberty and feel of owning a car without having to bear the additional costs associated with it, as well as being a safe means of transportation.

Self-Drive Car Rental Market Scope:

Segmentation

• By Vehicle Type
  • Economy Car
  • Luxury Car
• By Mode of Booking
  • Online
  • Offline
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

Frequently Asked Questions (FAQs)

Q1. What is the size of the self-drive car rental market?
A1. Self-Drive Car Rental Market was valued at US$57.389 billion in the year 2020.

Q2. What will be the self-drive car rental market size by 2027?
A2. The global self-drive car rental market is expected to reach a market size of US$91.407 billion by 2027.

Q3. What are the growth prospects for the self-drive car rental market?
A3. The self-drive car rental market is expected to grow at a CAGR of 6.88% over the forecast period.

Q4. How is the self-drive car rental market segmented?
A4. The self-drive car rental market has been segmented by vehicle type, mode of booking, and geography.

Q5. Which region holds the largest market share in the self-drive car rental market?
A5. North America holds a significant share of the self-drive car rental market owing to the evolving tourism industry and many car rental businesses coming up to support the rising demand for rental cars.