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 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 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.

Metrics	Data
Valuation (2025)	USD 35.4 billion
Valuation (2035)	USD 56.9 billion
CAGR (2025 to 2035)	4.85%

Car Rental Industry Analysis in the United States

Country	CAGR (2025 to 2035)
USA	5.0%

Competitive Outlook

Company Name	Estimated Market Share (%)
Enterprise Holdings	45-50%
Hertz Global Holdings	25-30%
Avis Budget Group	18-22%
Turo	2-5%
Getaround	1-3%
Other Traditional Rentals	5-7%

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 India Car Rental Market Report is Segmented by Booking Type (Online and Offline), Application Type (Tourism and Commuting/Daily Mobility), Service Model (Self-Drive, Chauffeur-Driven, and More), Vehicle Type (Luxury/Premium Cars and Economy/Budget Cars), Rental Duration (Short-Term, Long-Term), and Rental Channel (Airport and Off-Airport). The Market Forecasts are Provided in Terms of Value (USD).

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.

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%.

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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 is estimated to witness s

Car Rental Market size is expected to be worth around USD 280.7 Billion by 2033, from USD 121.9 Billion in 2023, growing at a CAGR of 8.7%

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.

Attributes	Description
Estimated Global Car Rental Service Market Size (2024E)	USD 3,09,703.4 million
Projected Global Car Rental Service Market Value (2034F)	USD 6,25,867.4 million
Value-based CAGR (2024 to 2034)	7.3%

Semi-annual Market Update

Particular	Value CAGR
H1	23.5% (2023 to 2033)
H2	-6.9% (2023 to 2033)
H1	8.8% (2024 to 2034)
H2	5.8% (2024 to 2034)

Country-wise Insights

Countries	CAGR 2024 to 2034
India	10.1%
Germany	2.4%
Spain	5.9%
Australia	5.8%
United States	3.7%
Canada	4.0%
China	9.3%

Category-wise Insights

Segment	Economy Cars (Car Type)
Value Share (2024)	32.4%

Segment	On-Airport (End Use)
Value Share (2024)	43.2%

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. .

Global Market Share by Key Players

Market Segment	Industry Share (%)
Top 3 (Enterprise, Hertz, Europcar)	50%
Rest of Top 5 (Avis, Sixt)	15%
Next 5 of Top 10 (Thrifty, Alamo, Budget, Green Motion, Virtuo)	20%
Emerging & Regional Brands (peer-to-peer, EV rentals)	15%

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.

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.

United States Car Rental market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

The United States car rental market reached USD 32.99 Billion in 2024. The market is expected to grow at a CAGR of 6.20% between 2025 and 2034, reaching almost USD 60.20 Billion by 2034.

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 car rental market size is valued at USD 166.3 billion in 2025 and is projected to reach a valuation of USD 472.2 billion by the end of 2035, rising at a CAGR of 11% during the forecast period, i.e., 2026-2035. Europe is forecast to dominate with a share of 42% from 2026 to 2035, due to the region's well-developed tourism infrastructure, high international visitor arrivals, and a strong culture of inter-country travel facilitated by the European Union's open border policies.

The Luxury Car Rental Market is Segmented by Vehicle Model Style (Hatchback, Sedan, and More), Rental Duration (Short-Term and Long-Term), Booking Type (Online Booking and More), Drive Type (Self-Driven and Chauffeur-Driven), Propulsion Type (ICE and More), Customer (Leisure Individual and Corporate / MICE), Service Location (Airport and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The Thailand car rental market exhibits robust growth, projected to reach a substantial size in the coming years. The 9.22% Compound Annual Growth Rate (CAGR) from 2019 to 2024 indicates a consistently expanding market, driven primarily by the burgeoning tourism sector and increasing business travel within Thailand. The rise of online booking platforms simplifies the rental process, contributing significantly to market expansion. Furthermore, the increasing affordability of vehicles and a growing middle class with disposable income fuel demand for short-term and long-term rentals. While data for the exact market size in 2025 is unavailable, a logical estimation based on the provided CAGR and assuming a 2024 market size (as a starting point for calculation), leads to an estimated 2025 market value. This growth is further enhanced by the rising popularity of road trips and exploring less accessible regions of Thailand. The market is segmented by booking type (online and offline), rental duration (short-term and long-term), and application type (tourism and commuting). Key players like Hertz, Avis Budget Group, and Enterprise Holdings compete in this dynamic market, alongside several regional players. Growth is also impacted by factors such as fuel prices and government regulations related to vehicle licensing. However, market growth faces certain constraints. Fluctuations in fuel prices directly impact rental costs and consumer demand. Competition, particularly from ride-hailing services, poses a challenge to the industry. Furthermore, potential infrastructure limitations in certain regions and seasonality in tourism can affect the overall market performance. The long-term outlook remains positive, though, given Thailand's strategic location, continually improving infrastructure, and growing appeal as a tourist destination. The increasing adoption of technology by rental companies, through advanced booking systems and fleet management tools, is likely to further enhance efficiency and market competitiveness. The strategic focus on improving customer service and diversifying offerings, such as offering vehicles catering to specific needs (e.g., luxury vehicles), will be crucial for sustained growth and maintaining a competitive edge. Recent developments include: In July 2022, InterContinental Phuket Resort and SIXT Thailand formed a partnership that will introduce the Nissan Leaf to its rental collection in Phuket. To power this new fleet of EVs, InterContinental Phuket Resort has installed a total of six EV charging points - four AC stations and one1 DC station with two chargers., In April 2022, Sixt announced introducing the new "SIXT ELECTRIC" service for the fleet of cutting-edge electric vehicles in Thailand. Customers can now hire and drive two well-known electric vehicles, the Nissan LEAF and the Ora Good Cat (ORA Good Cat), with the fleet initially aiming to include 100 electric vehicles. By year's end, a branch will open on Rama IV Road and at Suvarnabhumi Airport in the center of Bangkok, with plans to eventually extend to other important cities including Chiang Mai and Phuket., In March 2022, Thrifty Car Rental has begun operations in Thailand and plans to expand throughout the country. Thrifty, a subsidiary of the global Hertz International Group, has partnered with local operator Paragon Car Rental to open locations in Bangkok and Pattaya.. Key drivers for this market are: Rise in Tourism Activities to Positively Drive the Market. Potential restraints include: Hike in Fuel Price May Challenge the Market Growth. Notable trends are: Rising Tourism Industry in the Region Drives the Market.