South Africa Car Rental Market Research Report, 2028

South Africa Car Rental Market Research Report, 2028

Actual Market Research 30-01-2023 57 Pages Figures : 5 Tables : 10 Region : MEA Country : South Africa Category : Automotive & Transport Transportation

The car rental market in South Africa is a well-established industry with a long history of serving the needs of both domestic and international travelers. South Africa is a popular tourist destination, and the car rental market serves as an important part of the country's tourism industry, providing visitors with convenient and flexible transportation options. The revenue generated by car rental companies for self-drive cars for hire is defined as the "car rental market." The market value is primarily comprised of car rentals for business, leisure, and insurance replacement. Car rental is the business of renting cars from rental service providers for a fee. Online tourist vehicle bookings in the country are increasing due to the increased use of smart phones and the growing number of users who prefer the online channel. With the advancement of technology, online booking of a vehicle has become the most popular option for customers in recent years. It also includes features for real-time monitoring of a rental vehicle's operation, performance, and maintenance. Such features are invaluable assets for drivers and fleet managers, allowing them to identify risks and improve their rental services in real time. According to the research report, "South Africa Car Rental Market Research Report, 2028," published by Actual Market Research, the market is anticipated to add USD 0.31 billion by the end of 2028. Economy cars had the largest market share in the car rental market. One of the most important factors to consider when renting a car is its fuel economy as it has an effect on operating costs. Because of the low maintenance and procurement costs, most market players prefer economy cars for car rental services. Furthermore, economy cars are compact in nature and provide adequate comfort to the passengers. A significant increase in the number of people travelling for business and pleasure across the country is fueling demand for car rental services and propelling the industry's growth. Employees travelling to South Africa for business purposes increase the demand for South Africa car rentals in order to become acquainted with the location and business details. Rising internet penetration across developing as well as developed countries has further helped companies in the market capture a larger customer base with the help of dedicated mobile apps for the convenience of customers. The availability of a wider range of car types for rental purposes, such as SUVs and MUVs, boosts demand for South African car rental. The convenience of booking cars offline by visiting car rental outlets or online through a website or app has increased the share of the South African car rental market. A steady increase in the number of new vehicles, changes in consumption patterns, a shift from vehicle purchases to rental as part of multi-service offerings (including vehicle maintenance and various fleet management services, ensuring greater flexibility for businesses), and so on. All of these are significant signs of change in the African car rental market, which benefit the long-term rental sector and encourage players to establish operations and structure themselves throughout the value chain. This structuring of the African vehicle rental market includes the use of IT tools and the implementation of solutions such as the Myrentcar software, a powerful car rental software in Africa that caters to the needs of the region. In Africa, the digital sector is rapidly evolving and carries all sectors of activity, with particularly efficient telecom networks. The Toulouse-based company Hitech software has adapted its myrentcar management solution and rentpad car inventory application to the market in order to develop long-term car rental in Africa. Indeed, Hertz has quickly identified the rapid growth of the African market for long-term car rentals. As a result, many rental companies in Africa have chosen its car rental software. Whether it's VRS, West Africa's first independent multi-country provider of mobility solutions for businesses, with a fleet of 700 vehicles since 2004, or Tractafric, a subsidiary of the Optorg group in Cameroon since 2016, with 500 vehicles, Companies in Africa's car rental market have quickly realised that they must structure themselves to meet the challenges of a market dominated by LCD companies. This is the key to developing and optimising long-term vehicle rental in Africa. One of the key factors driving the growth of the car rental industry is the significant growth in the travel and tourism industries around the world. Furthermore, the growing urban population with an increased interest in adventure and travel is fueling market growth. In line with this, people are turning to car rental services such as taxis and carpooling for increased mobility and cost-effective travel. Another growth-inducing factor is the implementation of favourable government policies as well as increased awareness about environmental conservation. Governments in both developed and emerging economies are emphasising the importance of reducing vehicle emissions and promoting car rental services as one of the most cost-effective modes of transportation. Other factors, such as the introduction of car rental services via websites and smart phone-based applications, as well as rising consumer spending power, are expected to drive the market even further. The unavailability of service providers in remote areas is a major market constraint. Car rentals are not available in underdeveloped areas. The market is hampered by a lack of awareness about car rental in these areas. This is one of the fastest-growing markets for smart transportation services. The key players' adoption of car rental software provides the market with excellent future prospects. Improving mobile car rental apps is a critical factor in global market growth. Car rental software boosts the market's efficiency. Other benefits of using this include simple fleet optimization, cost management, and custom reports. Adoption of car rental software creates significant market growth opportunities. One of the most difficult challenges that car rental companies face is providing superior customer service. Lack of information on payment options, long booking times, and car availability are all factors that can stymie demand in the car rental market. The dire need for technology to overcome challenges has resulted in the development of mobile software and various mergers between car manufacturers and car rental companies in order to increase the number of cars. In the near future, such developments will determine the value of the car rental market. Considered in this report • Geography: South Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • South Africa Car Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By car Type • Luxury car • Executive car • Economy car • Sports utility vehicle (SUV) car • Multi utility vehicle (MUV) car By application Type • Leisure/Tourism • Business The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to car rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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