ASEAN Car Rental Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.58 Billion |
| Market Size (2029) | USD 5.46 Billion |
| CAGR (2024 - 2029) | 15.70 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
ASEAN Car Rental Market Analysis
The ASEAN Car Rental Market size is estimated at USD 2.58 billion in 2024, and is expected to reach USD 5.46 billion by 2029, growing at a CAGR of 15.70% during the forecast period (2024-2029).
The ASEAN car rental market is witnessing significant growth driven by several factors that contribute to its expansion. Firstly, the region's robust tourism industry, fueled by diverse attractions and cultural experiences, is generating substantial demand for rental vehicles among domestic and international travelers alike.
This demand is further bolstered by the increasing preference for flexible and convenient transportation options, especially in urban areas with limited public transit infrastructure.
Moreover, the rising popularity of ride-hailing services and peer-to-peer car-sharing platforms has contributed to the growth of the car rental market in ASEAN countries. These platforms offer convenient access to rental vehicles on a short-term basis, appealing to travelers seeking on-demand mobility solutions for leisure and business purposes.
Furthermore, the emergence of digital technology and mobile applications has streamlined the car rental process, enabling customers to book, manage, and access rental vehicles conveniently from their smartphones. This digitalization trend has enhanced the overall customer experience and expanded the reach of car rental companies across ASEAN markets.
The increasing availability of a diverse fleet of rental vehicles, ranging from economy cars to luxury SUVs and vans, caters to the varied preferences and needs of customers in the ASEAN region. Rental companies are also offering additional services such as GPS navigation, insurance coverage, and roadside assistance to enhance the value proposition for customers.
The ASEAN car rental market faces certain challenges that may impact its expansion. These challenges include regulatory complexities, varying licensing requirements, and differences in taxation and insurance regulations across ASEAN countries. Competition from alternative transportation modes such as public transit, taxis, and motorcycle taxis may pose a threat to the growth of the car rental market in certain regions.
To capitalize on these opportunities, car rental companies need to adapt to changing market dynamics, leverage digital platforms, and tailor their offerings to meet the diverse needs of customers across ASEAN countries.
ASEAN Car Rental Market Trends
Online Booking Segment Driving Market Growth
- The rise of the online booking segment can be attributed to several interconnected factors, each contributing to its rapid expansion and market dominance. Firstly, the proliferation of internet connectivity and smartphone penetration across ASEAN countries has empowered consumers with greater access to online platforms and booking applications. This increased connectivity has facilitated the seamless booking of rental vehicles, allowing customers to compare prices, browse vehicle options, and make reservations conveniently from their smartphones.
- Moreover, the convenience and flexibility offered by online booking platforms have transformed the way consumers perceive and engage with car rental services. With just a few clicks or taps, customers can effortlessly book a vehicle of their choice, select pickup and drop-off locations, customize rental durations, and even add supplementary services such as insurance coverage or GPS navigation systems. This streamlined booking process eliminates the need for physical visits to rental offices, saving time and enhancing the overall customer experience.
- In addition, the online booking segment has democratized access to car rental services, making them more accessible to a broader segment of the population. By removing geographical barriers and simplifying the booking process, online platforms have attracted a diverse customer base, including leisure travelers, business professionals, tourists, and expatriates. This inclusive approach has significantly expanded the addressable market for car rental companies, driving higher demand and revenue growth.
- Furthermore, the online booking segment has empowered car rental companies with valuable data insights and analytics capabilities, enabling them to optimize their operations, improve fleet management, and enhance customer satisfaction. By analyzing booking patterns, customer preferences, and market trends, rental companies can strategically allocate resources, adjust pricing strategies, and introduce targeted promotional campaigns to maximize revenue and profitability.
- Another factor contributing to the growth of the online booking segment is the emergence of digital payment solutions and secure transaction platforms. With the widespread adoption of digital payment methods such as credit/debit cards, mobile wallets, and online banking, customers can complete rental bookings and make payments securely and conveniently, further driving the adoption of online booking platforms.
- The online booking segment is poised to continue driving growth within the ASEAN car rental market, fueled by ongoing digitalization trends, changing consumer behaviors, and the increasing adoption of mobility-as-a-service (MaaS) solutions.
Indonesia is One of the Largest Car Rental Markets
With its burgeoning economy, vast population, and increasing urbanization, Indonesia stands out as a significant driver of market growth within ASEAN. The country's robust economic growth has led to rising disposable incomes, urban migration, and a burgeoning middle class, fostering more significant demand for mobility solutions such as car rentals.
The proliferation of domestic and international tourism further fuels the demand for rental cars in Indonesia. As tourists explore the country's diverse attractions, ranging from pristine beaches to cultural landmarks, the convenience and flexibility of rental cars become increasingly appealing.
Indonesia's Ministry of Tourism and Creative Economy is investing in the country's tourism sector to encourage community-based and sustainable tourism. The investments are anticipated to benefit five super-priority tourism destinations, eight special economic zones, and 12 sustainable tourism projects, which are expected to increase demand for car rental services in the coming years. Consequently, the market is projected to witness significant expansion over the forecast period.
The touristic attractions of Indonesia, which have more than 17,000 islands and 700 living languages, are matched by a rich cultural heritage that reflects its vibrant past and ethnic variety. Among the most well-liked cultural tourism locations are Prambanan and Borobudur's historic temples, Toraja, Yogyakarta, Minangkabau, and Bali, which have numerous Hindu festivals. In Indonesia, there are 54 national parks, nine of which are designated as UNESCO World Heritage Sites. Ecotourism accounts for about 35% of all tourism-related revenue in Indonesia.
The highly competitive Indonesian car rental market has both organized and unorganized players. The organized market controls the majority of the market. The numerous advantages of the organized channel, which include a technologically advanced online booking system, trained and verified drivers, and mileage-based discounts, among others, are contributing to its growing popularity.
However, while Indonesia leads in market size and growth, other ASEAN countries also play significant roles in shaping the regional car rental landscape. Countries like Thailand, Malaysia, and Singapore boast well-developed tourism industries, robust transportation infrastructure, and thriving economies, contributing substantially to the ASEAN market.
ASEAN Car Rental Industry Overview
The ASEAN car rental market is hugely fragmented, with various startups and regional players such as Avis Budget Group, Sixt SE, Tribe Car Pte. Ltd, Blue Bird Group, etc. To gain an edge over their competitors, major rental companies are making joint ventures and partnerships to launch newer products.
For instance, in January 2023, Socar, a leading car rental application in Malaysia, unveiled its ambitious initiative to broaden its services nationwide. The application now offers a 24/7 pickup service, enhancing convenience for users to rent and return cars at any hour. Furthermore, Socar has introduced multiple new features aimed at enhancing the overall user experience, simplifying and enhancing the process of renting a car through the app.
ASEAN Car Rental Market Leaders
-
Avis Budget Group
-
Sixt SE
-
Tribe Car Pte. Ltd.
-
Blue Bird Group
-
INDORENT
*Disclaimer: Major Players sorted in no particular order
ASEAN Car Rental Market News
- February 2024: Sime Darby Auto Bavaria entered into a partnership with Sime Darby Rent-A-Car (SDRAC) - Hertz Malaysia to introduce luxury electric cars for rental service. This collaboration enabled the company to enhance its vehicle fleet and extend its car rental offerings nationwide.
- November 2023: Green Motion, an international brand in the car rental industry, announced a significant achievement in its global expansion plan. The expansion was facilitated by a master franchise partnership with Lokman Hakim Ibrahim, an enterprising and independent entrepreneur with expertise in the car rental sector.
ASEAN Car Rental 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 Rise in Tourism is Driving the Market's Growth
4.2 Market Restraints
4.2.1 Rise of Alternative Mobility Solutions is Anticipated to Restrain the Market's Growth
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)
5.1 By Booking Type
5.1.1 Offline
5.1.2 Online
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. By Geography
6.1 ASEAN Countries
6.1.1 Vietnam
6.1.2 Indonesia
6.1.3 Malaysia
6.1.4 Thailand
6.1.5 Singapore
6.1.6 Rest of Southeast Asia
7. COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 INDORENT
7.2.2 Blue Bird Group
7.2.3 Tribecar Pte. Ltd
7.2.4 TRAC
7.2.5 Avis Budget Group
7.2.6 Sixt SE
7.2.7 Master Car Rental
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
ASEAN Car Rental Industry Segmentation
Car rental refers to temporarily renting a vehicle, typically for a short period ranging from a few hours to several days or weeks. It involves individuals or businesses leasing a car from a rental company in exchange for a fee, which may vary based on factors such as the rental duration, the type of vehicle, and any additional services or amenities included in the rental agreement.
The ASEAN car rental market is segmented by booking, rental duration, application, and country. By booking type, the market is segmented into offline and online. By rental duration type, the market is segmented into short-term and long-term. By application type, the market is segmented into tourism and commuting. By country, the market is segmented into Vietnam, Indonesia, Malaysia, Thailand, Singapore, and the Rest of Southeast Asia. The report offers market size and forecast value (USD) for all the above segments.
| By Booking Type | |
| Offline | |
| Online |
| By Rental Duration | |
| Short-term | |
| Long-term |
| By Application Type | |
| Tourism | |
| Commuting |
ASEAN Car Rental Market Research FAQs
How big is the ASEAN Car Rental Market?
The ASEAN Car Rental Market size is expected to reach USD 2.58 billion in 2024 and grow at a CAGR of 15.70% to reach USD 5.46 billion by 2029.
What is the current ASEAN Car Rental Market size?
In 2024, the ASEAN Car Rental Market size is expected to reach USD 2.58 billion.
Who are the key players in ASEAN Car Rental Market?
Avis Budget Group, Sixt SE, Tribe Car Pte. Ltd., Blue Bird Group and INDORENT are the major companies operating in the ASEAN Car Rental Market.
What years does this ASEAN Car Rental Market cover, and what was the market size in 2023?
In 2023, the ASEAN Car Rental Market size was estimated at USD 2.17 billion. The report covers the ASEAN Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the ASEAN Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
ASEAN Car Rental Industry Report
Statistics for the 2024 ASEAN Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. ASEAN Car Rental analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
