Automotive
Car Rental Market

Car Rental Market Size, Share, Growth, Trends and Forecast 2025 - 2032

Q: How Big is the Global Car Rental Market in 2025?

The global market is projected to be valued at US$ 140.4 Bn in 2025.

Q: What is the Growth Rate for Global Car Rental Market?

The market is poised to witness a CAGR of 11.2% from 2025 to 2032.

Car Rental Market by Vehicle (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs), Application (Local Usage, Airport Transport, Outstation), Booking Mode (Offline/Direct, Online), and Regional Analysis for 2025 - 2032

ID: PMRREP35245

April 2025

140 Pages

Author : Jitendra Deviputra

Automotive & Transportation

Market Dynamics

Driver - Demand Soars with Rise in Intercity Corporate Travel in Emerging Markets

Increasing business travel across the globe is a leading factor propelling the market. Demand for professional and reliable transport solutions is estimated to surge with the rapid expansion of domestic businesses into Tier II and Tier III cities as well as increasing cross-border partnerships. In countries such as Indonesia, Brazil, and India, the market will likely rise steadily. This is owing to the ongoing development of IT and consulting businesses requiring frequent employee commuting options, client site visits, and airport transfers.

Multinational corporations globally are mainly choosing subscription models and long-term rental contracts over acquiring in-house vehicle fleets. This shift is spurred by improved operational flexibility, reduced liability, and cost optimization. Small and medium-sized companies find rental services more cost-effective than vehicle ownership, specifically in areas with poor public transportation networks. In Indonesia, for example, the government’s Making Indonesia 4.0 initiative has resulted in a rise in intercity business travel, pushing dependence on corporate rental platforms such as Movic and TRAC Astra Rent a Car. As per TRAC, B2B rentals from mid-sized companies surged by 15% in 2023 alone.

Restraint - Surge of On-demand Mobility Platforms to Hamper Short-term Rentals

In urban areas, the proliferation of car-sharing platforms and ride-hailing services is expected to hamper demand for traditional rental services to a certain extent. Modern customers are increasingly seeking on-demand mobility without the responsibility of managing a rental, mainly for intra-city or short-term travel.

In cities such as Berlin and London, car-sharing services, including Share Now and Free2Move, have gained momentum. The German Federal Environment Agency found that more than 10% of all motorized journeys in Berlin are based on car sharing. This ongoing shift is specifically prevalent among Gen Z and millennial customers who emphasize app-based convenience and flexibility over rental procedures.

Opportunity - Shift toward EVs Opens New Growth Avenues for Car Rental Providers

A key opportunity for car rental service providers lies in adopting Electric Vehicle (EV) fleets. Increasing environmental consciousness among individuals is projected to create a high demand for sustainable alternatives to conventional vehicles. Several providers are anticipated to embrace EV in rental fleets to comply with sustainability goals. Hertz, for instance, recently declared its plans to make 25% of its fleet electric by 2025. It has already ordered more than 65,000 Polestar EVs and 100,000 Tesla vehicles to achieve this goal.

Similar initiatives by leading companies are likely to help raise consumer awareness about EVs and lower operational emissions. Western Europe and North America are speculated to lead in terms of EV fleet adoption, with government support in the form of incentives and tax rebates. As per a new report, around 42% of urban car rental customers mainly request hybrids or EVs during bookings in Europe. Norway has one of the most prominent EV penetrations worldwide and these vehicles account for more than 80% of the rental car segment. It is attributed to favorable policies such as tax exemptions and zero-emission mandates.

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Car Rental Market Key Trend

Global Tourism Rebound Pushes Demand for Flexible Car Rental Solutions

The booming tourism industry is expected to augment demand for car rental services globally. Both international and domestic tourists are now preferring independent and customized travel experiences over conventional public transport or guided tours. Rental vehicles provide high flexibility, specifically for accommodating group or family travel, managing tight itineraries, and exploring offbeat spots.

In 2023 alone, international tourist visits surpassed 1.3 Bn, recovering to over 88% of pre-pandemic levels, as per the UN World Tourism Organization (UNWTO). Regions such as Southeast Asia and Southern Europe are estimated to see high demand for car rentals in the forecast period as road-based travel plays a key role in tourism infrastructure. High popularity of eco-tourism and adventure tourism is further likely to positively influence rental preferences. Vehicles such as campervans and SUVs are projected to witness surging demand, primarily for coastal drives, wildlife safaris, and national park visits.

Category-wise Analysis

Vehicle Mode Insights

Based on vehicle, the market is divided into luxury cars, executive cars, economy cars, SUVs, and MUVs. Out of these, economy cars are envisioned to generate a share of nearly 33.5% in 2025, finds Persistence Market Research. It is attributed to their easy availability, high cost-effectiveness, and rising demand from budget-conscious customers. These are considered ideal vehicles for individuals demanding reliable and basic transportation solutions for vacations or short trips. Rental companies are hence focusing on extending their economy car fleets to meet the high demand.

SUVs, on the other hand, are projected to showcase steady growth in the foreseeable future. SUVs provide more cargo capacity and spacious interiors compared to conventional sedans. These properties are anticipated to make them a well-suited option for travelers with large groups and more luggage. Additionally, these vehicles offer a sense of stability and safety, which is appealing to individuals demanding comfortable and reliable travel solutions.

Booking Mode Insights

In terms of booking mode, the market is bifurcated into offline/direct and online. Among these, the online mode is poised to account for around 72.8% of the car rental market share in 2025. Increasing preference for digital platforms providing competitive pricing, transparency, and convenience is estimated to propel the segment. Millennial and Gen Z customers are constantly using online channels such as third-party platforms, apps, and official company websites to read reviews, compare costs, and make bookings as per their convenience. The surge of user-friendly and mobile-first apps is also anticipated to make booking processes smooth.

The offline/direct segment is envisioned to exhibit an average CAGR from 2025 to 2032. Offline channels are specifically preferred by those seeking reliable transportation options in areas with less internet penetration or those demanding personalized services. Geriatric populations are expected to be the target customers for offline rental service providers as these groups tend to be not so familiar with digital platforms. Rental counters across various airports and railway stations where travelers can directly book a car are further creating lucrative avenues.

car rental market insights and key trends

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Regional Insights

North America Car Rental Market Trends

North America is speculated to hold a share of about 37.4% in 2025. The U.S. car rental market is estimated to remain at the forefront of growth through 2032 in this region. The surge of peer-to-peer (P2P) rental platforms such as Getaround and Turo is expected to transform the field of car rentals in the country. These platforms enable individuals to rent out their personal vehicles, delivering diverse vehicle options and competitive pricing, including EVs and luxury cars.

Turo, for instance, established itself as a strong player in the urban and millennial-driven segment by operating in more than 5,500 U.S. cities and reporting over 3 Mn active users, as of 2023. Such P2P models are likely to lower the requirement for centralized fleet management and help attract budget-conscious customers across the U.S.

Asia Pacific Car Rental Market Trends

Asia Pacific is predicted to witness significant growth in the forecast period due to the rapid proliferation of app-based rental services in developing countries. In India, Revv and Zoomcar have already gained traction among the middle-class population due to their cost-effectiveness. Even though economy car rentals lead the domestic market, luxury cars are likely to showcase steady demand, specifically among international tourists and business travelers.

In China, the market is characterized by an increasing preference for long-term rentals that cater to both families and corporate clients demanding reliable mobility solutions. Booming domestic tourism and a shift toward EV fleets are anticipated to play key roles in boosting growth across Japan. Australia is also poised to see an increasing adoption of hybrid and electric vehicles among rental service providers to meet sustainability goals.

Europe Car Rental Market Trends

Europe is expected to experience considerable growth, with Germany and France at the forefront. Germany is expected to benefit from a surge in tourism. Visitors are constantly demanding to explore scenic regions such as the Black Forest and the Bavarian Alps. Mobile applications and digital platforms are hence assessed to be transforming the rental experience, providing novel fleet management systems and hassle-free booking.

As demand for sustainable transportation solutions skyrockets in France, car rental service providers are striving to adopt EVs in their fleets. The country’s government is also supporting this trend by offering financial assistance. A key initiative from the recent past was the government’s €100-a-month electric car leasing scheme. It was stopped after six months of initiation on the back of exponential demand. The government recorded nearly 90,000 applications for 25,000 available vehicles. The program is estimated to relaunch in 2025 to meet the unmet requirements of local companies.

Competitive Landscape

The car rental market is highly competitive with the presence of several large-scale as well as mid-sized companies. Key companies are focusing on extending their geographic presence by setting up offices in untapped areas. They are also striving to create brand awareness by improving their existing services. A few leading companies are joining hands with local travel agencies to offer cost-effective yet efficient rental services.

Key Industry Developments

In April 2025, South Korea-based LOTTE rent-a-car unveiled Jeju travel destinations that have been featured in the Netflix series 'When Life Gives You Tangerines.’ The company plans to launch a special Jeju travel course for international tourists centered around the filming locations of iconic scenes from the series. These include Seongsan Ilchulbong and Gimnyeong Beach.
In April 2025, Chicago-based Hertz Global Holdings, Inc. joined hands with UVeye, an AI vehicle-inspection service provider. With this collaboration, UVeye will help Hertz to thoroughly scan its rental returns at airports for possible maintenance issues and damages. Hertz has successfully utilized the technology at Hartsfield-Jackson Atlanta International Airport and plans to extend it to other key airports in the U.S.
In April 2025, Colorado-based Inspirato Incorporated partnered with SIXT USA to provide Inspirato members with a wide range of premium travel benefits, combined with best-in-class mobility and world-class accommodations. SIXT will be offering premium rental cars and chauffeur services at every touchpoint.

Companies Covered in Car Rental Market

Enterprise Holdings, Inc.
The Hertz Corporation
Al-Futtaim Vehicle Rentals (AVR)
Europcar
Avis Car Rental, LLC
ALD Automotive
Movida
Localiza
Carzonrent India Private Limited
Sixt SE
Others

Frequently Asked Questions

The global market is projected to be valued at US$ 140.4 Bn in 2025.

Boom in business travel and rising tourism industry are the key market drivers.

The market is poised to witness a CAGR of 11.2% from 2025 to 2032.

Rapid shift toward EVs to meet sustainability goals and the development of user-friendly online booking apps are the key market opportunities.

Enterprise Holdings, The Hertz Corporation, and Al-Futtaim Vehicle Rentals (AVR) are a few key market players.

Top-Down Market Sizing	Bottom-Up Market Sizing
Universe Definition: Total global/regional market identification	Unit Economics: Average transaction values, purchase frequencies, customer lifecycle
Segmentation Filters: Geographic, demographic, and behavioral constraints	Customer Segmentation: Detailed buyer persona development and sizing
Market Share Analysis: Competitive landscape assessment and share allocation	Penetration Analysis: Market penetration rates by segment and geography
Growth Rate Application: Historical trends and forward-looking growth assumptions	Scaling Methodology: Extrapolation techniques with confidence intervals

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Executive Summary
1. Global Car Rental Market Snapshot, 2025 and 2032
2. Market Opportunity Assessment, 2025 - 2032, US$ Bn
3. Key Market Trends
4. Future Market Projections
5. Premium Market Insights
6. Industry Developments and Key Market Events
7. PMR Analysis and Recommendations
Market Overview
1. Market Scope and Definition
2. Market Dynamics
  1. Drivers
  2. Restraints
  3. Opportunity
  4. Challenges
  5. Key Trends
3. COVID-19 Impact Analysis
4. Forecast Factors - Relevance and Impact
5. Value Chain Analysis
6. Regulatory Landscape
7. PESTLE Analysis
8. Porter’s Five Force Analysis
Market Activity Overview
1. Cross-border Rental Trends
2. Popular Inbound Tourist Markets (Key Customer Origins)
3. Outbound Rental Demand by Country
Rental Rate Analysis, 2019 - 2032
1. Rental Pricing Trends by Vehicle
2. Key Factors Influencing Rental Rates (Fuel Prices, Insurance, Tourism Seasons, Regulations)
Global Car Rental Market Outlook
1. Key Highlights
  1. Market Size (US$ Bn) and Y-o-Y Growth
  2. Absolute $ Opportunity
2. Market Size (US$ Bn) Analysis and Forecast
  1. Historical Market Size (US$ Bn) Analysis, 2019-2024
  2. Current Market Size (US$ Bn) Analysis and Forecast, 2025-2032
3. Global Car Rental Market Outlook: Vehicle
  1. Historical Market Size (US$ Bn) Analysis, By Vehicle, 2019-2024
  2. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
    1. Luxury Cars
    2. Executive Cars
    3. Economy Cars
    4. SUVs
    5. MUVs
4. Market Attractiveness Analysis: Vehicle
5. Global Car Rental Market Outlook: Application
  1. Historical Market Size (US$ Bn) Analysis, By Application, 2019-2024
  2. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
    1. Local Usage
    2. Airport Transport
    3. Outstation
    4. Others
6. Market Attractiveness Analysis: Application
7. Global Car Rental Market Outlook: Booking Mode
  1. Historical Market Size (US$ Bn) Analysis, By Booking Mode, 2019-2024
  2. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
    1. Offline/Direct
    2. Online
8. Market Attractiveness Analysis: Booking Mode
Global Car Rental Market Outlook: Region
1. Historical Market Size (US$ Bn) Analysis, By Region, 2019-2024
2. Current Market Size (US$ Bn) Analysis and Forecast, By Region, 2025-2032
  1. North America
  2. Latin America
  3. Europe
  4. East Asia
  5. South Asia and Oceania
  6. Middle East & Africa
3. Market Attractiveness Analysis: Region
North America Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
  4. By Booking Mode
2. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. U.S.
  2. Canada
3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
4. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  1. Local Usage
  2. Airport Transport
  3. Outstation
  4. Others
5. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
6. Market Attractiveness Analysis
Europe Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
  4. By Booking Mode
2. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. Germany
  2. France
  3. U.K.
  4. Italy
  5. Spain
  6. Russia
  7. Rest of Europe
3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
4. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  1. Local Usage
  2. Airport Transport
  3. Outstation
  4. Others
5. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
6. Market Attractiveness Analysis
East Asia Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
2. By Booking Mode
3. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. China
  2. Japan
  3. South Korea
4. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
5. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  1. Local Usage
  2. Airport Transport
  3. Outstation
  4. Others
6. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
7. Market Attractiveness Analysis
South Asia & Oceania Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
  4. By Booking Mode
2. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. India
  2. Indonesia
  3. Thailand
  4. Singapore
  5. ANZ
  6. Rest of South Asia & Oceania
3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
  6. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  7. Local Usage
  8. Airport Transport
  9. Outstation
  10. Others
4. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
5. Market Attractiveness Analysis
Latin America Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
  4. By Booking Mode
2. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. Brazil
  2. Mexico
  3. Rest of Latin America
3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
4. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  1. Local Usage
  2. Airport Transport
  3. Outstation
  4. Others
5. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
6. Market Attractiveness Analysis
Middle East & Africa Car Rental Market Outlook
1. Historical Market Size (US$ Bn) Analysis, By Market, 2019-2024
  1. By Country
  2. By Vehicle
  3. By Application
  4. By Booking Mode
2. Current Market Size (US$ Bn) Analysis and Forecast, By Country, 2025-2032
  1. GCC Countries
  2. Egypt
  3. South Africa
  4. Northern Africa
  5. Rest of Middle East & Africa
3. Current Market Size (US$ Bn) Analysis and Forecast, By Vehicle, 2025-2032
  1. Luxury Cars
  2. Executive Cars
  3. Economy Cars
  4. SUVs
  5. MUVs
4. Current Market Size (US$ Bn) Analysis and Forecast, By Application, 2025-2032
  1. Local Usage
  2. Airport Transport
  3. Outstation
  4. Others
5. Current Market Size (US$ Bn) Analysis and Forecast, By Booking Mode, 2025-2032
  1. Offline/Direct
  2. Online
6. Market Attractiveness Analysis
Competition Landscape
1. Market Share Analysis, 2024
2. Market Structure
  1. Competition Intensity Mapping By Market
  2. Competition Dashboard
3. Company Profiles (Details - Overview, Financials, Strategy, Recent Developments)
  1. Enterprise Holdings, Inc.
    1. Overview
    2. Vehicle Type
    3. Key Financials
    4. Market Developments
    5. Market Strategy
  2. The Hertz Corporation
  3. Al-Futtaim Vehicle Rentals (AVR)
  4. Europcar
  5. Avis Car Rental, LLC
  6. ALD Automotive
  7. Movida
  8. Localiza
  9. Carzonrent India Private Limited
  10. Sixt SE
  11. Others
Appendix
1. Research Methodology
2. Research Assumptions
3. Acronyms and Abbreviations

Global Market Attribute	Key Insights
Car Rental Market Size (2025E)	US$ 140.4 Bn
Market Value Forecast (2032F)	US$ 277.2 Bn
Projected Growth (CAGR 2025 to 2032)	11.2%
Historical Market Growth (CAGR 2019 to 2024)	8.9%

Report Attribute	Details
Historical Data/Actuals	2019 - 2024
Forecast Period	2025 - 2032
Market Analysis Units	Value: US$ Bn/Mn, Volume: As Applicable
Geographical Coverage	North America Europe East Asia South Asia and Oceania Latin America Middle East and Africa
Segmental Coverage	Vehicle Application Booking Mode Region
Competitive Analysis	Enterprise Holdings, Inc. The Hertz Corporation Al-Futtaim Vehicle Rentals (AVR) Europcar Avis Car Rental, LLC ALD Automotive Movida Localiza Carzonrent India Private Limited Sixt SE Others
Report Highlights	Market Forecast and Trends Competitive Intelligence and Share Analysis Growth Factors and Challenges Strategic Growth Initiatives Pricing Analysis Future Opportunities and Revenue Pockets Market Analysis Tools
Customization and Pricing	Available upon request

Global Market Attribute	Key Insights
Car Rental Market Size (2025E)	US$ 140.4 Bn
Market Value Forecast (2032F)	US$ 277.2 Bn
Projected Growth (CAGR 2025 to 2032)	11.2%
Historical Market Growth (CAGR 2019 to 2024)	8.9%

Report Attribute	Details
Historical Data/Actuals	2019 - 2024
Forecast Period	2025 - 2032
Market Analysis Units	Value: US$ Bn/Mn, Volume: As Applicable
Geographical Coverage	North America Europe East Asia South Asia and Oceania Latin America Middle East and Africa
Segmental Coverage	Vehicle Application Booking Mode Region
Competitive Analysis	Enterprise Holdings, Inc. The Hertz Corporation Al-Futtaim Vehicle Rentals (AVR) Europcar Avis Car Rental, LLC ALD Automotive Movida Localiza Carzonrent India Private Limited Sixt SE Others
Report Highlights	Market Forecast and Trends Competitive Intelligence and Share Analysis Growth Factors and Challenges Strategic Growth Initiatives Pricing Analysis Future Opportunities and Revenue Pockets Market Analysis Tools
Customization and Pricing	Available upon request

Car Rental Market Size, Share, Growth, Trends and Forecast 2025 - 2032

Car Rental Market by Vehicle (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs), Application (Local Usage, Airport Transport, Outstation), Booking Mode (Offline/Direct, Online), and Regional Analysis for 2025 - 2032