Car Rental Market Size (2024 - 2029)

The car rental market is projected to experience significant growth over the forecast period, driven by various factors such as the resurgence of travel and tourism, shifts in consumer preferences, and the convenience offered by digital platforms. The market's expansion is further supported by the increasing trend of combining leisure with business travel, particularly among younger travelers, and stringent government regulations that favor car rental services. The rise in online rental platforms and widespread internet access are also contributing to the market's positive trajectory, indicating a robust market size in the coming years.

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Market Size of Car Rental Industry

Car Rental Market Summary
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

Car Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

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).

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
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa
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Car Rental Market Size Summary

The car rental market is poised for significant growth over the forecast period, driven by a resurgence in travel and tourism activities post-pandemic. The market's recovery was initially hampered by the COVID-19 pandemic, which led to volatility and downgrades in company ratings. However, as restrictions eased, the market demonstrated resilience, bolstered by factors such as the chip shortage that redirected consumer preferences towards car rental services due to cost-saving benefits. The industry's expansion is further supported by the increasing number of tourists and business travelers, evolving consumer preferences influenced by health concerns, and the convenience offered by digital platforms for car hire. The trend of combining leisure with business trips, particularly among younger travelers, is also contributing to market growth, alongside stringent government regulations that favor car rental services over ownership.

The car rental industry is experiencing a transformation driven by technological advancements and the rise of online platforms. The adoption of information technology has enabled operators to enhance customer service through optimized information management and convenient internet booking applications. Innovative business models, such as car-sharing and the use of telematics, are disrupting traditional rental services, with companies like Zipcar and BlaBlaCar leading the charge. The market is characterized by a fragmented landscape with numerous international and domestic players, including Enterprise Rent-A-Car, The Hertz Corporation, and Avis Budget Group, who are focusing on service enhancement and strategic collaborations to strengthen their market positions. North America is expected to maintain its dominance, supported by a rise in leisure and business trips, a shift towards rental services, and increased adoption of electric vehicles. The market's growth trajectory is further bolstered by initiatives from key players and the increasing availability of demand-oriented mobility solutions.

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Car Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Growing Travel and Tourism Industry is Driving the Car Rental Market

    2. 1.2 Market Restraints

      1. 1.2.1 Increasing Popularity of Ride-Sharing Services Pose Challenges for the Conventional Car Rental Market

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD billion)

    1. 2.1 Booking

      1. 2.1.1 Offlne Access

      2. 2.1.2 Online Access

    2. 2.2 Application

      1. 2.2.1 Leisure/Tourism

      2. 2.2.2 Business

    3. 2.3 End User

      1. 2.3.1 Self-driven

      2. 2.3.2 Chauffeur-driven

    4. 2.4 Vehicle Type

      1. 2.4.1 Economy/Budget Cars

      2. 2.4.2 Luxury/Premium Cars

    5. 2.5 Rental Length

      1. 2.5.1 Short Term

      2. 2.5.2 Long Term

    6. 2.6 Geography

      1. 2.6.1 North America

        1. 2.6.1.1 United States

        2. 2.6.1.2 Canada

        3. 2.6.1.3 Rest of North America

      2. 2.6.2 Europe

        1. 2.6.2.1 Germany

        2. 2.6.2.2 United Kingdom

        3. 2.6.2.3 France

        4. 2.6.2.4 Spain

        5. 2.6.2.5 Rest of Europe

      3. 2.6.3 Asia-Pacific

        1. 2.6.3.1 India

        2. 2.6.3.2 China

        3. 2.6.3.3 Japan

        4. 2.6.3.4 South Korea

        5. 2.6.3.5 Rest of Asia-Pacific

      4. 2.6.4 Rest of the World

        1. 2.6.4.1 South America

        2. 2.6.4.2 Middle-East and Africa

Car Rental Market Size FAQs

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.

In 2024, the Car Rental Market size is expected to reach USD 132.10 billion.

Car Rental Market Report Snapshots

Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)