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

The Car Rental Market is segmented by Booking Type (Offline Access and Online Access), Application Type (Leisure/Tourism and Business), Vehicle Type (Luxury/Premium Car and Economy/Budget Cars), End User (Self-driven and Chauffeur-driven), Rental Length (Short Term and Long Term), and Geography (North America, Europe, Asia-Pacific, South America, and Africa).

Market Snapshot

car rental market
Study Period:

2018 - 2026

Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

North America


>7 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

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

The rapid spread of COVID-19 is having an enormous impact on the travel and tourism industry, affecting the car rental market in parallel. 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 are likely to hamper the growth of the market during the forecast period.

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 car rental market to witness new trends in ride-sharing, micro-mobility, and peer-to-peer car-sharing services such as Uber, Lyft, and Ola, as safety and social distance guidelines to play a major role in the growth of the market share over the forecast period.

The market in North America is expected to dominate in the global market in terms of revenue, and it is expected to continue its dominance over the forecast period. This can be attributed to the 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 and economy vehicles, especially across developing countries in this region.

Scope of the Report

The car rental market is segmented by booking type (offline access and online access), application type (leisure/tourism and business), vehicle type (luxury/premium car and economy/budget cars), end user (self-driven and chauffeur-driven), rental length (short term and long term), and 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.

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

Report scope can be customized per your requirements. Click here.

Key Market Trends

Increasing Demand for Online Car Rental Services

Technology is a critical component, which is 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 pickup models are at the forefront of identifying applications for beacons and near field communications (NFC). Newer players, for instance, Zipcar and BlaBlaCar, are using innovative business models such as car-sharing and adopted technologies such as telematics. Uber and Lyft are using mobile technologies and devices to meet consumers’ personal transportation needs better. 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.

Increasing sales of smartphones is another major factor propelling the market. The 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_trend 1

To understand key trends, Download Sample Report

North America is the Market Leader

North America led the overall market in 2019, and it 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 the US continues to remain the largest country for the 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 US, rising adoption of electric cars, and growing concern and awareness of lower emissions among consumers in the region.

car rental geography

To understand geography trends, Download Sample Report

Competitive Landscape

The market is moderately fragmented, with numerous international and domestic companies operating across the world. However, the industry is on the verge of consolidation, with few players capturing a 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.

In March 2019, Sixt SE launched a mobility app that facilitates customers with services such as vehicle renting or sharing and cab-hailing. In April 2019, Enterprise Holdings Inc. announced to launch its own car subscription service. Under this service, the customers are required to pay monthly fees to select from six different vehicle classes varying from small and mid-sized sports utility vehicles (SUVs) to medium-sized trucks.

Collaboration is another key strategy implemented by industry players to strengthen their position in the market. For instance, in January 2019, Enterprise Rent-A-Car announced a collaboration with Premier Group for expanding its car rental service portfolio in Egypt.

Recent Developments

In February 2021, Humax announced that it would 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 vehicles, including electric scooters, bikes, motorcycles, and cars.

In February 2021, Theeb Rent a Car, a Saudi-based car rental firm, 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.

In 2020, AirAsia India partnered with Avis India to offer guests discounted car rental services and other benefits like airport transfers, chauffeur-driven vehicles, and self-drive cars from Avis’s fleet of mid, premium, luxury, and SUV cars, including complimentary upgrades in India and other countries.

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 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 By 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 and 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


**Subject to Availability

You can also purchase parts of this report. Do you want to check out a section wise price list?

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.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!