The United Kingdom Car Rentals Market Report is Segmented by Rental Duration (Short-Term and Long-Term), Booking Type (Online and Offline), Application (Leisure/Tourism and Business/Corporate), Vehicle Class (Economy, Standard, and Premium / Luxury), Propulsion Type (ICE, Hybrid, and BEV), End-User (Individual and More), Booking Channel (Airport and More), and Geography. Market Forecasts are Provided in Terms of Value (USD).

The UK car rental market is anticipated to experience substantial growth, expanding from USD 3.80 billion in 2025 to approximately USD 6.43 billion by 2035 at a CAGR of 5.4% throughout the forecast period.

Metric	Value
Industry Size (2025E)	USD 3.80 billion
Industry Value (2035F)	USD 6.43 billion
CAGR (2025 to 2035)	5.4%

Semi-Annual Market Update

Particular	Value CAGR
H1 2024	6.3% (2024 to 2034)
H2 2024	4.8% (2024 to 2034)
H1 2025	6.1% (2025 to 2035)
H2 2025	4.7% (2025 to 2035)

Per Capita Spending Analysis

Year	Population (millions)
2020	67.9
2021	68.3
2022	68.6
2023	69
2024	69.3

Year	Per Capita Spending (USD)
2020	18.82
2021	20.03
2022	22.68
2023	25.58
2024	29.03

The revenue in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was forecast to continuously increase between 2025 and 2029 by in total ***** million U.S. dollars (+**** percent). After the ninth consecutive increasing year, the revenue is estimated to reach *** 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.

Demand for the Car Rental and Leasing industry is driven by consumer and business needs for flexibility and affordability, with leasing appealing due to its cost-effective advantages over purchasing. Strong international tourism has boosted demand for car rental services while businesses have driven demand for car and van leasing. Revenue is expected to climb at a compound annual rate of 3% over the five years through 2024-25 to £22.1 billion, including a 3.1% hike in 2024-25. Recovering demand as economic activity rebounded following the COVID-19 pandemic and higher fees, due to rising new car prices and global supply chain disruptions, have fuelled revenue growth over the two years through 2023-24. The sharp expansion in fuel prices amid the Russia-Ukraine and the Middle East conflicts encouraged companies to hike their prices, further aiding growth. On the other hand, growth has been challenged by rising fuel prices and increasing competition from public transport, especially in urban areas with high levels of infrastructure. Inflationary pressures and faltering business confidence have hindered revenue growth over the two years through 2024-25. Competitive pressures and a weakened economic environment have constrained profitability. Sharp depreciation costs faced by companies due to faltering used electric vehicle (EV) prices have also weighed on profit. The focus of the market is shifting to long, profitable leasing contracts, driving interest from cost-conscious customers. Car rental and leasing revenue is forecast to swell at a compound annual rate of 4.1% over the five years through 2029-30 to £26.9 billion. The continuous development of platforms that support accessibility and experience for customers will drive revenue growth. Continuing a trend seen in the past few years, companies will shift towards buying ultra-low emission and EVs due to rising environmental awareness and consumer preference for eco-friendly vehicles, as well as more concrete steps by the government to incentivise the use of these vehicles. Although fleet investment is likely to weigh on profit, companies offering greener vehicles are likely to remain competitive in the long term. However, challenges loom with the phasing out of EV tax benefits and rising costs from new automotive tariffs and depreciation in used EV values. These factors may drive up rental and leasing rates, potentially deterring demand from some consumers. The potential for the government to extend full expensing to assets bought for leasing or hiring could provide a substantial boost to the industry.

The number of users in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was forecast to continuously increase between 2025 and 2029 by in total *********** users (****** percent). After the ninth consecutive increasing year, the number of users is estimated to reach **** million users and therefore a new peak in 2029. Notably, the number of users of the 'Car Rentals' segment of the shared mobility market was continuously increasing over the past years.Find other key market indicators concerning the average revenue per user (ARPU) and revenue. The Statista Market Insights cover a broad range of additional markets.

The United Kingdom car rental market, valued at approximately £X million in 2025 (assuming a market size 'XX' represents a value in millions of pounds, a reasonable assumption given the context), is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 13.70% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing popularity of domestic and international tourism contributes significantly, with leisure travelers increasingly opting for car rentals for greater flexibility and exploration beyond public transportation networks. Furthermore, the growth of the business travel sector, coupled with the rising preference for convenient and independent transportation solutions, further bolsters market demand. The expansion of online booking platforms simplifies the rental process, attracting a broader customer base and facilitating efficient price comparisons. The market is segmented by rental duration (short-term and long-term), booking type (online and offline), application type (leisure/tourism and business), and vehicle type (budget/economy and premium/luxury). While the market faces restraints such as fluctuating fuel prices and potential economic downturns impacting discretionary spending, the overall growth trajectory remains positive. Key players like Avis, Enterprise, Europcar, Hertz, Sixt, and Uber (through its ride-sharing and rental services) are actively competing in this dynamic market, continuously innovating to cater to evolving customer preferences and technological advancements. The segmentation of the UK car rental market allows for targeted strategies. The short-term rental segment is expected to dominate, driven by tourist traffic. However, the long-term rental segment is showing promising growth, spurred by increasing demand from relocation services and individuals seeking temporary car solutions. Online booking is gaining substantial traction due to ease of access and comparative pricing, surpassing offline channels. The premium/luxury segment is likely experiencing higher growth compared to the budget/economy segment, reflecting a shift towards higher spending on travel experiences. Regional variations exist within the UK market; regions with significant tourist attractions and business centers will likely exhibit higher growth rates compared to less densely populated areas. Future market dynamics will depend on factors such as government regulations regarding emissions and autonomous vehicle adoption, which could significantly impact the landscape. Recent developments include: In April 2022, For its app users in the UK, Uber Technologies on Wednesday revealed expansion ambitions to encompass buses, trains, flights, and rental car business.. Notable trends are: Growing Demand for Tour and Travel Activities.

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%

United Kingdom Car Rental market was valued at USD 7.15 billion in 2024 and is anticipated to grow USD 13.16 billion by 2030 with a CAGR of 10.75%

Pages	81
Market Size	2024: USD 7.15 Billion
Forecast Market Size	2030: USD 13.16 Billion
CAGR	2025-2030: 10.75%
Fastest Growing Segment	Airport
Largest Market	England
Key Players	1. Lex Autolease Ltd. 2. Alphabet (GB) Ltd 3. Enterprise Rent-A-Car UK Ltd. 4. LeasePlan UK Ltd. 5. Europcar Mobility Group 6. Avis Budget Group Inc. 7. Hertz UK Ltd. 8. SIXT SE 9. Dollar Rent A Car, Inc. 10. Green Motion International

The statistic illustrates the market share of car rental companies in the United Kingdom (IUK) in 2015. Enterprise was the leading car rental company in the UK in 2015, with a market share of 30 percent, followed by Europcar with 23 percent. These two companies amount to more than 50 percent of the car rental market in the UK.

The report covers UK Car Rental Sector, Leading Players in UK Car Rental Market, Major Players in UK Car Rental Market.

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

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

The average revenue per paying car rentals customer (ARPU) in the United Kingdom was forecast to continuously decrease between 2025 and 2029 by in total 13.3 U.S. dollars (-3.99 percent). After the eighth consecutive decreasing year, the arpu is estimated to reach 320.4 U.S. dollars and therefore a new minimum in 2029. Find other key market indicators concerning the revenue and user penetration. The Statista Market Insights cover a broad range of additional markets.

Market Size statistics on the Car Rental & Leasing industry in the UK

The penetration rate in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was forecast to continuously increase between 2025 and 2029 by in total *** percentage points. After the ninth consecutive increasing year, the penetration rate is estimated to reach ***** percent and therefore a new peak in 2029. Notably, the penetration rate of the 'Car Rentals' segment of the shared mobility market was continuously increasing over the past years.Find other key market indicators concerning the number of users and revenue. The Statista Market Insights cover a broad range of additional markets.

Snapshot img

Self Drive Market Size 2025-2029

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

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

What will be the Size of the Self Drive Market During the Forecast Period?

Request Free Sample

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

How is this Self Drive Industry segmented and which is the largest segment?

The self drive industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Vehicle Type

  Economic cars
  Luxury cars


Mode Of Booking

  Offline
  Online


Type

  Short-term rentals
  Long-term rentals


Application

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


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy
    Spain


  APAC

    China
    Japan


  South America



  Middle East and Africa

By Vehicle Type Insights

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

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

UK Car Rentals comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

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.

This report is the result of Canadean’s extensive market research covering the car rental market in Spain. It contains detailed data on market dynamics along with latest industry happenings and industry players in Spain. "Spain Car Rental: Market Update" provides a top-level overview and detailed insight into the operating environment of the car rental market in Spain. It is an essential tool for companies active across Spain travel and tourism value chain and for new players considering to enter the market. Read More

The North American vehicle rental market, valued at approximately $30 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 9% from 2025 to 2033. This expansion is fueled by several key factors. The increasing popularity of leisure travel and business trips, particularly among millennials and Gen Z, drives demand for short-term rentals. Furthermore, the rise of ride-sharing services, while seemingly competitive, indirectly boosts the market by supplementing existing transportation infrastructure and creating a larger pool of potential renters for longer durations or specialized vehicles like SUVs and MPVs. The growth of the tourism sector and increased urbanization also contribute significantly. Technological advancements, such as improved online booking platforms and mobile apps, enhance customer experience and streamline the rental process, fostering market expansion. The segment breakdown reveals a significant demand for luxury and economy cars, with a growing preference for online bookings and short-term rentals for local usage. However, the market also faces certain challenges. Fluctuations in fuel prices and economic downturns can directly impact rental demand, potentially leading to decreased revenue. Increased competition from ride-sharing services and peer-to-peer car-sharing platforms necessitates continuous innovation and service differentiation for established rental companies. Stringent regulations regarding vehicle emissions and environmental concerns are also pushing companies to adopt sustainable practices, which may involve significant investments. Nevertheless, the overall market outlook remains positive, driven by the underlying growth in travel and tourism, and the ongoing adaptation of rental companies to evolving consumer preferences and technological advancements. The North American market, with its large and diverse population and developed infrastructure, remains a key focus for major players in the global vehicle rental industry. Recent developments include: In June 2022, Hertz Company announced a USD 4.2 billion deal to purchase 100,000 Tesla fully electric vehicles (EVs) by the end of 2022 set off a race among rental car agencies. Hertz did not state the overall number of vehicles in its fleet so it's unknown how many Teslas are available in the more than 30 markets currently offering EVs, which now also include the first of the 65,000 Polestar 2s - an EV brand jointly owned by Volvo and its Chinese parent Geely which has planned to go public through a SPAC deal., In September 2021, Enterprise Holdings announced its collaboration with Microsoft for bringing connected car technology to the former company's car rental, commercial trucks, and exotic vehicle rental fleets in the United States and soon the UK and Canada. Through this collaboration, Enterprise Holding is expected to advance the streamlined rental experience of the future., In October 2021, the Enterprise Holdings subsidiary announced an agreement to acquire Walker Vehicle Rentals, a commercial vehicle rental company. Enterprise has its presence in the commercial vehicle rental market in Ireland and the acquisition helped the business to enhance the choice and value of vehicles and services it delivers to organizations.. Notable trends are: Short term Rental Segment of Market Expected to Drive Demand in the Market.