Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Car Rental Market has been segmented by Booking Type (Offline Access and Online Access), Application Type (Leisure/Tourism and Business), Fare Price (Luxury/Premium Car and Economy/Budget Cars), End User (Self-driven and Chauffeur-driven), Rental Length (Short Term and Long Term), and Geography.

Market Snapshot

Study Period:

2018 - 2026

Base Year:


Fastest Growing Market:

North America

Largest Market:

North America


7 %

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Market Overview

The car rental market is expected to register a CAGR of ~7.5% during the forecast period, 2020-2025.

  • The car rental industry has gained popularity across the world, owing to the availability of online platforms, ease of booking, penetration of smartphones, and rise in tourism around the world, which have fueled the car rental market.
  • A major barrier for the car rental market is the growing passengers’ preferences for utilizing taxi services and ride-sharing services across the world. Reduced taxi fare and the rise of e-hailing taxi applications, such as Uber, Lyft, and Ola taxi services have become hindrances in the car rental market growth.
  • North America and Europe are leading the car rental market, followed by Asia-Pacific. North America is dominating the car rental market, owing to the high usage rate of car rental services by daily commuters, office-goers, and tourists in the country. Also, the growing trend of car sharing also boosts the usage of car rental in this region.

Scope of the Report

The car rental market covers the latest market trends, government policies, and technological development in the car rental market and market share of major car rental service providers across the world.

By Booking
Offline Booking
Online Booking
By Application
By End User
By Fare Price
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
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

Online tourist vehicle bookings are increasing globally, due to the rising usage of smartphones and growth in the number of users aged between 25 and 34 years, who prefer to book vehicle rentals through online channels.

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.

With the growing trend in technology, renting a vehicle through online booking has become the most preferred choice of customers over the past few years. Moreover, it provides additional facilities to monitor a rental vehicle’s operation, performance, and maintenance in real time. Such features are tremendous assets for drivers and fleet managers, enabling them to better and more efficiently identify risks and implement timely improvements of their rental services.

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North America is dominating the Market

North America dominated the global car rental market. In North America, the United States dominated the regional market.

Some of the major factors driving the growth of the market are the growing tourism industry and the rise in business opportunities in the country (as many employees are being sent on-site in the United States).

Additionally, the car rental companies, to maintain their competitive position in the market, are expanding their services. For instance, Enterprise has started a CarShare program with Princeston University, in order to encourage faculty and staff to leave their cars at home, where graduate students and undergraduates are also eligible for the program.

US car rental services are present all across the country. Major car renting companies have their fleets in almost all major cities. The size of the fleet depends on the number of domestic travelers, preferring to rent a car and the volume of foreign passengers coming to that city.

The state of New York is located in the northeast part of the United States and is one of the major tourist attractions. New York is the most competitive market for car rentals due to the presence of numerous car rental providers. Spanning over 140,000sq-km, the state provides its travelers with a lot of historic and scenic tourist destinations, in turn, increasing the demand for rental services.

Additionally, New York has more than 25 notable airports, with total passenger traffic of over 50 million per annum. The airports also provide a wide selection of car rental service providers to their commuters. The state is one of the most expensive locations to rent a car, with a daily average of around USD 76. This can increase with the rise in rent for luxury cars or renting cars at the intercity or interstate travel. Apart from offices at the major airports, car rentals are also present throughout the state, which caters to local and foreign travelers.

After North America, Europe and Asia-Pacific are expected to dominate the car rental market.

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Competitive Landscape

Some of the major companies dominating the car rental market are Avis Budget Group Inc., Sixt, Hertz, Enterprise Holdings Inc., and Europcar Group. The market is moderately fragmented with the presence of both global and regional players in the market.

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Table Of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    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 Offline Booking

      2. 5.1.2 Online Booking

    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 Fare Price

      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. 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

  7. *List Not Exhaustive

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