Market Size of Philippines Car Rental Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 633.49 Million |
| Market Size (2029) | USD 917.95 Million |
| CAGR (2024 - 2029) | 7.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Car Rental Market Analysis
The Philippines Car Rental Market size is estimated at USD 633.49 million in 2024, and is expected to reach USD 917.95 million by 2029, growing at a CAGR of 7.70% during the forecast period (2024-2029).
Over the medium term, the car rental market in the Philippines has grown steadily for several reasons. One of them is the increasing cost of owning a car. Buying and maintaining a vehicle can be expensive due to gasoline and other maintenance expenses. Consequently, renting cars has become a popular choice among many individuals since it is more affordable.
One noteworthy trend in the Philippines is the increase in visitors and ex-pats, leading to a growing demand for automobile rental services. This demand stems from the increasing number of individuals visiting the country for either business or pleasure, requiring a reliable and convenient mode of transportation. For example:
- BPITCR expanded its fleet by introducing the Atto 3, an electric vehicle, through a partnership with BYD Cars Philippines in April 2024. This collaboration enhances Diamond Rent-a-Car's offerings, a company acquired by BPITCR, making it one of the largest providers in the local car rental industry.
Due to the increasing number of individuals traveling for business and leisure, there has been a notable rise in the demand for car rental services. As a result, car rental companies are experiencing a surge in their customer base, indicating the demand for their services from travelers and local commuters.
Philippines Car Rental Industry Segmentation
Car rental or car lease companies rent vehicles for a specific time for a set price. This service is frequently organized with multiple local offices, typically located around extensive city areas and backed by a website that allows online bookings.
The Philippine car rental market is segmented by booking type, rental duration, vehicle type, and application. By booking type, the market is segmented into online and offline booking. The market is segmented by rental duration into short-term and long-term. By vehicle type, the market is segmented into hatchbacks, sedans, sport utility vehicles, and multi-purpose vehicles. By application, the market is segmented into tourism and commuting. The market sizing and prediction are made for each segment based on the value (USD).
| By Booking Type | |
| Online | |
| Offline |
| By Rental Duration | |
| Short Term | |
| Long Term |
| By Vehicle Type | |
| Hatchbacks | |
| Sedans | |
| Sport Utility Vehicles | |
| Multi-purpose Vehicles |
| By Application Type | |
| Tourism | |
| Commuting |
Philippines Car Rental Market Size Summary
The Philippines car rental market is experiencing steady growth, driven by factors such as the rising cost of car ownership and the increasing number of visitors and expatriates seeking convenient transportation options. The market is benefiting from the expansion of rental services, including the introduction of electric vehicles, which enhance the offerings of major players like BPITCR and Diamond Rent-a-Car. The surge in demand for car rentals is also fueled by the recovery of the tourism sector, which is gradually rebounding from the impacts of the pandemic. The relaxation of travel restrictions and the acceleration of vaccination efforts are expected to further boost the tourism industry, thereby increasing the need for rental cars.
The market is witnessing a shift towards online booking platforms, driven by the growing internet penetration and the desire for convenience and value among consumers. This trend is supported by the proliferation of digital tools that allow for real-time monitoring of rental car performance and maintenance. Key players in the market, such as Thrifty Car Rental, Enterprise Rent A Car LLC, and Europcar, are actively seeking to expand their services and enhance their offerings to meet the evolving demands. The popularity of car leasing among businesses is also contributing to market growth, providing companies with cost-effective transportation solutions without the burdens of ownership.
Philippines 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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1.1.1 Rise in Tourism Across Activities the Country
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1.2 Market Restraints
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1.2.1 Hike in Fuel Prices to Restrict Market Growth
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1.3 Industry Attractiveness - Porter's Five Forces 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 Value (USD))
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2.1 By Booking Type
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2.1.1 Online
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2.1.2 Offline
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2.2 By 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 By Vehicle Type
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2.3.1 Hatchbacks
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2.3.2 Sedans
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2.3.3 Sport Utility Vehicles
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2.3.4 Multi-purpose Vehicles
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2.4 By Application Type
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2.4.1 Tourism
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2.4.2 Commuting
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Philippines Car Rental Market Size FAQs
How big is the Philippines Car Rental Market?
The Philippines Car Rental Market size is expected to reach USD 633.49 million in 2024 and grow at a CAGR of 7.70% to reach USD 917.95 million by 2029.
What is the current Philippines Car Rental Market size?
In 2024, the Philippines Car Rental Market size is expected to reach USD 633.49 million.
