The Car Rental Market report segments the industry into Booking (Offline Access, Online Access), Application (Leisure/Tourism, Business), End User (Self-driven, Chauffeur-driven), Vehicle Type (Economy/Budget Cars, Luxury/Premium Cars), Rental Length (Short Term, Long Term), and Geography (North America, Europe, Asia-Pacific, Rest of the World). Get five years of historical data alongside five-year market forecasts.

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

Introduction

Car Rental Statistics: Throughout the year 2024, the car rental industry has been evolving. This means that it has grown as an important part of the global travel and transport system. The car rental industry is in a recognised period of significant evolution as technological advancements the rising importance of sustainable practices, and enhanced customer experience adaptation have started making ways towards its fold.

This article will look into the latest car rental statistics, trends, and insights about the car rental industry this year.

Graph and download economic data for Producer Price Index by Industry: Passenger Car Rental: Primary Services (PCU532111532111P) from Dec 1991 to Mar 2025 about primary, rent, vehicles, services, PPI, industry, inflation, price index, indexes, price, and USA.

The France car rental market is segmented by Rental Duration (Short Term and Long Term), Booking type (Online and Offline), and by Application type (Leisure/Tourism and Business), and Vehicle type (Budget/Economy and Premium/Luxury ). The Report Offers the Market Size and Forecast of the France car rental market in value (USD billion) for the above-mentioned segments.

This statistic represents the US rental car industry's total number of cars in service between 2002 and 2012. In 2012, there were about 1.86 million rental cars in service, while the industry's revenue grew to around 23.6 billion US dollars.

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

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.

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

Graph and download economic data for Producer Price Index by Industry: Passenger Car Rental: Replacement Passenger Car Rental (PCU5321115321113) from Dec 1991 to Apr 2025 about passenger, rent, vehicles, PPI, industry, inflation, price index, indexes, price, and USA.

[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

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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 growth due to several key factors. One of the primary drivers is the increasing cost of vehicle ownership, leading more consumers to rent cars instead. Another trend influencing the market is the advent of intermediaries, making it easier for customers to compare prices and find the best deals. Additionally, the rise of car-sharing services has disrupted the traditional car rental industry, offering flexible and affordable options for consumers. The market is expected to grow further, as more consumers opt for flexible and cost-effective transportation solutions such as electric car rental. Car rental companies must adapt to these trends and address challenges such as increasing competition and regulatory issues to remain competitive. 

What will the size of the market be during the forecast period?

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Car rental services have experienced significant transformation in recent years, driven by the increasing penetration of the internet and the proliferation of mobile apps. Global travel and commuting patterns have shifted, with an increasing number of customers preferring the convenience of online booking applications. A car hire agency offers both offline access and online access to vehicle rental services, providing options for self driven or chauffeur driven vehicles, with flexible long term rental plans to suit various customer needs. Car rental operators have responded by investing in information technology to enhance the customer experience. The use of telematics and online verification of documents, e-signing of contracts, and cashless transactions have streamlined the car rental process. The integration of mobile apps has made it easier for customers to book a vehicle at any time and from any location.



Furthermore, the adoption of these technologies has also facilitated employee retention, as they enable more efficient and effective operations. International trips have become more common, and car rental services have expanded their offerings to cater to this market. The rise of electric vehicles (EVs) has also influenced the car rental industry, with operators offering more EV options to meet the growing demand for sustainable transportation. However, travel restrictions and regulations imposed by governments continue to pose challenges for car rental operators. Tourist agencies have also started partnering with car rental services to offer comprehensive travel packages. The integration of these services into travel packages has further increased the convenience for customers, making car rental an essential component of the global travel industry.

How is this market segmented and which is the largest segment?

The market 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 Booking

  Offline
  Online


Rental Category

  Airport transport
  Local transport
  Outstation transport
  Other transport


Type

  Economy cars
  Executive cars
  Luxury cars
  SUVs
  MUVs


Geography

  North America

    Canada
    Mexico
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    India


  Middle East and Africa



  South America

By Mode Of Booking Insights

The offline segment is estimated to witness significant growth during the forecast period.

Offline booking enables customers to reserve a car in advance without having to rely on internet connectivity. This is particularly useful for those who are traveling to remote areas or for those who find themselves in locations where internet connectivity is not reliable. Customers can simply provide their information to the rental company via phone, email, or in person, and the company will take care of the rest. The demand for offline booking has grown considerably in recent years as more customers seek out this added convenience and adopt solutions such as MUV rental. Rental companies are recognizing this trend and are now offering this feature as part of their standard service offering. This has made the process of booking a car much simpler, providing customers with the freedom to rent vehicles at any time, from anywhere.

Additionally, offline booking provides a layer of security for customers. With the ability to book a vehicle even in situations with no internet access, customers are never left stranded without a car. Another reason people choose to book cars offline is to ensure that they get the best rate. People usually think that by booking cars offline, they would be able to negotiate with the staff or get extra discounts. Such factor

The Car Rental industry in Australia has exhibited very high volatility over recent years, with revenue recovering strongly from steep slumps during the pandemic. Air passenger movements and international travel to Australia have risen sharply, heightening demand as tourists rent cars for their stay. Fleet shortages resulting from vehicle supply chain issues have raised the average daily rates for rental cars. These price hikes can support revenue but also steer consumers away to alternatives. Ride-sharing services and price-comparison websites have become increasingly popular, which has created intense price competition. This has forced car rental companies to keep their prices in check to maintain market share, eroding profitability. Revenue is expected to have climbed at an annualised 1.0% over the five years through 2024-25 to $1.49 billion, with no expected change anticipated in 2024-25. Major players like Hertz and Avis dominate the Car Rental industry, which is highly concentrated. Smaller players struggle to capture market share since there are significant entry costs and it’s difficult to become entrenched in airports, which is essential for success. Consumer preferences have shifted from smaller passenger vehicles to medium and large ones because of their space and versatility. Car rental businesses are mainly located in high-population states and popular tourist destinations, as this provides easy access to customers. Looking ahead, economic recovery and expanded aviation routes between Australian cities and South-East Asia will drive increased international travel, benefiting industry demand. Price competition from aggregator websites and the rising popularity of substitutes will continue to pressure the industry, tempering rental prices. Car rental companies will keep developing their digital platforms, providing consumers with a more seamless hiring process. Revenue is forecast to climb at an annualised 2.4% over the five years through 2029-30 to $1.67 billion.

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.

Expert industry market research on the Car Rental in the US (2006-2031). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

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 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.

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.

Car Rental Market was valued at USD 138.27 Billion in 2024 and is anticipated to grow at CAGR of 10.7% from 2025 to 2032 with value of USD 289.70 Billion by 2032.

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Car Rental (Self Drive) Market Size 2025-2029

The car rental (self drive) market size is forecast to increase by USD 2.36 billion, at a CAGR of 30.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One notable trend is the increasing interest in self-driving vehicles, which offer travellers greater convenience and flexibility. Another trend is the integration of telematics technology in self-drive car rentals, enabling real-time vehicle tracking and monitoring. However, the high cost of self-driving car rentals remains a challenge for market growth. Despite this, the market is expected to continue expanding as technology advances and becomes more affordable. The use of telematics in self-drive car rentals offers numerous benefits, such as improved safety, reduced insurance costs, and enhanced customer experience. 
Car rental services cater to intercity and intracity travel, offering inexpensive alternatives to private automobiles for tourists and business travellers alike. However, the high initial investment required for implementing telematics technology and the high cost of self-driving vehicles are major obstacles for market growth. Overall, the self-drive car rental market is poised for growth, driven by the increasing popularity of self-driving vehicles and the integration of telematics technology.

What will be the Size of the Car Rental (Self Drive) Market During the Forecast Period?

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The market represents a significant and dynamic sector within the global mobility industry. This market caters to both tourism and commuting needs, offering short-term and long-term rental options for various vehicle types, including hatchbacks, sedans, SUVs, MUVs, and standard, and luxury models. The market is organized and unorganized, with both online and offline channels serving customers' diverse preferences. Millennials, as a major demographic, are driving growth In the market due to their increasing demand for flexible, cost-effective, and convenient mobility solutions. The market's size is substantial, with millions of transactions occurring annually, especially at airports and tourist destinations.
Mobility infrastructure plays a crucial role In the market's development, with Wi-Fi networks, entertainment systems, GPS systems, and insurance plans enhancing the rental experience. The market's direction is towards greater customization and integration of technology, enabling customers to easily compare prices, book vehicles, and manage their rentals online. The market's continued expansion is driven by the evolving needs of consumers, who seek efficient, flexible, and affordable mobility solutions.

How is this Car Rental (Self Drive) Industry segmented and which is the largest segment?

The car rental (self drive) 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.

Vehicle Type

  Economic cars
  Luxury cars


Mode Of Booking

  Offline
  Online


Type

  Short-term rentals
  Long-term rentals


Application

  Leisure and vacation travel
  Corporate and business use
  Airport rentals
  Intercity and intracity rentals
  Subscription and leasing services


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Vehicle Type Insights

The economic cars segment is estimated to witness significant growth during the forecast period. Self-drive car rentals, particularly those offering economic cars, have gained significant traction in both the tourism and commuting sectors. Millennials, in particular, prefer this mobility option due to its convenience and affordability. Online and offline channels, including websites, mobile applications, and e-booking services, facilitate easy booking. New-age startups have disrupted the car rental sector with custom services, after-sale support, and complementary offerings such as Wi-Fi networks, entertainment systems, and GPS systems. The organized market dominates, but the unorganized sector also plays a role, especially in rural areas. Short-term and long-term rental options cater to various consumer needs. Tourists, service professionals, and corporate offices are significant consumers.

The tourism sector, with international, tourist, and foreign tourist arrivals, drives demand for car rentals at tourist destinations. National highways and road transportation infrastructure development further boost the market. Insurance options are crucial for consumers. Self-drive car rental services offer a range of ownership and lease contracts, allowing customers to choose based on their requirements. Companies

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%.