Car Rental Market Size:
The global car rental market is projected to grow at a CAGR of 5.54% to be valued at US$62.377 billion in 2030 from US$44.409 billion in 2025.
The growing global travel and tourism industry is the major driver of the car rental market worldwide. Rising disposable income, the development of road infrastructure, and the growth of megacities, especially in emerging countries such as Australia, Brazil, China, and India, are augmenting the demand for rental cars owing to the increasing number of leisure and business trips. Improving internet connectivity is contributing to the emerging trend of customization of travel trips and online reservations and bookings, thereby propelling the global car rental market expansion. Technological advancements in telematics solutions and navigation functionalities are leading automobile manufacturers to offer various innovative web-based solutions to facilitate the integration of devices such as smartphones with cars.
Car Rental Market Overview & Scope:
The Global car rental market is segmented by:
- Car Type: The global car rental market by car type is segmented into economy cars, luxury cars, executive cars, SUVs, and MUVs. SUVs are ideal for families and tourists with bigger groups or bags because they have more roomy cabins and cargo space than conventional sedans. SUVs also offer stability and safety, which can be particularly alluring to buyers looking for dependable and cozy travel vehicles.
- Mode of Booking: The mode of booking is segmented into online and offline. The growing internet penetration and the broad adoption of digital technologies have transformed customers' access to car rental services. The rising convenience of online platforms such as websites and mobile apps allows customers to compare prices, inquire about different car options, and make bookings from anywhere.
- Rental Category: The global car rental market by rental category is segmented into local transport, airport transport, outstation transport, and others. A significant increase in air travelers worldwide in recent years is expected to drive segment growth. Many car rental companies are growing their fleets and advertising their services throughout major airports in response to this trend. Leading market players are present at airports, where clients can take advantage of 24-hour vehicle rental services, propelling the segment's expansion.
- Region: North America is making significant investments in public transportation and smart city projects, especially in the US and Canada, especially the US and Canada, which makes the demand for effective PIS solutions high. These systems facilitate real-time updates for schedules, routes, and other information accessible through digital displays and mobile applications. This caters to the diverse needs of commuters, enhancing the overall passenger experience and operational efficiency in urban areas.
Top Trends Shaping the Global Car Rental Market:
1. Increasing Urbanization
- With increasing urbanization, there is a rapidly growing demand for flexible and convenient transportation means, such as car rental. The World Bank claims that more than half of the world's population already lives in cities and will rise to almost 70% by 2050. The trend of more people opting for on-demand and short-term personal and public transportation will significantly alter mobility patterns in city life.
2. Technological Advancement
- Digitization and technological advancement have significantly influenced the global market. Rental companies are also in a better position to optimize fleets, pricing, and customer services by applying data analytics. These will continue to push the industry's growth as well. Digitalizing service offerings meets the changing demands of tech-savvy consumers and enhances the car rental market’s growth.
Car Rental Market Growth Drivers vs. Challenges:
Opportunities:
- Increasing Tourism: The growing worldwide trend of tourism and the rising business travel have become an enormous market driver. Temporary modes of transportation become ever more urgent for easy independent travel as more people visit other locations. Renting a car allows travelers to see places at their own speed and get to locations inaccessible by public transit.
- Rising Leisure: This category serves many consumers, such as leisure travelers, vacationers, and adventurers, who value convenience and flexibility when traveling. The segment provides a large selection of vehicles that are suited to different group sizes and tastes, whether they are being used for solo adventures, weekend getaways, or family vacations. Increased international travel, better travel infrastructure, and increasing tourist interest in road trips have emerged as the prime factors of its steady growth. Moreover, with their easiest booking procedures and large variations of vehicles, leisure/tourism rentals have become a very important part of the global car rental market.
Challenges:
- High Costs: Installing GPS devices in rental cars allows for tracking in the event of issues. Additionally, it is standard practice to obtain a substantial deposit ranging from USD 2,500 to USD 50,000. Requiring financial information and conducting vetting processes are also common elements of the rental market. It also means checking if the client has personal insurance covering liability and the value of the car, or at least its part.
Car Rental Market Regional Analysis:
- North America: Rapid technological advancements in the market, such as GPS tracking, mobile applications, digital signage, and other features that have transformed the management of passenger access to real-time information, are the main drivers of regional market growth. Furthermore, the market has been driven by the growing emphasis on safety and security issues because of the increasing need to ensure data privacy and emergency alerts.
Car Rental Market Competitive Landscape:
The market is fragmented, with many notable players, including Alamo, Avis Rent-A-Car System, LLC, Budget Rent-A-Car System, Inc., and Carzonrent India Pvt. Ltd., among others:
- Collaboration: An electric vehicle (EV) rental service was launched in February 2024 by Sime Darby Auto Bavaria in collaboration with Sime Darby Rent-A-Car (SDRAC)-Hertz Malaysia. The all-electric BMW iX will be available for rent, with daily rates starting at about $150 and monthly rates at $1,300.
Car Rental Market Developments:
- December 2025: European carmakers and major rental/leasing firms, including Avis, Hertz, and others, urged the European Commission against mandatory EV fleet targets, citing cost and infrastructure challenges.
- September 2025: Hertz Global launched a fully online car?buying marketplace, expanding its digital services beyond rentals to include used vehicle sales and trade-in options.
- August 2025: Avis India expanded its mobility offerings, evolving into a tech-driven mobility provider with chauffeur, leasing, and digital platform services across 50+ cities.
- July 2025: CAR Inc and Baidu’s Apollo launched the world’s first autonomous public car rental service in China, offering fully self?driving vehicles via mobile app bookings.
- July 2024: SIXT USA expanded its rental services footprint in Texas by launching a new car rental facility at William P. Hobby Airport to increase regional market presence.
Car Rental Market Scope:
| Report Metric |
Details |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
| Report Metric |
Details |
| Car Rental Market Size in 2025 |
US$44.409 billion |
| Car Rental Market Size in 2030 |
US$62.377 billion |
| Growth Rate |
CAGR of 5.54% |
| Study Period |
2020 to 2030 |
| Historical Data |
2020 to 2023 |
| Base Year |
2024 |
| Forecast Period |
2025 – 2030 |
| Forecast Unit (Value) |
USD Billion |
| Segmentation |
- Car Type
- Mode of Booking
- Rental Category
- Geography
|
| Geographical Segmentation |
North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Car Rental Market |
- Alamo
- Avis Rent A Car System, LLC
- Budget Rent A Car System, Inc.
- Carzonrent India Pvt. Ltd.
- Enterprise Holdings, Inc.
|
| Customization Scope |
Free report customization with purchase |
Car Rental Market Segmentation:
By Car Type
- Economy Cars
- Luxury Cars
- Executive Cars
- SUVs
- MUVs
By Mode of Booking
By Rental Category
- Local Transport
- Airport Transport
- Outstation Transport
- Others
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Europe
- United Kingdom
- Germany
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- Japan
- China
- India
- South Korea
- Indonesia
- Thailand
- Others
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