Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Car Rental Market is segmented by Booking Type (Offline Access and Online Access), by Application Type (Leisure/Tourism and Business), by Vehicle Type (Luxury/Premium Car and Economy/Budget Cars), by End-User (Self-driven and Chauffeur-driven), by Rental Length (Short Term and Long Term) and by Geography (North America, Europe, Asia Pacific, South America, and Africa). The report offers market size, value (in USD Billion), and forecast for the Car Rental Market for all the above segments.

Market Snapshot

Car Rental Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: >7 %

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Market Overview

The Car rental market accounted for USD 86 billion in 2020 and is expected to reach USD 131 billion by 2026, projecting a CAGR of about 7% during the forecast period.

The global COVID-19 pandemic has devastated economies worldwide and the impact is felt by businesses across verticals and hit transportation services particularly hard. Challenges that emerged from the worldwide lockdown are immense and insurmountable in many areas. With reduced global air traffic, demand for rental cars has slowed down at airports as there were travel restrictions across the world to contain the spread of the virus. Also, rising prices of petrol and diesel in developing countries likely to hamper the growth of the market during the forecast period.

The global crisis has merely accelerated the adoption of rental cars. However, post-pandemic with safety and hygiene becoming the need of the hour, practices for disinfecting the car are followed meticulously. The need for individual mobility and the social distancing norms is bound to improve the industry conditions. The subscription model has become the face of the car rental industry in recent times. Since this model allows the customer to enjoy temporary ownership of the vehicle without worrying about additional costs such as maintenance and insurance premiums etc.  

The market in North America is expected to dominate in the global market in terms of revenue and is expected to continue its dominance over the forecast period, this can be attributed to increasing number of business trips and vacations local as well as international across various countries in this region.

The market in Asia Pacific is expected to register significant growth in terms of CAGR over the forecast period, owing to increasing travel and tourism and increasing availability of high-end luxury as well as economy vehicles, especially across developing countries in this region.

Scope of the Report

The Car Rental Market report covers the latest trends, covid-19 impact followed by technological developments in the market. For each segment, the market sizing and forecast have been done on basis of value (USD Billion).

The scope of the report offers market size, value (in USD Billion), and forecast for the Car Rental Market for all the segments. The market is segmented by Booking Type, Application Type Price, End-User, Rental length, and by Geography 

By Booking Type, the market is segmented as Offline Access and Online Access, 

By Application Type, the market is segmented as Leisure/Tourism and Business), 

Based on Price, the market is segmented as Luxury/Premium Car and Economy/Budget Cars

By End-User, the market is segmented as Self-driven and Chauffeur-driven, 

Based on Rental length, the market is divided as Short Term and Long Term 

and by Geography, the market is observed as North America, Europe, Asia Pacific, South America, and Africa

By Booking
Offlne Access
Online Access
By Application
By End User
By Vehicle Type
Economy/Budget Cars
Luxury/Premium Cars
By Rental Length
Short Term
Long Term
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Asia Pacific
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East & Africa

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Key Market Trends

Increasing Demand For Online Car Rental Services

Technology is a critical component expected to boost the market over the forecast period. Increased adoption of information technology is transforming the industry and enabling operators to deliver improved services to their customers. This includes the utilization of optimized corporate and customer information management and the development of convenient internet booking applications.

For instance, order online or pick-up model, and are at the forefront of identifying applications for beacons and near field communications (NFC). Newer players for instance Zipcar and BlaBlaCar are very well doing using innovative business models such as car-sharing and adopted technologies such as telematics. Uber and Lyft are using mobile technologies and devices to better meet consumers’ personal transportation needs. These initiatives are contributing to the stage for the disruption of the car rental industry.

Currently, online booking also serves a variety of purposes, such as verification of documents of the renter, offering information to the renter regarding the car, services like drop and pickup of the rented car at a certain place, e-signing contracts, and cashless transactions.

Smartphone sales is another major factor propelling the market. Rising dependence of users on smartphones for carrying out a variety of activities traditionally done by personal computers has significantly helped transform the car rental experience for customers. This is further enhanced by the increased availability of comprehensive demand-oriented mobility solutions. Industry players such as Sixt SE, Uber, and Avis have launched their mobile apps through which customers can easily choose vehicles from a portfolio and carry out bookings.

Car Rental Market Key Trends

North America Is The Market Leader

North America lead the overall market in 2019 and is expected to retain its dominance over the forecast period. The rising number of leisure and business trips across the region, both locally and internationally, is among the prominent factors influencing the growth of the regional market. Additionally, a continuous shift in consumer preference toward rental services, along with the presence of prominent service providers in the region, such as Avis Budget Group and Enterprise Rent-a-Car, is expected to accelerate the revenue generation prospects.

North America is expected to be the largest car rental market globally, in the forecast period. as U.S. continues to remain the largest country for car rental services market. Recently, the usage of these services increased in several cities, fueled by increased initiatives by the service operators. For instance, Uber Technologies Inc. adopted mobile technologies and other devices to meet consumers’ personal transportation requirements, more efficiently.

This growth in revenue share can primarily be attributed to the increased usage of car rental services in the U.S., rising adoption of electric cars, and growing concern and awareness of lower emissions among consumers in the region.

Car Rental Market Growth Rate

Competitive Landscape

The market is moderately fragmented, with numerous international and domestic companies operating across the globe. However, the industry is on the verge of consolidation with few players capturing major market share. Key participants include Enterprise Rent-A-Car, The Hertz Corporation, Sixt SE, Europcar, and Avis Budget Group. The primary focus of these players is on enhancing their services to gain a customer base and maximize profitability. For instance.

Sixt SE has launched a smartphone app allowing company car drivers to manage everything related to their contract at the push of a button.

From March 2021, Car rental firm Hertz is introducing an annual membership fee for its 24/7 service allows members contactless rental of cars and vans

Collaboration is another key strategy implemented by industry players to strengthen their position in the market. For instance, in May 2021, Uber has launched a new car rental service called Uber Rent in partnership with Dublin-based car rental company CarTrawler. The partnership will see CarTrawler run Uber's car rental technology, which is being rolled out across the US.

Recent Developments

  • In April 2021, GoAir partnered with Eco Europcar and launched car rental services across 100 cities in India, including 25 airports. Through Eco Europcar, GoAir will be offering Chauffeur-driven cars from mid to luxury car segments.
  • In February 2021, Humax announced that it will supply the WTC Auto Rent RAiDEA mobility service platform to customers in the Middle East by improving technology for a round trip, free-floating, and one-way infrastructures specially designed for cars, including electric scooters, bikes, motorcycles, and cars.
  • In February 2021, Theeb Rent a Car, a Saudi-based car rental firm has expanded its car rental fleet in the Kingdom. The company's expansion strategy is to modernize and develop its fleet to offer different car brands and models to its customers.
  • Hertz rentals partnered with Tesla Motors in Nov 2021, to supply 100,000 Model 3S by 2022 and news that half of these vehicles are expected to be rented out to Uber drievrs.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Driver

    2. 4.2 Market Restraint

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Booking

      1. 5.1.1 Offlne Access

      2. 5.1.2 Online Access

    2. 5.2 By Application

      1. 5.2.1 Leisure/Tourism

      2. 5.2.2 Business

    3. 5.3 By End User

      1. 5.3.1 Self-driven

      2. 5.3.2 Chauffeur-driven

    4. 5.4 By Vehicle Type

      1. 5.4.1 Economy/Budget Cars

      2. 5.4.2 Luxury/Premium Cars

    5. 5.5 By Rental Length

      1. 5.5.1 Short Term

      2. 5.5.2 Long Term

    6. 5.6 Geography

      1. 5.6.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.6.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Rest of Europe

      3. 5.6.3 Asia Pacific

        1. India

        2. China

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.6.4 Rest of the World

        1. South America

        2. Middle East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Avis Budget Group Inc.

      2. 6.2.2 Hertz Global Holdings Inc.

      3. 6.2.3 Enterprise Holdings Inc.

      4. 6.2.4 Sixt SE

      5. 6.2.5 Fast Rent a Car

      6. 6.2.6 Bettercar Rental

      7. 6.2.7 Europcar Mobility Group

      8. 6.2.8 Shenzhen Topone Car Rental Co. Ltd

      9. 6.2.9 China Auto Rental

      10. 6.2.10 TT Car Transit

      11. 6.2.11 Renault Eurodrive


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Frequently Asked Questions

The Car Rental Market market is studied from 2018 - 2026.

The Car Rental Market is growing at a CAGR of >7% over the next 5 years.

The Car Rental Market is valued at 86 Billion USD in 2018.

The Car Rental Market is valued at 131 Billion USD in 2026.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

Avis Budget Group Inc., Sixt, Hertz Corp., Enterprise Holdings Inc., Europcar Group are the major companies operating in Car Rental Market.

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