Car Rental Market Size (2024 - 2029)

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, impacting industry revenue. 

The positive growth trajectory of the car rental market share 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 market 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, as observed in the industry analysis. 

According to the industry statistics, the popularity of the car rental industry is rising as the number of online rental platforms increases. This industry analysis reveals that more than 60% of the population has access to the internet, which is anticipated to contribute significantly to the industry growth. 

 According to market forecast, the car rental market growth rate is expected to continue thriving on a positive track owing to the flourishing travel and tourism industry worldwide.

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 industry statistics report covers the latest market trends and technological developments. 

The car rental industry report 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 target 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 market segmentation, the industry size, market share, and forecasts have been calculated based on value (USD).