Luxury Car Rental Market Size, Share, Trends, Growth and Forecast 2032

Luxury Car Rental Market Insights

According to a report from Zion Market Research, the global Luxury Car Rental Market was valued at USD 45.42 Billion in 2023 and is projected to hit USD 90.27 Billion by 2032, with a compound annual growth rate (CAGR) of 7.93% during the forecast period 2024-2032.

This report explores market strengths, weakness, opportunities, and threats. It also provides valuable insights into the market's growth drivers, challenges, and the future prospects that may emerge in the Luxury Car Rental Market industry over the next decade.

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Luxury Car Rental Market: Overview

A luxury car provides a high level of equipment, comfort, quality, performance, amenities, and status compared to regular cars for a higher price. Compact Luxury Cars, Full-size Luxury Cars, Mid-size Luxury Cars, Luxury SUVs, Luxury Crossovers & Minivans these are the type of luxury cars.

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COVID-19 Impact Analysis

COVID-19 harshly impacted demand for Luxury Car Rental Market. Lockdown in different countries has adversely affected Luxury Car Rental companies. The outbreak of the novel coronavirus affected on many aspects, like travel bans and flight cancellations which forced people to sit at home which means people cannot roam around for business or leisure. This has affected severely to the car rental services.

Growth Factors

Increasing tension with respect to traffic backed by the rising vehicles on roads is set to further improve the luxury car rental market growth globally. Likewise, the booming travel and tourism industry in different countries, as well as rising air pollution would stimulate growth. People nowadays are bending more towards luxury car rentals as an alternative to buying their own cars due to the increasing traffic problems & its harmful effects on our health.

One doesn’t have to take the effort to drive them to reach their destination, since, these cars are chauffeur driven. It has many benefits, such as enhanced traveling convenience, cost-effectiveness, low air pollution level, and reduction in traffic volume. At the same time, renting or hiring a car helps in decreasing various hidden costs that the buyer often has to bear while he/she owns a car.

Luxury Car Rental Market: Report Scope

Type Segment Analysis Preview

The business segment held a share of over 60% in 2020. Business rental car services are mainly used by groups of people and individuals for traveling for conferences, meetings, seminars, workshops, and to their regular working spaces. Leisure rental car service is usually used for occasions, outings, weddings, road trips, parties, and others.

Booking Mode Segment Analysis Preview

The online segment is projected to grow at a CAGR of around 2.7% from 2021 to 2028. A growing number of customers is a key factor driving the endorsement of online platforms for renting out a luxury car as they offer various benefits over an offline seller such as discounts and cashback to attract the customer, development in internet connectivity, one-click procedures, and it’s a time-saving method.

Moreover, market players are developing strategies, for instance, customization in the products according to the requirements and delivery at the doorstep is also helping in growing the market share.

Regional Analysis Preview

North America accounted for a share of over 37% in 2020 and is expected to generate substantial growth in the luxury car rental service market while maintaining its leading position in the coming few years supported by the increasing technological advancements in the region. Also, the existence of different renowned luxury car rental service providers in the region would drive growth.

The Asia Pacific in the coming years is expected to remain in the second position owing to the rising craze of luxury cars in the region. Additionally, the increasing adoption of greater production of passenger cars and state-of-the-art technologies would augment growth in this region. The global market is made up of a large number of Small and Medium Enterprises (SMEs). SMEs are striving constantly to bolster their positions by taking over other local firms. Some of the firms are helping common people to list up their cars for rental and generate income.

Key Market Players & Competitive Landscape

Some of key players in the Luxury Car Rental Market are-

• Goldcar
• Aviz Budget
• Hertz
• Enterprise Holdings
• Sixt
• Localiza
• Fox Rent a Car
• Unidas
• Movida
• eHi car services
• among others.

The industry players are focusing in joint ventures, new product development, and research, and development activities to create innovative and new products to stay ahead of the competition.

The Luxury Car Rental Market is segmented as follows:

By Type

• Business
• Leisure

By Distribution Channel

• Online
• Offline

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa