Car Rental Market Size | Share and Trends 2025 to 2034

Car Rental Market Size and Forecast 2025 to 2034

The global car rental market size was estimated at USD 140.74 billion in 2024 and is predicted to increase from USD 152.99 billion in 2025 to approximately USD 324.14 billion by 2034, expanding at a CAGR of 8.70% from 2025 to 2034.

Car Rental Market Key Takeaways

• The North America region has captured a market share of around 54% in 2024.
• By vehicle type, the economy cars segment held a market share of around 35% in 2024.
• The executive cars segment is expected to grow at a CAGR of 5.8% from 2025 to 2034.
• By application, the airport transport segment accounted for 43% of the total revenue share in 2024.
• The local usage segment is registering growth at a CAGR of 6.8% between 2025 to 2034.

U.S. Car Rental Market Size and Growth 2025 to 2034

The U.S. car rental market size was estimated at USD 53.41 billion in 2024 and is predicted to be worth around USD 125.39 billion by 2034, at a CAGR of 8.90% from 2025 to 2034.

Based on the region, the North America region held 54% revenue share in 2024. 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 U.S. is major contributor to the car rental market in North America. The market growth is driven by re-emergence of travel and tourism for both domestic and international tourism, flexibility offered by rental car service providers, growing use of online booking platforms offering a cost-effective and convenient option for travellers, rising popularity of electric vehicles (EVs), implementation of advance technological solutions such as self-serving kiosks and increased demand of rental cars in popular tourist destinations such as Florida, California, Las Vegas and New York. 

• For instance, in March 2025, SIXT USA, a part of Sixt SE- a globally leading premium mobility services company, opened its newest U.S. rental car branch in Hollywood, Florida at the iconic Seminole Hard Rock Hotel & Casino. The newly launched branch will offer exceptional service for both hotel guests and area travellers by providing direct acces to SIXT’s top-tier fleet. 

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.

• For instance, in April 2025, Go Wheelo, a leading two-wheeler rental aggregation platform in India, expanded its service offerings with the launch of its new vertical for car rentals with the aim of providing smart, sustainable and accessible travel options for everyone.

Car Rental Market Growth Factors

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.

Market Scope

Vehicle Type Insights

Based on the vehicle type, the economy cars segment accounted for 35% of revenue share in 2024. 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.

Application Type Insights

Based on the application type, the airport transport segment has garnered a 43% revenue share in 2024. 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.

Rental Duration Insights

Based on the rental duration, the short-term segment dominated the global car rental market in 2024, 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.

Car Rental Market Companies

• Avis Budget Group
• Europecar
• Enterprise Holdings Inc.
• The Hertz Corporation
• Toyota Rent-a-Car
• Sixt SE
• Alamo Rent-a-Car LLC
• Carzonrent India Pvt Ltd
• Localiza
• ANI Technologies Pvt. Ltd

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.

Recent Developments

• In April 2025, SelfDrive Mobility, a leading mobility tech company, launched car rental services offering Zero Deposit across daily, weekly and monthly rental plans providing a flexible and cost-effective solution to traditional leasing. The service is launched in five key markets, including Qatar, Bahrain, the Kingdom of Saudi Arabia, the UAE and the UK with the aim of simplifying and improving customer rental experience.
• In April 2025, Dollar Car Rental UAE launched a digital-first travel solution at the Arabian Travel Market (ATM) 2025 with new customer-centric offerings which align with the future of global tourism and are set to revolutionize mobility services.
• In February 2025, Poppy Mobility, a leading car-sharing and rental operator in Belgium, announced the launch of its remote-driving technology for delivering rental cars in collaboration with Ush, a developer of autonomous and remote-controlled vehicle solutions. Requests for rental vehicle can be done via the Poppy app by users, which will then remotely be driven to the user’s real-time location by Ush’s remote driving operator. 

Segments Covered in the Report

By Vehicle Type

• Luxury Cars
• Economy Cars
• SUVs
• Executive Cars
• MUVs

By Application Type

• Local Usage
• Outstation
• Airport Transport
• Others

By Rental Duration

• Long-term
• Short-term

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World