The global tourism vehicle rental market reached USD 59.7 Billion in 2024 and is projected to grow to USD 98.0 Billion by 2033, exhibiting a CAGR of 5.66% during 2025–2033. Growth is driven by rising global travel trends, demand for flexible transport, and eco-friendly vehicles. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Tourism Vehicle Rental Market Key Takeaways

• Current Market Size: USD 59.7 Billion in 2024
• CAGR: 5.66%
• Forecast Period: 2025-2033
• The market growth is primarily propelled by increasing global travel and the rising demand for flexible transportation options.
• Technological advancements such as telematics and GPS enhance vehicle management and security.
• The market will benefit from growing popularity of eco-friendly and electric vehicles for sustainable tourism.
• North America currently dominates the market share, supported by strong infrastructure and tourism activity.
• Challenges include regulatory hurdles, vehicle maintenance costs, and competition from ride-sharing services.

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Market Growth Factors

The growth of the tourism vehicle rental market is fueled by increasing global travel trends and demand for flexible transportation solutions. The market size was valued at USD 59.7 Billion in 2024 and is forecasted to reach USD 98.0 Billion by 2033, growing at a CAGR of 5.66% during 2025-2033. Rising international and domestic tourism stimulates demand for vehicle rentals to enable exploration and convenience.

Technological advancements strongly support market growth. The adoption of platforms and apps simplifies booking, payment, and vehicle tracking. Integration of telematics and GPS technologies enhances operational efficiency, vehicle management, and customer security. Online booking dominance allows easy access and competitive pricing, fueling industry expansion.

Sustainability trends are transforming the market with increased demand for eco-friendly and electric vehicles. Travelers seek greener alternatives, aligning with global carbon reduction efforts. Rental companies are expanding electric and hybrid fleets to attract environmentally conscious consumers, generating new growth avenues amidst evolving customer preferences.

Market Segmentation

Vehicle Type:

• Economy: The largest market segment, catering to budget-conscious travelers seeking smaller, fuel-efficient, and affordable rental vehicles suitable for trip exploration.
• Luxury/Premium: Serving travelers desiring premium comfort, advanced features, and high-end vehicles like SUVs and sedans for a sophisticated travel experience.

Booking Mode:

• Online: The dominant booking method, popular among tech-savvy travelers for convenience in browsing, comparing, and reserving vehicles via apps and websites.
• Offline: Includes rentals from physical counters, preferred by travelers favoring face-to-face interaction or last-minute bookings.

End User:

• Self-Driven: Rentals allowing tourists autonomy to explore destinations independently, ideal for those customizing itineraries and off-the-beaten-path travel.
• Rental Agencies: The largest segment providing packaged tours with vehicle rentals offering convenience, reliability, and additional services like guided tours.

Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Regional Insights

North America leads the tourism vehicle rental market, accounting for the largest market share. This dominance is backed by a mature segment with high domestic and international tourist volumes, well-developed infrastructure, and a strong road travel culture. The region offers diverse rental options including cars, RVs, and specialty vehicles complemented by innovative digital services to maintain competitiveness.

Recent Developments & News

In November 2021, Hertz rentals partnered with Tesla Motors to supply 100,000 Model 3s by 2022, with half allocated for Uber drivers, marking a strategic push for electric vehicle rental expansion. In June 2023, Avis India announced a 15% discount for Vistara customers as a summer offer, enhancing customer loyalty. Additionally, Carzonrent expanded its fleet with luxury and premium vehicles and improved customer support services to attract high-end travelers.

Key Players

• Alamo (Enterprise Holdings Inc)
• Auto Europe
• Avis Budget Group Inc.
• Carzonrent India Pvt Ltd.
• EasyCar.com
• Europcar Mobility Group
• Europe Luxury Cars
• Kemwel
• Sixt SE
• The Hertz Corporation
• Zoomcar India Private Ltd.

Customization Note

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