Market Trends of Limousine Car Hire Or Rental Industry
This section covers the major market trends shaping the Limousine Car Hire/Rental Market according to our research experts:
Rise in Tourism Sector and leisure travelling
The global travel and tourism sector contribute around 21% to the global gross domestic product (GDP) in 2021. The airport service accounts for the largest share of nearly 25% followed by corporate services which hold a 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, 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 this software are multiple booking management, asset tracking, seamless trip scheduling, airport transfers, geofencing, etc.
Other driving factors of the market are, comfort, quality of life, freedom of moment, affordability, and low cost of traveling. The luxury vehicles rentals are expected to grow at the fastest pace during the forecast period owing to increased travel budgets of tourists around the world.
North America is the largest Market
In North America, the United States of America has the largest fleet of limousines. In 2021, there were more than 110,000 registered chauffeured vehicles in the United States of America. North America is witnessing significant adoption of the vehicle with autonomous features such as Advanced driver assistance systems (ADAS), Lane Departure Warning systems (LDWS), etc. and this change will be reflected in the limousine industry as well. People can rent a 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. The use of mobile applications is helping limousine businesses in North America with Chauffeur analytics, booking management, customer feedback, payments, navigation, etc.
However, the North American Limousine Hire/Rental market is struggling with the problem of inadequate chauffeurs. Chauffer licenses are issued to only a few drivers and the industry is also facing competition from ride-hailing services such as Uber and Lyft.
Followed to North America, Europe hold a significant market share in terms of revenue during the forecast period. The growing popularity of limousine car rental services across the region is likely to witness major growth in the market during the forecast period.
