$4.7bn
$XXX.Xm
246k
177k
$X.Xbn
Over the past five years, the Limousine and Town Car Services industry has contended with internal and external challenges. However, the industry has been helped by growing per capita disposable income, leading many consumers to spend on luxury car services rather than less-expensive alternatives. Moreover, new technology, particularly mobile apps such as Uber and Lyft that connect drivers and customers, has enabled greater ease of booking and paying for town cars and has provided the industry with a growing pool of customers. In 2020, falling domestic trips due to COVID-19 dampened industry demand from leisure clients, which account for more than one-third of industry revenue. As a result, industry revenue is expected to decline at an annualized rate of 7.0% to $4.7 billion over the five years to 2023, including an expected fall of 2.8% in 2023 alone.IBISWorld estimates that more than 90.0% of the industry's businesses are nonemployers with no staff, including the tens of thousands of drivers that now use transport network companies such as Lyft and Uber. These new mobile transportation apps have facilitated more nonemployers to enter the industry with the promise of deciding how many hours to work and where to operate. Over the past five years, industry locations have fallen as more than one of every four nonemployers stopped driving in 2020. Additionally, intensified ride-sharing competition, rising fuel costs, and vehicle prices have collectively driven down industry profit.Over the next five years, the industry is expected to continue to decline, damaged permanently by the expectation of lower-cost contractor luxury rideshare services. While limousine companies that can innovate and add new features such as mobile booking and Wi-Fi are unlikely to fold, the industry has been put in reverse. For these reasons, IBISWorld expects industry revenue will fall at an annualized rate of 0.7% to $4.5 billion over the five years to 2028.
Industry revenue has declined at a CAGR of 7.0 % over the past five years, to reach an estimated $4.7bn in 2023.
Market size is projected to decline over the next five years.
Company | Market Share (%)
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2023 | Profit ($short_0)
2023 | Profit Margin (%)
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There are no companies that hold a large enough market share in the Limousine & Town Car Services in the US industry for IBISWorld to include in this product.
Limousine & Town Car Services in the US
Industry revenue is measured across several distinct product and services lines, including Luxury and corporate sedan services, Stretch limousine and limo bus services and Vans and shuttle bus services. Luxury and corporate sedan services is the largest segment of the Limousine & Town Car Services in the US.
Luxury and corporate sedan services are the industry's largest product segment
This industry comprises establishments primarily engaged in providing an array of specialty and luxury passenger transportation services via limousine or luxury sedans, generally on a reserved basis. These establishments do not operate over regular routes or on regular schedules.
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NAICS 48532 - Limousine & Town Car Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
In 2020, the COVID-19 pandemic slashed travel rates, weighing on industry demand. In 2021, the rollout of coronavirus vaccines enabled travel activities to somewhat recover, ...
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The industry's biggest market is the corporate sector. These clients need quick and convenient transportation between their offices and airports, meetings and conferences, us...
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Population trends determine the locations of the Limousine and Town Car Services industry's establishments. As a result, major metropolitan regions have an abundance of indus...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Businesses considering entering the Limousine and Town Car Services industry experience moderate barriers. Industry revenue depends on consumer and corporate spending levels,...
Learn about the performance of the top companies in the industry.
The market for limousines and town cars is generally fragmented. Further, many small operators work exclusively in local markets.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
At the national level, the industry is governed by the United States Department of Transportation. The department has a minimum set of requirements for those operating limous...
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Cost structures will vary between companies. Costs differ depending on their business structure, such as whether they have a large or small fleet, whether they employ staff o...
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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The market size of the Limousine & Town Car Services in the US industry in United States is $4.7bn in 2024.
There are 177k businesses in the Limousine & Town Car Services in the US industry in United States, which has grown at a CAGR of 0.9 % between 2018 and 2023.
The market size of the Limousine & Town Car Services in the US industry in United States has been declining at a CAGR of 7.0 % between 2018 and 2023.
Over the next five years, the Limousine & Town Car Services in the US industry in United States is expected to decline.
Providing limousine services and Providing luxury sedan services are part of the Limousine & Town Car Services in the US industry.
The level of competition is moderate and increasing in the Limousine & Town Car Services in the US industry in United States.