The global car rental market, driven by the demand for mobility solutions and the convenience of vehicle rental services, is witnessing significant industry growth. Innovations by the largest rental car companies and the rise of online platforms have enhanced customer experiences, offering flexibility and streamlined booking processes. Market segments like short-term rentals and economy cars are thriving due to their affordability, appealing to a broad customer base. North America and Asia-Pacific are key contributors to this expansion, with the latter poised for rapid growth. Additionally, the industry is adapting to urban mobility changes by incorporating eco-friendly vehicles and exploring peer-to-peer car sharing, aligning with a shift towards sustainable and user-centric mobility options. This evolution, detailed in our comprehensive report PDF, indicates that vehicle rental services will play a crucial role in the future of transportation. For detailed industry statistics on market size, price trend, and revenue growth, refer to Mordor Intelligence™ Industry PDF, with detailed market analysis and forecasts available in a free report PDF download, highlighting the potential and dynamics of the global car rental industry. Adding to this, our annual report will provide a deeper dive into the industry statistics, market cap and industry worth, showcasing size global and price trends. This profile PDF includes essential market data to help stakeholders understand the current state and future prospects of the car rental market.

  Car Rental Report Covers the Following Countries: USA, United States, US, Canada, DE, Germany, German, UK, United Kingdom, FR, France, French, ES, Spain, Spanish, IN, India, Indian, China, Chinese, JP, Japan, Japanese, KR, South Korea, South Korean, SA, South America, South American, MEA, Middle East and Africa, Middle Eastern and African, MENA, Middle East, Middle Eastern, Africa, African

The United States car rental market is estimated to grow steadily, with a market size of USD 35.4 billion in 2025, increasing to USD 56.9 billion by 2035. The industry will grow at a CAGR of 4.85% between 2025 and 2035 due to the growth in demand for dynamic transportation alternatives and the integration of digital rental platforms.

Car Rental Industry Analysis in the United States

Competitive Outlook

The Car Rental Industry is steering toward high-tech roads, as evidenced by its recent focus on connected car technologies, telematics and data analytics. Companies broadened their car rental portfolios by adopting many diverse vehicle options, catering to modern travelers' rising demands and diversified expectations. Stay-at-home orders during the pandemic prevented traveling, which decimated the market for car rentals. Pent-up demand for travel and a limited supply of new vehicles caused industry revenue to surge in 2021 and 2022, as high demand and low supply elevated rental prices. More recently, inflationary concerns led some consumers to postpone traveling, constraining additional growth. Industry revenue has climbed at a CAGR of 7.8% to reach $65.3 billion through the end of 2025, including a swell of 3.0% in 2025 alone. Profit has recovered from the lows endured during the pandemic, accounting for an estimated 8.9% of industry revenue in 2025. New car prices have continued to expand, making renting more cost-effective. Car sharing has also become popular in recent years. Other modes of transportation, such as public transportation, ride-sharing and taxi cabs, are substitutes for renting and continue to disrupt services. Car rental services are still less expensive than ride-sharing and taxis, are more efficient than public transportation and will continue to attract customers. Strategic partnerships with other companies will continue to help car rental services. Direct affiliations with manufacturers will lead to lower expenses. Deals with local airports and tourism companies will expand their customer base and help businesses personalize their rental services. Adopting new technology to streamline the rental process will be critical to competing with ride-sharing apps and boosting profit. Setting up automated kiosks in physical locations will simplify checkout while reducing wages. Car rental revenue will expand at a CAGR of 2.2% to $72.8 billion through the end of 2030.

The US Car Rental Market Report is Segmented by Application (Leisure and Tourism and Business and Corporate), Vehicle Type (Economy and Budget Cars, and More), Booking Channel (Online and Offline), Rental Duration (Short-Term, and More), Propulsion (ICE Vehicles, and More), Service Model (Traditional Corporate Fleets and Peer-To-Peer Platforms), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The car rental service market size is projected to reach a value of USD 3,09,703.4 million in 2024, at a CAGR of 7.3% from 2024 to 2034. Car rental service sales are likely to be USD 6,25,867.4 million by 2034.

Semi-annual Market Update

Country-wise Insights

Category-wise Insights

The Global Car Rental market is set to grow at a CAGR of 18.84% from 2025-30. Sixt SE, Enterprise Holdings (Alamo), Hertz Corp are some top players in the market.

The Car Rental Market is poised to reach a value of 132.48 billion by 2027, exhibiting a remarkable growth rate of 11.2% CAGR. This expansion is fueled by the increasing demand for convenient and flexible transportation options, urbanization, and the growing popularity of online booking platforms. Governments worldwide are actively promoting car rental services to boost tourism, further contributing to market growth. The adoption of hybrid vehicles, rising environmental awareness, and technological advancements such as mobile apps and online reservations are also driving market growth. Major players in the industry include Avis Budget Group, Enterprise Holdings, The Hertz Corporation, and Sixt. Recent developments include: In May 2023, Car Karlo Mobility Technologies LLP unveiled their self-driven car rental services in Pune, India. The company aims to tap into the rapidly expanding Indian market by introducing a user-friendly car rental booking website and mobile app. , In April 2022, SIXT, a leading global mobility provider, continued with its expansion throughout the U.S. The company revealed plans to open new branches in Charlotte and Baltimore, to provide customers with a broader selection of rental options along the East Coast. , In April 2021, GoAir joined forces with Eco Europcar to introduce car rental services in 100 cities throughout India, encompassing 25 airports. The partnership allows GoAir to provide chauffeur-driven cars, ranging from mid to luxury car segments, through Eco Europcar's platform. , In May 2021, Uber Technologies Inc. introduced a car rental service named Uber Rent in Washington DC. Additionally, the company revealed its plans to expand the Uber Reserve option for several major airports in the U.S. .

India Car Rental Market is Segmented by Booking Type (Online and Offline), Application Type (Tourism and Commuting), Vehicle Type (Luxury/Premium Cars and Economy/Budget Cars), and Rental Duration (Short Term and Long Term). The report offers the market size and forecast in value (USD) for all the above segments.

The Luxury Car Rental Market size was valued at USD 29.95 USD Billion in 2023 and is projected to reach USD 42.51 USD Billion by 2032, exhibiting a CAGR of 5.13 % during the forecast period. Luxury car rental refers to the service of renting high-end, premium vehicles for a temporary period. This niche segment of the car rental industry caters to clients seeking superior comfort, performance, and style. Types of luxury car rentals include exotic cars, such as Ferrari and Lamborghini, high-end sedans like the Mercedes-Benz S-Class, and sophisticated SUVs such as Range Rover. Features of these rentals often include advanced technology, top-notch interiors, and superior driving dynamics. Applications for luxury car rentals are diverse, spanning from special events like weddings and corporate functions to vacations and business travel. Clients typically opt for luxury car rentals to enhance their experience, make a statement, or enjoy a prestigious driving experience for a limited time. Key drivers for this market are: Increasing Demand for Forged Products in Power, Agriculture, Aerospace, and Defense to Drive Industry Expansion. Potential restraints include: High Deposit Amounts and Rental Costs Could Limit the Market Growth . Notable trends are: Rising Adoption of Automation in Manufacturing to Drive Market Growth.

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Car Rental Market Size 2025-2029

The car rental market size is forecast to increase by USD 188.3 billion, at a CAGR of 20.5% between 2024 and 2029.

The market is experiencing significant shifts, driven by rising vehicle ownership costs and the advent of intermediaries. The escalating expense of owning and maintaining a personal vehicle has led an increasing number of consumers to opt for car rental services, providing a lucrative opportunity for market players. Furthermore, the emergence of intermediaries, such as ride-hailing and car-sharing services, has disrupted traditional car rental business models, compelling companies to adapt and innovate. These intermediaries offer flexible, on-demand services, catering to the evolving consumer preference for convenience and affordability. However, this dynamic market landscape also presents challenges. The intensifying competition from car-sharing services and other intermediaries puts pressure on car rental companies to differentiate themselves and offer competitive pricing and value-added services. Additionally, regulatory hurdles and changing consumer preferences pose significant challenges, requiring companies to stay agile and responsive to market trends. To capitalize on the opportunities and navigate these challenges effectively, car rental companies must focus on enhancing their customer experience, expanding their service offerings, and leveraging technology to streamline operations and improve efficiency.

What will be the Size of the Car Rental Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market dynamics shaping various sectors. Fleet management plays a crucial role, as operating costs are closely monitored through effective utilization of resources. Infotainment systems, from Bluetooth connectivity to Android Auto and Apple CarPlay, enhance the customer experience. Fleet leasing and mileage limits are essential components of business rentals, while vehicle inspection ensures safety and maintenance. One-way rentals and pickup trucks cater to diverse customer needs, with seasonal rates offering flexibility. Customer retention is a priority, achieved through loyalty programs, excellent customer service, and marketing campaigns. Compact cars and fuel efficiency are in demand, with pricing strategies reflecting market trends. Liability insurance and third-party liability are non-negotiable, while fleet leasing and mileage limits help manage costs. Mobile apps and online booking streamline the process, with revenue management and data analytics optimizing performance. Technology integration, from GPS tracking to rental agreements, is essential for smooth operations. Electric vehicles (EVs) and hybrid vehicles are gaining popularity, requiring new strategies for fleet management and customer segmentation. Fuel costs, engine size, and geographic targeting influence pricing. Vehicle maintenance and reputation management are key to brand awareness and customer satisfaction. In the business-to-business sector, corporate accounts and franchise opportunities offer growth potential. Peak season pricing and rental duration impact revenue, while discount programs and airport transfers cater to specific customer segments. Damage assessment and vehicle inspection ensure fleet readiness, and navigation systems help optimize routes. In conclusion, the market is a continually evolving landscape, with fleet management, operating costs, infotainment systems, fleet leasing, mileage limits, vehicle inspection, one-way rentals, pickup trucks, customer retention, marketing campaigns, compact cars, liability insurance, third-party liability, mobile app, vehicle maintenance, hybrids, EVs, fuel costs, engine size, geographic targeting, technology integration, reputation management, brand awareness, fuel costs, and navigation systems shaping its future.

How is this Car Rental Industry segmented?

The car rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. Mode Of BookingOfflineOnlineRental CategoryAirport transportLocal transportOutstation transportOther transportTypeEconomy carsExecutive carsLuxury carsSUVsMUVsApplicationLeisure/TourismBusiness TravelLocal UsageAirport TransportOutstation/Long DistanceEnd-useSelf-DriveChauffeur-DrivenRental LengthShort-Term RentalLong-Term Rental/LeasingFare PriceEconomy/Budget CarsLuxury/Premium CarsGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKMiddle East and AfricaEgyptKSAOmanUAEAPACChinaIndiaJapanSouth AmericaArgentinaBrazilRest of World (ROW)

By Mode Of Booking Insights

The offline segment

Global Car Rental market size is expected to reach $256.23 billion by 2029 at 4.5%, accelerated tourism resurgence a catalyst for car rental market expansion

The revenue in the 'Car Rentals' segment of the shared mobility market worldwide was modeled to stand at ************** U.S. dollars in 2024. Between 2017 and 2024, the revenue rose by ************* U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************* U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

The UK car rental market is anticipated to experience substantial growth, expanding from USD 3.80 billion in 2025 to approximately USD 6.43 billion by 2035 at a CAGR of 5.4% throughout the forecast period.

Semi-Annual Market Update

Per Capita Spending Analysis

The global car rental market size was valued USD 87.4 billion in 2021 and is expected to increase to USD 132.6 billion by 2028, with a CAGR of 6.9%.

Car Rental Market size was valued at USD 148.17 Billion in the year 2024, and it is expected to reach USD 352.19 Billion in 2032, at a CAGR of 11.43% over the forecast period of 2026 to 2032.

Global Car Rental Market Drivers

Rise in Travel: A growing travel sector, encompassing both business and leisure trips, is fueling demand for car rentals. Travelers seek the flexibility and convenience that rental cars provide, allowing them to explore destinations at their own pace and navigate unfamiliar surroundings.

Digital Transformation: The booking process has undergone a revolution with the widespread adoption of online platforms and mobile apps. Customers can now effortlessly research and compare prices, select their desired vehicle type, and make reservations electronically. Rental companies are actively investing in these digital tools to enhance the customer experience by streamlining the booking process and offering greater transparency.

Global Market Share by Key Players

The India car rental market size was valued at USD 2,742 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 9,287 Million by 2033, exhibiting a CAGR of 14.5% from 2025-2033. The India car rental market share is growing due to the increased tourism, increased disposable incomes, preference for convenience and flexibility in transportation, expansion of the tourism and hospitality sectors, and online platforms that offer competitive pricing and accessibility.

Peer-to-Peer Car Rental Market Outlook

According to our latest research, the global peer-to-peer car rental market size reached USD 5.4 billion in 2024, reflecting robust expansion driven by digital transformation and the rising popularity of shared mobility solutions. The market is advancing at a CAGR of 17.8% and is forecasted to attain a value of USD 27.6 billion by 2033. This remarkable growth is underpinned by increasing consumer preference for flexible transportation options, technological advancements in digital platforms, and a growing inclination toward sustainable and cost-effective mobility solutions.

One of the primary growth factors propelling the peer-to-peer car rental market is the increasing acceptance of the sharing economy, which has fundamentally transformed consumer attitudes toward car ownership. Millennials and Gen Z, in particular, are prioritizing access over ownership, seeking convenient, affordable, and flexible transportation alternatives. Digital platforms have made it easier than ever for individuals to rent out their vehicles, generating supplemental income and reducing the total cost of car ownership. The proliferation of smartphones and mobile applications has further facilitated seamless booking, payment, and vehicle handover processes, thus enhancing the overall user experience. These technological advancements, coupled with the rising awareness of environmental sustainability, are encouraging more people to participate in peer-to-peer car sharing, both as renters and vehicle providers.

Another significant driver is the rapid urbanization and congestion in metropolitan areas, which has made traditional car ownership less practical and more expensive. Urban dwellers are increasingly turning to peer-to-peer car rental services for short-term and on-demand mobility needs, avoiding the costs and hassles associated with maintenance, insurance, and parking. Moreover, the expansion of business travel and tourism sectors has amplified demand for flexible mobility solutions, especially among travelers who prefer personalized and localized experiences. Peer-to-peer car rental platforms offer a wide variety of vehicle choices, from economy to luxury models, allowing users to select vehicles tailored to their specific requirements and budgets. This adaptability is a key competitive advantage over conventional car rental agencies, which often have more rigid pricing and vehicle availability structures.

The integration of advanced technologies such as artificial intelligence, blockchain, and telematics is also playing a pivotal role in the market's growth. These innovations are enhancing trust and transparency between users by enabling secure transactions, real-time vehicle tracking, and automated damage assessments. Additionally, many platforms are adopting contactless rental processes, which gained significant traction during the COVID-19 pandemic and continue to be popular due to their convenience and safety. The ongoing evolution of electric and hybrid vehicles within peer-to-peer fleets is further aligning the industry with global sustainability goals, attracting environmentally conscious consumers and supporting regulatory compliance in various regions.

From a regional perspective, North America currently dominates the peer-to-peer car rental market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The United States, with its mature sharing economy infrastructure and high smartphone penetration, leads the market, while European countries such as the United Kingdom, Germany, and France are witnessing rapid adoption due to favorable regulatory environments and urban mobility initiatives. The Asia Pacific region is projected to exhibit the highest growth rate during the forecast period, driven by rising urbanization, increasing disposable incomes, and the proliferation of digital platforms in emerging economies such as India and China. Latin America and the Middle East & Africa are also experiencing steady growth, albeit from a smaller base, as awareness of shared mobility continues to spread.

Car Type Analysis

The peer-to-peer car rental market is segmented by car type into economy cars, luxury cars, SUVs, and others, each catering to distinct consumer preferences and mobility needs. Economy cars remain the most popular choice among users, primarily due to their affordability, fuel efficiency, and suitability for short-term urban commu

The global Car Rental market is forecasted to grow at a noteworthy CAGR of 13.86% between 2025 and 2033. By 2033, market size is expected to surge to USD 418.14 Billion, a substantial rise from the USD 130.01 Billion recorded in 2024.

The Global Car Rental market size to cross USD 418.14 Billion in 2033. [https://edison.valuemarketresearch.com//uploads/report_images/VMR11210286/car-rental-market-

The global Car Rental Market size is expected to reach USD 249.58 Billion in 2032 registering a CAGR of 7.4%. Our report provides a comprehensive overview of the industry, including key players, market share, growth opportunities and more.