United Kingdom Car Rental Industry Snapshot from 2024 to 2034

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

  • Car rental companies are responding to eco-friendly demands by updating their fleets in response to mandates for safety standards and emissions.
  • Tourism fluctuations affect demand for rentals since travelers need cars to explore, which causes seasonal differences in bookings.
  • Congestion brought on by increased urbanization encourages locals to choose rentals for sporadic travel.
  • Technologies that improve accessibility and convenience, such as smartphone applications and driverless cars, are propelling market expansion.
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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Car Rental Industry Historical Analysis from 2019 to 2023 vs. Forecast Outlook from 2024 to 2034

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:

  • The adoption of electric and hybrid rental cars will be fueled by a growing emphasis on environmental sustainability. This will be in line with legal requirements and customer preferences for environmentally beneficial modes of transportation.
  • As long as technology keeps improving, consumers will have a better rental experience due to contactless rental procedures, digital booking platforms, and customized services that increase convenience and efficiency.
  • The need for short-term and on-demand rental solutions to meet the changing transportation demands of urban people will be fueled by the increasing urbanization and shifting patterns of mobility.

Key Factors Driving the Car Rental industry

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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Factors that can impede the Industry Growth

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.

Comparative View of Adjacent Industries

In this section, analysis will be drawn among three relevant industries. These are the car rental industry, global car rental service market and car seat and accessories market.

Growing urbanization and population mobility are major factors driving demand for easy transportation options in these industries. Market dynamics are influenced by regulatory actions that support safety standards and sustainability. Digitalization and technological developments are also important for improving customer satisfaction and reaching new markets for these industries.

Car Rental Industry in the United Kingdom:

Industry Name Car Rental Industry in the United Kingdom
CAGR from 2024 to 2034 5.6%
Growth Factor Consumer preference for environmentally friendly transportation options, like electric and hybrid cars, as well as government requirements to reduce emissions are growing.
Future Opportunities In order to adapt to changing customer wants and preferences, the market for flexible and on-demand mobility solutions, such as car-sharing and subscription-based services, is expanding.

Car Rental Service Market:

Industry Name Car Rental Service Market
CAGR from 2024 to 2034 7.2%
Growth Factor The growth of corporate alliances and business travel are factors in the expansion of automobile rental services.
Future Opportunities Customers may now access and reserve rental vehicles more easily thanks to technological improvements and internet platforms.

Car Seat and Accessories Market:

Industry Name Car Seat and Accessories Market
CAGR from 2024 to 2034 4.5%
Growth Factor Growth is ascribed to a strong automotive sector that is well-established in terms of product offerings and technology.
Future Opportunities The car's interior is improved by the seats and accessories, which give the vehicle a more spacious appearance and ultimately pique the attention of the buyer.

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Category wise Insights

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.

Economy Cars are the Most Sought After in the United Kingdom Car Rental Industry

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.

In the United Kingdom, Car Rental Service will be highly used for Intercity Travels

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.

Region wise Analysis

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:

  • England
  • Scotland

Increasing Tourism and Staycations to Bolster Demand in England

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.

Rental Cars Provides Tourists and Residents with Easy Transportation Options in Scotland

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.

The United Kingdom Car Rental Industry Competitive Landscape

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:

  • The Hertz Corporation
  • Alamo Rent a Car
  • Burnt Tree Vehicle Rental
  • 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

Significant advancements in the car rental industry are being made by key industry participants, and these include:

  • In 2023, Hertz launched "Hertz Electrifies New York City," a public-private partnership aimed at expanding electric vehicle (EV) adoption and spreading the environmental and economic advantages of electrification throughout neighborhoods.
  • Hertz plans to add up to 1,700 rental EVs to its local fleet through the program, as well as 100 new jobs to support its expanding New York presence and EV education and training opportunities for students in collaboration with four public high schools.
  • As part of the collaboration, Hertz will provide five of its electric vehicles (EVs) to support New York City schools in their efforts to teach the future generation of auto mechanics through practical instruction.

Key Coverage in Car Rental Industry Report

  • Car Rental & Leasing in the UK industry analysis
  • United Kingdom (UK) car rentals market revenue
  • United Kingdom Car Rental Market Competition Forecast
  • United Kingdom car rentals

Report Scope

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
  • Car Type
  • End Use
  • Sector
  • Country
Countries Profiled
  • England
  • Scotland
  • Wales
  • Northern Ireland
Key Companies Profiled
  • The Hertz Corporation
  • Alamo Rent a Car
  • Burnt Tree Vehicle Rental
  • 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
Customization Scope Available on Request

Key Segments Profiled in the Car Rental industry

By Car Type:

  • Economy Cars
  • Compact Cars
  • Intermediate Cars
  • Premium Cars
  • Luxury Cars
  • Others

By End Use:

  • Intercity
  • Intra-city
  • On-Airport
  • Others

By Sector:

  • Organized
  • Unorganized

By Country:

  • England
  • Scotland
  • Wales
  • Northern Ireland

Frequently Asked Questions

What is the anticipated growth rate of the United Kingdom car rental industry from 2024 to 2034?

The car rental industry is expected to garner a 5.6% CAGR from 2024 to 2034.

What will be the United Kingdom industry outlook for car rental through 2024?

By 2024, the United Kingdom car rental industry is likely to gain US$ 3,579.1 million.

What is the expected United Kingdom industry valuation for car rental by 2034?

By 2034, the car rental industry valuation is likely to reach a sum of US$ 6,146.1 million.

What was the historical CAGR for the United Kingdom for the car rental industry?

The United Kingdom industry for car rental attained a CAGR of 4.5% from 2019 to 2023.

Which category of cars in the United Kingdom will opt for car rental?

The economy cars will be highly used for car rental services, along with an expected 33% industry share in 2024.

Which significant end use of car rental in the United Kingdom will gain prominence?

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.

Table of Content

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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