The global car rental market size was estimated at USD 149.87 billion in 2024 and is expected to reach USD 278.03 billion by 2030, expanding at a CAGR of 10.5% from 2025 to 2030. Market growth is strongly influenced by increasing global travel for both business and leisure, which continues to boost the demand for flexible and convenient mobility services.

Key Market Trends & Insights

  • North America accounted for 36.39% of the global market revenue in 2024.
  • The U.S. car rental industry is projected to grow at a CAGR of 8.7% from 2025 to 2030.
  • Online bookings dominated the booking mode segment with over 71% revenue share in 2024.
  • The airport transport application segment held more than 38% share in 2024.
  • The economy car rentals segment represented over 32% revenue share in 2024.

Market Size & Forecast

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

Car rental providers are increasingly embracing advanced customer management tools to deliver personalized services and streamline fleet operations. Many major companies now utilize integrated global platforms to better coordinate multinational operations and tap into rising international travel demand.

An emerging trend reshaping demand is the rise of bleisure travel, blending business and leisure activities, particularly among younger professionals. This trend is driving interest in flexible rental options that serve both corporate and personal travel needs.

Sustainability initiatives are also gaining traction as rental companies increasingly include electric and hybrid vehicles in their fleets to meet rising consumer preference for eco-friendly transportation.

Although the pandemic temporarily hindered industry performance—especially in airport rentals—the sector has rebounded with renewed global travel activity. Enhanced safety and hygiene protocols have strengthened customer confidence, while increased domestic travel is driving greater momentum in non-airport rental services, particularly in urban areas.

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Competitive Landscape

The global car rental market is moderately fragmented, consisting of numerous global and regional companies. Leading players are focusing on market expansion, service enhancement, and brand strengthening to increase their customer base and regional presence.

Strategic partnerships play a crucial role in shaping the market. For example, in January 2023, Hertz and Uber Technologies announced a plan to provide up to 25,000 electric vehicles for rental to Uber drivers in Europe by 2025, including models from Tesla and Polestar. Hertz began deployment in London and is expected to add more than 10,000 EVs by 2025 to support ride-hailing operations.

Key Car Rental Companies

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

Conclusion

The car rental market is experiencing strong and sustained expansion driven by digital transformation, growing global and domestic travel, the rise of bleisure trends, and a shift toward sustainable transportation models. With increasing investments in EV fleets, enhanced online booking systems, and strategic partnerships, the industry is well-positioned to capture new opportunities and serve evolving customer mobility needs through 2030.

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