Traffic jam: Aggregator websites and car sharing are driving up industry competition

The Car Rental industry has grown modestly over the past five years, largely supported by increasing international travel to Australia. Positive business confidence over the five-year period has encouraged corporate travel activity, with many companies expanding their travel budgets. Increased travel throughout Australia has, in turn, supported demand for rental cars. Industry revenue is expected to increase at an annualised 0.9% over the five years through 2018-19, to $1.3 billion. This performance includes anticipated growth of 0.3% in 2018-19.The Australian dollar's depreciation over the past five years has made international travel to Australia more attractive, resulting in growing demand for industry more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • The Australian dollar’s depreciation over the past five years has benefited the industry
  • Competition from car sharing arrangements and aggregator websites has led to industry exits
  • A projected increase in international tourism is likely to support demand for industry services
  • Industry Report - Industry SWOT Analysis Chapter

    The Car Rental industry is in the mature phase of its economic life cycle. Industry value added (IVA), which measures the industry’s contribution to the overall economy, is forecast to rise at an annualised 0.7% over the 10 years through 2023-24. This represents an underperformance of overall GDP, which is projected to grow at an annualised 2.6% over the same period. This indicates that the industry is growing at a slower rate than the overall economy.Although the industry’s contribution to the economy is declining, industry revenue has grown modestly over the past five years and this trend is expected to continue. The competitive nature of the industry is expected to bring about the exit of some smaller operators. How...purchase to read more.

    Additional Insights for the Car Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car Rental Industry are

  • Ability to control stock on hand
  • Easy access for clients
  • Company's product has low running costs
  • IBISWorld analysts also discuss how external factors such as Air passenger movements through capital city airports and Business confidence index in the Car Rental industry impact industry performance..

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    What's in this report

    What is the Car Rental Industry?

    Industry firms rent out cars. The industry includes car rental companies that also rent out trucks, vans and buses. The industry excludes commercial and fleet leasing.

    Industry Products
  • Small passenger cars
  • Medium and large passenger cars
  • Trucks
  • Buses and vans
  • Industry Activities
  • Long-term car rental
  • Short-term car rental
  • Truck rental
  • Van rental
  • Bus rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Air passenger movements through capital city airports
  • Business confidence index
  • Consumer sentiment index
  • International travel to Australia
  • Number of housing transfers

  • Current Performance
  • Falling profit
  • Industry participation
  • Business confidence
  • Tourism
  • Competition and opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • Aggregator websites and profit
  • Car sharing
  • Improved conditions
  • Table: Car Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Tourism
  • Consumers

  • Key Selling Industries
  • General Insurance
  • Motor Vehicle Body, Paint and Interior Repair
  • Motor Vehicle Engine and Parts Repair and Maintenance
  • Motor Vehicle Manufacturing
  • Motor Vehicle Wholesaling

  • Products & Services
  • Medium and large passenger cars
  • Small passenger cars
  • Trucks
  • Buses and vans
  • Chart: Car Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Tourists
  • Businesses
  • Chart: Major Market Segmentation for the Car Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Wages
  • Purchases
  • Maintenance
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Car Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car Rental Industry

  • Industry Globalization
    Avis Management Pty Limited, Hertz Investment (Holdings) Pty Limited, Europcar Holding Pty Ltd, National Roads and Motorists' Association Limited,
  • Table: Avis Management Pty Limited - financial performance
  • Table: Hertz Investment (Holdings) Pty Limited - financial performance
  • Table: Europcar Holding Pty Ltd - financial performance
  • Table: National Roads and Motorists' Association Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car Rental Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Aggregator Websites
  • These websites pull information from a variety of vendors for price comparison purposes, with comparisons based on a consumer's search parameters.
  • Hybrid
  • A vehicle powered by two or more sources, typically electricity and petrol.
  • Suv
  • Stands for sports utility vehicle, a type of vehicle similar to a station wagon but built on a light truck chassis.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Car Rental market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Car Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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