Market Size of Car Rental Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 132.10 Billion |
| Market Size (2029) | USD 220.10 Billion |
| CAGR (2024 - 2029) | > 10.75 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Car Rental Market Analysis
The Car Rental Market size is estimated at USD 132.10 billion in 2024, and is expected to reach USD 220.10 billion by 2029, growing at a CAGR of greater than 10.75% during the forecast period (2024-2029).
The COVID-19 pandemic significantly impacted travel and tourism across the world. This had a huge effect on car rental and the ride-and-share transport segment. The pandemic resulted in company rating downgrades and market volatility. However, the market started showing resilience once the restrictions were eased.
Additionally, the chip shortage hampered global vehicle production in 2021, and consumers shifted toward car rental, considering the cost-saving offered by car rental services in terms of maintenance and ownership.
The positive growth trajectory of the car rental market is fueled by various factors, including the increasing number of tourists and business travelers, changes in consumer preferences due to health concerns, and the convenience of digital platforms for car hire.
Further, the increasing trend of combining leisure with business trips, particularly by younger business travelers, is being adopted by companies to promote staff retention. Additionally, the stringent government regulations on car buying and driving across different regions also favor the expansion of the car rental business.
The popularity of the car rental industry is rising as the number of online rental platforms increases. The fact that more than 60% of the population has access to the internet is anticipated to contribute significantly to the market's growth.
In coming years, the market is expected to continue thriving on a positive track owing to the flourishing travel and tourism industry worldwide.
