Car Rental Market Size, Share & Trends 2025-30
The Car Rental Market is projected to be valued at USD 146.30 billion in 2025 and is anticipated to grow to USD 243.76 billion by 2030, registering a CAGR of over 10.75% during the forecast period (2025–2030).
The car rental market plays a vital role in the global mobility ecosystem, offering short-term access to vehicles for personal, business, and leisure purposes. It serves a wide range of customers from tourists needing transportation during trips, to businesses managing employee travel, and individuals opting for rentals over vehicle ownership. Driven by urbanization, rising travel demand, and evolving consumer preferences, the industry has seen significant changes in recent years.
Key Car Rental Market Trends
Online & Digital Booking Dominance
Over 70% of bookings in 2024 occurred online, via websites, mobile apps, and third-party platforms like Expedia and Kayak. This shift reflects consumers’ preference for transparency, convenience, and real-time comparison tools.
Resilient Demand Despite Inflation
Rental bookings have continued to rise since early 2023, even amid inflationary pressures and macroeconomic challenges in North America and Europe. Airlines, hotels, and rental firms are adapting to a high-cost environment while managing pricing more conservatively.
Focus on Dynamic & AI‑Driven Pricing
Rental firms are deploying advanced dynamic‑pricing models combining supervised learning techniques with mathematical optimization to stay competitive and maximize revenue.
Electric Vehicle Integration & Regulatory Push
Major providers like Hertz are rapidly electrifying fleets ordering tens of thousands of Tesla, GM, and Polestar EVs and building charging infrastructure partnerships. Meanwhile, the EU is preparing regulations to mandate all rental fleets be electric by 2030.
Rise of Peer‑to‑Peer & Car‑Sharing Models
Platforms like Turo, Getaround, Hiyacar, and Zipcar continue to grow, offering access via shared or privately owned cars. Yet profitability remains a challenge due to costs like insurance and parking, and conventional vehicle ownership is rebounding in many regions. Turo is now expanding via listing partnerships with Uber Rent in multiple countries starting in early 2025
Exploring Vehicle-to-Grid (V2G) Opportunities
Research shows that shared fleets could provide grid flexibility through V2G integration generating ancillary services revenue and facilitating sustainability goals at scale by 2030
Market Segmentation
Booking Mode
Offline Access
Traditional walk-in bookings at rental counters, commonly found in airports, hotels, and city offices.
Online Access
Dominates the market due to ease of booking through websites and mobile apps. Consumers prefer digital platforms for comparison, convenience, and faster processing.
Application Type
Leisure/Tourism
A major driver of rental demand, especially during holiday seasons and in tourist-heavy destinations. Tourists often rent vehicles for local exploration and convenience.
Business
Includes rentals for corporate travel, airport transfers, and executive transportation. Business travel demands often involve premium vehicles and flexible packages.
End User
Self-driven
The largest segment, where customers rent cars to drive themselves. Appeals to independent travellers and urban commuters.
Chauffeur-driven
Popular for business executives, luxury travel, and certain tourism segments. This category includes rentals with a professional driver, offering added comfort and convenience.
Vehicle Type
Economy/Budget Cars
The most popular category, favoured for cost-effectiveness, fuel efficiency, and general use. This segment dominates in both developing and mature markets.
Luxury/Premium Cars
Targets high-end customers and corporate clients. Includes sports cars, sedans, and high-performance vehicles typically rented for events or VIP travel.
Rental Length
Short Term
Covers hourly, daily, and weekly rentals. This is the most common format, especially for tourists and short-duration business trips.
Long Term
Involves monthly or yearly leasing models. Increasingly favored by corporate clients and individuals avoiding car ownership. Subscription-based rental models fall under this category.
Car Rental Market Companies
Avis Budget Group Inc.
A major player operating globally under well-known brands such as Avis, Budget, and Zipcar. The company serves both business and leisure travelers and is known for its wide network and dynamic pricing models.
Sixt
A Germany-based mobility provider offering car rentals, ride-hailing, and leasing services. Sixt has a strong presence in Europe and North America, with a focus on premium vehicles and digital rental experiences.
Hertz Corp.
One of the oldest and most recognized rental brands, Hertz operates globally with services for both personal and business use. The company is investing significantly in electric vehicle fleets and sustainability initiatives.
Enterprise Holdings Inc.
The largest car rental provider in North America, operating under brands like Enterprise Rent-A-Car, National Car Rental, and Alamo. Known for its strong local rental network and extensive fleet services.
Europcar Group
A leading European car rental company with a strong presence across international airports and urban centers. Europcar focuses on flexible rental solutions and has expanded into car-sharing and electric mobility services.
Conclusion: Car Rental Market Outlook
The car rental market is poised for significant growth, driven by rising demand for flexible transportation, increasing digital adoption, and expanding travel activity across both leisure and business segment
For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/car-rental-market?utm_source=blogger
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