South Korea Car Rental Market Introduction and Overview
According to SPER Market Research, the South Korea Car Rental Market is estimated to reach USD 1.7 Billion by 2033 with a CAGR of 1.2%.
The report includes an in-depth analysis of the South Korea Car Rental Market, including market size and trends, product mix, applications, and supplier analysis. The automobile rental industry in South Korea is strong, serving both domestic and foreign visitors in a well-liked tourist destination with a booming economy. Short-term rentals are provided by car rental companies, who frequently have online booking tools and regional offices close to airports and major cities. Because of population growth and environmental changes, this industry has changed dramatically and is now an essential part of fleet transportation. Low-cost rental programmes, such as reservations made through an app for rented cars, are common. For an additional cost that is mentioned in the rental terms, the majority of large rental agencies offer one-way rentals, which permit pick-up and drop-off at different places.
- April 2023: Two of the to vehicle rental firms in the world are entering South Korea for the first time. In order to open new franchise stores delivering Enterprise Rent-A-Car and Alamo car rental services, Enterprise Holdings and Korea First Rent a Car announced their cooperation. Alamo and Enterprise Rent-A-Car will open locations in South Korea in April 2023.
- 2021: SK Rent-a-Car, the second-biggest car rental company in South Korea, bought about 4,200 electric cars in 2021 and intends to buy a significantly bigger share of the nation's green car sales in the upcoming years. From tiny automobiles to huge SUVs, a variety of vehicles are available for rent from numerous car rental firms in Korea.
Market Opportunities and Challenges
One of the markets for smart transport services that is expanding the fastest is this one. The market has great prospects going forward because to the major businesses' implementation of vehicle rental software. Enhancing mobile applications for automobile rentals is essential to the expansion of the global business. Software for car rentals increases market efficiency. Custom reports, cost management, and basic fleet optimisation are further advantages of adopting this. Adoption of rental vehicle software generates substantial opportunities for market expansion. Furthermore, people and families looking for independence and mobility when travelling are drawn to the ease and versatility provided by automobile rentals. Technology developments have made it easier to reserve and obtain rental automobiles, which has accelerated market expansion. Additionally, by giving customers additional options, the combination of ride-hailing services with car-sharing platforms improves the transportation ecosystem as a whole.
Still, there are a number of difficulties facing the South Korean vehicle rental industry. The competitive environment, which is dominated by well-established players, presents one major problem. This may limit chances for market expansion and create barriers to entry for new players. Superior customer service is one of the hardest things that automobile rental firms have to deal with. Long booking wait times, a lack of information about payment choices, and the availability of cars are all things that can hinder demand in the market for vehicle rentals. Due to the urgent need for technology to overcome obstacles, mobile software has been developed, and automakers and rental firms have merged on several occasions to expand their fleet of vehicles. These kinds of changes will soon define how much the industry for automobile rentals is worth.
Market Competitive Landscape
The major key players in the South Korea Car Rental Market are: AJ Networks Co., Ltd., Avis Budget Group, Inc., Booking Holdings Inc., Enterprise Holdings, Inc., Hertz Corporation, Lotte Corporation, SK Networks Co. Ltd., Uber Technologies Inc., Vacaciones eDreams S.L.U., Others.
Scope of the Report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Vehicle Type, By Booking Type, By Application
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| Regions covered | Busan, Daegu, Incheon, Seoul, Ulsan
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| Companies Covered | AJ Networks Co., Ltd., Avis Budget Group, Inc., Booking Holdings Inc., Enterprise Holdings, Inc., Hertz Corporation, Lotte Corporation, SK Networks Co. Ltd., Uber Technologies Inc., Vacaciones eDreams S.L.U., Others
|
COVID-19 Impact on South Korea Car Rental Market
Travel limitations and safety concerns caused a steep fall in demand, which had a severe influence on the South Korean automobile rental sector as a result of the COVID-19 epidemic. Rental agencies saw a decline in bookings and revenue due to a decrease in both domestic and foreign travellers. Numerous rental locations experienced temporary closures or shortened hours of operation, especially those close to airports and popular tourist destinations. The move to virtual meetings and remote work also reduced the demand for short-term vehicle rentals. In the face of persistent pandemic uncertainty, the market persists in facing difficulties despite slow recovery measures.
Key Target Audience
- Business travelers
- Leisure travelers
- Tourists
- Locals in need of temporary transportation
- Corporate clients for events or employee travel
- Individuals without personal vehicles or in need of a specific type of vehicle for special occasions
- Airport passengers requiring transportation upon arrival
- Individuals seeking alternatives to car ownership for financial or convenience reasons
- Travelers looking for flexible transportation options during vacations or holidays
- Others
Our in-depth analysis of the South Korea Car Rental Market includes the following segments:
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By Vehicle Type:
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Economy/Budget Cars
Luxury/Premium Cars
MUVs
SUVs
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By Booking Type:
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Online Access
Offline Access
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By Application:
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Business
Leisure/Tourism
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By Region:
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Busan
Daegu
Incheon
Seoul
Ulsan
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Key Topics Covered in the Report
- South Korea Car Rental Market Size (FY’2024-FY’2033)
- Overview of South Korea Car Rental Market
- Segmentation of South Korea Car Rental Market By Vehicle Type (Economy/Budget Cars, Luxury/Premium Cars, MUVs, SUVs)
- Segmentation of South Korea Car Rental Market By Booking Type (Online Access, Offline Access)
- Segmentation of South Korea Car Rental Market By Application (Business, Leisure/Tourism)
- Statistical Snap of South Korea Car Rental Market
- Expansion Analysis of South Korea Car Rental Market
- Problems and Obstacles in South Korea Car Rental Market
- Competitive Landscape in the South Korea Car Rental Market
- Impact of COVID-19 and Demonetization on South Korea Car Rental Market
- Details on Current Investment in South Korea Car Rental Market
- Competitive Analysis of South Korea Car Rental Market
- Prominent Players in the South Korea Car Rental Market
- SWOT Analysis of South Korea Car Rental Market
- South Korea Car Rental Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the South Korea Car Rental Market
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. South Korea Car Rental Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in South Korea Car Rental Market
7. South Korea Car Rental Market, By Vehicle Type (USD Million)
7.1. South Korea Car Rental Market Value Share and Forecast, By Vehicle Type, 2023-2033
7.2. Economy/Budget Cars
7.3. Luxury/Premium Cars
7.4. MUVs
7.5. SUVs
8. South Korea Car Rental Market, By Booking Type (USD Million)
8.1. South Korea Car Rental Market Value Share and Forecast, By Booking Type, 2024-2033
8.2. Online Access
8.3. Offline Access
9. South Korea Car Rental Market, By Application (USD Million)
9.1. South Korea Car Rental Market Value Share and Forecast, By Application, 2024-2033
9.2. Business
9.3. Leisure/Tourism
10. South Korea Car Rental Market Forecast, 2020-2033 (USD Million)
10.1. South Korea Car Rental Market Size and Market Share
11. South Korea Car Rental Market, By Vehicle Type, 2020-2033 (USD Million)
11.1. South Korea Car Rental Market Size and Market Share By Vehicle Type (2020-2026)
11.2. South Korea Car Rental Market Size and Market Share By Vehicle Type (2027-2033)
12. South Korea Car Rental Market, By Booking Type, 2020-2033 (USD Million)
12.1. South Korea Car Rental Market Size and Market Share By Booking Type (2020-2026)
12.2. South Korea Car Rental Market Size and Market Share By Booking Type (2027-2033)
13. South Korea Car Rental Market, By Application, 2020-2033 (USD Million)
13.1. South Korea Car Rental Market Size and Market Share By Application (2020-2026)
13.2. South Korea Car Rental Market Size and Market Share By Application (2027-2033)
14. South Korea Car Rental Market, By Region, 2020-2033 (USD Million)
14.1. South Korea Car Rental Market Size and Market Share By Region (2020-2026)
14.2. South Korea Car Rental Market Size and Market Share By Region (2027-2033)
14.3. Busan
14.4. Daegu
14.5. Incheon
14.6. Seoul
14.7. Ulsan
15. Company Profile
15.1. BMW North America LLC AJ Networks Co., Ltd.
15.1.1. Company details
15.1.2. Financial outlook
15.1.3. Product summary
15.1.4. Recent developments
15.2. Avis Budget Group, Inc.
15.2.1. Company details
15.2.2. Financial outlook
15.2.3. Product summary
15.2.4. Recent developments
15.3. Booking Holdings Inc.
15.3.1. Company details
15.3.2. Financial outlook
15.3.3. Product summary
15.3.4. Recent developments
15.4. Enterprise Holdings, Inc.
15.4.1. Company details
15.4.2. Financial outlook
15.4.3. Product summary
15.4.4. Recent developments
15.5. Hertz Corporation
15.5.1. Company details
15.5.2. Financial outlook
15.5.3. Product summary
15.5.4. Recent developments
15.6. Lotte Corporation
15.6.1. Company details
15.6.2. Financial outlook
15.6.3. Product summary
15.6.4. Recent developments
15.7. SK Networks Co. Ltd.
15.7.1. Company details
15.7.2. Financial outlook
15.7.3. Product summary
15.7.4. Recent developments
15.8. Uber Technologies Inc.
15.8.1. Company details
15.8.2. Financial outlook
15.8.3. Product summary
15.8.4. Recent developments
15.9. Vacaciones eDreams S.L.U.
15.9.1. Company details
15.9.2. Financial outlook
15.9.3. Product summary
15.9.4. Recent developments
15.10. Others
16. List of Abbreviations
17. Reference Links
18. Conclusion
19. Research Scope
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
