Indonesia Car Rental Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.74 Billion |
| Market Size (2029) | USD 1.65 Billion |
| CAGR (2024 - 2029) | 16.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Car Rental Market Analysis
The Indonesia Car Rental Market size is estimated at USD 0.74 billion in 2024, and is expected to reach USD 1.65 billion by 2029, growing at a CAGR of 16.30% during the forecast period (2024-2029).
Advancing technology is an essential factor expected to boost the market's growth over the forecast period. The increased use of information technology is transforming the industry and allowing operators to provide better customer service. It includes optimizing corporate and customer information management and creating user-friendly internet booking applications.
People are becoming more open to traveling light due to their individual mindsets and social shifts. They are more comfortable renting a car than owning one, especially for travel. This shift in society's mindset contributed to unusually high demand for rented cars. Indonesia is no longer a destination for visitors who arrive in their vehicles. Tourists are looking for rental cars for their trips. The reasons why the country is experiencing a car rental crisis are clearly stated. Though speculations are correct, authorities have already expressed concern to all.
The market is attracting impressive investment in the online sales channel, which is slowly increasing. Moreover, with rising internet and smartphone penetration, online booking witnessed a positive growth outlook. A similar scenario is anticipated to register over the forecast period.
Moreover, the electric rental fleets in the country are expected to grow in the coming years, which will also encourage the rental services offered across the country to attract customers and curb greenhouse emissions.
Major players operating in the market include TRAC, Indorent, Bluebird, and Adi Sarana Armada Tbk. The companies rely on considerable research and development operations to stay competitive.
Indonesia Car Rental Market Trends
Growing Demand for Online Car Rental Services
An increasing number of smartphone-based online rental car booking apps are being used across Indonesia, significantly boosting the market growth.
Online booking services include booking cars through internet sites and mobile applications, among which renters opting for booking-via-sites is the most common method. The rise in the number of internet users across the country is likely to increase the use of online booking services. For instance, in 2022, internet users witnessed around 66.5% of the country's population, which is expected to grow to 93.2% by 2030.
Renting cars via mobile applications is the second most common online booking type. Mobile applications must be downloaded and can be accessed easily by the car renter to change the booking details, among other services. For instance, in 2022, the number of smartphone users in the country was 187.70 million, which may lead to increased use of online car rental booking services.
With technological advancements, renting a car online has been one of the most popular options for customers in recent years. It offers extra features for real-time monitoring of a rental vehicle's operation, performance, and maintenance. Such features significantly benefit drivers and fleet managers, allowing them to spot dangers and execute timely modifications to their rental services more efficiently and effectively.
Government's Efforts to Boost Tourism Aiding the Market Growth
The tourism industry comprises a significant share of the car rental service market, owing to the rise in international tourist visitors across the country. The industry contributes around 5% of the country's gross domestic product, which helps boost the country's economy.
The Ministry of Tourism and Creative Economy of Indonesia is investing in the country's tourism industry to foster sustainable and community-based tourism. Five super-priority tourism destinations, eight special economic zones, and 12 sustainable tourism projects are expected to benefit from the investments and increase demand for car rental services during the forecast period.
Indonesia's Tourism and Creative Economy Minister, Sandiaga Uno, highlighted in May 2024 that Indonesia's participation in the Seoul International Travel Fair (SITF) 2024, held from May 9-12, aimed to attract more international tourists, particularly those from South Korea.
After promoting tourism in Mumbai in early February 2024, Indonesia’s Ministry of Tourism and Creative Economy attended South Asia’s Travel and Tourism Exchange (SATTE) from February 22 to 24, 2024, at the India Expo & Mart in Greater Noida, New Delhi.
Owing to such investments and government efforts to improve the market conditions for the car rental market, a considerable rise in tourism expenditure is being witnessed in the country and is projected to continue during the forecast period.
Indonesia Car Rental Indusrty Overview
Indonesia includes the largest car rental market in Southeast Asia. However, the market remains consolidated, and the major players account for more than 76% of the market. The remaining market comprises organized players, including financial institutions with licensed businesses and thousands of small local operators with small fleet sizes and presence.
- Sumitomo Mitsui Auto Service Company (SMAS) and Sumitomo Corporation jointly established a new entity, PT. SMAS Mobility Indonesia (SMI) provides vehicle rental and fleet management services in Indonesia. With Kei Sato and Masayuki Hyodo at the helm, the new company began operations on December 1, 2023, offering both short-term and long-term rental solutions to cater to the growing demand in the Indonesian market.
- Grab's innovative car rental program, which was launched in January 2024 in Indonesia, provides drivers with a flexible pathway to owning a vehicle, offering a unique opportunity for drivers to achieve car ownership with unparalleled flexibility and convenience.
Indonesia Car Rental Market Leaders
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TRAC - Astra Rent A Car
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Adi Sarana Armada Tbk
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Indorent (PT Indomobil Multi Jasa)
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Blue Bird Group
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Avis Budget Group
*Disclaimer: Major Players sorted in no particular order
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Indonesia Car Rental Market News
- March 2024: VinFast introduced a battery rental service in Indonesia, addressing concerns about battery durability and health, providing customers with a convenient and worry-free electric vehicle ownership experience.
- April 2023: A digital bank called Super Bank Indonesia, supported by Grab, agreed to lend money to PT Teknologi Pengangkutan Indonesia (TPI), a company that rents cars to GrabCar drivers. TPI used the loan to buy over 1,000 more cars for GrabCar drivers to rent. This deal is part of a bigger plan to help Grab drivers get better access to loans and other financial services.
Indonesia 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 Increasing Tourism Industry is Anticipated to Drive the Demand
4.2 Market Restraints
4.2.1 Intensifying Competition is Likely to Constraint the Profit Margins
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in USD Million)
5.1 Booking Type
5.1.1 Online
5.1.2 Offline
5.2 Rental Duration
5.2.1 Short-term
5.2.2 Long-term
5.3 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 Blue Bird Group
6.2.3 TRAC
6.2.4 Mitra Pinasthika Mustika Rent
6.2.5 Adi Sarana Armada Tbk
6.2.6 Avis Budget Group
6.2.7 Europcar Indonesia
6.2.8 Globe Rent a Car
6.2.9 Indorent (PT Indomobil Multi Jasa)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Car Rental Industry Segmentation
The Indonesian car rental market covers the current and upcoming trends with recent technological developments. The report will provide a detailed analysis of various market areas by type, duration, application, and market share of significant car rental companies across the Indonesian market.
The Indonesian car rental market is segmented by booking type (online and offline), rental duration type (short and long-term), and application type (tourism and commuting). The report offers market size and forecasts for all the above segments in value (USD).
Indonesia Car Rental Market Research FAQs
How big is the Indonesia Car Rental Market?
The Indonesia Car Rental Market size is expected to reach USD 0.74 billion in 2024 and grow at a CAGR of 16.30% to reach USD 1.65 billion by 2029.
What is the current Indonesia Car Rental Market size?
In 2024, the Indonesia Car Rental Market size is expected to reach USD 0.74 billion.
Who are the key players in Indonesia Car Rental Market?
TRAC - Astra Rent A Car, Adi Sarana Armada Tbk, Indorent (PT Indomobil Multi Jasa), Blue Bird Group and Avis Budget Group are the major companies operating in the Indonesia Car Rental Market.
What years does this Indonesia Car Rental Market cover, and what was the market size in 2023?
In 2023, the Indonesia Car Rental Market size was estimated at USD 0.62 billion. The report covers the Indonesia Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the market trends in the Indonesia Car Rental Industry?
Current trends in the Indonesia Car Rental Industry are a) Shift towards eco-friendly vehicles b) Introduction of flexible rental plans c) Partnerships with airlines and hotels
Car Rental in Indonesia Industry Report
The Indonesia car rental market is experiencing robust growth, fueled by increasing tourism, rising disposable incomes, and urbanization trends that are shifting away from vehicle ownership. As a prime tourist destination, Indonesia's demand for flexible transportation solutions is met by a diverse vehicle rental industry, offering everything from sedans and SUVs to luxury vehicles and vans. These services cater to a variety of needs, including both short and long-term rentals for leisure and business purposes. The market is not only competitive with numerous players enhancing customer experience through digital booking platforms but is also adapting to global sustainability trends by incorporating eco-friendly and fuel-efficient vehicles. Supported by government initiatives to enhance tourism and infrastructure, the vehicle rental industry in Indonesia is set to expand further. For detailed insights into the Indonesia car rental market size, growth rate, and revenue, along with a forecast outlook and historical overview, access a free report PDF download from Mordor Intelligence™ Industry Reports. This comprehensive analysis positions the Indonesia car rental market as a key component in the region's transportation sector.
