Car Rental Market Insights: Size, Share, Growth Analysis & Forecast (2024-2029) 

The market report provided a comprehensive analysis segmented by Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs); by Application (Local Usage, Airport Transport, Outstation, Others); by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).

Outlook 

• The car rental market is estimated to be at USD 164.73 Bn in 2025 and is anticipated to reach USD 265.32 Bn in 2030. 

• The car rental market is registering a CAGR of 10% during the forecast period 2025-2030. 

• The global car rental market serves diverse customer segments, offering short-term vehicle solutions. It’s experiencing growth due to post-pandemic travel recovery and increased domestic tourism. 

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Ecosystem 

• The participants in the global car rental industry dominate global markets and are investing in digital platforms, electric vehicle fleets, and subscription models to stay competitive. 

• These companies primarily focus on innovations in electric vehicle fleets, along with partnerships with airlines, hotels, and travel agencies to expand market reach and maintain a competitive edge in the market. 

• Several important entities in the car rental market include ACE Rent A Car Reservations, Inc.; Avis Rent A Car Systems, LLC; Carzonrent (India) Pvt. Ltd.; Ecos Mobility & Hospitality Pvt. Ltd.; EAN Services, LLC; and others. 

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Findings 

Attributes	Values
Historical Period	2019-2023
Base Year	2024
Forecast Period	2025-2030
Market Size (2025)	USD 164.73 Bn
Market Size (2030)	USD 265.32 Bn
Growth Rate	10% CAGR from 2025 to 2030
Key Segments	Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs); Application (Local Usage, Airport Transport, Outstation, Others); Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa)
Key Vendors	ACE Rent A Car Reservations, Inc.; Avis Rent A Car Systems, LLC; Carzonrent (India) Pvt. Ltd.; Ecos Mobility & Hospitality Pvt. Ltd.; EAN Services, LLC
Key Countries	The US; Canada; Mexico; Brazil; Argentina; Bolivia; China; India; Japan; South Korea; The UK; Germany; Spain; Oman; UAE; Saudi Arabia; South Africa
Largest Market	North America

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Trends  

• Integration of Car Rental Apps and Digital Platforms: The increasing use of mobile apps and online platforms for booking rental cars is transforming the car rental experience. Companies are integrating digital solutions to streamline booking, customer service, and payments, offering more convenience to users. In 2022, Enterprise Rent-A-Car introduced an AI-powered app that allows customers to book and manage their rentals through a seamless digital interface. 

• Increasing Importance of Contactless Rentals: The pandemic has accelerated the shift towards contactless services in the car rental market. Companies are leveraging keyless entry, digital payment systems, and mobile apps to enable customers to rent, pick up, and return vehicles without human interaction. 

• Expansion of Subscription-based Rental Services: Subscription-based car rentals, where customers can rent a vehicle for extended periods and swap cars according to their needs, are becoming more popular. This model offers flexibility and cost savings compared to owning a vehicle. SIXT launched a subscription service in 2023, allowing customers to pay a monthly fee for access to a variety of vehicle models without long-term ownership commitments. 

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Catalysts 

• Growing Tourism Industry: The recovery of the global tourism industry after the COVID-19 pandemic is a significant driver for the car rental market. With increasing numbers of tourists and business travelers, the demand for rental vehicles has surged, especially in regions with popular tourist destinations. 

• Shift Towards Online Booking Platform: The convenience of online and mobile booking platforms is fueling the car rental market as customers seek quick, seamless transactions. Digital-first companies and traditional rental firms investing in online channels benefit from this trend. 

• Advancements in Fleet Management Technology: The integration of advanced technologies like Internet of Things (IoT), telematics, and fleet management software enables car rental companies to optimize their operations, reducing costs, improving vehicle maintenance, and enhancing the customer experience. For instance, Europcar implemented a fleet tracking system in 2023 that provided real-time updates on vehicle performance and usage, significantly reducing operational downtime. 

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Restraints 

• Fluctuations in Fuel Prices: The car rental industry is sensitive to changes in fuel prices. Increases in fuel costs can significantly raise operational expenses for rental companies and discourage consumers from renting traditional gasoline-powered vehicles. 

• Supply Chain Disruptions: The global supply chain has faced significant disruptions in recent years, affecting the availability of new vehicles and vehicle parts. These challenges have impacted rental companies’ ability to expand or maintain their fleets, resulting in vehicle shortages and higher prices. 

• High Maintenance and Fleet Costs: Managing and maintaining large vehicle fleets is costly, particularly for companies that offer a wide range of vehicle options, from economy to luxury models. Regular maintenance, insurance, and depreciation add to the financial burden of fleet management. In 2022, Avis Budget Group reported an increase in operational costs due to inflationary pressures, which directly impacted profitability. 

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Table of Contents 

1.       Introduction         1.1.    Research Methodology         1.2.    Scope of the Study  2.       Market Overview / Executive Summary         2.1.    Global Car Rental Market (2019 – 2023)         2.2.    Global Car Rental Market (2024 – 2030)  3.       Market Segmentation         3.1.    Global Car Rental Market by Vehicle Type                3.1.1.    Luxury Cars                3.1.2.    Executive Cars                3.1.3.    Economy Cars                3.1.4.    SUVs                3.1.5.    MUVs         3.2.    Global Car Rental Market by Application                3.2.1.    Local Usage                3.2.2.    Airport Transport                3.2.3.    Outstation                3.2.4.    Others  4.       Regional Segmentation         4.1.    North America                4.1.1.    The US                4.1.2.    Canada                4.1.3.    Mexico         4.2.    South America                4.2.1.    Brazil                4.2.2.    Argentina                4.2.3.    Bolivia                4.2.4.    Rest of South America         4.3.    Asia Pacific                4.3.1.    China                4.3.2.    India                4.3.3.    Japan                4.3.4.    South Korea                4.3.5.    Rest of Asia Pacific         4.4.    Europe                4.4.1.    The UK                 4.4.2.    Germany                4.4.3.    Spain                4.4.4.    Rest of Europe         4.5.    The Middle East                4.5.1.    Oman                4.5.2.    UAE                4.5.3.    Saudi Arabia                4.5.4.    Rest of the Middle East         4.6.    Africa                4.6.1.    South Africa                4.6.2.    Rest of Africa  5.       Value Chain Analysis of the Global Car Rental Market  6.       Porter Five Forces Analysis         6.1.    Threats of New Entrants         6.2.    Threats of Substitutes         6.3.    Bargaining Power of Buyers         6.4.    Bargaining Power of Suppliers         6.5.    Competition in the Industry  7.       Trends, Drivers and Challenges Analysis         7.1.    Market Trends         7.1.1.    Market Trend 1         7.1.2.    Market Trend 2         7.1.3.    Market Trend 3         7.2.    Market Drivers         7.2.1.    Market Driver 1         7.2.2.    Market Driver 2         7.2.3.    Market Driver 3         7.3.    Market Challenges         7.3.1.    Market Challenge 1         7.3.2.    Market Challenge 2         7.3.3.    Market Challenge 3  8.       Opportunities Analysis         8.1.    Market Opportunity 1         8.2.    Market Opportunity 2         8.3.    Market Opportunity 3  9.       Competitive Landscape         9.1.    ACE Rent A Car Reservations, Inc.         9.2.    Avis Rent A Car Systems, LLC         9.3.    Carzonrent (India) Pvt. Ltd.         9.4.    Ecos Mobility & Hospitality Pvt. Ltd.         9.5.    EAN Services, LLC         9.6.    Company 6         9.7.    Company 7         9.8.    Company 8         9.9.    Company 9         9.10.  Company 10

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Car Rental Market – FAQs 

1.  What is the current size of the car rental market? 

Ans. In 2025, the car rental market size is USD 164.73 Bn. 

2.  Who are the major vendors in the car rental market?  

Ans. The major vendors in the car rental market are ACE Rent A Car Reservations, Inc.; Avis Rent A Car Systems, LLC; Carzonrent (India) Pvt. Ltd.; Ecos Mobility & Hospitality Pvt. Ltd.; EAN Services, LLC. 

3.  Which segments are covered under the car rental market segments analysis?  

Ans. The car rental market report offers in-depth insights into Vehicle Type, Application, and Geography.