Global Car Rental Market Overview

The global car rental market was valued at USD 149.87 billion in 2024 and is projected to reach USD 278.03 billion by 2030, expanding at a CAGR of 10.5% from 2025 to 2030. This robust growth is driven by a surge in global travel for both business and leisure purposes, leading to a rising demand for flexible and convenient mobility solutions.

Technological advancements, particularly in online booking platforms and mobile application integration, have made car rental services more user-friendly and efficient. Increased smartphone usage and internet penetration across developed and developing markets have further fueled accessibility and adoption. Additionally, major rental operators are improving fleet management and data analytics capabilities to deliver personalized offerings and streamline operations. The adoption of integrated global management systems also enables companies to effectively oversee international operations and meet the evolving needs of global travelers.

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Key Market Dynamics

One of the most prominent trends shaping the industry is the rise of “bleisure” travel, where business trips are extended for leisure purposes. This trend, popular among millennial and younger professionals, is fueling demand for flexible rental packages that cater to both corporate and personal travel requirements.

Sustainability has also become a strategic focus area for many car rental companies. Firms are increasingly integrating eco-friendly vehicles, such as electric and hybrid cars, into their fleets to align with global environmental goals and meet the preferences of eco-conscious consumers.

Although the COVID-19 pandemic temporarily disrupted the industry—particularly in airport rentals—the market has rebounded strongly with the revival of global travel. Companies have adopted enhanced safety and hygiene protocols to regain customer trust. Moreover, the shift toward non-airport rentals in urban and suburban areas has opened new growth avenues as domestic and regional travel gains traction worldwide.

Key Market Trends & Insights

• North America accounted for 36.39% of global car rental market revenue in 2024, making it the largest regional market.
• The U.S. car rental market is expected to grow at a CAGR of 8.7% from 2025 to 2030.
• By booking mode, the online segment dominated with a 71% revenue share in 2024.
• By application, airport transport rentals held a 38% revenue share in 2024.
• By vehicle type, the economy car rental segment led the market with a 32% revenue share in 2024.

Market Size & Forecast

• 2024 Market Size: USD 149.87 billion
• 2030 Projected Market Size: USD 278.03 billion
• CAGR (2025–2030): 10.5%
• Largest Market (2024): North America

Competitive Landscape

The global car rental industry is moderately fragmented, comprising a mix of international and regional players. Leading companies are focusing on strategic expansions, brand development, and regional penetration, especially in emerging markets. Service enhancement, customer-centric innovation, and digital transformation remain top priorities for achieving competitive advantage.

Strategic partnerships are a major growth strategy adopted by key players. For instance, in January 2023, Hertz and Uber Technologies Inc. announced a plan to offer up to 25,000 electric vehicles (EVs) for rental to Uber drivers in Europe by 2025. The partnership includes models from brands like Polestar and Tesla, with the initial rollout launched in London in 2023. Hertz aims to add over 10,000 EVs by 2025, supporting Uber’s transition toward sustainable mobility.

Key Car Rental Companies

The following are the major companies shaping the global car rental market. These players collectively hold significant market share and influence key industry trends:

• Enterprise Holdings
• The Hertz Corporation
• Avis
• Europcar
• Sixt SE
• ALD Automotive
• Localiza
• Movida
• Carzonrent
• Al-Futtaim Vehicle Rentals (AVR)

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Conclusion

The global car rental market is entering a dynamic growth phase, supported by increasing international and domestic travel, digital transformation, and a strong shift toward sustainable mobility. The integration of electric and hybrid vehicles, combined with the convenience of online booking platforms and mobile-based rental services, is reshaping customer expectations and improving service delivery.

While the industry faced short-term challenges during the pandemic, it has since demonstrated resilience and adaptability. The rising trend of bleisure travel, coupled with urban mobility expansion and green vehicle adoption, is expected to further accelerate market development.

By 2030, the global car rental market is forecast to reach USD 278.03 billion, underscoring its crucial role in enabling smart, sustainable, and flexible transportation solutions worldwide.