Report

Global luxury car rental market is projected to observe a CAGR of 8.78% in the forecast period 2024-2031, rising from USD 40.87 billion in 2023 to USD 80.13 billion in 2031. The market has experienced significant growth in recent years and is projected to maintain the pace of expansion in the forecast years due to the rising prevalence of luxury cars, easy accessibility of luxury cars on rent, a rapid trend of automated and connected technologies in vehicles, and presence of car rental companies across the globe. The global luxury car rental market is observing an increase in requirements, leading to higher market sales. The rising trend can be attributed to different factors such as individuals prioritizing experiences over owning assets. By renting a luxury car, they can enjoy the excitement and status of driving a luxury vehicle without the long-term financial burden of buying. Moreover, the shift in consumer preferences drives the demand for luxury car rental services.
In addition, events and special occasions frequently require an asset of elegance. People are choosing to travel in style and make a grand entrance at weddings, business meetings, and anniversaries. The increased need for luxury cars for precise and special events plays an essential role in accelerating the global luxury car rental market demand. Makers of luxury cars in the automotive market are developing the appearance and functionality of luxury cars to meet the rising need and dominate the largest global luxury car rental market share. However, key participants in the market are offering different services to their potential clients to increase their customer base.
For instance, in February 2023, SIXT SE, an international mobility provider expanded their presence in Canada by opening a new rental car branch servicing passengers arriving at Toronto Pearson International Airport.
Special Events and Business Travel Requirements to Drive Global Luxury Car Rental Market Demand
The growing business of travel and the occurrence of special events, including anniversaries, weddings, and others, are increasing the demand for luxury cars on rent. Business professionals, high-profile executives, high-ranking business meetings, weddings, and others often require the usage of stylish, premium, and prestigious vehicles that align with their comfort, convenience, and corporate image during special events and business meetings. In addition, luxury vehicles have advanced features and different types of facilities that contribute to addressing the requirements of premium transportation solutions. Also, luxury vehicles offer charm and add value of dignity to important life events and business engagements. Therefore, the demand for global luxury cars on rent for important and special events is further propelling the market growth in the forecast period. Furthermore, companies in the global luxury car rental market are significantly announcing collaborations to offer comprehensive services and aims to expand the reach from prevailing consumers to ambitious and high-profile clients.
For instance, in February 2024, Savaari Car Rentals announced a collaboration with MakeMyTrip to cover 4000 Indian cities in the next six months. The collaboration aims to increase accessibility and reach a wider customer base.
Rapid Trend of Travel and Tourism Pushes Global Luxury Car Rental Market Growth
The industry of tourism is rising significantly, hence projected as a key driver for the global luxury car rental market growth in the coming period. Increases in disposable income, changes in living standards, and economic development accelerate the demand for luxury vehicles during travel across the states and countries. Also, luxury vehicles are proven to be good options to improve the overall experience of travel due to different facilities involved during the journey. Digital booking of luxury cars has made the accessibility of luxury cars easier to travel the world, surging the growth of the market in the forecast period. Key market players in the global market are testing new features in their respective car booking applications to offer better services and expand their businesses.
For instance, in January 2024, Uber announced the testing of a new feature that will enable customers to decide the cost of their ride and allow travelers to bid for a specific price initially for cabs and later for auto-rickshaws.
Government Regulations to Drive the Global Luxury Car Rental Market Growth
Governments across the globe are framing different policies to ensure the safety of vehicles coupled with drivers and passengers. Strict regulations and safety standards are compelling luxury car manufacturers to ensure the safety of vehicles and passengers. Legal authorities ensure that manufacturers install high-performance components in vehicles to offer a better traveling experience and prevent the protection of everyone in the vehicle. The government is spreading awareness concerning digital scams and legal formalities to ensure the safe and effective process of online payments which increases the demand for luxury cars on rent across the globe.
For instance, in February 2023, the Government of India ensured the expansion of digital transactions to improve the strength and quality of digital payments coupled with ease of living for citizens. Also, in January 2024, the Government of India expanded the tenure of the Production Linked Incentive Scheme for auto components and automobiles by a year with amendments.
Self-Drive Car Rental Services Segment Dominates the Global Car Rental Market Share
The self-drive car rental services segment dominates the market with the largest share in the global luxury car rental market due to an increase in disposable income, rapid economic development and urbanization, and easy accessibility of cars. Customers prefer self-drive car rentals to travel conveniently without purchasing a luxury car. In addition, self-driving is a cost-effective option for the middle-class population as it does not include the cost of drivers, hence demand for self-driving car rental services is rising more significantly across the globe. Also, self-driving offers convenience and flexibility to drivers and passengers coupled with privacy and security, increasing the demand for self-drive car rental services. Market players are collaborating with partners to offer different rental services to expand the customer base and address the rising demand for self-drive car rental services.
For instance, in February 2024, Sime Darby Auto Bavaria announced a partnership with Sime Darby Rent-A-Car to offer Malaysians a thrilling and unmatched EV driving experience. The collaboration introduces a robust ecosystem that further contributes to the rising adoption of EVs for self-driving car rentals.
Asia-Pacific Registers the Largest Share in the Global Luxury Car Rental Market
Asia-Pacific dominates the market growth due to improved standard of living, increase in middle-class population, and rapid economic development in the region. In emerging countries, the demand for luxury cars on rent is rising as compared to purchasing them due to the rising rate of billionaires in the Asian region. Asia-Pacific has many luxury car rental companies, with a different and large customer base coupled with a high demand for premium vehicles and luxury cars to attend special business and special life events. In addition, due to the rising focus on eco-friendliness and sustainability, different companies in the Asia-Pacific luxury car rental market are expanding their footprint and product portfolio by providing electric and hybrid vehicles coupled with different discount offers.
For instance, in April 2023, Uber Technologies, Inc. announced an offering of a discounted ride in luxury electric vehicles. The major aim of this step is to make easy access to eco-friendly rides and go green as effortlessly as possible.
Future Market Scenario (2024 - 2031F)
- Rising trend of automated and hybrid vehicles are expected to drive the growth of the global luxury car rental market in the forecast period.
- Rapid urbanization and economic development in emerging countries increase the demand for luxury cars on rent.
- Increase in per capita income, easy accessibility, and convenience are the key factors driving the global luxury car market demand.
- Changing work dynamics, comprising an increase in hybrid and remote work culture, aids in the preference for luxury car rentals across the globe.
Key Players Landscape and Outlook
Key companies in the luxury car rental market are significantly investing in introducing platforms to ensure that rental cars are always in good condition and track their vehicles in real time. Many key participants in the market have announced partnerships with on-demand transportation services or introduce their applications. In addition, giant market players in the market are adopting different growth strategies including partnerships, joint ventures, mergers and acquisitions, and others to efficiently provide rental cars to drivers and customers which is further helpful in expanding their footprint across the globe. Also, global tech companies are announcing new services for staying in contact with customers.
In February 2024, SIXT announced an expansion of their partnership with Marriott International for another five years to benefit their customers from a wide variety of luxury and premium vehicles from manufacturers including BMW, Audi, and others.
In April 2024, Yango announced the introduction of a new service i.e., Yango Drive, modernizing car rentals in Dubai and focused on reshaping the car rental experience.