Limousine Car Hire Or Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The limousine car hire/rental market is expected to exhibit a CAGR of more than 7% during the forecast period 2020-2025.

- Increased concern and awareness of lower emissions have primarily led to an increase in car rental options. Limousine Car rental and carpooling provides luxury and comfort to the user, safety of driving from professional chauffer and owing to these factors, the market for limousine car hire/rental will grow during the forecast period 2020-2025.

- Limousine rental provides the option of increased mobility, without the concern of paying the costs associated with car ownership. These services are offered via websites and through other online platforms, which has helped the growth of the limousine rental market.

- Faster adoption of new technology like digital payment system, collision repair management systems, ADAS is fueling the growth of market. Players like Sixt SE timely replace their fleet to make sure their customers get the latest vehicles to drive.

- Due to lack of standard safety mechanisms and features, irregular inspection system in different geographies, etc. the market for stretch limousines is facing a degrowth. A survey by Insurance Institute for Highway safety found that people are less concerned about safety such as seat belts in hired vehicle than those driving a personally owned vehicle. In October 2018, 19 people including 2 pedestrians died in a stretch limousine crash near New York.

Key Market Trends

Rise in Tourism Sector and leisure travelling

The global travel and tourism sector grew at 3.9%, contributing a record of USD 8.8 trillion to the world economy, during 2018. The global tourism industry grew faster than the global economy for the eighth successive year (3.9% for travel and tourism versus 3.2% for the global GDP). The airport service accounts for the largest share of nearly 25% followed by corporate services which hold 22% market share. Business travels account for a major portion of global tourism and the majority of business travelers prefer luxurious hotels for stay, conferences, meetings, etc.

Around the globe, the security concerns have increased due to the rise in terrorism activities. It has become important for authorities, governments, and firms to safeguard human assets such as CEOs, ministers, generals and other high-ranking officials from terrorist attacks. This factor is causing the growth in bulletproof limousines that are now used by less developed countries.

The growth in the digitalization trend is propelling the growth of the market and the majority of rental services are now using limousine dispatcher software and limousine management software. Some of the advantages of these software are multiple booking management, asset tracking, seamless trip scheduling, airport transfers, geofencing, etc.

North America is the largest Market

In North America, United States of America has the largest fleet of limousines. In 2018, there were 108,000 registered chauffeured vehicles in the United States of America. North America is witnessing a significant adoption of vehicle with autonomous features such as Advanced driver assistance system (ADAS), Lane Departure Warning System (LDWS), etc. and this change will be reflected in limousine industry as well. People can rent Tesla Model S P 85 limousine from various online platforms. The adoption of advanced Limousine Management Software is on the rise. This software has features such as flight tracking which helps in providing on time limousine services at airports even if there is a change in flight arrival time. Use of mobile application is helping the limousine businesses in North America with Chauffeur analytics, booking management, customer feedback, payments, navigation, etc.

However, North American Limousine Hire/Rental market is struggling with the problem of inadequate chauffeurs. Chauffer licenses are issued to only few drivers and the industry is also facing competition from ride hailing services such as Uber and Lyft.

Competitive Landscape

The market for limousine car hire/rental services is a moderately fragmented market with players such as DiDi, Sixt SE dominating the market.

In March 2019, Indian Hotels Company (IHCL) partnered with Sixt, a global car rental company where the customers under Taj InnerCircle loyalty program will get access to Sixt’s fleet service and earn reward points on using Sixt’s limousine service.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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