Market Size of United Kingdom Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 13.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United Kingdom Car Rentals Market Analysis
The United Kingdom Car Rental Market is expected to register a CAGR of 13.70% during the forecast period.
The market was valued at USD 1.37 billion in 2021 and is expected to surpass a net valuation of USD 3.02 billion by 2027.
Moreover, covid-19 has partially affected the market for the United Kingdom car market with strict lockdown and a decrease in traveling to restrain the spread of the virus. Moreover, the recovery has been accepted by the market soon after Q2 2021, demand is seen turning around on the positive side.
Consumer preferences shifted as a result of a variety of circumstances. Most notably, health concerns drove people and families to hire vehicles rather than use public transportation. The rise of digital platforms in the marketplace has also facilitated the selection of cars for hire or leasing.
Internet penetration among the generation has been identified as a key pivot role in driving the demand for car rental market in United Kingdom. Several players in car rental business operating in the segment are expansing thei roots in countries to elevate the demand for the same. For instance;
- In Jul 2022, Theeb Rent A Car has opened its second branch in Hail city, north-western of Saudi Arabia, in line with its expansion plans to cover all the Kingdom cities, areas, and provinces.
Thus, rising leisure and tourism activties in the country has helped market to grow positively during the forecast period.
United Kingdom Car Rentals Industry Segmentation
Car renting refers to the business of leasing and renting a car from rental service providers based on some valuation. This renting can be on an hourly basis or for a longer time span.
The car renting market is segmented by rental duration type, booking type, application type, driving type, and vehicle type. By rental duration type, the market has been segmented into short-term and long-term. By booking type, the market has been segmented into online and offline. By application type, the market has been segmented into leisure/tourism and business and by vehicle type, the market is segmented into budget/economy and premium/luxury. For each segment, the market sizing and forecasting are based on value (USD billion).
| Rental Duration | |
| Short Term | |
| Long Term |
| Booking Type | |
| Online | |
| Offline |
| Application Type | |
| Leisure/Tourism | |
| Business |
| Vehicle Type | |
| Budget/Economy | |
| Premium/Luxury |
United Kingdom Car Rental Market Size Summary
The United Kingdom car rental market is poised for significant growth, driven by evolving consumer preferences and the increasing adoption of digital platforms. The market has shown resilience in the wake of the COVID-19 pandemic, with a notable shift in consumer behavior favoring car rentals over public transportation due to health concerns. The rise in internet penetration has further facilitated this shift, enabling consumers to easily book and manage rentals online. The expansion of car rental companies into new regions and the introduction of attractive offers for tourists have also contributed to the market's positive trajectory. As leisure and tourism activities rebound, the demand for car rental services is expected to continue its upward trend, supported by strategic marketing initiatives and enhanced service offerings.
The market landscape is characterized by the presence of key players such as Sixt SE, The Hertz Corporation, and AVIS Rent a Car, who are actively enhancing their service capabilities to meet the growing demand. The integration of online booking systems and mobile applications has streamlined the rental process, making it more accessible and convenient for consumers. This shift towards digital solutions is further bolstered by the availability of diverse fleet options and competitive pricing strategies. However, challenges such as transparency in payment processes and compliance with varying regulations remain. Despite these challenges, the market is expected to thrive, with ongoing investments in technology and infrastructure to support the evolving needs of consumers in the United Kingdom.
United Kingdom Car Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters Five Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value USD Million)
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2.1 Rental Duration
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2.1.1 Short Term
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2.1.2 Long Term
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2.2 Booking Type
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2.2.1 Online
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2.2.2 Offline
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2.3 Application Type
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2.3.1 Leisure/Tourism
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2.3.2 Business
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2.4 Vehicle Type
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2.4.1 Budget/Economy
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2.4.2 Premium/Luxury
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United Kingdom Car Rental Market Size FAQs
What is the current United Kingdom Car Rental Market size?
The United Kingdom Car Rental Market is projected to register a CAGR of 13.70% during the forecast period (2024-2029)
Who are the key players in United Kingdom Car Rental Market?
SIXT SE, Avis Budget Group, The Hertz Corporation, Europcar Mobility Group and Enterprise Holdings, Inc. are the major companies operating in the United Kingdom Car Rental Market.
