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).

Global Market Share by Key Players

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

The 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

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.

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 number of users in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was modeled to stand at ************ users in 2024. Between 2017 and 2024, the number of users rose by ******* users, though the increase followed an uneven trajectory rather than a consistent upward trend. The number of users will steadily rise by ************ users over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

The United Kingdom car rental market was valued at USD 7.30 Billion in 2024. The industry is expected to grow at a CAGR of 8.50% during the forecast period of 2025-2034 to attain a valuation of USD 16.51 Billion by 2034.

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.

The revenue in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was modeled to stand at ************ U.S. dollars in 2024. Between 2017 and 2024, the revenue rose by *********** U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by *********** U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

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 ** percent, followed by Europcar with ** percent. These two companies amount to more than ** percent of the car rental market in the UK.

The global car rental market, driven by the demand for mobility solutions and the convenience of vehicle rental services, is witnessing significant industry growth. Innovations by the largest rental car companies and the rise of online platforms have enhanced customer experiences, offering flexibility and streamlined booking processes. Market segments like short-term rentals and economy cars are thriving due to their affordability, appealing to a broad customer base. North America and Asia-Pacific are key contributors to this expansion, with the latter poised for rapid growth. Additionally, the industry is adapting to urban mobility changes by incorporating eco-friendly vehicles and exploring peer-to-peer car sharing, aligning with a shift towards sustainable and user-centric mobility options. This evolution, detailed in our comprehensive report PDF, indicates that vehicle rental services will play a crucial role in the future of transportation. For detailed industry statistics on market size, price trend, and revenue growth, refer to Mordor Intelligence™ Industry PDF, with detailed market analysis and forecasts available in a free report PDF download, highlighting the potential and dynamics of the global car rental industry. Adding to this, our annual report will provide a deeper dive into the industry statistics, market cap and industry worth, showcasing size global and price trends. This profile PDF includes essential market data to help stakeholders understand the current state and future prospects of the car rental market.

  Car Rental Report Covers the Following Countries: USA, United States, US, Canada, DE, Germany, German, UK, United Kingdom, FR, France, French, ES, Spain, Spanish, IN, India, Indian, China, Chinese, JP, Japan, Japanese, KR, South Korea, South Korean, SA, South America, South American, MEA, Middle East and Africa, Middle Eastern and African, MENA, Middle East, Middle Eastern, Africa, African

The penetration rate in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was modeled to amount to **** percent in 2024. Between 2017 and 2024, the penetration rate rose by **** percentage points, though the increase followed an uneven trajectory rather than a consistent upward trend. The penetration rate will steadily rise by **** percentage points over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

United Kingdom Car Rentals Market size was valued at USD 3.71 Billion in 2024 and is projected to reach USD 6.08 Billion by 2032, growing at a CAGR of 9.70% from 2026 to 2032. Key Market Drivers:Tourism Recovery and International Travel Resurgence: The growing number of international and domestic tourists in the United Kingdom is expected to drive the demand for car rentals. It is anticipated that more tourists will seek flexible transportation options, contributing to the rise in rental bookings. According to VisitBritain, international visits to the UK reached 38 million in 2023, with a projected growth to 39.5 million visits by 2025. Tourism spending is expected to reach USD 34.1 billion, representing a significant market for rental services. Shift Toward Flexible Mobility Solutions: Consumer preferences are evolving from traditional vehicle ownership to more flexible mobility solutions, particularly in urban areas where the cost of vehicle ownership is high. Car rental services have become an attractive alternative, offering convenience without the long-term financial commitment of purchasing a vehicle. The Department for Transport (DfT) reported that the number of households without cars in urban areas increased by 5.7% between 2020 and 2023, while car rental service usage among these households grew by 18%.

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

Number of Businesses statistics on the Car Rental & Leasing industry in the UK

In 2024, the arpu in the 'Car Rentals' segment of the shared mobility market in the United Kingdom was modeled to amount to ****** U.S. dollars. Between 2017 and 2024, the figure dropped by **** U.S. dollars, though the decline followed an uneven course rather than a steady trajectory. The forecast shows the arpu will steadily grow by ***** U.S. dollars from 2024 to 2030.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Car Rentals.

The European tourism vehicle rental market is experiencing robust growth, projected to reach €150.34 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 16% from 2025 to 2033. This expansion is fueled by several key factors. The rising popularity of independent travel and experiential tourism encourages more tourists to rent vehicles for exploring destinations at their own pace. Technological advancements, such as user-friendly online booking platforms and mobile apps offering seamless rental processes, are streamlining the customer journey and driving market growth. Furthermore, the increasing affordability of vehicle rentals, coupled with expanding infrastructure in popular tourist destinations, contributes significantly to market expansion. Competition is fierce, with established players like Enterprise Holdings Inc., Avis Budget Group, and Hertz Global Holdings Inc. vying for market share alongside innovative startups offering unique rental options, such as peer-to-peer car sharing platforms. Segment-wise, the online booking segment dominates, reflecting the shift towards digitalization in travel planning. Short-term rentals are the most popular choice, catering to the needs of leisure travelers. However, the long-term rental segment is expected to see considerable growth driven by business travel and the increasing popularity of extended vacations. Geographically, the United Kingdom, Germany, France, Italy, and Spain represent the largest markets within Europe, though significant growth potential exists in the "Rest of Europe" category as tourism infrastructure develops and awareness of rental options increases. Challenges to market growth include fluctuating fuel prices, seasonality in tourism, and increasing regulatory pressures concerning emissions and sustainable practices. Nevertheless, the overall outlook for the European tourism vehicle rental market remains positive, with sustained growth anticipated over the forecast period driven by consistent demand from both leisure and business travelers. Recent developments include: October 2022: Hertz and Palantir Technologies Inc. announced a multi-year partnership to use real-time, data-driven insights to drive operational excellence at Hertz and improve the customer experience. This investment is part of Hertz's ongoing commitment to modernize its technology platforms in order to lead in electrification, shared mobility, and customer experience. Hertz is using the Palantir Foundry operating system to build a platform that will help the company manage and operate its nearly 500,000-vehicle fleet, which includes tens of thousands of EVs, more efficiently., February 2022: Hertz announced an investment to expand electric vehicle commitment with a new UFODRIVE partnership. As Hertz's commitment to lead the future of mobility, the company invested in UFODRIVE - the leading self-service electric vehicle rental company and mobility service provider in Europe., January 2022: SIXT partnered with itTaxi, an Italian taxi operator, to provide on-demand taxi services in Rome using the SIXT application. The company is advancing the internationalization of its mobility platform ONE by growing its network in Italy and improving its ride-hailing and transfer service, offering SIXT rides.. Key drivers for this market are: Rising Tourism Activities is Likely to Drive Demand in the Market. Potential restraints include: Rising Tourism Activities is Likely to Drive Demand in the Market. Notable trends are: Rising Tourism Activities is Likely to Drive Leisure/Tourism Application Segment of the Market.

The Europe Tourism Vehicle Rental Market Report is Segmented by Application (Leisure/Tourism and Business), Booking Channel (Online and Offline), Rental Duration (Short-Term and Long-Term), Vehicle Type (Economy/Compact, SUV and Crossover, and More) and Country (United Kingdom, Germany, and More). The Market Forecasts are Provided in Terms of Value (USD).

Employment statistics on the Car Rental & Leasing industry in the UK

Peer-to-Peer Car Rental Market Outlook

According to our latest research, the global peer-to-peer car rental market size reached USD 5.4 billion in 2024, reflecting robust expansion driven by digital transformation and the rising popularity of shared mobility solutions. The market is advancing at a CAGR of 17.8% and is forecasted to attain a value of USD 27.6 billion by 2033. This remarkable growth is underpinned by increasing consumer preference for flexible transportation options, technological advancements in digital platforms, and a growing inclination toward sustainable and cost-effective mobility solutions.

One of the primary growth factors propelling the peer-to-peer car rental market is the increasing acceptance of the sharing economy, which has fundamentally transformed consumer attitudes toward car ownership. Millennials and Gen Z, in particular, are prioritizing access over ownership, seeking convenient, affordable, and flexible transportation alternatives. Digital platforms have made it easier than ever for individuals to rent out their vehicles, generating supplemental income and reducing the total cost of car ownership. The proliferation of smartphones and mobile applications has further facilitated seamless booking, payment, and vehicle handover processes, thus enhancing the overall user experience. These technological advancements, coupled with the rising awareness of environmental sustainability, are encouraging more people to participate in peer-to-peer car sharing, both as renters and vehicle providers.

Another significant driver is the rapid urbanization and congestion in metropolitan areas, which has made traditional car ownership less practical and more expensive. Urban dwellers are increasingly turning to peer-to-peer car rental services for short-term and on-demand mobility needs, avoiding the costs and hassles associated with maintenance, insurance, and parking. Moreover, the expansion of business travel and tourism sectors has amplified demand for flexible mobility solutions, especially among travelers who prefer personalized and localized experiences. Peer-to-peer car rental platforms offer a wide variety of vehicle choices, from economy to luxury models, allowing users to select vehicles tailored to their specific requirements and budgets. This adaptability is a key competitive advantage over conventional car rental agencies, which often have more rigid pricing and vehicle availability structures.

The integration of advanced technologies such as artificial intelligence, blockchain, and telematics is also playing a pivotal role in the market's growth. These innovations are enhancing trust and transparency between users by enabling secure transactions, real-time vehicle tracking, and automated damage assessments. Additionally, many platforms are adopting contactless rental processes, which gained significant traction during the COVID-19 pandemic and continue to be popular due to their convenience and safety. The ongoing evolution of electric and hybrid vehicles within peer-to-peer fleets is further aligning the industry with global sustainability goals, attracting environmentally conscious consumers and supporting regulatory compliance in various regions.

From a regional perspective, North America currently dominates the peer-to-peer car rental market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The United States, with its mature sharing economy infrastructure and high smartphone penetration, leads the market, while European countries such as the United Kingdom, Germany, and France are witnessing rapid adoption due to favorable regulatory environments and urban mobility initiatives. The Asia Pacific region is projected to exhibit the highest growth rate during the forecast period, driven by rising urbanization, increasing disposable incomes, and the proliferation of digital platforms in emerging economies such as India and China. Latin America and the Middle East & Africa are also experiencing steady growth, albeit from a smaller base, as awareness of shared mobility continues to spread.

Car Type Analysis

The peer-to-peer car rental market is segmented by car type into economy cars, luxury cars, SUVs, and others, each catering to distinct consumer preferences and mobility needs. Economy cars remain the most popular choice among users, primarily due to their affordability, fuel efficiency, and suitability for short-term urban commu