Car Rental Market

Global Car Rental Market Research Report: By Application (Leisure and Commercial), By Rental Category (On Airport and Off Airport), By Vehicle Type (Luxury car, Executive car, Economical car, Sports Utility Vehicle (SUV), and Multi Utility Vehicle (MUV)), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032.

Automobile & Transportation | December 2023 | Report ID: EMR00350 | Pages: 301

The global car rental market was valued at USD 120.44 billion in 2023 and is estimated to reach approximately USD 330.25 billion by 2032, at a CAGR of 11.8% from 2024 to 2032.


Since its origin, the market for automobile rentals has seen tremendous evolution, growing to become an essential component of the travel and transportation sector. Car rentals have been around since the early 1900s, when they were mostly used by tourists who needed temporary access to automobiles. As business and tourism travel increased over time and consumer lives changed, the sector grew. With the advent of technology, the 21st century saw a revolutionary change that made it possible to make reservations online, choose a car, and expedite procedures. Big corporations like Hertz, Avis, and Enterprise cemented their dominance, and smaller, local businesses broadened the market's appeal. Environmental awareness also increased at this time, which increased demand for eco-friendly car rental choices. In the face of obstacles like shifting consumer preferences, partnerships, and worldwide events like the COVID-19 epidemic, the automobile rental industry never stops adjusting. It does this by taking advantage of partnerships, technology improvements, and changes in regulations.





Report Attribute


Estimated Market Value (2023)

120.44 Bn

Projected Market Value (2032)

330.25 Bn

Base Year


Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Application, By Rental Category, By Vehicle Type, & Region

Segments Covered

By Application, By Rental Category, By Vehicle Type, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


Global Car Rental Market Dynamics

Hertz, Enterprise, Avis, Budget, and other large businesses are fiercely competing with one another, which encourages innovation and improves services. The sector has quickly embraced online platforms and mobile apps for easy booking, car selection, and payment processing, which has been made possible by technological improvements. Consumer trends have a significant impact on the industry, generating demand for particular car models, features, and flexible service options. Travel patterns fluctuate a lot, and rental requests are strongly impacted by corporate travel, tourism trends, and seasonal variations. Economic factors, like as fuel prices and discretionary income levels, are also quite important and have a significant impact on decisions about both leisure and business travel. Regulations have a big influence on operating expenses and service offerings, especially when it comes to insurance requirements and environmental regulations. Rental companies are adding electric and hybrid cars to their fleets as a result of growing consumer demand for eco-friendly solutions and the emergence of sustainability initiatives. The COVID-19 epidemic has caused supply chain interruptions and vehicle shortages, which continue to be problematic and affect rental car availability. In general, the dynamics of the automobile rental market are shaped by a variety of factors, including technology developments, consumer behavior, economic shifts, and regulatory environments. The market is always changing to adapt to the demands of both enterprises and travelers.


Global Car Rental Market Drivers

  • Rising Travel and Tourism Trends

The demand for rental cars rises in tandem with travel being more affordable and appealing to a wider range of people. Travel for business, pleasure, and exploration all play a big part in this trend. Convenient transportation alternatives are more important than ever because of the growing trend of exploration and experiencing travel that has been fueled by expanding economies, rising disposable incomes, and an increasingly networked world. The flexibility, mobility, and customized travel experiences that car rental services provide are a wonderful fit for these changing tastes. In addition, the increasing number of varied travel locations, both domestic and foreign, drives up demand for rental automobiles by satisfying tourists' needs for independence and off-the-beaten-path exploration. Furthermore, an increase in the number of international events, festivals, and conferences leads to an increase in the number of passengers looking for short-term transit options. The convenience of rental automobiles and the growing tourism industry work together to form a symbiotic relationship whereby the expansion of one industry directly fuels the growth of the other. Since travel is still a necessary component of contemporary life, the market for automobile rentals is inextricably linked to its upward trend.

  • Technological Advancements

Modern technology has transformed every aspect of the sector, changing operational effectiveness and customer experiences. Customers can now book with ease and enjoy real-time availability, customizable car selections, and convenience thanks to online platforms, mobile apps, and advanced reservation systems. Furthermore, the incorporation of GPS navigation systems and integrated connectivity capabilities in rental cars has improved traveler safety by offering emergency help and real-time traffic reports. Beyond mere convenience, rental companies can now optimize fleet management, anticipate customer preferences, and customize services for a more customized customer experience becuase of developing technology like AI-powered chatbots and data analytics. Additionally, the industry's response to societal trends and technology advancements in sustainable mobility is shown in the investigation and acceptance of environmentally friendly solutions, such as electric and hybrid vehicles. The market for automobile rentals is leading the digital transformation of the transportation sector by embracing technological breakthroughs as drivers of innovation, efficiency, and distinction.



  • Supply Chain Disruptions

The availability of rental cars is directly hampered by supply chain issues such as manufacturing delays, bottlenecks in global transportation, and shortages of new cars. These disruptions can result in longer lead times for purchasing new cars or even limited fleet availability. They can also be caused by a variety of other circumstances, such as labor disputes, material shortages, or pauses in transportation networks. As a result, rental firms encounter challenges in rapidly completing bookings and offering a wide selection of automobiles, particularly during periods of high travel demand. The COVID-19 pandemic intensified these disturbances by instigating a worldwide scarcity of semiconductor chips that are essential for automobile production, hence intensifying the challenge of obtaining new automobiles. Due to limited vehicle alternatives, these supply chain restrictions make it more difficult for rental companies to grow their operations, which could result in lower income streams and disgruntled customers. To overcome these obstacles and meet the ever-changing needs of the rental industry, creative problem-solving, calculated alliances, and robust supply chain management are necessary.

  • Rising Operational Costs

This growing trend in costs is caused by a number of variables, such as rising fuel prices, insurance premiums, maintenance costs, and overhead expenses. Because rental firms oversee sizable fleets that significantly depend on fuel usage, fuel prices which are frequently unstable and influenced by geopolitical factors—have a direct impact on operating expenses. Furthermore, a number of variables, including as higher claims and legislative changes, have led to an increase in insurance costs, which has placed a significant financial strain on rental companies. The costs associated with maintenance are also crucial because, particularly in bigger fleets, regular vehicle maintenance and servicing need huge financial outlays. In addition, other costs that add to the overall operational burden include personnel management, administrative fees, and rental locations. These cumulative cost increases put pressure on profit margins and may necessitate lowering prices or providing fewer services, which would then affect the competitiveness and caliber of products offered in the vehicle rental industry. In order to overcome these obstacles and be competitive while upholding service standards, it is frequently necessary to invest in more effective technologies, creative business models, and intelligent cost management.



  • Customer Experience Enhancement,

Rental companies can leave a lasting impression on clients by concentrating on offering great service, tailored interactions, and easy procedures. Convenience and accessibility are ensured by streamlining the booking process through user-friendly web platforms and simple mobile apps. Furthermore, providing a varied fleet of automobiles that suits different tastes and requirements from luxury to fuel-efficient to family-friendly—gives clients options that correspond with their unique travel demands. Furthermore, encouraging trust and happiness is achieved by placing a high priority on the safety and comfort of customers through strict vehicle cleanliness standards, cutting-edge safety features, and clear communication of rental terms and rules. The whole experience is improved by using technology for contactless pickups, digital records, and personalized recommendations based on previous choices. Beyond the transactional side, making investments in timely feedback handling, attentive customer service, and loyalty programs or awards strengthens customer connections and promotes favorable word-of-mouth recommendations and repeat business. In the cutthroat world of vehicle rentals, improving the customer experience has the potential to draw in additional business from satisfied customers as well as draw in new ones looking for personalized, easy, and value-added services.

  • Enhanced Safety and Hygiene Measures

Adopting strict safety procedures and hygienic standards becomes a critical differentiator for rental companies in the face of growing health concerns. It is possible for rental enterprises to provide consumers with peace of mind during their rental experience by emphasizing cleanliness and sanitation. This entails thorough car cleaning protocols, frequent high-touch surface disinfection, and adequate ventilation. Transparently informing customers about these safeguards across multiple channels fosters trust in the rental service. Incorporating contactless procedures for digital paperwork, cashless transactions, and car pickups and returns also minimizes in-person encounters, improving convenience and safety. Purchasing cutting-edge safety equipment for cars, like lane departure alerts or collision detection systems, not only protects occupants but also satisfies consumer demand for better car technology. In addition to drawing in health-conscious clients, marketing these improved safety and hygienic practices as an integral part of the rental experience also creates a new standard for accountable and client-focused industry performance.


Segment Overview

By Application

Based on application, the global car rental market is divided into leisure and commercial. The commercial category dominates the market with the largest revenue share in 2023. The primary goal of commercial rentals is to assist companies, organizations, or people that need cars for work-related activities. This category typically consists of longer-term contracts that cover the transportation requirements of businesses, contractors, or organizations over the course of weeks, months, or even years. Vehicles such as vans, trucks, or specially designed vehicles for particular corporate purposes are given priority in commercial rentals, with an emphasis on efficiency, dependability, and practicality. The majority of customers for leisure rentals are single people or families looking for short-term cars for non-business-related uses. These rentals are intended for travelers, tourists, and anyone going on a personal trip. They usually entail shorter rental terms, from a few hours to several weeks, to accommodate tourists on weekend getaways or those venturing into new places.


By Rental Category

Based on the rental category, the global car rental market is categorized into on airport and off airport. The on airport category leads the global car rental market with the largest revenue share in 2023. On-airport rentals are easily found inside or close to airport property; they are frequently found in terminal buildings or nearby, providing quick access for passengers arriving or departing. These rental companies take advantage of convenience by catering to clients looking for easy access to transportation while they plan their trips. For individuals looking for easy and quick rentals, this instant accessibility greatly lessens the inconvenience of looking for transportation outside the airport. Conversely, off-airport rentals are located outside of the airport grounds and can be found in adjacent residential areas, downtown areas, or other locations outside from the terminal buildings. Off-airport choices frequently have more affordable prices than on-airport rentals, even though they might need extra transit to get to the rental locations from the airport, including shuttle services or taxis. These off-airport sites provide clients looking for less expensive possibilities, prepared to forfeit instant accessibility in exchange for maybe more affordable prices.


By Vehicle Type

Based on vehicle type, the global car rental market is segmented into luxury car, executive car, economical car, sports utility vehicle (SUV), and multi utility vehicle (MUV). The economical car segment dominates the car rental market. Compact cars, hatchbacks, and smaller sedans are among the fuel-efficient options available to travelers on a tight budget. Economical cars prioritize price and convenience. SUVs, or sport utility vehicles, are popular among individuals looking for vehicles that can be used for both off-road and urban excursions because they offer plenty of space, adaptability, and frequently cutting-edge safety features. Lastly, Multi Utility Vehicles (MUVs) emphasize interior space and adaptability with three rows of seating and considerable cargo room, making them perfect for families or group travel. MUVs cater to people wanting spacious seating and load capacity. In order to satisfy a wide range of consumer needs, these market-segmented automobile rental options strive to offer a variety of options based on variables like purpose, group size, comfort, or particular travel requirements.


Global Car Rental Market Overview by Region

The global car rental market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the leading region, capturing the largest market share in 2023. The region's wide road networks and well-developed transportation networks, along with its robust infrastructure, offer a favorable environment for the growth of the automobile rental industry. In addition, the tourist sector in North America, which is booming and offers a wide variety of activities and places, greatly increases demand for rental cars. The necessity for rental automobiles among business visitors is further heightened by the continent's renown as a business hub, which hosts a multitude of corporate events, conferences, and trade exhibitions. In addition, a population that is increasingly tech-savvy and the widespread use of mobile applications and online booking platforms have simplified the rental process and improved accessibility and convenience for customers. Moreover, North America's position as the leading market has been strengthened by the existence of well-known and established automobile rental companies that provide a large assortment of vehicles in different categories. The area's propensity for cutting-edge, environmentally friendly transportation options, such hybrid and electric car options in rental fleets, fits with changing consumer tastes for eco-friendly travel. These elements, together with a convenient, comfortable, and customer-focused culture, all help to make North America the market leader in terms of automobile rentals worldwide, drawing in both domestic and foreign clients looking for a variety of dependable rental choices.





Global Car Rental Market Competitive Landscape

In the global car rental market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global car rental market include,

  • AVR Qatar, Inc.
  • Avis Budget Group, Inc.
  • Carzonrent India Pvt. Ltd.
  • Eco Rent A Car
  • Enterprise Holdings, Inc.
  • Europcar; Localiza
  • The Hertz Corporation
  • SIXT , and various others.


Global Car Rental Market Recent Developments

  • In November 2023, MakeMyTrip Acquires Savaari to Enter the Vehicle Rental Industry. Purchasing a vehicle rental company is a big step toward MakeMyTrip's goal of becoming the travel superapp.
  • In October 2023, As they work to expand its mobility ecosystem in New Zealand, Toyota has announced that they have purchased Ezi Car Rental ('Ezi,' one of the biggest rental car companies in the country, owned and run by Kiwis. As with other acquisitions like Cityhop, Toyota Financial Services will manage Ezi as a stand-alone company.
  • In May 2023, In Pune, India, Car Karlo Mobility Technologies LLP introduced its self-driven vehicle rental services. The company has launched an easy-to-use smartphone app and website for reserving automobile rentals in an attempt to capitalize on the quickly growing Indian industry.
  • In April 2022,  Leading worldwide mobility service SIXT kept growing across the United States. To give clients more rental options throughout the East Coast, the firm announced plans to open new branches in Charlotte and Baltimore.


Scope of the Global Car Rental Market Report

Car Rental Market Report Segmentation



By Application

  • Leisure
  • Commercial

By Rental Category

  • On Airport
  • Off Airport


By Vehicle Type

  • Luxury car
  • Executive car
  • Economical car
  • Sports Utility Vehicle (SUV)
  • Multi Utility Vehicle (MUV)

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request


Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Car Rental Market Size and Forecast:

To identify and estimate the market size for the global car rental market segmented by application, by rental category, by vehicle type, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of car rental between 2019 and 2032.

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global car rental market

  • Market Influencing Factors:

To find out the factors which are affecting the sales of car rental among consumers

  • Impact of COVID-19:

To identify and understand the various factors involved in the global car rental market affected by the pandemic

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Industry Professionals
  • Travel and Tourism Professionals
  • Consumers
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts


Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The growth of the car rental market is driven by factors such as increased travel and tourism, a rising preference for on-demand transportation, the flexibility offered by rental services, and the convenience of accessing a vehicle without ownership commitments.
Technology has significantly impacted the car rental market by introducing online booking platforms, mobile applications for reservations and vehicle pickups, GPS navigation systems in rental cars, and advanced vehicle tracking systems. These innovations enhance the overall customer experience and streamline rental operations.
Challenges in the car rental market include fluctuating demand influenced by economic conditions and travel trends, competitive pricing pressures, regulatory changes impacting rental operations, and the need for continuous innovation to meet evolving customer expectations.
North America held the largest share in 2023.
The major players operating in the global car rental market include AVR Qatar, Inc.; Avis Budget Group, Inc.; Carzonrent India Pvt. Ltd.; Eco Rent A Car; Enterprise Holdings, Inc.; Europcar; Localiza; The Hertz Corporation; SIXT, and various others.

Avail PDF Sample Reports