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 global car rental market size reached USD 83.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 105.7 Billion by 2033, exhibiting a growth rate (CAGR) of 2.6% during 2025-2033. The market is experiencing steady growth driven by the escalating need for cost-effective and short-term mobility options, the expanding middle class in emerging economies, and continuous technological advancements, particularly the integration of smart technologies and online platforms.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on booking type, rental length, vehicle type, application, and end-user.

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).

[216+ Pages Report] The global car rental market size is expected to grow from USD 121.38 billion in 2023 to USD 246.12 billion by 2032, at a CAGR of 8.17% from 2024-2032

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.

Long Term Car Rental Market Outlook

The global long-term car rental market size is projected to grow from USD 20.3 billion in 2023 to USD 36.5 billion by 2032, at a compound annual growth rate (CAGR) of 6.7%. This growth is driven by an increasing preference for flexible mobility solutions and the economic advantages of long-term rentals over car ownership. The market is experiencing a surge due to factors such as the rising trend of urbanization, increasing business travel, and the demand for cost-effective transport solutions for both individuals and corporations.

One of the primary growth factors for the long-term car rental market is the shift in consumer preferences towards leasing and renting vehicles instead of purchasing them. This change is particularly notable among younger consumers and urban dwellers who prioritize flexibility and lower financial commitments. The rising cost of vehicle ownership, including maintenance, insurance, and depreciation, is driving many to opt for long-term car rentals as a more economical and hassle-free solution. Additionally, advancements in technology have made it easier for customers to book and manage rentals online, further boosting market growth.

Corporate demand for long-term car rentals is another significant growth driver. Companies are increasingly utilizing long-term rentals for their employees, both for business travel and as part of employee benefit programs. This approach not only reduces the financial burden on the company but also provides employees with reliable and convenient transportation. The global expansion of businesses and the rise in remote working trends have also contributed to the increased demand for long-term car rentals, as companies look for flexible and cost-effective mobility solutions.

The rise in tourism and the changing nature of travel have also positively impacted the long-term car rental market. Tourists and expatriates often prefer long-term rentals as they offer greater convenience and flexibility compared to short-term rentals or public transportation. This trend is especially significant in regions with high tourist influxes and expatriate communities, where long-term car rental services are seen as a practical and economical option. Furthermore, long-term rentals cater to the needs of seasonal travelers and individuals relocating for extended periods, thereby expanding the market base.

Regionally, North America holds a significant share of the long-term car rental market, driven by a high level of corporate demand and a mature rental market infrastructure. Europe follows closely, benefiting from a robust tourism industry and increasing urbanization. The Asia Pacific region is expected to witness the highest growth rate due to the rapid economic development, rising middle-class population, and increasing adoption of new mobility solutions. Latin America and the Middle East & Africa are also emerging markets for long-term car rentals, with growing urbanization and improving economic conditions contributing to market expansion.

The commercial vehicle rental sector is also gaining momentum within the long-term rental market. Businesses, particularly those in logistics and construction, are increasingly relying on commercial vehicle rentals to meet their operational needs. This trend is driven by the flexibility and cost-effectiveness that renting offers over owning a fleet of commercial vehicles. Companies can adjust their vehicle requirements based on project demands without the financial burden of maintenance and depreciation. Additionally, the rise of e-commerce and the need for efficient last-mile delivery solutions have further fueled the demand for commercial vehicle rentals, making it a vital component of the long-term rental landscape.

Vehicle Type Analysis

The long-term car rental market can be segmented by vehicle type into economy cars, luxury cars, SUVs, and others. Economy cars dominate the market due to their affordability and fuel efficiency, making them the preferred choice for cost-conscious consumers and long-term renters. These vehicles are particularly popular among individual renters and small to medium-sized enterprises that require reliable yet budget-friendly transportation options. The high demand for economy cars is also driven by their lower maintenance and insurance costs, which further enhance their appeal to long-term renters.

Luxury cars, while representing a smaller segment, a

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 attained a value of approximately USD 104.03 Billion in 2024. The market is projected to grow at a CAGR of 5.40% in the forecast period of 2025-2034, reaching a value of around USD 176.02 Billion by 2034. The car rental market has seen significant growth, driven by increased global travel, especially in business travel and leisure travel sectors. Online booking platforms and mobile app integration have streamlined the rental process, making it more convenient for customers. These technological advancements offer seamless access to transportation options, enhancing the overall customer experience. As demand rises, car rental companies are adapting by improving services, offering more flexible solutions, and focusing on user-friendly digital interfaces. This evolution helps businesses and leisure travellers alike to access reliable, efficient, and easy-to-use car rental services.

Global Car Rental market size is expected to reach $261.18 billion by 2029 at 4.9%, accelerated tourism resurgence a catalyst for car rental market expansion

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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

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 revenue in the 'Car Rentals' segment of the shared mobility market in the United States was forecast to continuously increase between 2025 and 2029 by in total *** billion U.S. dollars (+***** percent). After the ninth consecutive increasing year, the revenue is estimated to reach **** billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Car Rentals' segment of the shared mobility market was continuously increasing over the past years.Find other key market indicators concerning the user penetration and number of users. The Statista Market Insights cover a broad range of additional markets.

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%.

US Car Rental Market size is expected to be worth around USD 78.8 Billion by 2034, from USD 37.9 Billion in 2024, at a CAGR of 7.6%.

The global number of users in the 'Car Rentals' segment of the shared mobility market was forecast to continuously increase between 2025 and 2029 by in total ***** million users (+***** percent). After the ninth consecutive increasing year, the number of users is estimated to reach ****** million users and therefore a new peak in 2029. Notably, the number of users of the 'Car Rentals' segment of the shared mobility market was continuously increasing over the past years.Find other key market indicators concerning the revenue and average revenue per user (ARPU). The Statista Market Insights cover a broad range of additional markets.

Car Rental Market Outlook

According to our latest research, the global car rental market size reached USD 104.5 billion in 2024, driven by the increasing demand for flexible mobility solutions, the resurgence of travel, and the expansion of digital booking platforms. The market is expected to grow at a robust CAGR of 7.2% from 2025 to 2033, reaching a forecasted value of USD 197.2 billion by the end of the forecast period. This growth is primarily attributed to rising disposable incomes, urbanization, and the growing preference for on-demand transportation services across both developed and emerging economies.

One of the most significant growth factors propelling the car rental market is the rapid digital transformation within the industry. The proliferation of online booking platforms and mobile applications has revolutionized the way consumers access rental services, offering convenience, transparency, and a wide range of vehicle options. The integration of advanced technologies such as artificial intelligence, machine learning, and telematics has further enhanced operational efficiency, personalized customer experiences, and facilitated dynamic pricing models. These advancements are not only attracting tech-savvy customers but are also enabling rental companies to streamline fleet management, reduce operational costs, and optimize vehicle utilization rates, thereby supporting overall market expansion.

Another key driver is the evolving travel and tourism landscape, which has seen a strong rebound post-pandemic. As global tourism returns to pre-pandemic levels, both leisure and business travelers are increasingly opting for car rentals as a safe, flexible, and cost-effective mode of transportation. The surge in domestic tourism, coupled with the growing popularity of road trips and adventure travel, has significantly boosted demand for rental vehicles, especially in regions with well-developed road infrastructure. Furthermore, the rise of the sharing economy and changing consumer attitudes towards vehicle ownership are encouraging more individuals and businesses to leverage car rental services for short-term and long-term mobility needs.

Sustainability and environmental concerns are also shaping the future trajectory of the car rental market. With governments and consumers becoming more environmentally conscious, there is a notable shift towards electric and hybrid vehicles within rental fleets. Leading car rental companies are investing heavily in expanding their eco-friendly offerings, aligning with global efforts to reduce carbon emissions and promote green mobility. This transition not only meets regulatory requirements but also appeals to a growing segment of environmentally aware customers, thus opening new avenues for growth and differentiation in an increasingly competitive market.

From a regional perspective, North America continues to dominate the global car rental market, accounting for the largest revenue share in 2024. The region's mature travel industry, high vehicle ownership costs, and robust digital infrastructure are key contributing factors. However, the Asia Pacific region is emerging as the fastest-growing market, driven by rapid urbanization, rising middle-class incomes, and the expansion of tourism sectors in countries such as China, India, and Southeast Asia. Europe also maintains a significant market presence, supported by strong intra-regional travel and well-established rental networks. Meanwhile, Latin America and the Middle East & Africa are witnessing steady growth, albeit from a smaller base, as awareness of rental services and tourism infrastructure continues to improve.

Vehicle Type Analysis

The car rental market is broadly segmented by vehicle type, encompassing economy cars, luxury cars, SUVs, executive cars, and others. Among these, economy cars hold the largest market share, primarily due to their affordability, fuel efficiency, and suitability for urban co

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.

The European car rental market, valued at €14.34 billion in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 8.96% from 2025 to 2033. This expansion is fueled by several key factors. The burgeoning tourism sector across Europe, particularly in popular destinations like the UK, France, Germany, and Spain, significantly boosts demand for short-term rentals. Simultaneously, the rise of business travel and increasing reliance on flexible transportation solutions contribute to the market's growth. The convenience and affordability of online booking platforms further accelerate market penetration. Segmentation within the market reveals a strong preference for online booking and short-term rentals, although the long-term rental segment is witnessing steady growth, driven by relocation needs and the increasing popularity of subscription-based car services. Premium and luxury car rentals represent a lucrative niche, showcasing a willingness to pay for higher-end vehicles among a growing segment of travelers. Competition within the market remains intense, with established players like Avis Budget Group, Enterprise Holdings, and Hertz Global Holdings facing challenges from emerging local and international players seeking market share. Despite the positive outlook, certain challenges persist. Fluctuations in fuel prices and economic downturns can impact consumer spending and rental demand. Stringent environmental regulations, aimed at reducing carbon emissions from the transportation sector, may also influence the types of vehicles offered and operational costs. Furthermore, the increasing popularity of alternative transportation options, such as ride-sharing services and public transportation, could exert competitive pressure on the car rental industry. However, the market’s resilience stems from its ability to adapt to evolving consumer preferences through technological innovation, diversified service offerings, and strategic partnerships. The expansion of electric vehicle fleets and the introduction of sustainable practices are anticipated to mitigate environmental concerns and enhance the industry's long-term sustainability. Recent developments include: December 2023: SIXT SE, a German-based car rental company, announced that it was phasing out Tesla electric rental cars from its fleets because of reduced resale costs. SIXT was the second company apart from Hertz to announce the replacement of its electric vehicle fleet., October 2023: Enterprise Holdings, a car rental service provider operating worldwide, including across Europe, announced its plan to rebrand its name to Enterprise Mobility to reflect the 'evolution' of its global network of mobility solutions. In line with the new corporate brand, the company rolled out a new logo and tagline: ‘Advance the world, one journey at a time.’ However, the company stated that all Enterprise Mobility brands will remain unchanged as key offerings in its portfolio., June 2023: Europcar, a car rental company operating in Europe, announced its partnership with the BringOz logistics platform as part of its efforts to digitize internal processes and automate and optimize vehicle movement. Further, as per the agreement, both these companies will work in collaboration to streamline and maximize Europcar's resources by increasing the efficiency of vehicle transfers with consolidation.. Key drivers for this market are: Increasing Inbound Tourism to Fuel Market Growth. Potential restraints include: Increasing Inbound Tourism to Fuel Market Growth. Notable trends are: Online Segment of the Market to Gain Traction during the Forecast Period.

Middle East Car Rental Market size was valued at USD 3.85 Billion in 2024 and is projected to reach USD 7.42 Billion by 2032, growing at a CAGR of 8.5% from 2025 to 2032.

Key Market Drivers Tourism Industry Growth: The growth of the Middle East's tourism sector has significantly boosted the demand for car rentals, as more tourists and businesses seek flexible transportation solutions. This surge in demand aligns with the region’s economic development, particularly in the GCC countries. The World Travel and Tourism Council's 2023 report showed a 42% rise in tourism's contribution to the GCC's GDP, with the UAE leading at 56% growth. The Dubai Tourism Board reported a 38% increase in tourist car rentals in 2023, with an average rental duration of 5.2 days per tourist. Corporate Sector Expansion: The expansion of the Middle East's business ecosystem has significantly increased the demand for corporate car rental services. Companies are turning to rentals for flexible, cost-effective transportation solutions as they focus on operational efficiency and business travel needs. In 2023, corporate car rentals in Saudi Arabia rose by 45%, while business rentals in the UAE grew by 35%. Long-term corporate leasing in the GCC increased by 52%. Digital Transformation: The adoption of mobile apps and digital platforms has significantly enhanced the car rental experience. In 2023, online bookings made up 65% of all car rentals, a 55% increase from 2021, according to the GCC Car Rental Association. This shift towards digital solutions highlights the growing preference for easy, on-the-go vehicle bookings. Additionally, mobile app installations for car rentals across the Middle East grew by 92%, underscoring the region's embrace of technology for streamlined rental services.