Id: CBI_2737 | Pages: 220 | Format : PDF | Published : | Author : Consegic Business Intelligence | Category : Automotive Services
Car Rental Market size is estimated to reach over USD 289.70 Billion by 2032 from a value of USD 138.27 Billion in 2024 and is projected to grow by USD 149.26 Billion in 2025, growing at a CAGR of 10.7% from 2025 to 2032.
A car rental service refers to a business that offers several types of cars for temporary use by customers. Car renting services usually enable individuals or businesses to rent cars for short-term periods, ranging from a few hours to several days or longer. Moreover, several types of vehicles such as luxury cars, executive cars, economy cars, sports utility vehicle (SUVs), and multi utility vehicle (MUVs) are often utilized for rental purpose. In addition, renting cars provide a range of benefits such as route flexibility, increase comfort and convenience, cost savings, and others.
Car renting service providers are frequently investing in the acquisition of advanced cars along with improved car renting service offerings to ensure its safe and effective utilization for short-term and long-term rental usage. As a result, car renting service providers are launching new car renting service offerings with updated features for increased user convenience and comfort, which in turn is driving the market.
Therefore, the rising advancements associated with car renting services are proliferating the car rental market size.
There are several alternative solutions to renting cars including motorbike or scooter rentals, and others. Moreover, the alternative solutions have similar benefits and applications in comparison to renting cars, which is a key factor restricting the market.
For instance, several consumers often prefer renting motorbikes and scooters in comparison to renting cars as bike/scooter rentals are typically available at a much lower costs than car rents, making them an ideal option for budget-conscious travelers, particularly for short trips. Hence, the availability of several alternative solutions to renting cars is hindering the car rental market expansion.
The rising demand for economical and sustainable transportation solutions is projected to drive the car rental market. As public awareness regarding climate change and environmental issues has increased, consumers and businesses are actively seeking ways to reduce their carbon footprints and adopting electric car renting services. Electric vehicles offer a cleaner alternative to conventional gasoline-powered cars, which makes it an ideal option for eco-conscious renters aiming to contribute to sustainability efforts. Moreover, renting electric cars enables individuals to avoid high upfront vehicle costs while benefiting from lower operating costs of EVs. As a result, the growing consumer preference for sustainable and eco-friendly transportation options along with lower upfront costs has encouraged individuals and businesses to explore electric car for rental services, further boosting the market demand.
Hence, as per the analysis, the rising preference for economical and sustainable transportation solutions is increasing the adoption of EV rentals, which is projected to boost the car rental market opportunities during the forecast period.
Based on booking, the market is segmented into offline booking and online booking.
Trends in the booking:
Online booking segment accounted for a significant revenue in the overall car rental market share in 2024, and it is anticipated to register a substantial CAGR growth during the forecast period.
Based on rental duration type, the market is segmented into short-term and long-term.
Trends in the rental duration type:
Short-term segment accounted for the largest revenue share in the total car rental market share in 2024, and it is anticipated to register substantial CAGR growth during the forecast period.
Based on vehicle type, the market is segmented into luxury cars, executive cars, economy cars, sports utility vehicle (SUVs), and multi utility vehicle (MUVs).
Trends in the vehicle type:
Economy cars segment accounted for the largest revenue share of 38.22% in the overall market in 2024.
Luxury cars segment is anticipated to register a substantial CAGR growth during the forecast period.
Based on the application, the market is segmented into local usage, airport transport, outstation, and others.
Trends in the application:
Local usage segment accounted for a significant revenue share in the total market in 2024, and it is anticipated to register a substantial CAGR growth during the forecast period.
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 31.70 Billion in 2024. Moreover, it is projected to grow by USD 34.33 Billion in 2025 and reach over USD 69.18 Billion by 2032. Out of this, China accounted for the maximum revenue share of 30.95%. As per the car rental market analysis, the adoption of car rental service in the Asia-Pacific region is primarily driven by the increasing need for economical transport solutions along with rising tourism & travel activities among others. Additionally, the rising tourism activities is driving the adoption of car renting services to provide convenient travel options for tourists and travelers to explore new destinations, which is further accelerating the car rental market expansion.
The above factors are driving the adoption of car renting services for facilitating convenient travel options for tourists and travelers, in turn propelling the market in the Asia-Pacific region.
North America is estimated to reach over USD 107.56 Billion by 2032 from a value of USD 51.76 Billion in 2024 and is projected to grow by USD 55.83 Billion in 2025. In North America, the growth of car rental industry is driven by the growing investments in sustainable transportation industry and presence of multiple car rental companies among others. Moreover, the presence of a large number of corporate infrastructures in North America has encouraged businesses to rent vehicles for its employees in terms of their daily commute to work, which is further contributing to the car rental market demand.
Additionally, the regional analysis depicts that prevalence of favorable government measures and initiatives for eco-friendly mobility solutions and rising consumer preference for affordable transport solutions are driving the car rental market demand in Europe. Furthermore, as per the market analysis, the market growth in Latin America, Middle East, and African regions is expected to grow at a considerable rate due to factors such as growing advancements in car renting service offerings and increasing need for economical transport solutions among others.
The global car rental market is highly competitive with major players providing services to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the car rental market. Key players in the car rental industry include-
Business Expansion:
Service Launch:
Partnerships & Collaborations:
Report Attributes | Report Details |
Study Timeline | 2019-2032 |
Market Size in 2032 | USD 289.70 Billion |
CAGR (2025-2032) | 10.7% |
By Booking |
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By Rental Duration Type |
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By Vehicle Type |
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By Application |
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By Region |
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Key Players |
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North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
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The car rental market was valued at USD 138.27 Billion in 2024 and is projected to grow to USD 289.70 Billion by 2032.
Asia-Pacific is the region experiencing the most rapid growth in the car rental market.
The car rentals report includes specific segmentation details for booking, rental duration type, vehicle type, application, and region.
The key participants in the car rental market are The Hertz Corporation (U.S), Enterprise Holdings Inc. (U.S), Avis Budget Group, Inc. (U.S), Easirent (U.S), Sixt SE (Germany), Localiza (Brazil), Europcar (France), ECO Mobility (India), Carzonrent India Private Limited (India), Zoomcar (India), and others.