The car rental industry in the United Kingdom had an estimated industry share worth US$ 3,382.8 million in 2023, and it is predicted to reach the industry valuation of US$ 6,146.1 million by 2034, growing at a CAGR of 5.6% from 2024 to 2034.
Demand Analysis of Car Rentals in the United Kingdom
| Report Attribute | Details |
|---|---|
| Estimated Industry Value in 2023 | US$ 3,382.8 million |
| Expected Industry Value in 2024 | US$ 3,579.1 million |
| Projected Forecast Value in 2034 | US$ 6,146.1 million |
| Anticipated Growth Rate from 2024 to 2034 | 5.6% |
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The United Kingdom industry for car rental was estimated to reach a valuation of US$ 2,835.5 million in 2019, according to a report from Future Market Insights (FMI). From 2019 to 2023, the car rental industry in the United Kingdom witnesses significant growth, registering a CAGR of 4.5%.
| Historical CAGR from 2019 to 2023 | 4.5% |
|---|---|
| Forecast CAGR from 2024 to 2034 | 5.6% |
One recent innovation in the car rental sector is the use of blockchain technology to speed rental operations while also improving security and transparency in rental agreements. This has resulted in accurate and tamper-proof records of rental history, payments, and vehicle condition. The United Kingdom industry for car rental is expected to grow in the future due to these factors:
Heritage Tourism and Easy Transportation Options to enhance industry Growth
The United Kingdom has an abundance of attractions for visitors to visit, including historical monuments, beautiful scenery, and cultural locations. There is an increasing demand for easy and adaptable transportation.
Without being restricted by the routes or schedules of public transportation, travelers may freely explore different locations at their own speed when they rent a car. The robustness of the United Kingdom's tourism business is closely correlated with the increasing demand for rental automobiles during tourist visits, which propels growth and income for the car rental sector.
Renting a car is popular among visitors who are visiting historical and cultural places. Growing popularity of outdoor pursuits like hiking and camping is increasing the demand for rental cars to get to far-off places. Demand for rental cars rises in advance of important occasions like concerts and sporting competitions, providing guests with flexible travel options.
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Alternate Mobility Options to stifle the industry Growth
The United Kingdom car rental industry is hindered by a number of issues, including shifts in consumer spending patterns and economic concerns resulting from events like Brexit.
The potential for expansion in the rental business is constrained by the emergence of alternative mobility choices such as ride-sharing services as well as the growing inclination of urban people towards automobile ownership. Traditional rental firms also face difficulties from environmental concerns and governmental demands to reduce emissions.
This section focuses on providing detailed analysis of two particular industry segments for car rental, the dominant car type and the significant end use. The two main segments discussed below are the economy cars and intercity end use.
| Car Type | Economy Cars |
|---|---|
| Industry Share in 2024 | 33% |
In 2024, the economy cars segment is likely to gain an industry share of 33% in the United Kingdom car rental ecosystem. Economy cars are widely utilized in the United Kingdom car rental sector due to their low cost, fuel economy, and suitability for urban driving conditions.
For tourists on a tight budget, these compact cars provide affordable transportation options. They are also ideal for parking in crowded spaces and navigating through small city streets. A variety of clients find their reduced rental prices appealing, which makes them the go-to alternative for people and families looking for affordable and dependable transportation solutions.
| End Use | Intercity |
|---|---|
| Industry Share in 2024 | 39.8% |
In 2024, the intercity segment for the car rental industry in the United Kingdom is poised to acquire a 39.8% market share. Several factors have led the car rental industry in the United Kingdom to become increasingly popular for intercity travel. Traveling between cities is made easier by the vast and well-kept road network.
Tourists may conveniently explore numerous sites and modify their itinerary due to the freedom and ease provided by rental services. Car rentals are becoming more and more popular since they offer a secure and pleasant alternative for journeys across the country, especially in light of the growing inclination for private transportation due to health concerns.
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This section will go into detail on the United Kingdom car rental industry in two key countries, including England and Scotland. This part will focus on the key factors that are driving up demand in these countries for car rental.
Countries:
The car rental sector in England is experiencing steady growth. Regulations and government orders encouraging low-emission zones in English cities are driving the car rental industry to increase the number of electric and hybrid cars in its fleets. Rental firms are encouraged to invest in environmentally friendly solutions by complying with these standards, which satisfies both customer preferences and environmental aims.
The growth in demand for staycations among English residents following the pandemic is driving an increase in domestic travel. Short-term rentals of cars are in more demand from car rental firms as people look for handy and adaptable ways to get about their local areas, which is helping the industry thrive.
The thriving tourism sector in Scotland is generating a high demand for rental cars. This is because travelers are seeking flexible ways to go about the beautiful scenery and historic monuments of the nation. This presents an opportunity for car rental firms to grow and better serve the influx of tourists.
Since many of Scotland's rural locations lack robust public transit systems, renting a car is essential for getting to far-off places. By giving visitors the flexibility and freedom to explore Scotland's countryside, rental firms play a critical role in enhancing visitor experiences and promoting economic growth in rural areas.
Leading players in the United Kingdom car rental market are concentrating on a number of strategic initiatives in order to adjust to changing market trends and customer needs. One of them is increasing the number of electric and hybrid cars in their fleet to satisfy the rising demand for environmentally friendly modes of transportation.
A focus on digitalization and improving the consumer experience is evident in the expenditures made in mobile applications, contactless rental procedures, and online booking platforms.
In order to provide integrated mobility solutions, significant companies are giving priority to alliances and partnerships with ride-hailing firms and transportation networks. The goal of these initiatives is to maintain sustainability and competitiveness in the quickly evolving automotive industry. The key players in this industry include:
Significant advancements in the car rental industry are being made by key industry participants, and these include:
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 5.6% from 2024 to 2034 |
| Industry value in 2024 | US$ 3,579.1 million |
| Industry value in 2034 | US$ 6,146.1 million |
| Base Year for Estimation | 2023 |
| Historical Data | 2019 to 2023 |
| Forecast Period | 2024 to 2034 |
| Quantitative Units | US$ million for value |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
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| Countries Profiled |
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| Key Companies Profiled |
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| Customization Scope | Available on Request |
The car rental industry is expected to garner a 5.6% CAGR from 2024 to 2034.
By 2024, the United Kingdom car rental industry is likely to gain US$ 3,579.1 million.
By 2034, the car rental industry valuation is likely to reach a sum of US$ 6,146.1 million.
The United Kingdom industry for car rental attained a CAGR of 4.5% from 2019 to 2023.
The economy cars will be highly used for car rental services, along with an expected 33% industry share in 2024.
The car rental services in the United Kingdom will be mostly used for intercity travels and is likely to gain a 39.8% market share in 2024.
1. Executive Summary
1.1. United Kingdom Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Industry Analysis 2019 to 2023 and Forecast, 2024 to 2034
4.1. Historical Market Size Value (US$ Million) Analysis, 2019 to 2023
4.2. Current and Future Market Size Value (US$ Million) Projections, 2024 to 2034
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Car Type
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Car Type, 2019 to 2023
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Car Type, 2024 to 2034
5.3.1. Economy Cars
5.3.2. Compact Cars
5.3.3. Intermediate Cars
5.3.4. Premium Cars
5.3.5. Luxury Cars
5.3.6. Others
5.4. Y-o-Y Growth Trend Analysis By Car Type, 2019 to 2023
5.5. Absolute $ Opportunity Analysis By Car Type, 2024 to 2034
6. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By End Use, 2019 to 2023
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By End Use, 2024 to 2034
6.3.1. Intercity
6.3.2. Intra-city
6.3.3. On-Airport
6.3.4. Others
6.4. Y-o-Y Growth Trend Analysis By End Use, 2019 to 2023
6.5. Absolute $ Opportunity Analysis By End Use, 2024 to 2034
7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Booking Mode
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By Booking Mode, 2019 to 2023
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Booking Mode, 2024 to 2034
7.3.1. Offline
7.3.2. Mobile Application
7.3.3. Others
7.4. Y-o-Y Growth Trend Analysis By Booking Mode, 2019 to 2023
7.5. Absolute $ Opportunity Analysis By Booking Mode, 2024 to 2034
8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sector
8.1. Introduction / Key Findings
8.2. Historical Market Size Value (US$ Million) Analysis By Sector, 2019 to 2023
8.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Sector, 2024 to 2034
8.3.1. Organized
8.3.2. Unorganized
8.4. Y-o-Y Growth Trend Analysis By Sector, 2019 to 2023
8.5. Absolute $ Opportunity Analysis By Sector, 2024 to 2034
9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
9.1. Introduction
9.2. Historical Market Size Value (US$ Million) Analysis By Country, 2019 to 2023
9.3. Current Market Size Value (US$ Million) Analysis and Forecast By Country, 2024 to 2034
9.3.1. England
9.3.2. Scotland
9.3.3. Wales
9.3.4. Northern Ireland
9.4. Market Attractiveness Analysis By Country
10. England Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
10.2.1. By Region
10.2.2. By Car Type
10.2.3. By End Use
10.2.4. By Booking Mode
10.2.5. By Sector
10.3. Market Attractiveness Analysis
10.3.1. By Region
10.3.2. By Car Type
10.3.3. By End Use
10.3.4. By Booking Mode
10.3.5. By Sector
10.4. Key Takeaways
11. Scotland Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
11.2.1. By Region
11.2.2. By Car Type
11.2.3. By End Use
11.2.4. By Booking Mode
11.2.5. By Sector
11.3. Market Attractiveness Analysis
11.3.1. By Region
11.3.2. By Car Type
11.3.3. By End Use
11.3.4. By Booking Mode
11.3.5. By Sector
11.4. Key Takeaways
12. Wales Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
12.2.1. By Region
12.2.2. By Car Type
12.2.3. By End Use
12.2.4. By Booking Mode
12.2.5. By Sector
12.3. Market Attractiveness Analysis
12.3.1. By Region
12.3.2. By Car Type
12.3.3. By End Use
12.3.4. By Booking Mode
12.3.5. By Sector
12.4. Key Takeaways
13. Northern Ireland Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2019 to 2023
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2024 to 2034
13.2.1. By Region
13.2.2. By Car Type
13.2.3. By End Use
13.2.4. By Booking Mode
13.2.5. By Sector
13.3. Market Attractiveness Analysis
13.3.1. By Region
13.3.2. By Car Type
13.3.3. By End Use
13.3.4. By Booking Mode
13.3.5. By Sector
13.4. Key Takeaways
14. Market Structure Analysis
14.1. Competition Dashboard
14.2. Competition Benchmarking
14.3. Market Share Analysis of Top Players
14.3.1. By Country
14.3.2. By Car Type
14.3.3. By End Use
14.3.4. By Booking Mode
14.3.5. By Sector
15. Competition Analysis
15.1. Competition Deep Dive
15.1.1. The Hertz Corporation
15.1.1.1. Overview
15.1.1.2. Product Portfolio
15.1.1.3. Profitability by Market Segments
15.1.1.4. Sales Footprint
15.1.1.5. Strategy Overview
15.1.1.5.1. Marketing Strategy
15.1.2. Alamo Rent a Car
15.1.2.1. Overview
15.1.2.2. Product Portfolio
15.1.2.3. Profitability by Market Segments
15.1.2.4. Sales Footprint
15.1.2.5. Strategy Overview
15.1.2.5.1. Marketing Strategy
15.1.3. Burnt Tree Vehicle Rental
15.1.3.1. Overview
15.1.3.2. Product Portfolio
15.1.3.3. Profitability by Market Segments
15.1.3.4. Sales Footprint
15.1.3.5. Strategy Overview
15.1.3.5.1. Marketing Strategy
15.1.4. SP AutoReisen Rent a Car SL
15.1.4.1. Overview
15.1.4.2. Product Portfolio
15.1.4.3. Profitability by Market Segments
15.1.4.4. Sales Footprint
15.1.4.5. Strategy Overview
15.1.4.5.1. Marketing Strategy
15.1.5. Avis Rent A Car System, LLC
15.1.5.1. Overview
15.1.5.2. Product Portfolio
15.1.5.3. Profitability by Market Segments
15.1.5.4. Sales Footprint
15.1.5.5. Strategy Overview
15.1.5.5.1. Marketing Strategy
15.1.6. Cicar
15.1.6.1. Overview
15.1.6.2. Product Portfolio
15.1.6.3. Profitability by Market Segments
15.1.6.4. Sales Footprint
15.1.6.5. Strategy Overview
15.1.6.5.1. Marketing Strategy
15.1.7. Thrifty Car Rental
15.1.7.1. Overview
15.1.7.2. Product Portfolio
15.1.7.3. Profitability by Market Segments
15.1.7.4. Sales Footprint
15.1.7.5. Strategy Overview
15.1.7.5.1. Marketing Strategy
15.1.8. Dollar Rent A Car, Inc.
15.1.8.1. Overview
15.1.8.2. Product Portfolio
15.1.8.3. Profitability by Market Segments
15.1.8.4. Sales Footprint
15.1.8.5. Strategy Overview
15.1.8.5.1. Marketing Strategy
15.1.9. Europcar Mobility Group
15.1.9.1. Overview
15.1.9.2. Product Portfolio
15.1.9.3. Profitability by Market Segments
15.1.9.4. Sales Footprint
15.1.9.5. Strategy Overview
15.1.9.5.1. Marketing Strategy
15.1.10. Budget Rent a Car System, Inc.
15.1.10.1. Overview
15.1.10.2. Product Portfolio
15.1.10.3. Profitability by Market Segments
15.1.10.4. Sales Footprint
15.1.10.5. Strategy Overview
15.1.10.5.1. Marketing Strategy
15.1.11. Lojas Centauro
15.1.11.1. Overview
15.1.11.2. Product Portfolio
15.1.11.3. Profitability by Market Segments
15.1.11.4. Sales Footprint
15.1.11.5. Strategy Overview
15.1.11.5.1. Marketing Strategy
16. Assumptions & Acronyms Used
17. Research Methodology
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Car Rental Industry Analysis in the United Kingdom
