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

The Limousine and Town Car Services industry has shifted up a gear in the past five years, as the economy continues to improve. 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. Over the five years to 2022, the industry is expected to continue on the road to prosperity, buoyed by broad-based economic growth. Consumer demand is expected to remain strong as both per capita disposable income and consumer confidence rise, giving consumers a reason to spend on transportation for special occasions, such as weddings and proms...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

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 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 costsAlthough 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 ...purchase to read more.

    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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    What's in this report

    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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

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

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    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 competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Limousine & Town Car Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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
    Table: Industry Data for the Limousine & Town Car Services Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate Profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • 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.
  • What Our Customers Say

    Why buy this report?

    The Limousine & Town Car Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    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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