Japan Car Rental Market

Market Overview:

The Japan car rental market is projected to exhibit a growth rate (CAGR) of 9.37% during 2023-2028. The significant expansion in the tourism sector, shifting consumer preferences toward shared mobility, the proliferation of mobile applications and online platforms and emerging technological innovations with enhanced accessibility and convenience represents some of the factors propelling the market.

Car rental, also known as car hire, is a service that allows individuals or businesses to temporarily rent vehicles for a specified period, typically ranging from a few hours to several weeks. It offers the convenience of vehicle access without the need for ownership or long-term commitment. Car rental companies maintain several vehicles, including cars, vans, and luxury vehicles, catering to various customer needs and preferences. Customers can rent vehicles for several purposes, such as travel, business trips, special occasions, or when their vehicles are undergoing maintenance. It involves selecting a vehicle type, specifying the rental duration, and providing necessary documentation, such as a valid driver's license and payment information. It offers numerous benefits, including flexibility, as customers can choose the most suitable vehicle for their needs, cost-effectiveness, renting can be more economical than owning a vehicle for infrequent use, and easy access to several kinds of vehicles without the commitment of ownership. At present, car rental is gaining immense traction across the country.

Japan Car Rental Market Trends:

The market is primarily driven by the increasing tourism industry. In addition, the growing popularity of the travel industry among international travelers led to the escalating demand for car rental services in the country, influencing market growth. Tourists often prefer the convenience and flexibility offered by rental cars, allowing them to explore the country at their own pace and access remote locations that may not be easily reachable through public transportation. As a result, car rental companies have witnessed higher bookings and increased revenues from the tourism sector. Moreover, several technological advancements and the proliferation of mobile applications and online platforms have made it easier for customers to search for, book, and manage their rental vehicles representing another major growth-inducing factor. Along with this, the integration of global positioning system (GPS) navigation systems and advanced in-car technologies has made renting a vehicle an attractive option for domestic and international customers, thus propelling market growth. Also, this streamlined process is improving the customer experience, making renting cars more convenient and efficient. Apart from this, rapid urbanization, changing lifestyles, and the growing inclination toward shared mobility solutions rather than owning a vehicle are augmenting market growth. This trend is driven by environmental consciousness, cost-effectiveness, and the convenience of not having to deal with parking and maintenance. Car rental services align well with this shift in preferences, providing individuals with an accessible and flexible means of transportation when needed. Furthermore, strategic collaborations and partnerships with airlines, hotels, and travel agencies offer bundled services, creating a seamless experience for travelers and providing customers with comprehensive travel solutions, thus creating a positive market outlook.

Japan Car Rental Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Japan car rental market report, along with forecasts at the country level for 2023-2028. Our report has categorized the market based on booking type, rental length, vehicle type, application, and end user.

Booking Type Insights:

• Offline Booking
• Online Booking
   

The report has provided a detailed breakup and analysis of the market based on the booking type. This includes offline booking and online booking.

Rental Length Insights:

• Short Term
• Long Term
   

A detailed breakup and analysis of the market based on the rental length has also been provided in the report. This includes short term, and long term.

Vehicle Type Insights:

• Luxury
• Executive
• Economy
• SUVs
• Others
   

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes luxury, executive, economy, SUVs, and others.

Application Insights:

• Leisure/Tourism
• Business
   

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes leisure/tourism, and business.

End-User Insights:

• Self-Driven
• Chauffeur-Driven
   

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes self-driven, and chauffeur-driven.

Regional Insights:

• Kanto Region
• Kinki Region
• Central/ Chubu Region      
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto region, Kinki region, central/Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Car Rental Market Report Coverage:

Key Questions Answered in This Report:

• How has the Japan car rental market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Japan car rental market?
• What is the breakup of the Japan car rental market on the basis of booking type?
• What is the breakup of the Japan car rental market on the basis of rental length?
• What is the breakup of the Japan car rental market on the basis of vehicle type?
• What is the breakup of the Japan car rental market on the basis of application?
• What is the breakup of the Japan car rental market on the basis of end-user?
• What are the various stages in the value chain of the Japan car rental market?
• What are the key driving factors and challenges in the Japan car rental market?
• What is the structure of the Japan car rental market and who are the key players?
• What is the degree of competition in the Japan car rental market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan car rental market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Japan car rental market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan car rental industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.