Executive Summary

The luxury car rental market has been growing rapidly in recent years, driven by the increasing demand for luxury cars among the growing affluent population. The market is expected to grow at a CAGR of 8.2% from 2021 to 2028. The growing trend of experiential travel, rising disposable incomes, and increasing tourism activities are some of the key factors driving the growth of the market.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

The luxury car rental market is expected to grow from USD 11.6 billion in 2021 to USD 19.7 billion by 2028, at a CAGR of 8.2% during the forecast period. The growth of the market is driven by factors such as the growing trend of experiential travel, rising disposable incomes, and increasing tourism activities. The market is also expected to benefit from the increasing popularity of luxury car rental services among millennials and the growing demand for eco-friendly luxury cars.

Market Drivers

1. Growing trend of experiential travel
2. Rising disposable incomes
3. Increasing tourism activities
4. Increasing popularity of luxury car rental services among millennials
5. Growing demand for eco-friendly luxury cars

Market Restraints

1. High cost of luxury cars
2. Limited availability of luxury cars in some regions
3. Intense competition from local players

Market Opportunities

1. Increasing demand for luxury car rental services in emerging economies
2. Growing popularity of self-drive luxury car rental services
3. Increasing demand for luxury electric cars

Market Dynamics

The luxury car rental market is highly competitive and dynamic, with several players vying for a share of the market. The market is characterized by the presence of both global and regional players, who offer a wide range of luxury cars to customers. The increasing demand for luxury cars among the growing affluent population is driving the growth of the market. The market is also expected to benefit from the growing trend of experiential travel, rising disposable incomes, and increasing tourism activities.

Regional Analysis

The luxury car rental market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. North America is expected to dominate the market during the forecast period, owing to the high demand for luxury cars in the region. Europe is also expected to witness significant growth, driven by the increasing popularity of luxury car rental services among millennials. Asia-Pacific is expected to emerge as a lucrative market, owing to the increasing demand for luxury cars in the region.

Competitive Landscape

Leading Companies in the Luxury Car Rental Market:

1. Avis Budget Group, Inc.
2. The Hertz Corporation
3. Enterprise Holdings, Inc.
4. Europcar Mobility Group S.A.
5. Sixt SE
6. GlobalCARS
7. Al-Futtaim Group
8. Carzonrent India Pvt. Ltd.
9. Move Rent a Car
10. HN Rental Car

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The luxury car rental market is segmented based on type of rental, end-user, and region. Based on type of rental, the market is segmented into chauffeur-driven and self-driven rentals. The chauffeur-driven rental segment is expected to dominate the market during the forecast period, owing to the increasing demand for luxury cars for special events, weddings, and business trips. Based on end-user, the market is segmented into individual and corporate. The individual segment is expected to dominate the market, owing to the increasing demand for luxury cars among the growing affluent population.

Category-wise Insights

Based on the type of luxury cars, the market is segmented into SUVs, sedans, sports cars, and others. The SUV segment is expected to dominate the market, owing to the increasing demand for luxury SUVs among customers. The sports car segment is also expected to witness significant growth, driven by the increasing popularity of high-performance sports cars among enthusiasts.

Key Benefits for Industry Participants and Stakeholders

1. Increased revenue opportunities
2. Diversification of product portfolio
3. Expansion of customer base
4. Improved brand image and visibility

SWOT Analysis

Strengths:

1. Growing demand for luxury cars among the growing affluent population
2. Increasing popularity of luxury car rental services among millennials
3. Wide range of luxury cars offered by rental companies

Weaknesses:

1. High cost of luxury cars
2. Limited availability of luxury cars in some regions
3. Intense competition from local players

Opportunities:

1. Increasing demand for luxury car rental services in emerging economies
2. Growing popularity of self-drive luxury car rental services
3. Increasing demand for luxury electric cars

Threats:

1. Economic downturns
2. Fluctuating fuel prices
3. Stringent regulations on luxury car rentals

Market Key Trends

1. Growing popularity of self-drive luxury car rental services
2. Increasing demand for luxury electric cars
3. Growing trend of experiential travel
4. Increasing use of online platforms for luxury car rentals

Covid-19 Impact

The luxury car rental market was severely impacted by the Covid-19 pandemic, owing to the restrictions on travel and tourism activities. The market witnessed a sharp decline in demand, as customers canceled their bookings and postponed their travel plans. However, the market is expected to recover gradually, as the restrictions on travel are lifted and the demand for luxury cars among the growing affluent population picks up.

Key Industry Developments

1. In July 2021, Hertz Global Holdings Inc. announced the launch of its Hertz+ program, which offers customers access to a range of luxury and premium vehicles.
2. In June 2021, Enterprise Holdings Inc. announced the acquisition of Discount Car and Truck Rentals, a Canadian car rental company, to expand its presence in the Canadian market.
3. In March 2021, Sixt SE announced the expansion of its operations in the Middle East, with the opening of a new branch in Oman.

Analyst Suggestions

The luxury car rental market is expected to witness significant growth during the forecast period, driven by the increasing demand for luxury cars among the growing affluent population. The players operating in the market should focus on expanding their product portfolios, entering into strategic partnerships, and expanding their geographical reach to gain a competitive edge in the market.

Future Outlook

The luxury car rental market is expected to continue its growth trajectory during the forecast period, driven by the increasing demand for luxury cars among the growing affluent population. The market is expected to witness significant growth in emerging economies, owing to the increasing demand for luxury car rental services in these regions. The players operating in the market are expected to focus on expanding their product portfolios and offering eco-friendly luxury cars to gain a competitive edge in the market.

Conclusion

The luxury car rental market is a rapidly growing market that offers customers the opportunity to experience the luxury and performance of high-end premium cars without the need to purchase them. The market is driven by factors such as the growing trend of experiential travel, rising disposable incomes, and increasing tourism activities. The market is highly competitive, with several players vying for a share of the market.

The luxury car rental market is expected to continue its growth trajectory during the forecast period, driven by the increasing demand for luxury cars among the growing affluent population. The market is expected to witness significant growth in emerging economies, owing to the increasing demand for luxury car rental services in these regions.