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Car Rental in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Car Rental Market Research Report | NAICS 53211 | Nov 2016

Driving force: Revived domestic air travel will support modest industry growth for car rentals

IBISWorld’s Car Rental market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Industry Statistics & Market Size
Revenue
$38bn
Annual Growth 11-16
2.7%
Annual Growth 16-21
Annual Growth
Profit
Profit
Employment
140,280
Businesses
10,839
Industry Threats & Opportunities
  • Industry demand is anticipated to rise as domestic air travel increases, bolstered by the growth of the US economy
  • Demand for insurance replacement rentals is more stable than air traveler demand
  • Both business and leisure travelers are anticipated to loosen the reins on travel spending
  • ... purchase to read more

Industry Analysis & Industry Trends

The Car Rental industry has changed gears over the past five years, growing strongly after being forced into reverse during the recession. Given that air travelers represent the industry's primary market, growth in air travel over the past five years has been most important in driving revenue expansion. Moreover, the industry is anticipated to continue growing through 2021, driven by an increase in the number of air travelers, rising per capita income and rising corporate profit. The industry's largest companies are expected to retain their competitive advantages over smaller players, such as maintaining strategic alliances with airlines and hotels... ... purchase to read more

Industry Report - Industry Locations Chapter

Regional concentrations of industry establishments fall largely in line with the size of regional populations, with regions that are home to large concentrations of industry establishments also containing large populations, and vice versa. However, there are other factors that influence regional industry establishment concentrations as well. Given that over half of industry revenue is generated through business activity at airport facilities, industry establishments tend to cluster near to airports. There also tend to be more industry establishments in more densely populated areas, and especially in major cities. In .. ... purchase to read more

Additional Insights for the Car Rental Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Rental Industry are

  • Being part of a franchising chain
  • Access to niche markets
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Demand from domestic airlines and Domestic trips by US residents in the Car Rental industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Car Rental Industry?

    Operators in this industry rent or lease passenger cars to customers. Car rentals typically last a short time (30 days or fewer) while leasing agreements are for longer (12 months or more). The industry excludes the rental or leasing of cars with drivers.

    Industry Products
    Leisure car rentalBusiness car rentalCar leasingCar sharing
     
    Industry Activities
    Passenger car rentalPassenger car leasing


    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
  • Demand from domestic airlines
  • Domestic trips by US residents
  • Corporate profit
  • Per capita disposable income
  • Current Performance
  • Strong profit margins
  • Car sharing and off-airport markets
  • Industry consolidation
  • Chart: Revenue Growth
  • Industry Outlook
  • Growing demand from all markets
  • Slight fall in profit margins
  • Consolidation to continue
  • Table: Car Rental Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Rental Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Auto Mechanics
  • Automobile Wholesaling
  • Car & Automobile Manufacturing
  • Car Body Shops
  • SUV & Light Truck Manufacturing
  • Products & Services
  • Leisure car rental
  • Business car rental
  • Car leasing
  • Car sharing
  • Chart: Car Rental Industry Products and Services Segmentation
  • Demand Determinants
  • The number of air travelers
  • Disposable income
  • Corporate profitability
  • Exchange rates
  • Major Markets
  • Off-airport customers
  • Airport leisure customers
  • Airport business customers
  • Chart: Major Market Segmentation for the Car Rental Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Car Rental
  • Basis of Competition
  • Internal competition
  • External competition
  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Rental Industry
  • Industry Globalization
    Major Companies
    Enterprise Rent-A-Car Company
    Hertz Global Holdings Inc.
    Avis Budget Group Inc.
  • Table: Enterprise Rent-A-Car Company - financial performance
  • Table: Hertz Global Holdings Inc. - financial performance
  • Table: Avis Budget Group Inc. - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental 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 Car Rental Industry
  • Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Domestic Trips by US Residents (2007-2021)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Table: Industry Financial Ratios
  • Jargon & Glossary
    Airport Market
  • The market for car rental services at or near airports, which is made up almost entirely of air travelers and historically is the industry's primary market.
  • Car Sharing
  • A very short-term car rental where customers pay an annual fee plus hourly rental rate to rent cars from specified locations in participating cities.
  • Concession
  • An agreement between car rental companies and airports specifying how many counters a rental company can operate at an airport.
  • Off-Airport Market
  • The market for car rental services away from airports, usually in cities, suburbs or rural areas, which includes car sharing and insurance replacements.
  • Residual Value
  • A value car rental companies receive when they sell a rental car back to a car manufacturer or a car wholesaler.

  • 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 Car Rental:
    • 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 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 Car Rental 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 Car Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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