Car Rental Business

Global Car Rental Business Market to Reach US$102.8 Billion by 2030

The global market for Car Rental Business estimated at US$73.8 Billion in the year 2024, is expected to reach US$102.8 Billion by 2030, growing at a CAGR of 5.7% over the analysis period 2024-2030. Airport, one of the segments analyzed in the report, is expected to record a 4.7% CAGR and reach US$39.3 Billion by the end of the analysis period. Growth in the Non-Airport segment is estimated at 6.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$27.7 Billion While China is Forecast to Grow at 10.6% CAGR

The Car Rental Business market in the U.S. is estimated at US$27.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$15.8 Billion by the year 2030 trailing a CAGR of 10.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.4% and 5.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.0% CAGR.

Global Car Rental Business Market - Key Trends & Drivers Summarized

Why Are Car Rental Businesses Booming Globally?

The car rental industry has witnessed remarkable growth over the past few decades, driven by a myriad of factors that cater to both individual and corporate needs. One of the primary reasons for this surge is the increasing globalization, leading to a higher frequency of international travel. Business trips, vacations, and tourism have created a consistent demand for rental cars, offering travelers the flexibility and convenience of exploring new places at their own pace. Additionally, the rise of low-cost airlines has made international travel more accessible, further fueling the demand for car rentals at destinations worldwide. Companies have expanded their fleets and services to cater to this growing clientele, ensuring a diverse range of vehicles that suit various preferences and budgets, from economy cars to luxury sedans and SUVs.

How Is Technology Transforming The Car Rental Experience?

Technology has been a game-changer in the car rental industry, revolutionizing how services are offered and enhancing customer satisfaction. The adoption of mobile apps and online booking platforms has made it easier than ever for customers to rent a car from virtually anywhere. These platforms offer a seamless experience, from browsing available vehicles to making reservations and managing bookings. Furthermore, the integration of GPS and advanced telematics in rental cars has improved navigation and safety, allowing renters to enjoy a hassle-free driving experience. Companies are also leveraging big data and artificial intelligence to predict customer preferences, optimize fleet management, and provide personalized services. The advent of electric vehicles (EVs) and hybrid cars in rental fleets is another technological trend, aligning with the global shift towards sustainability and eco-friendly transportation solutions.

What Are The Emerging Trends In The Car Rental Industry?

The car rental industry is not static; it is continuously evolving to adapt to changing consumer behaviors and market conditions. One notable trend is the rise of car-sharing services, which cater to urban dwellers and short-term renters who need a vehicle for a few hours rather than days. This model promotes more efficient use of resources and aligns with the growing preference for flexible and cost-effective mobility solutions. Additionally, the increasing focus on sustainability has led rental companies to adopt greener practices, such as incorporating more fuel-efficient and electric vehicles into their fleets and implementing carbon offset programs. The industry is also witnessing consolidation, with larger companies acquiring smaller competitors to expand their market reach and enhance operational efficiency. This trend not only increases the market share of these companies but also ensures a higher standard of service due to uniform policies and practices across locations.

What Are The Key Drivers Of Growth In The Car Rental Market?

The growth in the car rental market is driven by several factors that are reshaping the landscape of this industry. Firstly, changing consumer preferences, particularly among millennials and Gen Z, are leaning towards experiences over ownership, making car rental an attractive option. This demographic is more likely to rent a car for specific needs rather than commit to the long-term costs associated with ownership. Secondly, the proliferation of mobile technology and internet penetration has made it easier for customers to access rental services on-the-go, contributing significantly to market expansion. Another critical driver is the increasing number of business travelers and tourists who prefer renting cars for their convenience and flexibility. Additionally, environmental awareness and regulatory pressures are pushing companies to innovate with cleaner and more sustainable vehicle options. Finally, economic factors such as rising urbanization and improving disposable incomes, especially in emerging markets, are boosting the demand for car rentals as more people can afford to travel and seek rental services for their transportation needs.

SCOPE OF STUDY:

The report analyzes the Car Rental Business market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Location (Airport, and Non-Airport); and Sector (Leisure, Business, and Other Sectors)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Spain; Russia; Rest of Europe; Asia-Pacific; Australia; India; South Korea; Rest of Asia-Pacific; Latin America; Argentina; Brazil; Mexico; Rest of Latin America; Middle East; Iran; Israel; Saudi Arabia; UAE; Rest of Middle East; Africa.

Select Competitors (Total 131 Featured) -

• Toyota Motor Corporation
• Zipcar, Inc.
• Avis Budget Group, Inc.
• Enterprise Holdings, Inc.
• Sixt SE
• Getaround, Inc.
• Enterprise Rent-A-Car

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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