Driven by the various initiatives by the government for increasing the travel and tourism industry and increasing internet penetration, the car rental market in Indonesia has ample growth potential in the coming years.
Significant growth in travel and tourism: The Indonesian car rental market is currently expanding. The pandemic has caused a precipitous drop, which has had a negative impact, particularly on fleet size, as most players’ fleets have shrunk many folds from their previous size. Significant growth in the country’s travel and tourism industry is one of the key factors driving the market growth. Furthermore, the growing number of foreign tourists in the country drives the Indonesian car rental market. Furthermore, the rise in consumer disposable income, combined with the influence of a high standard of living and increased spending on luxury travel, is propelling the Indonesian car rental industry.
The growing trend of on-demand transportation services: In recent years, the impact of technological advancements have revolutionized the industry. The increasing use of smartphone-based online rental car booking apps is significantly contributing to market growth. With the help of online booking mobile applications for the convenience of customers, companies in the market have been able to capture a large customer base. Improved customer and corporate information management, as well as simple internet booking applications, are two prominent ways to help car rental service operators provide better services. Furthermore, factors such as the growing trend of on-demand transportation services and the low rate of car ownership among millennials have fueled the growth of the Indonesian car rental market.
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Shift to Experience Economy: There has been a paradigm shift away from products and toward experiences in recent years. Consumer durables and clothing spending have slowed, while experiential spending on recreation, travel and eating has skyrocketed. As a result, the demand for commodities outnumbers the demand for travel. Now, the growth has coincided with an increase in both domestic and international outbound tourists. The aforementioned factors are key drivers for the Indonesian leisure activity market, which will further boost the growth of the Indonesian car rental service market. Furthermore, because Jakarta is a popular convention destination, the leisure activity segment has significant market potential throughout the forecast period.
Covid-19 Impact on Car Rentals: The pandemic had a negative impact on market growth due to a halt in activities as a result of the lockdowns and travel and transportation restrictions imposed by the Indonesian government to combat the spread of the coronavirus. Furthermore, as the tourism industry, both international and domestic, suffered a significant blow as a result of the pandemic, demand for car rentals decreased, as car rental services are widely used by tourists. Furthermore, WFH policies implemented by companies throughout Indonesia further reduced corporate demand for car rental services.
Analysts at Ken Research in their latest publication “Indonesia Car Rental Market Outlook to 2027F – Segmented by Market Structure (Organized Market and Unorganized Market), By Type of Vehicles (Small Cars/Hatchbacks, Sedans, SUV and Others, By Ice/EV (Ice (Internal Combustion Engine) And Electric Vehicles, By Cities (Jakarta, Surabaya, Bali, Yogyakarta), By Mode of Booking (Online and Offline), By Client (Business and Leisure and By Pick-Up (On-Airport and Off-Airport)” observed the potential of the Car Rental Market in Indonesia. The expansion of the tourism industry with rising foreign tourists in Indonesia and On- Demand for transportation, the rising internet population in the country, and increasing demand from customers along with government incentives on electric vehicles are expected to contribute to the market growth over the forecast period. The Indonesian Car Rental Market is expected to grow at ~% CAGR over the forecasted period 2022-2027F.
Key Segments Covered: –
Indonesia Car Rental Market:
By Market Structure:
- Organized market
- Unorganized market
By Type of Vehicles:
- Small Cars/ Hatchbacks
- Sedans
- SUVs
- Others
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By ICE/EV:
- ICE (Internal Combustion Engine
- Electric Vehicles
By Cities:
- Jakarta
- Surabaya
- Bali
- Yogyakarta
- Others
By Mode of Booking:
- Online
- Offline
By Client:
- Business
- Leisure
By Pick-up:
- Off-Airport
- On-Airport
Key Target Audience
- Car Rental Service Providers
- Car Rental Companies aiming to establish in Indonesia
- Indonesia’s automotive industries
- Government Bodies & Regulating Authorities
- Venture Capitalist targeting the car rental market
- Automotive industry association
- Car Manufacturers
- Existing Car Rental Companies
- OEM Dealerships
- New Market Entrants
- Investors
- Car Rental Associations
Time Period Captured in the Report:
- Historical Year: 2017-2022
- Base Year: 2022
- Forecast Period: 2022– 2027F
Companies Covered:
Car Rental Company
The Hertz Corporation
Blue Bird Group
TRAC
Mitra Pinasthika Mustika Rent
Adi Sarana Armada Tbk
Avis
Europcar Indonesia
Globe Rent a Car
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Key Topics Covered in the Report
- Overview, Operating Models and Company Profile of the Automotive Industry in the Indonesia, 2022
- Overview and Genesis of Car Rental Market in Indonesia, 2022
- Ecosystem of Indonesia Car Rental Market
- Business Cycle, Timeline, and Value Chain Analysis of Car Rental Market in Indonesia
- Indonesia Car Rental Market Sizing, 2017- 2022P
- Market Segmentations of Car Rental Market in Indonesia (by Market Structure, by Type of Vehicle, by ICE/ EV, by Mode of Booking, by Pick-up, by Client, by cities), 2022
- Indonesia E-Commerce Warehousing Overview, 2021
- SWOT Analysis of Indonesia Car Rental Market
- Growth Drivers of Indonesia Car Rental Market
- Government regulations of Indonesia Car Rental Market
- Government Incentives and Policies on Electrification in Indonesia
- Trends and Developments of Indonesia Car Rental Market
- Challenges of Indonesia Car Rental Market
- Competitive Analysis of Car Rental Market in Indonesia
- End User Analysis of Car Rental Market in Indonesia
- Future Outlook and Projections of Car Rental Market in Indonesia, 2022-2027F
- Market Opportunities and Analyst Recommendations
For more insights on the market intelligence, refer to the link below: –
Future Outlook of Indonesia Car Rental Market
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Netherlands Car Rental Market Outlook to 2027F
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