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

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.

[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 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).

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.

This chart represents the market share of car rental companies in the United States in 2017. Enterprise is by far the largest car rental company in the U.S. at just under 44 percent of the total market. The majority of rental car companies can be grouped into three major conglomerates. First, there is Enterprise Holdings, which owns Enterprise, National, and Alamo, then there is the Hertz Group, comprising Hertz, Thrifty, and Dollar and, lastly, there is also the Avis-Budget Group. These three business groups have a combined market share of almost 94 percent.

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 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.

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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

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%.

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.

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 5.6 billion U.S. dollars (+17.11 percent). After the ninth consecutive increasing year, the revenue is estimated to reach 38.3 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 is set to grow at a CAGR of 18.84% from 2025-30. Sixt SE, Enterprise Holdings (Alamo), Hertz Corp are some top players in the market.

The Car Rental 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.

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 Report Covers Brazil’s Car Rentals Companies, and the Market is Segmented by Application Type (Leisure/Tourism, Business, and Fleet Outsourcing), Booking Type (Offline and Online), Vehicle Type (Passenger Cars and Commercial Vehicles), and End User (Fleet Operator and Tour Operator). The Report Offers Market Size and Forecasts in Terms of Value (USD Billion) for the Above Segments.

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.

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

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.

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