Automobile Rental & Leasing Industry Profile

Companies in this industry rent and lease passenger cars and trucks without drivers and utility trailers. Major companies include Avis Budget Group, Enterprise Holdings, Hertz Global Holdings, Ryder, and U-Haul (all based in the US), along with CAR Inc (China), Europcar (France), LeasePlan (the Netherlands), and Sixt SE (Germany).

The global car rental market is expected to reach about $130 billion by 2025, according to VynZ Research. China is seen as a key source of growth. Car rentals are growing in popularity in China's big cities, with demand being driven by better living standards, business rentals, and limits on ownership of private cars. The auto rental and leasing industry in the US includes about 19,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $63 billion.

COMPETITIVE LANDSCAPE

Demand for car rental is driven by business and leisure travel; for truck rental, demand is driven by home sales and corporate relocations. The profitability of individual companies depends on efficient operations and the ability to finance inventory. Big companies have economies of scale in acquiring vehicles and customers. Small companies can compete effectively by providing better service, alternative products, or lower prices. The US industry is highly concentrated: the 50 largest companies generate about 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the rental of automobiles and light-duty trucks at about 50% of the industry's revenue. Other services include rental of ...