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Philippines Car Rental Market is poised to reach USD 400 million by 2027: Ken Research
There are five markets in this report: Car Rental, Car leasing, Ride Sharing, Ride Hailing and Self Drive. The Philippines car rental market and self-drive market is highly fragmented with Avis and Diamond Rent-a-Car hold the major share respectively. Philippines car leasing market is moderately consolidated and Orix, is the market leader. Philippines rides hailing market and ride sharing market are highly consolidated where Grab is the market leader.
With increase in internet penetration and digital adoption in the country, car rental services are shifting to online platforms for direct bookings and confirmations. This makes the entire process hassle-free and contactless.
More and more tourists are coming to the Philippines , and they need an easy way to get around. Renting cars is a great option because it lets them travel around the beautiful places and experience the culture at their own pace. Because of this, we expect a lot more people to rent cars in the future.
As Philippine cities grow rapidly, traffic jams and limited parking space are becoming real headaches. But here's the good news: more people are discovering the convenience of ride-hailing and ride-sharing. This shift is also making car rentals a hot choice, offering urban folks' hassle-free access to wheels when they need them, fueling the car rental industry's growth.
Car rental companies are getting tech-savvy, offering exciting new options. Now, private car owners can share their vehicles on rental platforms, turning idle cars into profit. For customers, it means more car choices, a sense of community, and fits perfectly into the sharing economy trend. It's making car rentals more convenient, flexible, and appealing for everyone.
Year-on-Year with the help of technology, unique business models and features are coming up in the market like allowing private car owners to give out their spare vehicles on lease or rent. Ultimately, car rental services are becoming more accessible to customers.
Rising traffic congestion in densely populated urban areas, exacerbated by limited parking space and population growth, is driving a shift towards increased reliance on ride-hailing and ride-sharing services. As cities grapple with inadequate parking facilities and heightened traffic, commuters and residents are seeking convenient alternatives. Ride-hailing and ride-sharing platforms offer a solution by providing on-demand transportation, reducing the need for personal vehicle ownership and parking. This trend is expected to continue as urban areas expand, making these services increasingly integral to urban mobility solutions, alleviating congestion, and improving the overall efficiency of transportation networks in crowded city environments.
Lately, the international tourism sector is again increasing in Philippines with more than ~1500% increase in tourist arrivals from 2021 to 2022P. With that, there's only an expectation of the demand to grow in future by tourists.
Analysts at Ken Research in their latest publication - Driven by the increase in tourism and business activities along with deeper internet penetration and adoption of digital services," observed that the Philippines car sharing market is expected to showcase considerable growth in the coming five years. In the upcoming years, it is predicted to expand more rapidly due to increased internet penetration and the adoption of smartphones. The Philippines Car Rental Market is expected to grow at robust CAGR over the forecasted period 2022 -2027. With the Increasing internet adoption leads to a surge in online car rental bookings in the Philippines .
Also, the growth in tourism is driving higher demand for car rentals among travelers. And Urban traffic challenges are making car rentals an attractive option for hassle-free mobility. Innovative tech-savvy services, like vehicle sharing, are enhancing accessibility in the car rental market. The tourism boom in the Philippines is expected to boost car rental demand even further.
Small Cars ( PHP 3500 -7500 / per trip)
Medium ( PHP 3500 -7500 / per trip)
Luxury (PHP 7500+)
Online
Offline
Leisure
Business
Manila
Luzon
Visayas
Mindanao
1 year
2 year
3 year
4 or more year
Economical ( PHP 20000 -35000
Mid-Range ( PHP 35000 -50000)
Premium (PHP 50000+)
Corporate
Retail Individuals
Metropolitan
Non Metropolitan
Rest Area
At Airport
Sedan
SUV
Short distance
Long distance
Metro cities
Non metro cities
Online
Offline
1-2 days
A week
A month
Standard ( PHP 1000 -4000/24hours)
Luxury (PHP 1500 + / per hour)
Weekend
Weekdays
Standard
Luxury
Owned
Leased
At Airport
Rest area
According to Ken Research estimates, due to the impact of COVID-19, there has been a decrease in tourism resulting in a reduction in demand for car rentals and car rental prices in Vietnam . The Vietnam car rental market is expected to grow at a 16.7% CAGR during 2022-2027F, driven by Increasing Internet Penetration Rate, Tourism and Urbanization.
Belgium Car Rental market has witnessed a steady growth in the 2017-2021 period in terms of fleet size & revenue owing to the expansion in the number & size of both local & international players & market size as a result of increase in the number of tourists travelling to Europe . Regarding the future projections, the Belgium Car Rental market is expected to reach US $ ~Mn in 2022P & will grow at an annual growth rate of ~% (CAGR). The user penetration is expected to reach ~% by 2027 & the average revenue per user will be US $ ~ Mn.
According to Ken Research estimates, the Bahrain car rental market is expected to witness healthy growth during the forecast period of 2017P-2027F this growth can be attributed to the increasing demand for car rental services from tourists, business travelers, and locals. Additionally, the increasing number of international flights to Bahrain and the growing disposable income of the population are expected to further drive the growth of the market.
According to Ken Research estimates, the Japan Car Rental Market is forecasted to grow at a robust CAGR in the period of 2022P-2027F, owing to the increased internet and smartphone penetration, rising population and increasing demand from tourists for business and leisure purposes hiring rental cars.
Ken Research Private Limited
Ankur Gupta , Director Strategy and Growth
+91-9015378249
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