Market Size of Singapore Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.84 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Singapore Car Rental Market Analysis
The Singapore Car Rental Market is valued at USD 120.33 Million in 2021 and is expected to reach USD 192.36 Million by 2027 registering a CAGR of over 9.84% during the forecast period, 2022-2027.
The demand for rental cars fell by almost 90% during the start of the COVID-19 outbreak, and vendors rushed to find cost-saving measures. Demand is already surpassing availability as more people resume travelling and vaccine distribution, which could result in the growth of car rental market . Due to pandemic caused havoc, the challenge for car rental companies was to find quick ways to cut costs and overhead. All companies were compelled to consider options during the early stages of the pandemic, including employee layoffs, closing rental outlets, and drastic fleet size reductions. The low demand for secondhand cars made it extremely difficult to remain profitable, which further exacerbated the situation. As the situation is recovering back to normalcy from Q2 2021, the car rental market is expected to gain traction during the coming years.
Over the long term, , the market is anticipated to exhibit significant expansion due to the factors like the rising cost of owning and maintaining a car which is helping the market. Favorable government initiatives will also increase the nation's market for car rentals.
The demand for car rentals is being driven by the retail sector. In Singapore, customers anticipate similar experiences with other services as well. Also, the rental car sector is undergoing a big shift or disruption as customers are looking for seamless applications, speed and service.
Singapore Car Rental Industry Segmentation
The Singapore Car Rental Market covers the current and upcoming trends with recent technological development. The report will provide a detailed analysis of various areas of the market by Type, Duration, and Application. The market share of significant car rental companies across the Indonesian market will be provided in the report.
By booking type, the market is segmented as Offline and Online.
By Rental Duration Type, the market is segmented as Short term, Long Term.
and By Application Type, the market is segmented as Tourism, Commuting.
| Booking Type | |
| Online | |
| Offline |
| Rental Duration | |
| Short-Term | |
| Long-Term |
| Application Type | |
| Tourism | |
| Commuting |
Singapore Car Rental Market Size Summary
The car rental market in Singapore is poised for significant growth, driven by a resurgence in travel demand following the COVID-19 pandemic. Initially, the market faced a steep decline in demand, prompting companies to implement cost-cutting measures such as reducing fleet sizes and closing outlets. However, as travel resumes and vaccine distribution progresses, demand is outpacing supply, setting the stage for market expansion. The increasing cost of car ownership and maintenance, coupled with favorable government initiatives, is further propelling the market. The retail sector's demand for car rentals is also on the rise, as consumers seek seamless and efficient service experiences. The popularity of car-hailing apps has transformed the availability of vehicles, contributing to the shift towards more affordable and flexible transportation options.
Singapore's car rental industry is characterized by a competitive landscape with both international and local players. While international companies like Avis-Budget and Hertz offer a wider range of luxury vehicles, local firms such as Ride Now and Motorist provide more cost-effective solutions. The government's regulatory framework, including quotas and fees, aims to manage traffic growth and maintain competitive pricing. This has fostered a market environment with limited monopolistic tendencies, encouraging service providers to offer reasonable rates. Additionally, government support for entrepreneurs through grants and incubators is facilitating the entry of new players into the market. Partnerships and technological advancements, such as usage-based insurance models, are further enhancing the car rental offerings in Singapore, catering to the evolving needs of consumers.
Singapore Car Rental Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porters 5 Force Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in USD Million)
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2.1 Booking Type
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2.1.1 Online
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2.1.2 Offline
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2.2 Rental Duration
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2.2.1 Short-Term
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2.2.2 Long-Term
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2.3 Application Type
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2.3.1 Tourism
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2.3.2 Commuting
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Singapore Car Rental Market Size FAQs
What is the current Singapore Car Rental Market size?
The Singapore Car Rental Market is projected to register a CAGR of 9.84% during the forecast period (2024-2029)
Who are the key players in Singapore Car Rental Market?
SIXT SE, Avis Budget Group, Drive Sg, Europcar Mobility Group and Hertz Corporation are the major companies operating in the Singapore Car Rental Market.
