Car Rental Market Size
| 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 |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
Car Rental Market Trends
Increasing Demand for Online Car Rental Services to Play a Key Role in the Market
Increased adoption of information technology is transforming the car rental 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.
The online booking model is at the forefront of identifying applications for beacons and near-field communications (NFC). Newer players, like Zipcar and BlaBlaCar, are benefiting from using innovative business models such as car-sharing and adopting 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 disruption of the car rental industry.
Further, 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 pick-up of the rented car at a certain place, e-signing contracts, and cashless transactions. Additionally, the rising dependence of users on smartphones to carry out a variety of activities traditionally done by personal computers has significantly helped transform the car rental experience for customers.
Rental companies, such as Enterprise a Car and Europ Car, have also strengthened their position in the sector by expanding their operation of vehicle rental services in Spain's tourist airport. Though key companies have a strong presence in the country, they have not adopted the latest developments or active strategies, so the van rental market is witnessing slow demand.
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, which allow customers to easily choose vehicles from a portfolio and carry out bookings.
North America is Expected to Remain the Largest Market
North America is expected to retain its dominance in the market between 2024 and 2029. 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.
Further, a continuous shift in consumer preference toward rental services and the presence of prominent service providers in the region, like Avis Budget Group and Enterprise Rent-a-Car, are expected to accelerate the revenue generation prospects. Recently, the usage of these services increased in several cities, fueled by increased initiatives by service operators. For instance,
In June 2023, Uber Technologies Inc. disclosed its plan to bring Turo-like peer-to-peer car rental to North America. Customers will be able to rent by the hour or the day and can drop off the rented vehicle wherever it was picked up.
In addition, the rising adoption of electric cars and growing concerns and awareness of lower emissions among consumers in the region are some of the major factors fueling the market. Moreover, over 70% of Americans prefer to rent an EV as a way to test drive the technology before investing in it.
All these factors combined are expected to provide a boost to the positive market growth of the region between 2024 and 2029.
Car Rental Industry Overview
The market is fragmented, with numerous international and domestic companies operating across the world. 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. Collaboration is another key strategy implemented by industry players to strengthen their positions in the market. For instance,
- In April 2023, Hertz Global and Andre Dickens, the Mayor of Atlanta, launched Hertz Electrifies Atlanta, a PPP aimed at accelerating the adoption of electric vehicles and expanding the environmental and economic benefits of electrification in Atlanta.
Car Rental Market Leaders
Avis Budget Group Inc.
Sixt
Hertz Corp.
Enterprise Holdings Inc.
Europcar Group
*Disclaimer: Major Players sorted in no particular order
Car Rental Market News
- November 2023: MakeMyTrip, an Online travel agency, announced its entry into the car rental market with the acquisition of Indian intercity car rental company Savaari. The acquisition is a small ticket investment within the USD 10 million range.
- August 2023: Avis Budget Group announced a strategic partnership with Albatha Automotive Group to add the Budget Rent a Car and Payless Car Rental brands to the latter’s mobility services portfolio. The newly founded division of Albatha Group will include the Budget and Payless car rental brands. It will also provide a range of self-drive and chauffeur-driven services, including rental cars and leasing for passenger and commercial vehicles.
- March 2023: IndusGo, the leading self-drive car rental company, raised funding of INR 200 crore from its parent company, Indus Motors. IndusGo is a prominent player operating in South India. It plans to start its car rental operations across Bengaluru and Hyderabad.
Car Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Travel and Tourism Industry is Driving the Car Rental Market
4.2 Market Restraints
4.2.1 Increasing Popularity of Ride-Sharing Services Pose Challenges for the Conventional Car Rental Market
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD billion)
5.1 Booking
5.1.1 Offlne Access
5.1.2 Online Access
5.2 Application
5.2.1 Leisure/Tourism
5.2.2 Business
5.3 End User
5.3.1 Self-driven
5.3.2 Chauffeur-driven
5.4 Vehicle Type
5.4.1 Economy/Budget Cars
5.4.2 Luxury/Premium Cars
5.5 Rental Length
5.5.1 Short Term
5.5.2 Long Term
5.6 Geography
5.6.1 North America
5.6.1.1 United States
5.6.1.2 Canada
5.6.1.3 Rest of North America
5.6.2 Europe
5.6.2.1 Germany
5.6.2.2 United Kingdom
5.6.2.3 France
5.6.2.4 Spain
5.6.2.5 Rest of Europe
5.6.3 Asia-Pacific
5.6.3.1 India
5.6.3.2 China
5.6.3.3 Japan
5.6.3.4 South Korea
5.6.3.5 Rest of Asia-Pacific
5.6.4 Rest of the World
5.6.4.1 South America
5.6.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Avis Budget Group Inc.
6.2.2 Hertz Global Holdings Inc.
6.2.3 Enterprise Holdings Inc.
6.2.4 Sixt SE
6.2.5 Fast Rent a Car
6.2.6 Bettercar Rental
6.2.7 Europcar Mobility Group
6.2.8 Shenzhen Topone Car Rental Co. Ltd
6.2.9 China Auto Rental
6.2.10 TT Car Transit
6.2.11 Renault Eurodrive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Growing Demand for EVs Presents Lucrative Opportunities for the Car Rental Market
Car Rental Industry Segmentation
A car rental, hire car, or car hire agency is a company that rents automobiles for short periods of time to the public, generally ranging from a few hours to a few weeks. The car rental market report covers the latest trends and technological developments in the market.
The car rental market is segmented by booking type, application type, vehicle type, end-user, rental length, and geography. By booking type, the market is segmented into offline access and online access. By application type, the market is segmented into leisure/tourism and business. By vehicle type, the market is segmented into luxury/premium cars and economy/budget cars. By end-user, the market is segmented into self-driven and chauffeur-driven. By rental length, the market is segmented into short-term and long-term. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Africa.
For each segment, the market sizing and forecasts have been based on value (USD).
| Booking | |
| Offlne Access | |
| Online Access |
| Application | |
| Leisure/Tourism | |
| Business |
| End User | |
| Self-driven | |
| Chauffeur-driven |
| Vehicle Type | |
| Economy/Budget Cars | |
| Luxury/Premium Cars |
| Rental Length | |
| Short Term | |
| Long Term |
| Geography | |||||||
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Car Rental Market Research FAQs
How big is the Car Rental Market?
The Car Rental Market size is expected to reach USD 132.10 billion in 2024 and grow at a CAGR of greater than 10.75% to reach USD 220.10 billion by 2029.
What is the current Car Rental Market size?
In 2024, the Car Rental Market size is expected to reach USD 132.10 billion.
Who are the key players in Car Rental Market?
Avis Budget Group Inc., Sixt, Hertz Corp., Enterprise Holdings Inc. and Europcar Group are the major companies operating in the Car Rental Market.
Which is the fastest growing region in Car Rental Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Car Rental Market?
In 2024, the North America accounts for the largest market share in Car Rental Market.
What years does this Car Rental Market cover, and what was the market size in 2023?
In 2023, the Car Rental Market size was estimated at USD 117.90 billion. The report covers the Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key drivers of the Car Rental Market?
The Key factors driving the growth of the Car Rental Industry are: a) Rise in global tourism b) Increase in business travel activities c) Advancements in technology d) Surge in smartphone usage facilitating easy booking
Car Rental Industry Report
The global car rental market, driven by the demand for mobility solutions and the convenience of vehicle rental services, is witnessing significant growth. Innovations by the largest rental car companies and the rise of online platforms have enhanced customer experiences, offering flexibility and streamlined booking processes. Market segments like short-term rentals and economy cars are thriving due to their affordability, appealing to a broad customer base. The North American and Asia Pacific regions are key contributors to this expansion, with the latter poised for rapid growth. Additionally, the industry is adapting to urban mobility changes by incorporating eco-friendly vehicles and exploring peer-to-peer car sharing, aligning with a shift towards sustainable and user-centric mobility options. This evolution indicates that vehicle rental services will play a crucial role in the future of transportation. For detailed statistics on market share, size, and revenue growth, refer to Mordor Intelligence™ Industry Reports, with detailed analysis and forecasts available in a free report PDF download, highlighting the potential and dynamics of the global car rental industry.
