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

Pent-up demand for travel and a limited supply of new vehicles caused Car Rental industry revenue to surge in 2021 and 2022, as high demand and low supply elevated rental prices. More recently, the industry has grappled with a swift devaluation of electric vehicle models and falling passenger volumes at airports, which are vital to success. As travel demand normalizes and new vehicle production stabilizes, car rental companies are adapting by implementing strategies, including optimizing fleet sizes and strengthening digital platforms. Industry revenue has climbed at a CAGR of 6.2% to reach $60.7 billion through the end of 2025, despite a 1.3% drop in 2025 alone. Profit has recovered from the lows endured during the pandemic, accounting for an estimated 8.3% of industry revenue in 2025. On the bright side, the return of business travel gives the industry a boost, as resuming corporate events and networking activities have strengthened rental demand among companies, promising more stable revenues and customers desiring top-tier services. However, new challenges have unfolded, including stronger competition from ride-sharing services. Car rental providers are adopting responsive strategies, such as digital check-ins, contactless pickups, flexible drop-offs and dynamic pricing. They've had to rebalance fleet sizes to match booking volumes while enhancing digital capabilities to attract tech-savvy travelers. The growing number of international visitors, driven by mega-events like the FIFA 2026 World Cup and the 2028 Summer Olympics, offers an opportunity for car rental companies to soar through the next five years to 2030. Preparations for these influxes, such as investing in premium fleet options and forging partnerships with travel aggregators and tour operators, are in full swing. The industry will gear up for technological advancements like limited deployments of self-driving cars. Car rental providers will actively seek strategic collaborations like affiliate programs or partnerships with travel platforms and public transit providers to extend their reach. Despite some headwinds, the industry appears ready for the challenges ahead, leveraging innovation, adaptability and strategic partnerships. Car rental revenue will expand at a CAGR of 2.2% to $67.5 billion through the end of 2030.

The United States Vehicle Rental Market Report is Segmented by Application (Leisure and Tourism and Business and Corporate), Vehicle Type (Passenger 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 Region. The Market Forecasts are Provided in Terms of Value (USD).

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 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

[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 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 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.

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Europe Vehicle Rental Market Size 2025-2029

The Europe vehicle rental market size is forecast to increase by USD 21.46 billion, at a CAGR of 8.8% between 2024 and 2029.

The market is experiencing significant growth, driven by several key factors. Firstly, there is a growing awareness and preference for car rental among European consumers, particularly among the younger demographic. Secondly, the increasing dependence on technology-driven rental vehicle services is helping to expand the customer base and improve the overall rental experience. Additionally, the rising number of car-sharing services is contributing to the market growth, providing a more flexible and affordable option for consumers. The market is also facing challenges, such as increasing competition and regulatory compliance, which companies must navigate to remain competitive and profitable.

What will be the Europe Vehicle Rental Market Size During the Forecast Period?

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The Europe Vehicle Rental Market growth, caters to the needs of both business and leisure travelers. Automobiles are rented through both online channels and offline stores, with Rental Car services being the key players. Travelers prefer renting personal vehicles for flexibility and convenience during global travel or local usage. Car damage repair and insurance compensation policies are essential considerations for car rental operators. Entertainment systems and Internet booking applications have become essential features for car rentals, enhancing the user experience. Airport transport is a major segment, while economy cars and executive cars cater to different customer segments.
The upper middle-class demographic serves as a crucial consumer segment, with urbanization and rising internet penetration fueling demand in the vehicle rental market. Advancements in vehicle rental technology are optimizing operations, allowing companies to efficiently manage fleet management, customer bookings, and rental logistics. Airports continue to be prime locations for passenger car rentals and light truck rental, given their high traveler volume. The surge in leisure travel and bleisure (business and leisure combined), along with the trend of global commuting, is amplifying the demand for rental vehicles, including short-term car rental and long-term car rental services. Additionally, the adoption of electric vehicle rentals and eco-friendly car rental options is reshaping the industry, particularly in regions like Europe, where light trucks for rent are gaining traction. As consumers increasingly opt for rental solutions over ownership, the market is poised for sustained growth.

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.

Distribution Channel

  Offline
  Online


Type

  Short term
  Long term


Geography

  Europe

    Germany
    UK
    France
    Italy

By Distribution Channel Insights

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

Offline distribution channels in the market include rental offices, travel agents, and hotel partnerships. These channels provide a tangible and convenient option for customers who may not feel comfortable using online platforms or who lack access to them. Additionally, offline rentals often attract spontaneous travelers or those in need of immediate assistance, as they can simply visit a rental office and secure a vehicle on the spot.

Travel agencies also play a significant role in the offline segment. Collaborating with these agencies allows vehicle rental companies to reach a wider audience, particularly tourists and business travelers, who often rely on travel agents for comprehensive travel services. Hotels also contribute to the offline distribution of rental vehicles. Many hotels partner with car rental companies to offer on-site services, enabling guests to book transportation directly through hotel concierges. These factors combined are expected to drive growth in the vehicle rental market in Europe during the forecast period.

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Market Dynamics

Our market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of the market?

Growing awareness about rental cars among European people is the key driver of the market.

The market is experiencing significant growth due to shifting consumer preferences towards mobility solutions. The tre

The size of the Europe Car Rental Market market was valued at USD 14.34 Million in 2023 and is projected to reach USD 26.15 Million by 2032, with an expected CAGR of 8.96% during the forecast period. 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: Strict Government Regulations and Policies Toward Car Rental Service Deter Market Growth. Notable trends are: Online Segment of the Market to Gain Traction during the Forecast Period.

In 2024, China ranked first by number of users in the 'Car Rentals' segment of the shared mobility market among the 9 countries presented in the ranking. China's number of users amounted to ************** users, while the United States and Germany, the second and third countries, had records amounting to ************* users and ************ users, respectively.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

The Middle East Car Rental Market is Segmented by Booking Type (Online and Offline), Application (Leisure/Tourism, Daily Utility/Business), Vehicle Type (Economy, Luxury and Premium), End-User Type (Self-Driven and Chauffeur), Service Model (On-Airport, and Off-airport/Local), Propulsion (Internal-Combustion ICE, Electric and Hybrid), and Country. The Market Forecasts are Provided in Terms of Value (USD).

The Canadian car rental industry is currently facing several challenges, despite a 2.2% climb in passenger traffic at key airports in 2025. Despite the boost in air travel, car rental revenue is dwindling, primarily attributed to changes in traveler behavior, including shorter stay durations and less frequent car rentals, alongside a growing attraction to ride-sharing and public transit. Industry giants like Avis Budget Group and Hertz traditionally derive substantial revenue from the airport market but are now retooling pricing strategies because of evolving traveler habits. Car rental companies are grappling with rising insurance and maintenance costs, driven by inflation, technological advancements in vehicles and increasing accident claims. Revenue is expected to climb at a CAGR of 5.2% to $6.2 billion through the end of 2025, despite a 3.6% drop in 2025, when profit will reach 8.4%. The gain in revenue through the end of 2025 can be mainly attributed to the high rental rates and strong utilization rental providers enjoyed in 2022 and 2023. Car rental companies are reevaluating their fleet electrification in response to weakening demand for electric vehicles (EVs) in Canada. Surprisingly, EV sales are dipping and Canadians are favoring hybrids or gasoline vehicles over electric alternatives because of concerns about charging infrastructure and range. This scenario is problematic for car rental companies, given the higher acquisition cost of EVs compared to conventional vehicles. Companies are slowing down their fleet electrification efforts, focusing more on hybrids and maintaining traditional vehicles in response to customer demand. The future of the Canadian car rental industry will be shaped by increasing competition from ride-sharing services and the adoption of transformative digital technologies. Uber and Lyft are already considerable threats to market demand, especially for short-duration and urban trips. In response, rental companies are intensifying their digital innovation initiatives, experimenting with short-term rental options and forming partnerships with mobility platforms. Significant international events such as the 2026 FIFA World Cup and improvements in vehicle technologies like autonomous capabilities will directly impact the industry. Rental providers are gearing up to accommodate the expected surge in demand by expanding their fleets and enhancing digital service channels. On the technical side, while hands-on involvement in autonomous vehicle (AV) fleet operations is currently limited, companies are investing in connected vehicle technology, anticipating the adoption of AVs. Because of these trends, industry revenue will climb at a CAGR of 1.9% to $6.8 billion through the end of 2030.

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 Business Market size was valued at USD 132.49 Billion in 2023 and is projected to reach USD 278.04 Billion by 2030, growing at a CAGR of 11.3% during the forecast period 2024-2030.

Global Car Rental Business Market Drivers

The market drivers for the Car Rental Business Market can be influenced by various factors. These may include:

Travel and tourist Trends: The travel and tourist sector and the automobile rental business are closely related. The demand for rental automobiles typically rises as more people travel for business or pleasure.

Urbanization: As cities expand, there is frequently a greater need for temporary transit options. In cities, car rentals can offer a variety of flexible mobility options.

Economic Factors: A number of factors, such as consumer confidence and disposable income levels, might affect the market for car rentals. People can be more inclined to spend money on travel and related services during economic upturns.

Business Travel: The market for rental cars is greatly influenced by business travel. Corporate car rentals are becoming more and more necessary as organizations grow and go worldwide.

Air Travel: Since many consumers rent cars right out of airports, automobile rental companies frequently profit from air travel. The demand for rental automobiles may fluctuate in response to shifts in passenger volumes and air travel patterns.

Technological Advancements: New developments in online reservation platforms, smartphone apps, and automobile rental platforms can improve customer experiences by simplifying the rental process for customers and fleet management for businesses.

Environmental Concerns: As people become more conscious of environmental issues, their interest in eco-friendly and sustainable modes of transportation has grown. Several automobile rental firms have begun to add hybrid and electric cars to their fleets.

Changing Customer Preferences: The car rental sector may be impacted by changes in customer preferences, such as a predilection for adaptable and on-demand transportation options. Other alternative mobility options, including vehicle-sharing, could have an impact on the conventional automobile rental business.

Regulatory Environment: Market dynamics may be impacted by government laws, rules, and policies pertaining to the vehicle rental sector, such as those pertaining to licensing, taxes, and environmental standards.

Competitive Landscape: Market developments can be influenced by the strategies and presence of significant companies in the vehicle rental sector. Market share and competitiveness may be impacted by mergers, acquisitions, and new competitors.

The global car rental market size 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, valued at $122.23 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 20.5% from 2025 to 2033. This expansion is fueled by several key drivers. The burgeoning tourism sector and increasing business travel contribute significantly to demand. Furthermore, the rise of online booking platforms simplifies the rental process, enhancing convenience and accessibility for consumers. A shift towards leisure travel, particularly among younger demographics, coupled with the increasing affordability of car rentals, further fuels market growth. The market is segmented by booking mode (online and offline), rental category (airport, local, outstation, and other transport), and vehicle type (economy, executive, luxury cars, SUVs, and MUVs). The competitive landscape is dynamic, with leading companies employing diverse strategies including technological advancements, loyalty programs, and strategic partnerships to gain market share. While the industry faces challenges such as fluctuating fuel prices and stringent regulations, the overall outlook remains positive, driven by sustained demand and technological innovation. Geographic distribution of the market shows significant regional variations. North America and Europe currently hold substantial market shares, driven by well-established tourism infrastructure and a high concentration of business travelers. However, the Asia-Pacific region is expected to exhibit the fastest growth during the forecast period, fueled by rapid economic development and rising disposable incomes in emerging economies like India and China. The Middle East and Africa, and South America also present promising opportunities for market expansion, though the growth trajectory may be influenced by factors specific to each region, such as infrastructure development and economic stability. This detailed analysis suggests that strategic investments in technology and targeted expansion into high-growth regions are key for success in the increasingly competitive car rental market.

India Car Rental Market size was valued at USD 1.58 Billion in 2024 and is projected to reach USD 3.82 Billion by 2032, growing at a CAGR of 11.7% from 2026 to 2032.

Key Market Drivers Growing Tourism and Business Travel: The growing expansion of local and international travel in India is driving up demand for automobile rental services. According to the Ministry of Tourism, Government of India, foreign tourist arrivals (FTAs) in India are expected to reach 6.2 million in 2023, while domestic tourist visits are projected to reach 1.7 billion. This rise in travel is driving up automobile rental bookings, particularly in major cities and tourist destinations.

Rising Adoption of App-Based Mobility Services: The growing use of digital platforms and ride-hailing apps has altered India's car rental industry. According to VMR, India is projected to have over 1.2 billion smartphone users in 2023, fueling the widespread adoption of app-based rental services

The global automotive rental market is experiencing robust growth, projected to reach a market size of $105.88 billion in 2025 and exhibiting a Compound Annual Growth Rate (CAGR) of 7.3% from 2025 to 2033. This expansion is driven by several key factors. Increased travel and tourism, particularly leisure travel, are fueling demand for rental vehicles, especially in regions with underdeveloped public transportation systems. The rise of the sharing economy and the increasing popularity of peer-to-peer car rentals are also contributing to market growth. Furthermore, the business travel segment continues to play a significant role, with companies utilizing rental cars for employee mobility and short-term transportation needs. Airport rental locations remain crucial for capturing a substantial portion of the market, although off-airport rentals are gaining traction due to improved accessibility and potentially lower pricing. The market is segmented by rental type (leisure and business) and location (airport and off-airport), allowing rental companies to tailor their services to specific customer segments. Competition is fierce among major players such as Enterprise, Hertz, Avis Budget Group, and others, prompting innovation in fleet management, technology integration (e.g., mobile apps for booking and management), and customer service offerings to enhance market share and customer loyalty. The competitive landscape is dynamic, with both large multinational corporations and regional players vying for market dominance. Differentiation strategies focus on pricing, vehicle types, service offerings (e.g., insurance packages, add-on services), and geographical reach. The market is expected to see further consolidation through mergers and acquisitions, particularly among smaller regional operators. Factors such as fluctuating fuel prices, economic downturns, and the emergence of alternative transportation solutions (e.g., ride-sharing services) could pose challenges to the sustained growth of the automotive rental market. However, the overall outlook remains positive, driven by the continuous growth of travel and tourism and the ongoing adoption of rental vehicles as a convenient and flexible transportation option across diverse sectors.

Turkey Car Rental Market size is valued at around USD 1.14 billion in 2025 and is projected to reach USD1.73 billion by 2032 at 6.14% CAGR during 2026-32.