Status : Published | Published On : Mar, 2024 | Report Code : VRAT4071 | Industry : Automotive & Transportation | Available Format : | Page : 134 |
Industry Overview
The Global Car Rental Market was valued at USD 86.3 billion in 2023 and is expected to reach USD 133.0 billion by 2030, growing at a CAGR of 7.1% during 2025-2030. Car rental service is an affordable option for people looking to move around in luxury vehicles without the hassles of purchasing these expensive vehicles and spending more money on maintenance. They spend less money on a short trip. The time a user rents a car may vary from a few hours to a few days or even a week. It all depends on the needs of the users.
The higher disposable income among people all over the globe as well as their changing lifestyle helps this market to grow. Moreover, there is an increase in the number of service providers across the globe offering car rental services to people looking for a comfortable ride with little hassles. Furthermore, leisure trips are facilitated by the improved road infrastructure, especially in developed countries. This has also helped in the growth of this specific business across the globe.
Overall, car rental services are gaining popularity and will continue to grow during the forecast period, especially in tourist places and airports. The trends are changing significantly which is benefiting travel and making moving around more pleasurable and convenient. All these are propelling the growth of the global car rental market.
Market Segmentation
Insight by Vehicle Type
According to the vehicle type, the global car rental market is divided into executive, economy, luxury, SUVs, and MUVs. Among these segments, the executive segment is expected to grow at a higher rate during the forecast period due to the growing number of travelers all over the globe, especially in developing countries. Additionally, this specific segment also offers advanced features while maintaining cost-effectiveness. This specific attribute makes it a more preferred mode of transport for the business class.
Insight by Application
According to the application, the global car rental market is divided into airport transport, local usage, outstation travel, and others. Out of all these segments, the larger contributor in terms of revenue is airport transport. This segment is also expected to grow at a fast rate during the forecast period due to the significant rise in the number of air travelers all over the globe.
Insight by Booking Type
The global car rental market can be divided into offline and online booking segments based on the booking types. Out of these two segments, online booking contributes to this market largely and is expected to do so in the forecast period. This is due to the rise in the use of digital technologies and the growing need for convenience in booking a service from anywhere and anytime, after making a thorough comparison of different service providers online.
Insight by Rental Length
Based on the duration of rentals, the global car rental market can be divided into short-term and long-term rentals. Out of these two types, short-term car rental holds a major share of the market it is more dynamic, convenient, and flexible.
Insight by End-User
Based on the end user, the global car rental market is divided into self-driven and chauffeur-driven segments. Out of these two segments, self-driven rentals are gaining more popularity and will hold a larger share of the market in the forecast period. This is mainly because these types of car rentals are quite flexible, convenient, and offer a better travel experience.
Report Metric |
Details |
Historical Period |
2018 - 2023 |
Base Year Considered |
2024 |
Forecast Period |
2025 - 2030 |
Market Size in 2023 |
U.S.D. 86.3 Billion |
Revenue Forecast in 2030 |
U.S.D. 133.0 Billion |
Growth Rate |
7.1% |
Segments Covered in the Report |
By Vehicle Type, By Application |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Regions Covered in the Report |
North America,Europe,Asia-Pacific (APAC),Rest of the World (RoW) |
Industry Dynamics
Industry Trends
There is a significant growth in the tourism industry noticed over the past few years. In addition, the cost of ownership of personal vehicles is also very high. All these trends are expected to fuel the growth of the global car rental market.
It is also noticed that over the years there has been a momentous increase in the demand for online car rental services. This boosts the market since consumers can find and book a car rental service from virtually anywhere.
With such adoption of technology, the service providers can also offer better services to their customers.
Growth Drivers
The significant rise in air travel all over the globe, both for business and leisure, along with rapid globalization are the key factors that drive the growth of the global car rental market.
In addition, the growth of the car rental market all over the globe pertains to the rapid expansion of mobile and internet users. These users are highly dependent on technology and mobile devices to make payments for hotel booking, flight tickets, car rental services, and more.
Apart from that, there is also a large number of car rental service providers launching applications and offering other facilities to make the entire process convenient for the users. To drive more customers, they offer discount coupons, promotions, lower fares, easy availability of service, and real-time tracking.
Overall, these service providers use IoT technology to manage their fleet to offer better solutions and services. As a result, the global car rental service market is gaining momentum at a faster pace.
Challenges
The stringent emission standards, compliance requirements, fluctuating prices of oil, and the rise and easy availability of cheaper public transport may hinder the growth of the global car rental market.
Opportunities
The favorable government policies, fair compliance requirements, and the emphasis of the car rental service providers to offer better services to the customers at lower prices to beat the competition offer greater opportunities for the global car rental market to grow during the projected period.
Geographic Overview
North America is the largest contributor to the global car rental market in terms of revenue and it is expected to grow during the forecast period. This is mainly due to the rise in the number of domestic as well as international business and leisure trips. Moreover, there is a notable shift among the consumers towards such affordable services in this region and there is a large number of key players to offer them such services. All these pertain to the growth of the car rental market in this region.
However, the APAC region is also expected to grow at a significant rate during the forecast period. This is primarily due to improved road networks and easy accessibility to high-end vehicles. There is also a significant rise noticed in self-driving renting of cars. This offers more flexibility and convenience to tourists.
All these factors have a positive impact on the global car rental market helping it to grow.
Competitive Insight
Key players in the car rental market are catering to the demand for these devices by investing in technologically advanced products in their product portfolio across the globe. Key players such as Avis and Uber have launched mobile applications through which customers get the ease of booking cars and choosing their desired vehicle. Moreover, several players are introducing their rental services at affordable prices in order to enhance their consumer base.
Some of the major players operating in the global car rental market are Sixt SE, Uber Technologies Inc., Carzonrent India Pvt Ltd., Europcar, Avis Budget Group, Inc., German Rent a Car, DTG Operations, Inc., Localiza Rent a Car S.A., Enterprise Holdings Inc., Tempest Car Hire, The Hertz Corporation, Alamo, and Eco Rent a Car.
Recent Developments by Key Players
SIXT and Stellantis collaborated for the purchase of up to 250,000 Vehicles, laying the foundation for further global expansion. These vehicles shall enrich SIXT’s rental fleet across Europe and North America. This partnership shall share ambitious decarbonization strategy and customer-centric approach with cutting-edge technologies at the heart of their products and services.
Enterprise Holdings has launched its new corporate brand name, Enterprise Mobility that shall serve consumers, businesses and governments. Enterprise’s portfolio offers luxury rental, fleet management, flexible vehicle, truck, carsharing, vanpooling, car sales, vehicle subscription and technology solutions are included.
Forecast Parameters
Data Validation
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising consumers are also conducted to understand consumer behaviour.
The Car Rental Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
Geographical Segmentation
Source: VynZ Research
Source: VynZ Research
Car Rental Market