Car Rental Market (By Vehicle Type: Luxury Cars, Economy Cars, SUVs, Executive Cars, and MUVs; By Application Type: Local Usage, Outstation, Airport Transport, and Others; and By Rental Duration: Long-term and Short-term) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024 – 2033
The global car rental market size was estimated at USD 129.48 billion in 2023 and is expected to surpass around USD 292.76 billion by 2033, poised to grow at a registered CAGR of 8.5% from 2024 to 2033.
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The U.S. car rental market size was estimated at USD 48.25 billion in 2023 and is predicted to be worth around USD 114.08 billion by 2033, at a CAGR of 9% from 2024 to 2033.
Based on the region, the North America region held 53% revenue share in 2023. The surge in number of leisure and business tours across the North America region is boosting the growth of market. The trips to North American cities such as New York, Los Angeles, Chicago, San Francisco, and Las Vegas are also paving way for the growth of the car rental market.
The Asia-Pacific is expected to grow at a CAGR of 8.4% during the forecast period. The rise in consumer spending for tourism and traveling combined with rising disposable income is driving the growth of car rental market in the Asia-Pacific region during the forecast period. The market players such as Uber, Avis, Ola, Hertz, Didi Chuxing, Sixt, Zoomcar, Europcar, GrabTaxi, Hailo, Line Taxi, and Blue Bird are offering car rental services in the Asia-Pacific region.
The Europe car rental market size was calculated at USD 30.31 billion in 2023 and is projected to expand around USD 72.90 billion by 2033, poised to grow at a CAGR of 9.2% from 2024 to 2033.
Year | Market Size (USD Billion) |
2023 | 30.31 |
2024 | 33.10 |
2025 | 36.14 |
2026 | 39.46 |
2027 | 43.08 |
2028 | 47.03 |
2029 | 51.34 |
2030 | 56.05 |
2031 | 61.18 |
2032 | 66.79 |
2033 | 72.90 |
The technology plays vital role for the growth and development of car rental market. The increased adoption of car rental software by key market players is driving the growth of the market. Moreover, the business of car rental service is quite profitable, where venture capitalists and angel investors are funding the startups to start their own car rental services. The startups such as Turo, Getaround, Zoomcar, Zipcar, Socar, and Kovi are the new market players in the car rental market.
The increased in internet penetration will create lucrative opportunities for the growth of the car rental market. The digitalization of developing and underdeveloped regions is also helping the market to grow at a rapid pace. Furthermore, the digital technologies have also helped market players to collect, store, and analyze passenger data to build long-term relationship with its customers.
However, the rise in low-cost public transportation may hamper the growth of car rental market. The government of developed regions is implementing policies for the growth of public transport industry. These government policies include a greater number of public buses and low-cost tickets. Thus, the increase in government activities and initiatives for the development of public transport infrastructure will restrict the growth of car rental market.
The factors such as rise in trend of on-demand transportation services and low rate of car ownership among millennials propel the growth of car rental market. Moreover, the adoption of car rental management technology will provide growth opportunities for car rental market players. However, the low rate of internet penetration in developing regions is hampering the growth of the market during the forecast period.
Report Coverage | Details |
Car Rental Market Growth Rate from 2024 to 2033 | CAGR of 8.5% |
Car Rental Market Size in 2023 | USD 129.48 Billion |
Car Rental Market Size by 2033 | USD 292.76 Billion |
Largest Market | North America |
Fastest Growing Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | By Vehicle, By Application, and By Rental Duration |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Based on the vehicle type, the economy cars segment accounted for 35% of revenue share in 2023. The economy cars are very efficient in terms of fuel consumption. Most of the market players prefer economy cars for car rental services, owing to low maintenance and procurement costs. Also, economy cars are compact in nature and provide enough comfort to the passengers.
The executive cars segment is expected to hit 5.8% of CAGR during the forecast period. Executive cars are larger than economy cars but smaller than luxury cars. The regions such as Asia-Pacific and Latin America are flourishing with the strong economic growth, which also helps key market players to provide better transportation services. This factor is driving the growth of the executive cars segment.
Based on the application type, the airport transport segment has garnered a 43% revenue share in 2023. The increase in number of airports in developing regions is contributing towards the growth of airport transport segment. The increase in urbanization has also helped to increase the demand for the car rental services. The rise in upper middle-class group is also contributing for the growth of the market. As a result, the surge in demand for airport car rental services is creating lucrative opportunities for the growth of the segment.
The local usage segment is projected to reach 6.8% of CAGR during the forecast period. The demand for local cars and taxis has increased over the time period. The short trips and tours require car rental services for the local usage.
Based on the rental duration, the short-term segment dominated the global car rental market in 2023, in terms of revenue and is estimated to sustain its dominance during the forecast period. The short-term duration rental cars are used for short trips, tours, and journeys. This type of rental duration car is also applicable for the local usage, airport transportation, and short distance outstation journeys.
On the other hand, the long-term is estimated to be the most opportunistic segment during the forecast period. The rental cars are used for long-term trips and journeys. It is mostly used for the outstation trips. The car rental service for long-term duration is also gaining traction for the family trips.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting different marketing strategies, such as investments, partnerships, and mergers & acquisitions. The companies are also spending on the development of improved products. Moreover, they are also focusing on competitive pricing.
In March 2021, the Uber Technologies Inc. entered into partnership with car a rental company called CarTrawler to launch car rental service called Uber Rent.
The various developmental strategies such as partnerships, new product launches, acquisition, joint venture, R&D investments, and mergers fosters market growth and offers lucrative growth opportunities to the market players.
Segments Covered in the Report
By Vehicle Type
By Application Type
By Rental Duration
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Car Rental Market
5.1. COVID-19 Landscape: Car Rental Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Car Rental Market, By Vehicle
8.1. Car Rental Market, by Vehicle Type, 2024-2033
8.1.1. Luxury Cars
8.1.1.1. Market Revenue and Forecast (2021-2033)
8.1.2. Economy Cars
8.1.2.1. Market Revenue and Forecast (2021-2033)
8.1.3. SUVs
8.1.3.1. Market Revenue and Forecast (2021-2033)
8.1.4. Executive Cars
8.1.4.1. Market Revenue and Forecast (2021-2033)
8.1.5. MUVs
8.1.5.1. Market Revenue and Forecast (2021-2033)
Chapter 9. Global Car Rental Market, By Application
9.1. Car Rental Market, by Application, 2024-2033
9.1.1. Local Usage
9.1.1.1. Market Revenue and Forecast (2021-2033)
9.1.2. Outstation
9.1.2.1. Market Revenue and Forecast (2021-2033)
9.1.3. Airport Transport
9.1.3.1. Market Revenue and Forecast (2021-2033)
9.1.4. Others
9.1.4.1. Market Revenue and Forecast (2021-2033)
Chapter 10. Global Car Rental Market, By Rental Duration
10.1. Car Rental Market, by Rental Duration, 2024-2033
10.1.1. Long-term
10.1.1.1. Market Revenue and Forecast (2021-2033)
10.1.2. Short-term
10.1.2.1. Market Revenue and Forecast (2021-2033)
Chapter 11. Global Car Rental Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.1.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.1.4. U.S.
11.1.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.1.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.1.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.1.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.2. Europe
11.2.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.2.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.2.4. UK
11.2.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.2.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.2.5. Germany
11.2.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.2.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.2.6. France
11.2.6.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.2.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.6.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.2.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.2.7.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.3. APAC
11.3.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.3.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.3.4. India
11.3.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.3.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.3.5. China
11.3.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.3.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.3.6. Japan
11.3.6.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.3.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.6.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.3.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.3.7.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.4. MEA
11.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.4.4. GCC
11.4.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.4.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.4.5. North Africa
11.4.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.4.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.4.6. South Africa
11.4.6.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.4.6.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.6.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.4.7.2. Market Revenue and Forecast, by Application (2021-2033)
11.4.7.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.5.4. Brazil
11.5.4.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.5.4.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.4.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Vehicle (2021-2033)
11.5.5.2. Market Revenue and Forecast, by Application (2021-2033)
11.5.5.3. Market Revenue and Forecast, by Rental Duration (2021-2033)
Chapter 12. Company Profiles
12.1. Avis Budget Group
12.1.1. Company Overview
12.1.2. Product Offerings
12.1.3. Financial Performance
12.1.4. Recent Initiatives
12.2. Europecar
12.2.1. Company Overview
12.2.2. Product Offerings
12.2.3. Financial Performance
12.2.4. Recent Initiatives
12.3. Enterprise Holdings Inc.
12.3.1. Company Overview
12.3.2. Product Offerings
12.3.3. Financial Performance
12.3.4. Recent Initiatives
12.4. The Hertz Corporation
12.4.1. Company Overview
12.4.2. Product Offerings
12.4.3. Financial Performance
12.4.4. Recent Initiatives
12.5. Toyota Rent-a-Car
12.5.1. Company Overview
12.5.2. Product Offerings
12.5.3. Financial Performance
12.5.4. Recent Initiatives
12.6. Sixt SE
12.6.1. Company Overview
12.6.2. Product Offerings
12.6.3. Financial Performance
12.6.4. Recent Initiatives
12.7. Alamo Rent-a-Car LLC
12.7.1. Company Overview
12.7.2. Product Offerings
12.7.3. Financial Performance
12.7.4. Recent Initiatives
12.8. Carzonrent India Pvt Ltd
12.8.1. Company Overview
12.8.2. Product Offerings
12.8.3. Financial Performance
12.8.4. Recent Initiatives
12.9. Localiza
12.9.1. Company Overview
12.9.2. Product Offerings
12.9.3. Financial Performance
12.9.4. Recent Initiatives
12.10. ANI Technologies Pvt. Ltd
12.10.1. Company Overview
12.10.2. Product Offerings
12.10.3. Financial Performance
12.10.4. Recent Initiatives
Chapter 13. Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
Chapter 14. Appendix
14.1. About Us
14.2. Glossary of Terms
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