Indonesia Car Rental Market - Forecasts from 2020 to 2025
Indonesia car rental market is projected to witness a CAGR of 13.71% between 2019 to 2025. Travel & Tourism Industry in Indonesia is a major contributor to the GDP and employment of that country. It has become a key focus area for the Indonesian Government’s growth strategy. To replicate the success of Bali as a tourist spot, the Indonesian government is keen to invest resources into the Travel & Tourism sector. It has also developed bilateral agreements with China and Japan for this purpose. The rising number of foreign tourists in the country is the major driver of the Indonesia Car Rental market. Indonesia Car Rental Market is heavily dependent on the booming travel and tourism industry in that country. The number of international travelers arriving in Indonesia has been on a constant rise over the years, as can be in the graph below. This is expected to support the growth of the car rental market as travelers prefer booking cars in advance for their trips for the sake of convenience.
Economy cars holding a significant share in the market
By car type, the Indonesian car rental market is segmented as economy cars, luxury cars, sports utility vehicles (SUV), and multi-utility vehicles (MUV). The demand for economy cars has been steadily growing in the country on account of improving employment opportunities, leading to the growing individual’s ability to spend. In fact, unemployment as a percentage of the total labor force has reduced from 8.06% in 2007 to 4.375% in 2019 (source: World Bank). However, it is important to note that the quality of jobs has remained relatively low, thus, supporting the majority of the population able to afford majorly economy cars segment relatively to luxury cars, sports utility vehicles, and multi-utility vehicles as the rental of economy cars is relatively lower.
Car rental for leisure activities is anticipated to witness substantial growth over the forecast period
By application, the Indonesian car rental market is segmented based on leisure activities/trips and corporate business trips. The growing number of tourists in the country is expected to fuel the market demand for car rentals, propelling the market growth in the forecast period. Leisure trips are projected to hold a significant market share with the increasing number of tourist arrivals contributing to increasing the country’s GDP as well. Furthermore, the corporate business trips are projected to grow with a high growth rate due to the prevalence of business travelers which are mostly from China for various meetings and appointments. Additionally, with Jakarta being one of the top convention destinations, hence, car rental services offer great market potential in the forecast period.
Online mode of booking is growing at a significant rate
By mode of booking, the Indonesian car rental market is segmented as online and offline. With the growing trend of cashless online payments worldwide, Indonesia lacks in the cashless mode of payments. Hence, the market growth of the offline mode of booking holds a significant share followed by the online mode of booking. The market for online mode of payment is expected to propel at a significantly fast rate owing to the growing initiatives regarding a shift to the cashless mode of payment in spite of the fact that the country has a low bank account penetration which is around 34%. However, with the growing global digitization, the adoption of online mode of payments is being observed here as well where electronic modes of money transfer are coming up in the region. Major market players in the electronic payment mode include GoPay, T Cash, PayPro and OVO.
Segmentation
The Indonesian Car Rental market has been segmented by car type, service, application, mode of booking, and rental category.
Economy cars holding a significant share in the market
By car type, the Indonesian car rental market is segmented as economy cars, luxury cars, sports utility vehicles (SUV), and multi-utility vehicles (MUV). The demand for economy cars has been steadily growing in the country on account of improving employment opportunities, leading to the growing individual’s ability to spend. In fact, unemployment as a percentage of the total labor force has reduced from 8.06% in 2007 to 4.375% in 2019 (source: World Bank). However, it is important to note that the quality of jobs has remained relatively low, thus, supporting the majority of the population able to afford majorly economy cars segment relatively to luxury cars, sports utility vehicles, and multi-utility vehicles as the rental of economy cars is relatively lower.
Car rental for leisure activities is anticipated to witness substantial growth over the forecast period
By application, the Indonesian car rental market is segmented based on leisure activities/trips and corporate business trips. The growing number of tourists in the country is expected to fuel the market demand for car rentals, propelling the market growth in the forecast period. Leisure trips are projected to hold a significant market share with the increasing number of tourist arrivals contributing to increasing the country’s GDP as well. Furthermore, the corporate business trips are projected to grow with a high growth rate due to the prevalence of business travelers which are mostly from China for various meetings and appointments. Additionally, with Jakarta being one of the top convention destinations, hence, car rental services offer great market potential in the forecast period.
Online mode of booking is growing at a significant rate
By mode of booking, the Indonesian car rental market is segmented as online and offline. With the growing trend of cashless online payments worldwide, Indonesia lacks in the cashless mode of payments. Hence, the market growth of the offline mode of booking holds a significant share followed by the online mode of booking. The market for online mode of payment is expected to propel at a significantly fast rate owing to the growing initiatives regarding a shift to the cashless mode of payment in spite of the fact that the country has a low bank account penetration which is around 34%. However, with the growing global digitization, the adoption of online mode of payments is being observed here as well where electronic modes of money transfer are coming up in the region. Major market players in the electronic payment mode include GoPay, T Cash, PayPro and OVO.
Segmentation
The Indonesian Car Rental market has been segmented by car type, service, application, mode of booking, and rental category.
- By Car Type
- Economy Cars
- Luxury Cars
- SUVs
- MUVs
- By Service
- Self-Drive
- Chauffeur-Driven
- By Application
- Leisure Activities/Trips
- Corporate/Business Trips
- By Mode of Booking
- Online
- Offline
- By Rental Category
- Local Transport
- Airport Transport
- Outstation Transport
- Others
1. INTRODUCTION
1.1. Market Definition
1.2. Scope Of The Study
1.3. Currency
1.4. Assumptions
1.5. Base, And Forecast Year Timeline
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Secondary Sources
2.3. Validation
3. KEY FINDINGS OF THE STUDY
4. MARKET DYNAMICS
4.1. Drivers
4.2. Restraints
4.3. Opportunities And Market Trends
4.4. Market Segmentation
4.5. Porter’s Five Force Analysis
4.5.1. Bargaining Power Of Suppliers
4.5.2. Bargaining Power Of Buyers
4.5.3. Threat Of New Entrants
4.5.4. Threat Of Substitutes
4.5.5. Competitive Rivalry In The Industry
4.6. Pest Analysis
4.7. Swot Analysis
5. INDONESIA CAR RENTAL MARKET BY CAR TYPE
5.1. Economy Cars
5.1.1. By Service
5.1.2. By Application
5.1.3. By Mode Of Booking
5.1.4. By Rental Category
5.2. Luxury Cars
5.2.1. By Service
5.2.2. By Application
5.2.3. By Mode Of Booking
5.2.4. By Rental Category
5.3. Sports Utility Vehicles
5.3.1. By Service
5.3.2. By Application
5.3.3. By Mode Of Booking
5.3.4. By Rental Category
5.4. Multi Utility Vehicles
5.4.1. By Service
5.4.2. By Application
5.4.3. By Mode Of Booking
5.4.4. By Rental Category
6. INDONESIA CAR RENTAL MARKET BY SERVICE
6.1. Self-Driven
6.2. Chauffeur-Driven
7. INDONESIA CAR RENTAL MARKET BY APPLICATION
7.1. Leisure Activities/Trips
7.2. Corporate/Business Trips
8. INDONESIA CAR RENTAL MARKET BY MODE OF BOOKING
8.1. Online
8.2. Offline
9. INDONESIA CAR RENTAL MARKET BY RENTAL CATEGORY
9.1. Local Transport
9.2. Airport Transport
9.3. Outstation Transport
9.4. Others
10. INDONESIA CAR RENTAL MARKET BY CONTRACT TYPE
10.1. Short-Term Contract
10.2. Long-Term Contract
11. INDONESIA CAR RENTAL MARKET BY CITIES
11.1. Jakarta
11.2. Surabaya
11.3. Bali
11.4. Yogyakarta
11.5. Others
12. COMPETITIVE INTELLIGENCE
12.1. Market Share Analysis
12.2. Investment Analysis
12.3. Strategies Of Key Players
12.4. Recent Deals And Investments
13. COMPANY PROFILES
13.1. The Hertz Corporation
13.1.1. Overview
13.1.2. Products And Services
13.1.3. Financials
13.1.4. Recent Developments
13.2. Blue Bird Group
13.2.1. Overview
13.2.2. Products And Services
13.2.3. Financials
13.2.4. Recent Developments
13.3. Trac
13.3.1. Overview
13.3.2. Products And Services
13.3.3. Financials
13.3.4. Recent Developments
13.4. Mitra Pinasthika Mustika Rent
13.4.1. Overview
13.4.2. Products And Services
13.4.3. Financials
13.4.4. Recent Developments
13.5. Adi Sarana Armada Tbk
13.5.1. Overview
13.5.2. Products And Services
13.5.3. Financials
13.5.4. Recent Developments
13.6. Avis
13.6.1. Overview
13.6.2. Products And Services
13.6.3. Financials
13.6.4. Recent Developments
13.7. Europcar Indonesia
13.7.1. Overview
13.7.2. Products And Services
13.7.3. Financials
13.7.4. Recent Developments
13.8. Globe Rent A Car
13.8.1. Overview
13.8.2. Products And Services
13.8.3. Financials
13.8.4. Recent Developments
LIST OF TABLES
LIST OF FIGURES
1.1. Market Definition
1.2. Scope Of The Study
1.3. Currency
1.4. Assumptions
1.5. Base, And Forecast Year Timeline
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Secondary Sources
2.3. Validation
3. KEY FINDINGS OF THE STUDY
4. MARKET DYNAMICS
4.1. Drivers
4.2. Restraints
4.3. Opportunities And Market Trends
4.4. Market Segmentation
4.5. Porter’s Five Force Analysis
4.5.1. Bargaining Power Of Suppliers
4.5.2. Bargaining Power Of Buyers
4.5.3. Threat Of New Entrants
4.5.4. Threat Of Substitutes
4.5.5. Competitive Rivalry In The Industry
4.6. Pest Analysis
4.7. Swot Analysis
5. INDONESIA CAR RENTAL MARKET BY CAR TYPE
5.1. Economy Cars
5.1.1. By Service
5.1.2. By Application
5.1.3. By Mode Of Booking
5.1.4. By Rental Category
5.2. Luxury Cars
5.2.1. By Service
5.2.2. By Application
5.2.3. By Mode Of Booking
5.2.4. By Rental Category
5.3. Sports Utility Vehicles
5.3.1. By Service
5.3.2. By Application
5.3.3. By Mode Of Booking
5.3.4. By Rental Category
5.4. Multi Utility Vehicles
5.4.1. By Service
5.4.2. By Application
5.4.3. By Mode Of Booking
5.4.4. By Rental Category
6. INDONESIA CAR RENTAL MARKET BY SERVICE
6.1. Self-Driven
6.2. Chauffeur-Driven
7. INDONESIA CAR RENTAL MARKET BY APPLICATION
7.1. Leisure Activities/Trips
7.2. Corporate/Business Trips
8. INDONESIA CAR RENTAL MARKET BY MODE OF BOOKING
8.1. Online
8.2. Offline
9. INDONESIA CAR RENTAL MARKET BY RENTAL CATEGORY
9.1. Local Transport
9.2. Airport Transport
9.3. Outstation Transport
9.4. Others
10. INDONESIA CAR RENTAL MARKET BY CONTRACT TYPE
10.1. Short-Term Contract
10.2. Long-Term Contract
11. INDONESIA CAR RENTAL MARKET BY CITIES
11.1. Jakarta
11.2. Surabaya
11.3. Bali
11.4. Yogyakarta
11.5. Others
12. COMPETITIVE INTELLIGENCE
12.1. Market Share Analysis
12.2. Investment Analysis
12.3. Strategies Of Key Players
12.4. Recent Deals And Investments
13. COMPANY PROFILES
13.1. The Hertz Corporation
13.1.1. Overview
13.1.2. Products And Services
13.1.3. Financials
13.1.4. Recent Developments
13.2. Blue Bird Group
13.2.1. Overview
13.2.2. Products And Services
13.2.3. Financials
13.2.4. Recent Developments
13.3. Trac
13.3.1. Overview
13.3.2. Products And Services
13.3.3. Financials
13.3.4. Recent Developments
13.4. Mitra Pinasthika Mustika Rent
13.4.1. Overview
13.4.2. Products And Services
13.4.3. Financials
13.4.4. Recent Developments
13.5. Adi Sarana Armada Tbk
13.5.1. Overview
13.5.2. Products And Services
13.5.3. Financials
13.5.4. Recent Developments
13.6. Avis
13.6.1. Overview
13.6.2. Products And Services
13.6.3. Financials
13.6.4. Recent Developments
13.7. Europcar Indonesia
13.7.1. Overview
13.7.2. Products And Services
13.7.3. Financials
13.7.4. Recent Developments
13.8. Globe Rent A Car
13.8.1. Overview
13.8.2. Products And Services
13.8.3. Financials
13.8.4. Recent Developments
LIST OF TABLES
LIST OF FIGURES
