Demand accelerates: Tourism from domestic and international consumers supports demand

The Car Rental and Leasing industry has grown strongly over the past five years. Rising demand from businesses and greater tourist numbers have supported revenue growth over the five-year period through 2018-19. Significant revenue growth at the start of the period gave operators the confidence to pursue fleet growth. Additionally, higher demand from small and medium-size enterprises (SMEs) has supported industry expansion. Major players have invested heavily in fleet growth in line with rising demand and increased focus on the SME market. Industry revenue is forecast to grow at a compound annual rate of 7.4% over the five years through 2018-19 to reach £16.6 billion. This includes growth of 3.9% in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Fleet investment is expected to weigh on profit in the future, but revenue is expected to rise
  • Major operators have entered the short-term hire segment in recent years
  • More stringent regulations are likely to encourage operators to purchase more low emission vehicles
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low level of concentration, as most industry operators are small or medium-size. IBISWorld expects that the top four companies will account for 31.2% of industry revenue. The rapid expansion of major companies has increased industry concentration over the past five years.Market share for major operators has increased as they have focused on expanding into the SME market. Over the past five years, merger and acquisition activity has increased the larger operators' market shares, boosting concentration. This includes Enterprise Rent-A-Car's acquisition of rental firm Burnt Tree in 2014 and City Car Club in 2015. These acquisitions are an attempt by the company to boost efficiency and increase its geographical coverage in the United Kingdom. As ...purchase to read more.

    Additional Insights for the Car Rental & Leasing Industry

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

  • Ability to accommodate environmental requirements
  • Prompt delivery to market
  • Access to secure revenue
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Fuel prices in the Car Rental & Leasing industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Car Rental & Leasing Industry?

    Firms in this industry rent cars and small commercial vehicles to private users and businesses on a short-term basis. Customers can also lease cars and other vehicles from the industry on a long-term basis, usually from one to seven years, with the option to purchase the vehicle at the end of the leasing period. The industry does not include renting or leasing a vehicle with a driver.

    Industry Products
  • Car rental
  • Car leasing
  • Other light motor vehicle renting
  • Other light motor vehicle leasing
  • Industry Activities
  • Renting cars
  • Leasing cars
  • Renting small commercial vehicles
  • Leasing small commercial vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Fuel prices
  • New car prices
  • International tourist numbers

  • Current Performance
  • Driving growth
  • Technological advancement
  • Short-term shift
  • Seasonal demand
  • Regulatory environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Changing gears
  • Industry expansion
  • Rising costs
  • Table: Car Rental & Leasing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Rental & Leasing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Catering Services
  • Consumers

  • Key Selling Industries
  • Motor Vehicle Maintenance & Repair
  • Motor Vehicle Manufacturing
  • Motor Vehicle Parts Wholesaling
  • New Car & Light Motor Vehicle Dealers
  • Used Car & Light Motor Vehicle Dealers

  • Products & Services
  • Car leasing
  • Car rental
  • Other light motor vehicle leasing
  • Other light motor vehicle renting
  • Chart: Car Rental & Leasing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial clients
  • International tourists
  • Non-travelling consumers
  • Domestic tourists
  • The government
  • Chart: Major Market Segmentation for the Car Rental & Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Car Rental & Leasing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Rental & Leasing Industry

  • Industry Globalization
    Lex Autolease Limited, LeasePlan UK Limited, Enterprise Rent-A-Car UK Limited,
  • Table: Lex Autolease Limited - financial performance
  • Table: LeasePlan UK Limited - financial performance
  • Table: Enterprise Rent-A-Car UK Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental & Leasing 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 Car Rental & Leasing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Car Sharing
  • A short-term system of rental that usually operates in large cities. Cars can generally be rented from anywhere between one hour and 24 hours.
  • Light Motor Vehicles
  • Vans, small trucks and lorries that weigh less than 3.5 tonnes. Drivers do not need a special driving licence to use them.
  • Residual Value
  • The value of an asset after it has fully depreciated.
  • Ultra-Low Emission Vehicles
  • Vehicles that emit less than 75 grams of CO2 per kilometre driven.
  • Vehicle Renting
  • A short-term agreement (usually fewer than 30 days) to hire a car or van for private or commercial use, with the rental company retaining ownership of the vehicle.
  • What Our Customers Say

    Why buy this report?

    The Car Rental & Leasing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

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

    Contact Us

    Would you like to speak to an IBISWorld representative?