Overview

Smooth ride: Improved demand will allow operators to upgrade their services, raising profit margins

IBISWorld’s industry research report on Limousine & Town Car Services provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$11bn
Annual Growth
11-16
4.1%
Annual Growth
16-21
Profit
Employment
239,153
Business
196,582

Industry Threats & Opportunities

  • Increases in disposable income and consumer confidence have bolstered industry revenue
  • The industry comprises mainly nonemploying owner-operator businesses
  • Corporate travelers account for over half of the industry's demand
  • Industry Analysis & Industry Trends

    The Limousine and Town Car Services industry has shifted up a gear as the economy continues to recover from the worst recession in nearly a century. The industry has been helped by growing per capita disposable income and rising consumer confidence, leading many consumers to, once again, spend on luxury car services rather than less-expensive alternatives, such as taxis. The industry comprises a small number of fleet owners and an army of independent owner-operators and is expected to continue on the road to prosperity, buoyed by broad-based economic growth over the next five years.

    Industry Report - Starting a New Business Chapter

    Businesses considering entering the Limousine and Town Car Services industry face moderate barriers. Industry revenue depends on consumer and corporate spending levels, so potential entrants must be able to handle extended periods of low growth if consumer and corporate confidence in the economy falls.

    Start-up costs

    Although the labor and property resources needed to enter this industry are by no means scarce, start-up costs are moderate to high, particularly because most operators are small and therefore not able to achieve significant economies of scale. Potential operators must initially purchase at least one limousine or town car, and some US limousine companies have as many as 20 vehicles in their fleets. As

    Additional Insights for the Limousine & Town Car Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Limousine & Town Car Services Industry are

  • Ability to pass on cost increases
  • Must comply with government regulations
  • Access to secure revenue
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Corporate profit in the Limousine & Town Car Services industry impact industry performance..

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    Industry Products

    What is the Limousine & Town Car Services Industry?

    This industry comprises establishments primarily engaged in providing an array of specialty and luxury passenger transportation services via limousine or luxury sedans, generally on a reserved basis. These establishments do not operate over regular routes or on regular schedules.

    Industry Products
    Luxury and corporate sedan services
    Stretch limousine and limo bus services
    Vans and shuttle bus services
    SUV services
    Industry Activities
    Providing limousine services
    Providing luxury sedan services
    Providing chauffeur and personal driver services
    Providing corporate sedan services
    Providing automobile rental with a driver

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Corporate profit
  • Number of mobile internet connections
  • Domestic trips by US residents
  • World price of crude oil

  • Current Performance
  • Technology revitalizes industry
  • Industry structure
  • Growth and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved operating conditions
  • Higher fuel costs
  • Technology
  • Operators and wages
  • Table: Limousine & Town Car Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Limousine & Town Car Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Sports Franchises
  • Racing & Individual Sports
  • Non-Hotel Casinos
  • Hotels & Motels
  • Consumers

  • Key Selling Industries
  • Auto Mechanics
  • Automobile Wholesaling
  • Car Body Shops
  • Gas Stations
  • Used Car Parts Wholesaling

  • Products & Services
  • Luxury and corporate sedan services
  • Stretch limousine and limo bus services
  • Vans and shuttle bus services
  • SUV services
  • Other
  • Chart: Limousine & Town Car Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporate travelers
  • Private Consumers
  • Tourists
  • Other
  • Chart: Major Market Segmentation for the Limousine & Town Car Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Wages
  • Profit
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Limousine & Town Car Services

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Limousine & Town Car Services Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Limousine & Town Car Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Limousine & Town Car Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Corporate Profit (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Chauffeur
  • A person employed to drive a passenger motor vehicle.
  • Stretch Limousine
  • A luxury passenger vehicle with an extremely long wheel base.
  • Town Car
  • A luxury corporate sedan that is the most commonly used limousine and chauffeured car in the United States.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Limousine & Town Car Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Limousine & Town Car Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Limousine & Town Car Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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