by The Mexico car rental market involves companies that rent automobiles for short periods of time, generally ranging from a few hours to a few weeks. Car rental firms in Mexico own or lease a fleet of cars that they rent to customers for cash. They offer a variety of vehicles to customers, including economy, compact, intermediate, standard, premium, luxury, sports utility vehicles, and others. The growing tourism industry in Mexico has significantly driven the demand for car rentals over the years. Mexico has been one of the most visited countries globally, receiving over 40 million tourists annually in recent years. Tourists prefer renting cars for independent traveling, exploring various tourist attractions and destinations across the country.
The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing tourism industry, which is one of the key drivers mentioned in the heading, has contributed immensely to the growth of the Mexico car rental market over the past few years. Tourists visiting Mexico for leisure, vacations, and business trips have considerably boosted the demand for rental cars. Additionally, increased disposable income and improved economic conditions have made international travel affordable for many, supporting the booming tourism industry in Mexico. Moreover, the rising popularity of self-drive holidays and independent travelling has further increased the need for car rentals among tourists. Car rentals provide flexibility, cost-effectiveness, and convenience to travelers in exploring various destinations within Mexico. This growing preference for self-drive trips among tourists is projected to propel the Mexico car rental market during the forecast period.
Segment Analysis
The Mexico car rental market is dominated by Airport-to-City sub-segment. Airport car rentals account for over 45% of revenue in the market as travellers prefer renting a car upon arrival at the airport for local transportation. Hotels and other urban locations remain the next largest sub-segment accounting for 30% of revenue due to rising business travels.
PEST Analysis
Political: Mexico has stable political environment and supportive government policies towards tourism and transportation industry which benefits car rental market growth.
Economic: Growing GDP, rising disposable incomes and expanding middle class are driving greater leisure and business travel activities in Mexico contributing to car rental demand.
Social: Changing lifestyle, nuclear family structure and flexi work environment are increasing individual and corporate mobility needs favoring regular usage of rental cars.
Technological: Usage of mobile apps and online platforms for booking and managing rentals have made services more accessible and convenient for customers.
Key Takeaways
The Mexico Car Rental Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The global Mexico Car Rental Market is estimated to be valued at US$ 1220.02 Mn in 2023 and is expected to exhibit a CAGR of 4.4% over the forecast period 2023 to 2030.
The North region holds the dominant share currently accounting for over 35% of revenue owing to strong tourism in popular cities like Cancun and Mexico City.
Key players operating in the Mexico car rental market are Cipla Ltd, Merck & Co., Inc., F. Hoffmann-La Roche Ltd., GlaxoSmithKline plc, Bayer AG, Amgen Inc., Novartis AG, Sanofi S.A., Pfizer Inc., Johnson & Johnson.
Key players like Cipla Ltd have established strong presence across major airports and cities in Mexico. Merck & Co., Inc. is focusing on expanding into Tier II and III cities to tap rising domestic travel. GlaxoSmithKline plc has launched loyalty programs and bundled offerings with hotels chains to enhance customer retention.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
