South Korea Car Rental Market Report and Forecast 2024-2032

South Korea Car Rental Market Report and Forecast 2024-2032

Market Outlook

According to the report, the South Korea car rental market reached a value of USD 1.51 billion in 2023. Aided by the increasing demand for convenient and flexible travel options among domestic and international travellers alike, the market is projected to further grow at a CAGR of 1.2% between 2024 and 2032 to reach a value of USD 1.8 billion by 2032.

In the dynamic landscape of South Korea, the car rental industry has emerged as a key player in the transportation sector, driven by a confluence of technological advancements, changing consumer preferences, and a robust tourism industry. As of 2022, the South Korea car rental market demand has witnessed significant growth, buoyed by the increasing demand for convenient and flexible travel options among domestic and international travellers alike.

The car rental market is characterised by its high level of competition and innovation, with major players offering a wide range of services, from short-term rentals to long-term leasing options. The market's expansion is largely attributed to the rising popularity of road trips among tourists, the growing preference for rental services over vehicle ownership among millennials and Gen Z, and the increasing adoption of electric vehicles (EVs) and hybrid models within rental fleets.

According to the South Korea car rental market analysis, the integration of digital technologies, such as mobile apps and online platforms, has streamlined the booking process, making it more convenient for users to access rental services. This digital transformation, coupled with the introduction of flexible pricing models and personalised rental packages, has significantly enhanced customer experience and satisfaction.

Several factors influence the South Korea car rental market outlook. The surge in inbound tourism, fuelled by South Korea's rich cultural heritage, vibrant cities, and scenic landscapes, has notably increased the demand for car rental services. Additionally, the government's initiatives to promote eco-friendly transportation solutions have led to a rapid increase in the availability of EVs and hybrids for rent, aligning with the global shift towards sustainable mobility.

The rise of the sharing economy and the growing consumer desire for cost-effective and flexible transportation options have further propelled the South Korea car rental market growth. As urban populations expand and traffic congestion worsens, many South Koreans are opting for rental services as a convenient alternative to owning a vehicle, particularly in densely populated cities like Seoul and Busan.

Market Segmentation

The market can be divided based on booking type, vehicle type, and application.

Market Breakup by Booking Type

• Online Access
• Offline Access

Market Breakup by Vehicle Type

• Economy/Budget Cars
• Luxury/Premium Cars
• MUVs
• SUVs
• Others

Market Breakup by Application

• Business
• Leisure/Tourism

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the South Korea car rental market. Some of the major players explored in the report are as follows:

• The Hertz Corporation
• Avis Budget Group, Inc.
• Enterprise Holdings, Inc.
• Lotte Corporation
• Uber Technologies Inc.
• Booking Holdings Inc.
• SK Networks Co. Ltd.
• AJ Networks Co., Ltd.
• Vacaciones eDreams S.L.U.
• Others

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