Automotive retail is not the only sector going through massive change; the car rental market is also emerging and evolving thanks to consumer preferences and a greater focus on mobility options, among other things.
The car rental industry in North America and Europe is growing at a single-digit rate, but fierce competition in both established and less established markets are expected to boost innovation and new technology, according to a Research and Markets report.
“Daily headlines tout digital disruption, the ability of new technology to impact many businesses, accelerating development cycles, increasing efficiency and providing more service opportunities,” said Research and Markets in a news release. “The traditional rental car market is entering a new era. The tried-and-true business models developed in the past 100 years are under siege. New technology and the growing sharing economy have enabled suppliers to build up new business and distribution models.”
The car rental market is divided into four categories: compact, executive, SUV and hybrid/electric, plus a section focused on ride-sharing. Startups and established companies are focusing more on mobility, and in many cases electric vehicles. Furthermore, new and innovative approaches and new concepts are being developed as a result.
“What the market looks like in a decade will be significantly different from how it appears today,” said Research and Markets.
