The rental industry has been existing for so many years, but the present digital transformation has uplifted the rental industry by making it easier to connect consumers and renters. The growth has been enormous and it’s building trust and reducing transaction costs.
In future, the rental industry will continue to expand and evolve with newer technologies as we can never imagine. Experts predict that this industry will stand out when compared with the other industries. The scope and adaptability of the rental business are welcomed by users across the globe.
When comparing the rental industry with past, present, it has been clear that this industry is inspiring many digital startups and kindles young minds to commence their own business with sharing concept.
It is a great time to share with you the opportunities, technologies which are going to play a major role in the future of rental sharing industry.
Niche Ideas in rental sharing
There are many opportunities in rental sharing industry which helps entrepreneurs to run their own business in a successful and cost-effective way. The different types of niche available are,
- Vacation rental
- Bike rental
- Car rental
- Equipment rental
- Boat rental
In our previous blog, we explained about the most promising niche sharing economy ideas and how it can be used to build a profitable business.
Predicting the future of rental sharing
The rental industry inevitably becomes a major part of the global business. It is growing and expanding at an alarming rate, and now more than ever, people are changing the way they travel, ride, work, buy and sell.
The following report is going to examine the current state and predicting the future of the rental business. The sudden emergence of the rental industry has made numerous changes in the day to day life.
The industry is expecting to grow to double its current value by 2021. According to the report, this industry currently serves over 44.8 million individuals in various strata and is expected to rise above 86.5million people by 2021. Approximately It will reach $40.2B in 2022 and also revenue will increase up to $18.6B.
It is also expecting to grow from $14 billion in 2014 to $335 billion by 2025. This estimate is based on the growth of the rental industry.
Most importantly, we should see how technologies are going to disrupt the future of the rental industry.
The blockchain is a digital public ledger for all cryptocurrency transactions. Every transaction or transfer of information is recorded chronologically and is accessible to everyone on the blockchain without an intermediary facilitating the transactions.
The blockchain is one of the fast-growing technologies and going to be the next step of the rental industry. This technology has taken quite a turn in the industry given its popularity in providing safe and secure online transactions. Many industries are adopting blockchain because of its numerous benefits such as,
- Increased time effectiveness due to real-time transactions
- Direct transactions eliminate the intermediary costs.
- Reduces risks related to fraudulent.
- More transparent processes with a proper record creation and tracking
- Highly secure due to cryptographic protocols.
Internet of things
Internet of things is the extension of internet connectivity into physical devices. Embedded with electronics, internet connectivity and other forms of hardware, this device can communicate and interact with others over the internet, and they can be remotely monitored and controlled.
With the enormous hype in the IoT, there are many opportunities available to create a myriad of sharing platforms. By utilizing IoT, we can also facilitate the sharing of our existing devices, vehicles and buildings by embedding sensors and network connectivity that enable our things to collect and exchange data.
IoT is more familiar due to its some below important benefits,
- Less human involvement
- Continuous tracking
- Endless monitoring
- Handling secure direct payments
Some foremost emerging trends which involve in the internet of things is as follows,
Big data analysis
The main role of big data is to process a large amount of data on a real-time basis and storing them using different storage techniques.
Role of Big data in the rental business
The role of big data in the rental business is receiving the data from their users(such as name, location, data and preferences), a giant database is accessed to filter result that will be relevant to the user.
Without big data these platforms would not exist, they rely on the manipulation of data and algorithms to match customers and service providers. It contributes in many ways to the growth of these industries.
Let us see how big data is fueling the rental business,
- Meeting required needs
- Improving businesses
- Good for the consumer as well
- Ensuring the survival of the fittest
Data processing with Edge computing
Edge computing entails processing and analyzing data closer to the source of where that data is collected.
Role of Edge Computing in the rental business
Edge computing plays a vital role in the rental business as it brings computing power, control and storage and it makes easier to operate without any latency. It also helps in scaling up and generating revenue and providing faster response time.
Here’s how businesses can scale up by bringing edge computing to their fold,
- Cost efficiency
- Earning reputation
- Performing without any lag
- Reducing data latency
- Protecting sensitive data
Cloud computing in simple terms means accessing data and programs from a centralized pool that can be ordered and consumed on-demand.
Role of cloud in the rental business
It is most important in the rental business because it increases efficiency, helps improve cash flow and offers many benefits as follows,
- Capital expenditure fee
- Increasing Competitiveness
- Provides security
Artificial intelligence is a technology that is already impacting how users interact with. It is a machine learning system that can easily identify the trends and continues to grow in the near future. It has become a decision making assistant for all business that we look forward to and having potential to vastly changes the way of human interactions and easily grabbing many entrepreneurs attention towards rental business.
Artificial intelligence will be used in the rental business helping the host to set the best prices, enhance the user experience and ensure security.
The vast benefits of AI are as follows,
- Personalizing customer experience with AI
- Setting smart prices
- Preventing fraud
- Improving internal operations
Reason for booming
According to the survey, the number of rental marketplace users has reached almost 18million and it is forecasted to grow by 19.3million in its upcoming years.
So what constitutes the success of the rental industry?
The only reason for booming is affordability and accessibility. The audience using sharing platforms are feeling reliable due to these following factors.
- Providing greater efficiency and flexibility
- Attracting them by Furnishing new experience
- Sustaining instant gratification
- Embeds a sense of trust
- Affordable cost
Business idea for Entrepreneurs
Now it is a better time for entrepreneurs than ever to revise this unpredictable business model in favour of one with more autonomy, opportunity, and security.
The growth of the rental business fundamentally changes the landscape for entrepreneurs in the below benefits,
It does not need to have own inventory. It is really attracting many entrepreneurs to start their business without spending a lot of money. So it drastically reduces the minimal startup cost.
This industry provides you with the many opportunities and ideas in starting your business as there are different niches such as a car, bike, equipment and vacation rentals.
The rental industry has ramped up in things up and not only helpful for riding, sharing, buying, selling, but it also offers a valuable opportunity in generating an excessive amount of revenue through commission-based, subscription fees, listing fees, lead generation fee and freemium services.
By seeing the above predictions and reason behind the success of the rental sharing, we came to conclude that it should be the way of the future. Whether it is a ride, stay, or even sharing working space, people are finding it cheaper and more convenient. So, Entrepreneurs are using this trend to succeed in their online business ambition.
If you are one of them interesting in building your own rental business, then choose the right marketplace idea which has a potential demand. Also, empowering the platform with the latest features and functionalities will enrich your rental business.
To get support for building your own rental sharing business, connect with RentALL