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).

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, 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

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 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 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

Global Market Share by Key Players

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.

Poland Car Rental Market is segmented by Booking Type (Online Booking and Offline Booking), By Vehicle Body Style (Hatchback, Sedan, and SUV), By Vehicle Type (Economy Cars and Luxury Cars), By Application (Leisure/Tourism and Business). The report offers the market size and forecast in Value (USD Billion) for all the above segments.

The Germany Car Rental Market is Segmented by Application Type (Leisure /Tourism and Business), Booking Type (Offline and Online), and Rental Length Type (Short Term and Long-Term). The Report Offers the Market Size and Forecast of the German car rental market in value (USD Billion) for the above-mentioned segments.

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.

Snapshot img

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

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.

The Car Rental Market size was valued at USD 132.48 billion in 2023 and is projected to reach USD 278.54 billion by 2032, exhibiting a CAGR of 11.2 % during the forecast period. 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. .

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.

Automotive Rental Market Outlook

The global automotive rental market size was valued at approximately USD 82.6 billion in 2023 and is projected to reach around USD 135.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.6% during the forecast period. This growth can be attributed to multiple factors such as the increasing need for mobility solutions, growing tourism, and the rise in urban population leading to higher demand for car rental services. Additionally, advancements in technology facilitating easier booking processes and more efficient fleet management have further propelled the growth of this market.

One of the significant growth factors of the automotive rental market is the increasing urbanization and population growth in metropolitan areas. As cities become more crowded, the demand for public transportation and personal mobility solutions rises. Car rental services offer a flexible, convenient alternative to car ownership, especially in urban environments where parking space is limited and the costs associated with vehicle maintenance can be prohibitive. Additionally, the shift towards a sharing economy has made automotive rentals an appealing option for many urban dwellers who prefer on-demand access to vehicles over ownership.

Another key factor driving the market is the burgeoning tourism sector worldwide. With international travel becoming more accessible and affordable, there is a steep rise in demand for rental cars, both for leisure and business purposes. Tourists often prefer renting cars to explore destinations at their own pace and convenience, which boosts the need for rental services. Moreover, the rise in business travel also contributes significantly to the demand for rental cars, as corporate clients seek efficient and flexible transportation solutions for their professional commitments.

Car rental services have become an integral part of the travel and tourism industry, offering a convenient and flexible transportation solution for both leisure and business travelers. With the increasing number of tourists exploring new destinations, the demand for car rental services has surged, allowing travelers to experience the freedom of exploring at their own pace. Car rental companies are continually enhancing their offerings by providing a wide range of vehicles, from economy cars to luxury models, catering to diverse customer preferences. This flexibility not only enhances the travel experience but also supports the growth of the tourism sector by providing easy access to transportation.

Technological advancements have also played a crucial role in the expansion of the automotive rental market. The integration of digital platforms for booking and managing rental services has revolutionized the industry, providing customers with a seamless and user-friendly experience. Mobile apps and online portals have made it easier for consumers to compare prices, book vehicles, and access customer support. Furthermore, the adoption of telematics and vehicle tracking systems has enhanced fleet management capabilities, enabling rental companies to optimize their operations and offer better services.

Regionally, North America and Europe are the dominant markets for automotive rental services, primarily due to the high level of urbanization, advanced infrastructure, and a strong tourism industry. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period, driven by increasing disposable incomes, rapid urbanization, and expanding tourism. The Middle East & Africa region is also showing promising growth due to rising tourism and favorable economic conditions. In Latin America, the market is growing steadily, supported by developing infrastructure and increasing awareness of automotive rental services.

Vehicle Type Analysis

The automotive rental market is segmented by vehicle type into economy cars, luxury cars, SUVs, MUVs, and others. Economy cars have traditionally held the largest market share due to their affordability, fuel efficiency, and suitability for a wide range of customers. These vehicles are particularly popular among budget-conscious travelers and urban commuters who require reliable, cost-effective transportation. The demand for economy cars is expected to remain strong, driven by growing urbanization and the need for economical mo

Snapshot img

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 UAE car rental market, characterized by a robust tourism sector and a burgeoning population, exhibits significant growth potential. The market's expansion is fueled by several key drivers. Firstly, the increasing preference for self-driven rentals, particularly among younger demographics and tourists seeking independent exploration, is boosting demand. Secondly, the rise of online booking platforms has streamlined the rental process, enhancing convenience and accessibility. Technological advancements, such as mobile applications and integrated GPS systems, further contribute to this growth. While a precise market size for the UAE is unavailable from the provided data, considering the global CAGR of 11.80% and the strong economic conditions in the UAE, a reasonable estimate would place the 2025 UAE car rental market size at approximately $500 million. This is a conservative estimate given the region's high tourism and business travel. Growth is further supported by the increasing availability of diverse vehicle options, catering to various budgets and preferences, from budget-friendly economy cars to luxury vehicles. However, challenges like stringent regulatory frameworks and fluctuating fuel prices could potentially act as restraints on market growth. Competition within the market is fierce, with both international players like Hertz and Europcar and local companies vying for market share. The segment most likely to experience rapid expansion is the short-term, self-driven, online booking segment. This reflects the fast-paced nature of modern travel and the convenience sought by consumers. Looking forward, the UAE car rental market is projected to maintain a healthy growth trajectory throughout the forecast period (2025-2033). The continued development of tourism infrastructure, coupled with investments in smart city initiatives and transportation solutions, will act as catalysts for market expansion. However, sustained economic growth and effective management of potential regulatory hurdles will be critical for maintaining the current growth momentum. Further segmentation within the market will likely emerge, possibly involving electric vehicle rentals and specialized services catering to niche tourist segments. The integration of advanced technologies such as autonomous driving features in rental vehicles is also a possibility, further shaping the market landscape in the future. The competitive landscape will likely remain dynamic, with players focusing on enhancing customer experience and optimizing operational efficiency through technological investments. This in-depth report provides a comprehensive analysis of the burgeoning UAE car rental market, projecting substantial growth from 2025 to 2033. The study covers the historical period (2019-2024), with 2025 serving as the base year and encompassing a forecast period extending to 2033. This report is essential for businesses seeking to navigate the complexities of this dynamic sector, encompassing key segments such as self-driven car rentals, chauffeur-driven services, short-term and long-term rentals, online and offline bookings, and diverse vehicle types ranging from budget-friendly options to premium luxury cars. The report also identifies key players and examines the impact of evolving regulations and technological advancements. Key drivers for this market are: Growing demand for ADAS likely Drive the Market. Potential restraints include: Lower efficiency in bad weather conditions. Notable trends are: Growing Demand for Travel to Propel The Demand.