Japan Car Rental Market Overview

Market Size in 2024:  USD 2.8 million

Market Forecast in 2033: USD 5.7 million

Market Growth Rate: 8.1% (2025-2033)

According to the latest report by IMARC Group, The Japan Car Rental Market size reached USD 2.8 million in 2024. Going forward, IMARC Group expects this market to reach USD 5.7 million by 2033, exhibiting a compound annual growth rate (CAGR) of 8.1% between 2025 and 2033.The market is driven by tourism growth, urbanization, convenience, and rising demand for eco-friendly rental options.

Japan Car Rental Market Trends and Drivers:

In Japan, inbound tourism, domestic travel, and flexible mobility needs expand. They demand car rentals, and demand rebounds rapidly toward pre-pandemic levels. At resort corridors, rail hubs, and airports, the greatest demand exists where multilingual services, contactless keys, and digital booking are now normal. Operators usually use hybrid vehicles and electric vehicles in their fleets to comply with restrictions by sustainability and urban policy. AI-based fleet management, telematics, and data analytics technologies help improve turnaround times, prices, and utilization via optimization. To compete with car sharing and ride-hailing apps, car rental companies rent one-way, add child-seats, supply winter kits, preset regional navigation and include value-added insurance bundles for visitors who need to meet local requirements and reduce risks.

Most foreign visitors are required to show a passport with a Geneva Convention-compliant International Driving Permit, or a valid foreign licensed for Japan with an official Japanese translation, within a designated period of validity. Overall, many of the rental car companies in Japan, which cater to the rental vehicles of foreign visitors, highly value quality, safety, and convenience. Specifically, rental car companies with a reliable vehicle supply, a detailed fee schedule, more roadside assistance, and EV rental are preferable.

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Japan Car Rental Market Segmentation:

The market report offers a comprehensive analysis of the segments, highlighting those with the largest Japan Car Rental Market share. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

Breakup By Booking Type:

• Offline Booking
• Online Booking

Breakup By Rental Length:

• Short Term
• Long Term

Breakup By Vehicle Type:

• Luxury
• Executive
• Economy
• SUVs
• Others

Breakup By Application:

• Leisure/Tourism
• Business

Breakup By End-User:

• Self-Driven
• Chauffeur-Driven

Regional Insights:

• Kanto region
• Kansai/Kinki region
• Chubu region
• Kyushu and Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

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Competitive Landscape:

The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant. Additionally, the report features detailed profiles of all major companies in the Japan Car Rental industry.

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter’s Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you need specific information that is not currently within the scope of the report, we can provide it to you as a part of the customization.

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