Consumer Product Rental Industry Profile

Companies in this industry rent personal and household goods, primarily for short periods but also under longer-term arrangements. Major companies include Aaron's and Upbound (both in the US), along with Cinema Paradiso Rental (UK), Furlenco (India), Home Essentials (Hong Kong), Lyght Living Furniture Leasing (Germany), and TSUTAYA Store (Japan).

The global rental and leasing sector has focused on emerging economies for expansion. The market is expected to reach about $260 billion in 2034, with a compound annual growth rate (CAGR) of 8%, according to the Business Research Company. China is an important market for rentals because of the growth of disposable income among the middle class. Other emerging markets include the Middle East, India, Brazil, and Eastern Europe.

In the US, the consumer product rental industry includes about 20,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion. Examples of products rented by companies in the industry include consumer electronics and appliances, DVDs, formal wear, home health equipment, and recreational goods.

COMPETITIVE LANDSCAPE

Demand is driven by personal income. The profitability of individual companies depends on the right merchandise mix and inventory financing costs. Large companies have advantages in economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service and catering to local demographics. The US industry is concentrated: the 50 largest companies account for about 60% of industry ...