Thailand Car Rentals Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.07 Billion |
| Market Size (2029) | USD 1.73 Billion |
| CAGR (2024 - 2029) | 9.95 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Thailand Car Rental Market Analysis
The Thailand Car Rental Market size is estimated at USD 1.07 billion in 2024, and is expected to reach USD 1.73 billion by 2029, growing at a CAGR of 9.95% during the forecast period (2024-2029).
Tourism is one of the key factors promoting the growth of car rental services in Thailand. Due to an increase in tourism and traffic in the nation's largest cities, demand for an alternative mode of transportation has increased. The country is one of the world's most affordable holiday destinations.
Digital innovation is another important factor expected to drive the growth of the Thai car rental market over the forecast period. The increased use of information technology is transforming the industry and enabling operators to serve their customers better. This includes optimizing corporate and customer information management and developing user-friendly internet booking applications.
Mobile apps are now a vital tool for businesses in Thailand, especially the booming car rental sector, given the country's fast-paced and technologically advanced environment. Car rental companies in the country are realizing the need to adopt mobile technology to remain competitive and satisfy the changing needs of their discerning clientele, as locals and tourists alike depend more and more on their smartphones for convenient, on-the-go services.
Thailand Car Rental Market Trends
Tourism Application Segment to Hold a Significant Market Share
Tourism in Thailand is well-known for its attractions. Thailand is a popular holiday destination for people worldwide. Travelers have a variety of options for getting around the nation, including airlines that connect the major provinces, airport shuttles, rental buses and coaches, special transfers like limo services with experienced chauffeurs, car and other vehicle rentals, trains, boats and yachts, motorcycle and scooter rentals, cycling, and many other modes.
Prior to now, public transportation options like buses, trains, airplanes, and other kinds of transportation served both Thais and tourists' travel needs. A desire for an alternate mode of transportation has grown as a result of increased tourist numbers and traffic congestion in the nation's major cities.
- In 2023, the number of tourist arrivals amounted to around 28.15 million, which drastically increased from the previous years, which was approximately 11 million.
- Thailand's GDP depends heavily on foreign tourism income. The growth in tourism is expected to alter the travel industry's environment and generate a strong need for both the public and private associated sectors, like car rentals and hospitality.
In July 2022, The Tourism Authority of Thailand (TAT) unveiled its marketing strategy for 2023 to maintain the objective of revitalizing and transforming Thai tourism while focusing more emphasis on the sector's recovery in order to achieve stronger and more inclusive tourism growth.
Online Booking Segment to Fuel High Growth Rate in the Market
Online booking services include booking cars via internet sites and mobile applications, among which booking-via-sites is the most common method opted for by renters. Moreover, the rising internet penetration rate, coupled with the convenience of using online services for car leasing and rental services, are significant determinants of the growth of this market segment.
- In 2023, Thailand had over 58.25 million digital populations across the country. This figure is projected to grow over the forecast period, indicating a big market potential for online booking services for the country.
Thailand's car rental market is highly competitive, with both organized and unorganized players present. Thailand's organized car rental market controls the majority of the market. The organized channel is growing in popularity due to the large number of fleet sizes available, which include numerous benefits such as a technologically advanced online booking system, trained and verified drivers, and mileage-based discounts, among others.
With about a million private passenger cars on the road, Bangkok is the most crowded city in the world. This has created a chance for the nation's current car rental and taxi aggregator companies to test a ride-sharing or carpooling segment for their business model.
With government efforts to curb emissions, more hybrid-electric vehicles (HEVs), plug-in hybrid vehicles (PHEVs), and battery electric cars are anticipated to be added to rental car fleets as part of government measures to reduce carbon emissions. Due to the high retail price of electric vehicles, their rental rates are likely to be greater than those for gasoline-powered vehicles.
With more tourists seeking convenient and flexible transportation options, coupled with the widespread availability of online platforms and secure payment systems, the car rental and leasing industry is poised for substantial growth over the forecast period.
Thailand Car Rental Industry Overview
The market for renting cars in Thailand is moderately fragmented, with a few major players including The Hertz Corporation, Thai Rent A Car, Drive Car Rental, Avis Budget Group, and Sunny Cars, among others. A few companies in the market are focusing on improving their product portfolios to widen their customer base. Some other key players aim to expand their presence in the market through product launches, offerings expansion, manufacturing expansion, and collaborations with other companies. For instance,
- In April 2023, Sixt announced the introduction of the new "SIXT ELECTRIC" service for the fleet of cutting-edge electric vehicles in Thailand. Customers can now hire and drive two well-known electric vehicles, the Nissan LEAF and the Ora Good Cat (ORA Good Cat), with the fleet initially aiming to include 100 electric vehicles. A branch will open on Rama IV Road and at Suvarnabhumi Airport in the center of Bangkok, with plans to eventually extend to other important cities, including Chiang Mai and Phuket.
- In July 2022, InterContinental Phuket Resort and SIXT Thailand formed a partnership that will introduce the Nissan Leaf to its rental collection in Phuket. To power this new fleet of EVs, InterContinental Phuket Resort has installed a total of six EV charging points - four AC stations and one DC station with two chargers.
- In March 2022, Thrifty Car Rental began operations in Thailand with plans to expand throughout the country. Thrifty, a subsidiary of the global Hertz International Group, partnered with local operator Paragon Car Rental to open locations in Bangkok and Pattaya.
Thailand Car Rental Market Leaders
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Sixt SE
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Avis Budget Group
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Thai Rent A Car
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Europcar Mobility Group
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Hertz Corporation
*Disclaimer: Major Players sorted in no particular order
Thailand Car Rental Market News
- February 2024: Enterprise Mobility, overseeing Enterprise Rent-A-Car, National Car Rental, and Alamo, announced plans to enter Thailand. The company decided to launch nine franchise locations, including major international airports, in partnership with Thai Rent a Car, the country's pioneer rental car company.
- December 2023: Thairung Group, a major player in Thailand's auto industry, announced its subsidiary 'Bizcar Rental' acquired and merged with Drivemate, a leading peer-to-peer car rental platform.
Thailand Car Rentals Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Booming Tourism Sectors May Folster the Growth of Mobility Services Across Target Market
4.2 Market Restraints
4.2.1 Rising Operational Costs May Hamper the Expansion of the Target Market
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in USD million)
5.1 By Booking Type
5.1.1 Online
5.1.2 Offline
5.2 By Rental Duration
5.2.1 Short-term
5.2.2 Long-term
5.3 By Application Type
5.3.1 Tourism
5.3.2 Commuting
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 The Hertz Corporation
6.2.2 Thai Rent A Car
6.2.3 Chic Car Rent
6.2.4 Enterprise Holdings
6.2.5 Sixt SE
6.2.6 Drive Car Rental
6.2.7 Enterprise Mobility
6.2.8 Q.C. Leasing Co. Ltd
6.2.9 Localrent
6.2.10 Siam Rent A Car
6.2.11 Europcar Mobility Group
6.2.12 Sunny Cars
6.2.13 Bizcar Rental
6.2.14 Avis Budget Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Thailand Car Rental Industry Segmentation
A car rental service is a business that temporarily uses vehicles for individuals or companies for a specified period, usually ranging from a few hours to several days. Customers can rent a vehicle for various purposes, such as travel, leisure, or business, paying a fee that typically covers the rental period and mileage.
The scope of the car rental market in Thailand is segmented by booking type, rental duration, and application. By booking type, the market is segmented into online and offline. By rental duration, the market is segmented into short-term and long-term. By application, the market is segmented into tourism and commuting. The report offers the market size in value (USD) and forecasts for all the above segments.
| By Booking Type | |
| Online | |
| Offline |
| By Rental Duration | |
| Short-term | |
| Long-term |
| By Application Type | |
| Tourism | |
| Commuting |
Thailand Car Rentals Market Research FAQs
How big is the Thailand Car Rental Market?
The Thailand Car Rental Market size is expected to reach USD 1.07 billion in 2024 and grow at a CAGR of 9.95% to reach USD 1.73 billion by 2029.
What is the current Thailand Car Rental Market size?
In 2024, the Thailand Car Rental Market size is expected to reach USD 1.07 billion.
Who are the key players in Thailand Car Rental Market?
Sixt SE, Avis Budget Group, Thai Rent A Car, Europcar Mobility Group and Hertz Corporation are the major companies operating in the Thailand Car Rental Market.
What years does this Thailand Car Rental Market cover, and what was the market size in 2023?
In 2023, the Thailand Car Rental Market size was estimated at USD 0.96 billion. The report covers the Thailand Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Thailand Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Thai Car Rental Industry Report
Statistics for the 2024 Thai Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Thai Car Rental analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
