The car rental industry in the United Kingdom had an estimated valuation of USD 3,382.8 million in 2023 and is expected to reach a size of USD 6,146.1 million by 2034, increasing at a CAGR of 10.8% between 2024 and 2034. By 2024, the industry for car rental is poised to reach a valuation of USD 3,579.1 million.
Companies in the United Kingdom have a unique opportunity to leverage the changing landscape of the car rental industry. By partnering with car rental agencies offering a diverse fleet, businesses can enhance employee mobility and achieve their corporate sustainability goals – all while reducing operational costs.
The traditional model of car ownership is becoming increasingly expensive and less environmentally friendly. The UK car rental industry, however, is witnessing a shift towards a wider selection of vehicles, including electric and hybrid options. This presents a compelling solution for businesses seeking to:
- Empower Employees: A robust car rental partnership grants employees access to a wider range of vehicles, catering to specific needs and fostering a more flexible work environment.
- Drive Sustainability: By incorporating electric and hybrid vehicles into their operations, businesses can significantly reduce their carbon footprint and demonstrate a commitment to environmental responsibility.
- Reduce Costs: Car rental eliminates the burden of vehicle ownership, including maintenance, depreciation, and insurance. This translates to significant cost savings for businesses.
Companies in the United Kingdom can take advantage of advances in the car rental business to improve their corporate social responsibility (CSR) activities. Companies may minimize their carbon footprints, line with environmental goals, and improve their reputation as socially responsible corporations by collaborating with car rental firms that provide eco-friendly vehicle alternatives and supporting sustainable mobility practices.
This is an opportunity that benefits stakeholders and customers who are increasingly giving sustainability top priority when making decisions, in addition to helping with environmental conservation efforts.
Key Takeaways from the Market Analysis
- The United Kingdom car rental industry size reached USD 2,835.5 million in 2019.
- From 2019 to 2023, the United Kingdom car rental industry experienced a CAGR of 4.5%.
- In addition to having a projected 33% market share in 2024, economy cars will be extensively used for car rental services.
- The majority of automobile rentals in the United Kingdom will be utilized for intercity trips, and by 2024, they should account for 39.8% of the market.
Competitive Landscape
Improving client satisfaction and sustainability are the main areas of innovation in the United Kingdom car rental industry. In order to meet the growing demand for environmentally friendly transportation, significant companies are innovating by increasing the number of electric and hybrid cars in their fleets.
In order to improve client satisfaction, they are also investing in digitization and putting mobile applications, contactless rental procedures, and online booking systems into place. Partnerships with ride-hailing services are also being pushed, with the goal of providing integrated mobility solutions for increased accessibility and convenience.
Startups in the United Kingdom car rental industry are upending established models with their innovative ideas, which include mobile app-driven rental experiences, peer-to-peer car-sharing systems, and subscription-based services. They put cost, convenience, and flexibility first, disrupting established players and changing the face of urban transportation.
Key Companies Profiled:
- The Hertz Corporation
- Alamo Rent a Car
- Enterprise Rent-A-Car
- SP AutoReisen Rent a Car SL
- Avis Rent a Car System, LLC
- Cicar
- Thrifty Car Rental
- Dollar Rent a Car, Inc.
- Europcar Mobility Group
- Budget Rent a Car System, Inc.
- Lojas Centauro
- Sixt SE
- Goldcar
- Burnt Tree Vehicle Rental
- Salford Car & Van Rental
- Other
Key Offerings
- Avis Rent A car System LLC is an automobile rental firm with over 5,000 facilities throughout 165 countries. Avis is a multinational mobility solutions company that owns and runs three of the most well-known brands in the market: Budget, Zipcar, and Avis.
- In 2022, Cepsa and CICAR, a car rental firm, have partnered to create a collaborative business model that will promote electric rental cars and electric mobility in the Canary Islands. Customers who hire electric vehicles can use the ultra-fast public network Cepsa plans to install in the Canary Islands and at the CICAR bases to recharge their vehicles as part of this program. To build up these bases, Cepsa will also provide CICAR with a wide variety of services, including installation, startup, operation, and maintenance.
Complete Market Review: A Full Report Analysis
U.K. Car Rental Market by Category
By Car Type:
- Economy Cars
- Compact Cars
- Intermediate Cars
- Premium Cars
- Luxury Cars
- Others
By End Use:
- Intercity
- Intra-city
- On-Airport
- Others
By Booking Mode:
- Offline Access
- Mobile Application
- Other Internet Access
By Sector:
- Organized
- Unorganized
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