MUV (Multi Utility Vehicle) Rental Market Size - By Booking (Online, Offline), By Rental Length (Short Term, Long Term), By Application (Leisure/Tourism, Business), By End User (Individual, Corporate, Government Agencies), & Forecast, 2024 - 2032

MUV Rental Market Size

MUV Rental Market was valued at USD 8.7 billion in 2023 and is likely to grow at a CAGR of over 5.5% from 2024 to 2032. With increasing demand for travel and tourism, the market for MUV rental is expected to propel. As travel preferences evolve and consumers seek diverse experiences, MUV rentals are expected to play an even more prominent role, driving market growth. For instance, in January 2024, the World Tourism Organization (UNWTO) projected a rise in the global tourism sector, forecasting a growth rate of 4% to 7% for 2024 compared to the previous year.
 

The shift toward car-sharing and subscription services is also a major growth driver in the multi utility vehicle rental market. These services have made MUV rentals more accessible & practical for the urban population. These services provide various leasing choices, such as hourly, daily & weekly subscriptions, to meet a variety of demands and budgets. This removes the need for automobile ownership, particularly among infrequent MUV users. Car rental companies can unlock new customer segments, enhance convenience, and drive market expansion. This shift toward car subscription services presents a significant growth opportunity for market expansion.
 

The high development and acquisition costs are a major challenge in the MUV rental market, potentially slowing down market growth. MUVs are often more expensive to acquire and produce than smaller cars. These expenditures translate into increased rental prices, which may limit affordability for some clients. This may also hamper market penetration and limit rental options for cost-conscious customers. Along with this, high costs create a divide in the market. Premium consumers may choose MUVs for rent, while budget-conscious tourists would prefer smaller, less expensive choices. This reduces the entire addressable market for MUV rentals, slowing overall industry growth.
 

MUV Rental Market Trends

The MUV rental industry is witnessing significant technological advancements in booking platform. The introduction of various applications has made the booking process easier, enabling consumers to browse for vehicles, make bookings, and unlock vehicles right from their smartphones. This minimizes paperwork and wait periods, increasing convenience & efficiency. In addition to this, MUVs equipped with telematics and real-time tracking provide valuable information to rental companies & users and features including remote diagnostics, fuel level monitoring & position tracking to boost operating efficiency. These technologies provide further convenience and security by allowing users to access & pay for rentals without the need for actual keys or interactions, thereby accelerating the rental process.
 

MUV Rental Market Analysis

The online segment accounted for a market share of around 65% in 2023. Online platforms are available 24/7 and accessible from any location, removing the need to visit traditional rental offices during business hours. This adaptability is especially enticing to modern tourists who prioritize ease and flexibility. In the online segment, booking may be performed in minutes with minimum information and effort. This saves time and streamlines the rental procedure compared to traditional phone reservations or walk-in queries. Lastly, online platforms allow users to filter MUV options based on specific criteria such as passenger capacity, cargo space, features & budget, ensuring that they find the perfect vehicle for their needs.
 

The short-term segment holds around 67% market share in 2023. Renting for short durations avoids the continuous expenditures of automobile ownership such as insurance, maintenance, and depreciation. This is especially appealing for people or families who do not need an automobile on a daily basis. MUVs are frequently used for short-term purposes such as weekend vacations, road excursions, group outings, and special events. Short-term rentals provide these temporary needs without the commitment of long-term ownership. Lastly, short-term rental platforms offer a diverse range of MUV options, allowing users to select the perfect vehicle for their specific needs and within their budgets.
 

North America region dominates global MUV rental market with a major share of around 40% in 2023. The popularity of MUVs in North America stems from their suitability for various purposes including transporting large groups of people, carrying bulky luggage or equipment, and navigating diverse terrain. This versatility makes MUVs a preferred choice for rental companies looking to cater to a wide range of customer needs. Along with this, there has been a notable shift toward more environmentally friendly transportation options, driven by increasing awareness of sustainability and environmental concerns.
 

MUV Rental Market Share

Enterprise and Avis dominate the market with around 12% market share. Enterprise establishes key alliances with corporate clients, travel agencies, and tour operators to attract business travelers and group reservations. Additionally, it provides tailored rental solutions, exclusive corporate rates, and loyalty programs to cater to the unique requirements of their corporate clientele.
 

Avis utilizes technology to elevate the rental experience and streamline operational processes. It employs state-of-the-art reservation systems, fleet management software, and predictive analytics tools to enhance inventory management, pricing tactics, and customer satisfaction.
 

MUV Rental Market Companies

Major players operating in the MUV rental business are:

• Avis
• Enterprise
• Fox Rent A Car
• Getaround
• Hertz, Europcar
• Lyft, Inc.
• Sixt
• Uber
• Zoomcar
   

MUV Rental Industry News

• In October 2023, Zipcar, a car-sharing service, unveiled plans to integrate numerous electric vehicles including MUVs into its fleet. This move addresses the increasing call for environmentally friendly transportation solutions and reflects Zipcar's dedication to minimizing its environmental impact.
   
• In September 2023, Turo, a peer-to-peer car rental platform, revealed its adoption of artificial intelligence technology to predict the demand for particular vehicles including MUVs. This implementation empowers individual MUV owners to refine their pricing strategies and enhance rental earnings. Consequently, this initiative will have the potential to enhance the availability of MUVs on the platform, particularly during peak seasons.
   

This MUV rental market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Booking

• Online
• Offline

Market, By Rental Length

• Short term
• Long term

Market, By Application

• Leisure/Tourism
• Business

Market, By End User

• Individual
• Corporate
• Government Agencies

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA