The global car rental market was estimated at USD 149.87 billion in 2024 and is projected to reach USD 278.03 billion by 2030, growing at a compound annual growth rate (CAGR) of 10.5% from 2025 to 2030. This growth is primarily driven by an increase in global travel for both business and leisure purposes, leading to a heightened demand for convenient and flexible transportation options.

Technological advancements, particularly in online booking and mobile app integration, have made car rental services more accessible, streamlining the rental process and enhancing the customer experience. The rise of smartphones and internet penetration across both developed and developing regions has further bolstered growth in the car rental industry. Operators are improving their services through better customer and corporate data management, which facilitates personalized offerings and enhances fleet operations. Major players are also leveraging integrated global systems to manage their international operations more effectively, positioning themselves to attract a growing number of global travelers.

A notable trend is the rise of "bleisure" travel, where business trips are combined with leisure activities. This trend particularly resonates with younger employees, driving demand for flexible rental services that cater to both corporate and family travel needs. Additionally, car rental companies are focusing on sustainability by incorporating eco-friendly vehicles, such as electric and hybrid cars, to meet the increasing demand for environmentally conscious transportation.

While the pandemic had a temporary adverse effect on the car rental industry, especially in airport rentals, recovery is evident as global travel resumes. Companies have adapted to new hygiene and safety standards, building customer confidence. Furthermore, the shift toward non-airport rentals is reshaping the industry, with increased demand in urban and suburban areas as domestic travel rises, presenting new growth opportunities.

Key Market Trends & Insights

• North America Market Share: The car rental market in North America accounted for 36.39% of global market revenue in 2024. The presence of leading car rental operators like Avis Budget Group and Enterprise Rent-a-Car is expected to offer lucrative growth opportunities, alongside the increasing number of business and leisure trips in the region.
• S. Market Growth: The U.S. car rental industry is projected to grow at a CAGR of 8.7% from 2025 to 2030. A key factor driving this growth is the strong post-pandemic demand for rental cars, with leisure and business travel rebounding robustly. Major U.S. cities such as New York, Los Angeles, and Miami have experienced a notable increase in travel, spurring the need for short-term vehicle rentals.
• Online Booking Dominance: The online bookings segment held over 71% of the revenue share in 2024. This is attributed to the growing preference for digital platforms that offer convenience, transparency, and competitive pricing. Consumers increasingly utilize online channels, such as company websites, apps, and third-party platforms like Expedia or Kayak, to compare prices, read reviews, and make real-time bookings.
• Airport Transport Segment: The airport transport segment accounted for over 38% of market revenue in 2024, driven by the high volume of domestic and international travelers. Airport car rentals provide convenience for tourists, business travelers, and those needing reliable transport from airports to hotels or meeting locations, with companies like Avis, Hertz, and Enterprise strategically positioned at major terminals.
• Economy Car Rentals: The economy car rentals segment held over 32% of revenue share in 2024, largely due to affordability, widespread availability, and strong demand from budget-conscious consumers. These vehicles offer a cost-effective solution for travelers seeking reliable transportation for short trips or vacations, particularly as leisure travel increases.

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Market Size & Forecast

• Market 2024 Market Size: USD 149.87 Billion
• 2030 Projected Market Size: USD 278.03 Billion
• CAGR (2025-2030): 10.5%
• North America: Largest market in 2024

Key Companies & Market Share Insights

The global car rental market is moderately fragmented, characterized by numerous international and local players. Key players are expected to focus on expansion strategies to increase their regional market share, enhance brand awareness, and penetrate developing markets. Their main priority is to improve services to maximize profitability and attract a larger customer base.

Strategic partnerships are another critical strategy employed by market participants. For instance, in January 2023, Hertz and Uber Technologies Inc. announced plans to offer up to 25,000 electric vehicles (EVs) for rental to Uber drivers in Europe by 2025. This initiative includes models from renowned brands like Polestar and Tesla, with the rollout beginning in January 2023 in London, allowing Uber drivers to rent these vehicles for their ride-hailing services.

Key Players

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

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Conclusion

The global car rental market is poised for significant growth, driven by increasing global travel and technological advancements that enhance accessibility and customer experience. The rising trend of bleisure travel and the focus on sustainability further contribute to the market's expansion. As the industry adapts to post-pandemic realities and changes in consumer preferences, new opportunities will emerge, particularly in urban and suburban areas. Companies that strategically leverage technology and partnerships will be well-positioned to capture market share in this evolving landscape.