Global car rental market to reach 7.5% CAGR
The global car rental market is expected to have a CAGR of approximately 7.5% in the 2019-2024 period, according to the latest report by researchandmarkets.com
According to the study, increased concern for emissions has led to an increase in car rental options. In 2018, the global car rental rates were forecast to increase by 0.6% compared to the previous year. However, along with an increase in competition, operational costs are also rising, as consumers opt for more economical and cost-effective vehicles, rather than luxury cars. Average price per day of a rented car around the world remained stable at $41 in the cities and around $46 at the airports. Car rental companies are also increasingly diversifying their mobility offers. with car sharing and car subscription services.
Increase in car rental utilization comes in footsteps of growth of global travel and tourism industry with 3.9% growth last year and $8.8 trillion in global economy. It is the 8th consecutive year that tourism industry outstrips global economic growth. Additionally, spending by tourists has also increased by around 28.8% a person. Europe and Asia-Pacific regions dominate the travel industry. North America, and particularly the US, remain dominant in the car rental market.
Waymo starts testing outside the US
Waymo’s self-driving cars will be on public roads outside of the US for the first time. The company announced a partnership with Renault and Nissan. They will be looking into autonomous vehicles for passengers and deliveries in France and Japan. This could lead to global expansion, except for China, as the automakers have pointed out.
Waymo currently has a robo-taxi service on public roads of Phoenix, Arizona. It operates Chrysler Pacifica minivans.
Other self-driving car companies are also partnering with automakers. Last week, Aurora announced that it will be teaming up with Fiat Chrysler, whose cars are currently used by Waymo.
Volkswagen continues software push
Volkswagen is accelerating its push towards software and digital services with the announcement of a vw.os uniform software operating system. The company announced that the newly-formed car.software unit will increase in house development to 60%, compared to the current 10%. The company will pool 5000 digital experts into the new unit by 2025. The company already started rolling out industry’s biggest automotive cloud service in partnership with Microsoft. All new VW models will use vw.os platform.
Boosting software operations is a critical part of Volkswagen strategy through 2025.