Brazil Vehicle Rental Market Size (2024 - 2029)

Brazil Vehicle Rental Market Analysis

The Brazil Vehicle Rental Market size is estimated at USD 1.9 billion in 2024, and is expected to reach USD 3.10 billion by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).

Over the medium term, with life returning to routine and commencing international travel, Brazil is among the top countries to visit on the tourist list. Owing to the rich cultural heritage and natural scenery of the Amazon forests and beaches, the government is also taking initiatives to boost the country's tourism industry.

The target set in the Brazilian National Tourism Plan was an increase in revenue generated by international tourism of 8.58% in 2023, but the result was an annual growth of 41%.

Additionally, the residents are moving toward rented vehicles rather than buying them because of high vehicle maintenance. These factors are likely to lead to Brazil's vehicle rental market growth during the forecast period.

Increased concern and awareness of lower emissions have increased car rental options. Additionally, vehicle rental also provides the option of increased mobility without the concern of paying the costs associated with car ownership and maintenance.

As a result, the shortage of vehicles led to a deficit between demand and supply, leading to buyers looking for alternative car options. The rental services offered by several companies in the market came across as the best alternative and a viable option for private vehicle owners, leading to increased demand for rental vehicles in Brazil.

Considering the high demand, various new startups and rental companies are also focusing on technological advancements such as the deployment of the all-in-one platform that offers SaaS (Software as a Service), HaaS (Hardware as a Service), and apps to manage transportation demands of companies covering people needs (charter transport, point to point, and car sharing), thus, creating a positive impact on the market.

Brazil Vehicle Rental Industry Segmentation

Vehicle rentals contain a car booked in person, by mobile through the mobile application, or offline. A vehicle rental service is a service that helps customers rent a vehicle for short periods or longer duration. A short period generally ranges from a few hours to a few weeks.

The Brazilian vehicle rental market is segmented by application type, booking type, vehicle type, and end user. By application type, the market is segmented into leisure/tourism, business, and fleet outsourcing. By booking type, the market is segmented into online and offline. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By end user, the market is segmented into fleet operator and tour operator.

The report offers market size and forecasts in value (USD) for all the abovementioned segments.