Airport Car Rental Market To Hit Nearly $50 Billion By 2023
A new study issued by Texas-based market research firm Lucintel states that the global airport car rental market could grow to as high as $49.1 billion by 2023. The growth, estimated to be at an average annual rate at 6.7 percent, will be driven by such factors as a boost in air travel, higher levels of disposable income among clients and an increasing degree of tourism, both domestic and international.
The 200-page report, released in January, also predicts that the bulk of the increases will be more leisure oriented, while economy cars will be the most preferred mode of travel among those seeking a rental vehicle. Lower prices and easy availability have been cited over reasons why clients will continue to opt for an economy car over other options like compact, luxury and sports utility vehicles.
The Lucintel study also predicts that North America will still lead the pack in terms of market activity, largely due to tourism and a recent trend among younger demographics towards car sharing. However, the report adds that Asia Pacific market will be a region where the highest rate of growth will take place, with a spike in air passenger traffic, greater disposable income and a wave of new airport construction responsible for the projected increase.
Also factored into the study were newer trends as well as major opportunities hitting the industry such as the increasing numbers of electric vehicles being added to current fleets as well as the implementation of information technology such as wireless to create efficiencies and added value to such aspects as booking, customer service and client safety. Much of the data in the report came from profiles of such major industry players as Enterprise, Hertz, Avis, Europcar, Uber, Localiza, Redcap and Warisan.
The report is similar to an Azoth Analytics study issued back in September. That report looked at the overall car rental market, and claimed the industry will grow at a rate slightly higher than 10 percent annually. It also confirmed North America will still be the hottest region, followed by Asian nations like China and India as areas of rapid growth.
And while the Azoth study didn’t offer a breakdown of the industry pertaining to outlets offering car rental services at airports, the study did indicate that such a market will witness a great deal of growth due to greater air passenger volume and heavy demand from corporate clients.
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