Car Rental Market Size was valued at USD 107.5 billion in 2022. The Rental Cars industry is projected to grow USD 200.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.1% during the forecast period (2024 - 2030). Auto rental is the service of renting automobiles for a set period of time through online or offline channels.
Rental Car services are primarily intended to serve travellers and individuals who do not own personal vehicles. Renting a car is thought to be a more cost-effective option than owning one because it allows for greater mobility, lower-cost travel, and avoidance of high ownership costs. For added convenience, service providers also provide other products such as car damage repair, insurance compensation policies, entertainment systems, global positioning systems (GPS), and Wi-Fi networks.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the key factors driving the growth of the Rental Car industry is significant growth in the travel and tourism industry around the world. Furthermore, the growing urban population with an increased interest in adventure and travel is fueling Car Rental market growth. In line with this, people are turning to budget Rental Car services such as taxis and carpooling for increased mobility and cost-effective travel. Another growth-inducing factor is the implementation of favorable government policies, as well as increased awareness about environmental conservation.
Governments in both developed and emerging economies are emphasizing the importance of reducing vehicle emissions and promoting Rental Car management system as one of the most cost-effective modes of transportation. Other factors, such as the introduction of cheap car rental service through websites and mobile apps (smartphone-based applications), coupled with increasing expenditure capacities of the masses, is driving the growth of the Car Rental market revenue.
The Car Rental Market segmentation, based on booking type, includes Offline Booking and Online Booking. Online booking type segment is expected to grow to a larger revenue in respect to the Car Rental Market revenue. Online plugins for Rental Car apps and websites aid in the simplification of the car service process in five simple ways. For starters, it saves a car rental company time and money when managing rental transactions. Companies will see an increase in their chances of growing their business as a result of this.
The Car Rental Market segmentation, based on rental duration, includes short-term and long-term. The Rental duration specifications define the minimum and maximum rental periods for renting from a specific rental branch. These specifications may vary depending on the supplier and the branch. Traditional Rental Car business usually has a one-day minimum rental period. The maximum rental period is typically 28 to 60 days. However, many suppliers also provide special long-term rentals that can be subscription-based (the renter pays for the vehicle on a monthly basis). 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 outstation trips, due to this long-term car rental services will boost Car Rental market revenue.
The Car Rental Market data has been bifurcated by Luxury, Executive, Economy, SUV's, Others. Based on the vehicle type, the economy cars segment accounted for 35% of revenue share in 2022. The economy cars are very efficient in terms of fuel consumption. Most of the Car Rental market players prefer economy cars for Rental Cars 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.
Based on Application, the Rental Car industry has been segmented into Leisure/Tourism business. The rise in urbanization has also contributed to an increase in demand for car rental apps and their services. The rise in the upper-middle-class group is also contributing to Car Rental market growth. As a result, the increased demand for airport Rental Cars services is creating profitable opportunities for the segment's growth.
Based on End Users, the Car Rental industry has been segmented into Self-Driven, Chauffeur-Driven. The rise in demand for tourism has also contributed to an increase in demand for Rental Cars services. As a result, the increased demand for airport car rental services is creating profitable opportunities for the segment's growth.
In terms of revenue, North America held 53% of the market in 2022. The increase in the number of leisure and business tours across North America is driving Car Rental market growth. Trips to North American cities such as New York, Los Angeles, Chicago, San Francisco, and Las Vegas are also helping the Rental Car business growth.
During the forecast period, Asia-Pacific is expected to grow at an 8.4% CAGR. The rise in consumer spending for tourism and travel, combined with rising disposable income, is driving the growth of the Asia-Pacific car rental market during the forecast period. Market participants include Uber, Avis, Ola, Hertz, Didi Chuxing, Sixt, Zoomcar, Europcar, GrabTaxi, Hailo Line Taxi, and Blue Bird are offering services in the Asia-Pacific region.
Further, the major countries studied are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
The Europe Car Rental Market was valued at USD 10.5 billion in 2021, with a CAGR of 13.1% expected to reach USD 20.1 billion by 2030.
France's car rental market is expected to grow at a significant rate during the forecast period due to the increasing number of tourists in the country. The increasing revenue in France has generally been attributed to a trend in domestic travel spending, which is primarily the result of an increase in foreign tourists.
Germany car rental market is expected to grow at a significant CAGR during the forecast period as Germany is the largest manufacturer of cars in Europe. The Rental Car available in Germany are usually at cheaper rates when compared to other regions in Europe. Hence, the low cost of car rentals in Germany is driving the market growth rate during the forecast period.
The China car rental market dominated the Asia Pacific Car Rental Market by Country in 2020 and is expected to remain dominant until 2030, achieving a market value of $6.93 billion by that time. The Japan market is expected to grow at a CAGR of 3.6% during the forecast period (2021 - 2030). Furthermore, the India market is expected to grow at a CAGR of 4.8% during the forecast period (2021 - 2030).
The market is moderately consolidated, with a large number of international and domestic companies operating globally. However, the industry is on the verge of consolidation, with only a few major companies capturing a significant market share. Enterprise Rent-A-Car, The Hertz Corporation, Sixt SE, Europcar, and Avis Budget Group are among the key participants. These players' primary focus is on improving their services in order to gain a customer base and maximize profitability.
For instance, Sixt SE has released a smartphone app that allows company car drivers to manage their contracts with the touch of a button. From March 2021, Hertz charge an annual membership fee for its 24/7 service, which allows members to rent cars and vans contactless.
| Report Attribute/Metric | Details |
| Market Size 2021 | USD XX Billion |
| Market Size 2022 | USD 107.5 Billion |
| Market Size 2030 | USD 200.4 Billion |
| Compound Annual Growth Rate (CAGR) | 8.1% (2024-2030) |
| Base Year | 2023 |
| Forecast Period | 2024-2030 |
| Historical Data | 2018 & 2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Booking Type, Rental Duration, Vehicle Type Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 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, Others |
| Key Market Opportunities | The increased in internet penetration will create lucrative opportunities for the growth of the car rental market |
| Key Market Dynamics | The increased adoption of car rental software by key market players is driving the growth of the market |
Car Rental Market Highlights:
Frequently Asked Questions (FAQ) :
Car rental market is estimated at USD 107.5 Billion.
U.S Market is estimated 633.6 USD million
8.1% is the growth rate of car rental market.
North America region held the largest market share in the car rental market.
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, Others are key players in the market.
Online Booking Type led the car rental market.
Self-driven application had the largest market share in the car rental market.
Team Lead - Research With a technical background as bachelor's in mechanical engineering, with mba in operations management , swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the automotive/a&d domain. swapnil has worked on major projects in verticals such as aerospace & defense, automotive and many other domain projects. he has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
