| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 2.77 Billion |
| Market Size (2030) | USD 5.24 Billion |
| CAGR (2025 - 2030) | 13.60% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
ASEAN Car Rental Market Analysis
The ASEAN Car Rental Market size is estimated at USD 2.77 billion in 2025, and is expected to reach USD 5.24 billion by 2030, at a CAGR of 13.60% during the forecast period (2025-2030).
Factors such as a robust tourism industry, driven by diverse attractions and cultural experiences, are fueling significant growth in the ASEAN car rental market. This surge in demand for rental vehicles comes from both domestic and international travelers. Additionally, urban areas with limited public transit infrastructure are seeing a growing preference for flexible and convenient transportation options. For instance,
- According to the Singapore Tourism Board, Singapore anticipates welcoming between 17 million and 18.5 million visitors in 2025, an increase from 16.5 million in 2024.
The rise of ride-hailing services and peer-to-peer car-sharing platforms has further propelled the growth of the car rental market across ASEAN nations. These platforms provide travelers with on-demand access to rental vehicles, catering to both leisure and business mobility needs.
Digital technology and mobile applications have revolutionized the car rental landscape, allowing customers to effortlessly book, manage, and access vehicles directly from their smartphones. This trend of digitalization not only elevates the customer experience but also broadens the reach of car rental firms throughout ASEAN.
A diverse fleet, ranging from economy cars to luxury SUVs and vans, is now readily available, catering to the varied preferences of customers. Moreover, rental companies are boosting their market presence through subscription packages, discounts, and strategic partnerships with airline operators.
Several market players are strengthening their presence in the region by establishing dealerships and operational facilities. For example, in February 2024, Enterprise Mobility expanded into Thailand through a franchise agreement with Thai Rent a Car, the country's longest-running car rental company. Starting July 2024, Enterprise Rent-A-Car, National Car Rental, and Alamo Rent A Car brands will operate in Thailand, with nine branches planned, including locations at all major international airports.
Despite the growth, challenges loom. Regulatory complexities, varying licensing requirements, and differences in taxation and insurance regulations across ASEAN nations present hurdles. Additionally, competition from public transit, taxis, and motorcycle taxis could hinder the car rental market's expansion in certain areas.
To harness the burgeoning opportunities, car rental firms must stay attuned to evolving market dynamics, harness digital platforms, and customize their services to cater to the diverse needs of customers throughout ASEAN.
ASEAN Car Rental Market Trends
The Growth of Online Booking in ASEAN's Car Rental Market
Several interconnected factors have fueled the rapid expansion and market dominance of the online booking segment. As internet connectivity and smartphone usage proliferate across ASEAN countries, consumers gain unprecedented access to online platforms and booking applications. This surge in connectivity enables seamless vehicle rentals, empowering customers to compare prices, explore vehicle options, and conveniently make reservations via their smartphones. For instance, in 2024, internet penetration rates in ASEAN countries reached 77.76% in Indonesia, 74.77% in the Philippines, 79.95% in Vietnam, and 85.49% in Thailand.
Opting for online car rental platforms offers customers hassle-free rides, enhanced convenience, significant time savings, and the ability to track car availability in real-time. As the travel and tourism sector flourishes, the demand for transportation services is set to rise. Renting a car not only grants travelers the freedom to navigate cities with ease but also proves to be a cost-effective solution, eliminating the need for a chauffeur. For instance,
- The Tourism Authority of Thailand (TAT) revealed that in 2024, international tourist arrivals exceeded 35 million, raking in over 1.8 trillion THB (USD 52.81 billion) in revenue. This milestone underscores Thailand's robust tourism recovery, paving the way for 2025, dubbed the ‘Amazing Thailand Grand Tourism and Sports Year.’ The goal is to entice 36-39 million international visitors and amass up to 2.23 trillion THB in revenue.
With the rise of tourism and increasing airport footfall, car rental services have emerged as essential players in providing smooth travel experiences. These services not only enable tourists to leisurely explore their destinations but also ensure convenient airport pickups and drops. Significantly, collaborations between airline operators and car rental companies have intensified the demand for online bookings, especially among tourists and international visitors.
Online booking platforms have transformed how consumers interact with car rental services. Customers can now effortlessly book their desired vehicle, select pickup and drop-off locations, customize rental durations, and even add extras like insurance or GPS navigation, all with just a few clicks. Moreover, the online booking segment provides car rental companies with crucial data insights and analytics. By analyzing booking patterns, customer preferences, and market trends, these companies can optimize resource allocation, adjust pricing strategies, and initiate targeted promotional campaigns, ultimately boosting revenue and profitability.
Given these factors, the ASEAN region's car rental services are set to expand, driven by the surge in online bookings.
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Indonesia's Prominence in the ASEAN Car Rental Market
Indonesia's booming economy, vast population, and rapid urbanization position it as a key player in the car rental market. As the economy flourishes, disposable incomes rise, urban migration accelerates, and a middle class emerges, the demand for mobility solutions, particularly car rentals, surges.
Domestic and international tourism's growth in Indonesia further amplifies the appetite for rental cars. Tourists, drawn to the nation's pristine beaches and cultural landmarks, increasingly favor the convenience and flexibility that rental cars offer. For instance,
- According to the Ministry of Tourism, Indonesia welcomed 13.9 million international tourists in 2024, a jump from 11.68 million in 2023, underscoring its allure as a global travel hotspot.
Indonesia's Ministry of Tourism is investing heavily in the tourism sector to promote community-based and sustainable practices. These investments aim to enhance super-priority tourism destinations, special economic zones, and sustainable tourism projects, subsequently driving up the demand for car rental services.
- During the Travel Exchange at the 2025 ASEAN Tourism Forum, Indonesia's Ministry of Tourism introduced fresh initiatives, emphasizing clean tourism, the digital transformation known as tourism 5.0, and the development of specialized tourism attractions.
Furthermore, strategies like expanding operational facilities and dealership networks have become pivotal in propelling the country's car rental market. For example, in December 2023, Sumitomo Mitsui Auto Service Company, Limited, and Sumitomo Corporation inaugurated PT. SMAS Mobility Indonesia. This venture, centered on both short- and long-term vehicle rentals and fleet management, marks a significant expansion for SMAS. With Indonesia joining the ranks, the company now boasts operational bases in Thailand, Australia, and India, further solidifying its presence in the Asia-Pacific region.
Given these developments, Indonesia's car rental market is poised for significant expansion in the near future.
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ASEAN Car Rental Industry Overview
The ASEAN car rental market is characterized by high fragmentation, with numerous startups and regional players such as Avis Budget Group, Sixt SE, Hertz Global Holdings Inc., Europcar Mobility Group, and Enterprise Holdings Inc. These companies are implementing various strategies to enhance their competitive standing in the market. For instance,
In February 2024, Sime Darby Auto Bavaria partnered with Hertz Malaysia's Sime Darby Rent-A-Car (SDRAC) to roll out luxury electric cars for rent. This alliance not only enriched the company's vehicle fleet but also broadened its rental services across the nation.
ASEAN Car Rental Market Leaders
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Avis Budget Group
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Sixt SE
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Hertz Global Holdings
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Europcar Mobility Group
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Enterprise Holdings Inc.
- *Disclaimer: Major Players sorted in no particular order
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ASEAN Car Rental Market News
- October 2024: Enterprise Mobility made strides in its global expansion. The company inaugurated its presence in Thailand, introducing branches of Enterprise Rent-A-Car, National Car Rental, and Alamo, all in collaboration with franchise partner Thai Rent a Car. This move into Thailand was just a segment of Enterprise Mobility's broader strategy, which encompassed new branch openings in Japan, South Korea, New Zealand, and other parts of the Asia-Pacific region.
- April 2024: South Korea's largest car rental firm, Lotte Rental Co., has rolled out a "Vietnam Driver-inclusive Rental Car" service in Hanoi, Ho Chi Minh, and Da Nang. This service enables customers to travel between airports and their accommodations, with the added convenience of a chauffeur. Customers can opt for either a round-trip or one-way service.
ASEAN Car Rental Industry Segmentation
Car rental refers to the short-term leasing of a vehicle, typically ranging from a few hours to several weeks. This service allows individuals or businesses to rent a car from a rental company for a fee, which depends on factors such as the rental period, vehicle type, and any additional services or amenities included in the agreement.
The ASEAN car rental market is segmented by booking, rental duration, application, and country. By booking type, the market is segmented into offline and online. By rental duration type, the market is segmented into short-term and long-term. By application type, the market is segmented into tourism and commuting. By country, the market is segmented into Vietnam, Indonesia, Malaysia, Thailand, Singapore and the Rest of Southeast Asia. The report offers market size and forecast value (USD) for all the above segments.
| By Booking Type | Offline |
| Online | |
| By Rental Duration | Short-term |
| Long-term | |
| By Application Type | Tourism |
| Commuting |
By Booking Type
| Offline |
| Online |
By Rental Duration
| Short-term |
| Long-term |
By Application Type
| Tourism |
| Commuting |
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ASEAN Car Rental Market Research Faqs
How big is the ASEAN Car Rental Market?
The ASEAN Car Rental Market size is expected to reach USD 2.77 billion in 2025 and grow at a CAGR of 13.60% to reach USD 5.24 billion by 2030.
What is the current ASEAN Car Rental Market size?
In 2025, the ASEAN Car Rental Market size is expected to reach USD 2.77 billion.
Who are the key players in ASEAN Car Rental Market?
Avis Budget Group, Sixt SE, Hertz Global Holdings, Europcar Mobility Group and Enterprise Holdings Inc. are the major companies operating in the ASEAN Car Rental Market.
What years does this ASEAN Car Rental Market cover, and what was the market size in 2024?
In 2024, the ASEAN Car Rental Market size was estimated at USD 2.39 billion. The report covers the ASEAN Car Rental Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the ASEAN Car Rental Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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ASEAN Car Rental Industry Report
Statistics for the 2025 ASEAN Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. ASEAN Car Rental analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
