Car Rental Market to Exceed US $256.23 Billion by 2029, with 4.5% CAGR: The Business Research Company

Car Rental Global Market Report 2025

The Business Research Company's Car Rental Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, September 23, 2025 /EINPresswire.com/ -- "Get 30% Off All Global Market Reports With Code ONLINE30 – Stay Ahead Of Trade Shifts, Macroeconomic Trends, And Industry Disruptors

What Is The Forecast For The Car Rental Market From 2024 To 2029?
The size of the car rental market has been experiencing a consistent growth over the past few years. An upwards trend will take the market from $207.58 billion in 2024 to $214.85 billion in 2025, with a compound annual growth rate (CAGR) of 3.5%. Factors such as an increase in international tourism, a rise in business travel, urbanisation and transportation needs, improving economic conditions and disposable income, enhancement of online reservation platforms, and strategic partnerships and collaborations have significantly contributed to the growth during the historic period.

The automobile hire industry is anticipated to experience consistent expansion in the coming years. It is projected to escalate to $256.23 billion in 2029 with a CAGR of 4.5%. Factors contributing to predicted growth include the alteration in consumer preferences, introduction of electric and eco-friendly vehicles, modification of work structures and remote employment, rebound of tourism after pandemic, and evolution of subscription-oriented models. Key trends for the forecast period encompass financial injections into technology and fleet novelty, progression in digital advancements, emergence of subscription centred car rental systems, emphasis on no-contact rental services, and incorporation of electric vehicles (EVs) in hire fleets.

Download a free sample of the car rental market report:
https://www.thebusinessresearchcompany.com/sample.aspx?id=10082&type=smp

What Are The Core Growth Drivers Shaping The Future Of The Car Rental Market?
The car rental market is projected to expand, driven by significant advancements in the tourism sector. This sector pertains to the commerce surrounding the translocation of people from one locale to another for a variety of reasons, which include business, holidays, or pleasure-seeking. In tourism, car or vehicle rentals are seen as a convenient and cost-effective way for visitors to enjoy their trips, providing them with a safe, pleasant, and leisurely journey through uncomplicated reservation procedures. For example, according to the World Tourism Organization (UNWTO), a Spain-based global organization, the tourism sector had recuperated around 60% of its pre-COVID levels by September 2022. It is estimated that the number of international travellers from January to July 2022 was 474 million, a significant increase compared to 175 million during the corresponding period in 2021. International tourism displayed positive signs of recovery, reaching 57% of its pre-pandemic levels in the first seven months of 2022. The significant rise in the tourism sector, therefore, is fuelling the growth of the car rental market.

Which Companies Are Currently Leading In The Car Rental Market?
Major players in the Car Rental include:
• Enterprise Rent-A-Car LLC
• The Hertz Corporation
• SIXT SE
• Europcar Rental Company
• Avis Budget Group Inc.
• Uber Technologies Inc.
• Localiza Rent -a-Car SA
• National Car Rentals Pte. Ltd.
• Ace Rent-A-Car Pvt. Ltd.
• Eco Rent A Car LLC

What Are The Top Trends In The Car Rental Industry?
Trends in technological innovation are making significant inroads in the car rental industry. Firms in this sector leverage cutting-edge technologies to maintain their market presence. Take for instance, The Growr Inc., a leading player from the UK in self-driving car rentals. In October 2022, they introduced 'AI Smart Drive,' a groundbreaking initiative in self-driving technology for rental cars. AI Smart Drive provides the means to integrate autonomous vehicles into existing rental services. These driverless vehicles from The Growr, an exemplification of state-of-the-art advancements, manoeuvre safely with minimal to zero human engagement by using an assortment of sensors to perceive their environment. The aim of AI Smart Drive is to deliver completely autonomous vehicles.

Comparative Analysis Of Leading Car Rental Market Segments
The car rentalmarket covered in this report is segmented –
1) By Vehicle Type: Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs
2) By Booking Type: Online, Offline
3) By Application: Local Usage, Airport Transport, Outstation, Other Applications
4) By End User: Self-Driven, Chauffeur-Driven

Subsegments:
1) By Luxury Cars: Sedans, Sports Cars, High-End SUVs
2) By Executive Cars: Premium Sedans, Business SUVs
3) By Economy Cars: Compact Cars, Subcompact Cars
4) By SUVs: Mid-Size SUVs, Full-Size SUVs
5) By MUVs (Multi Utility Vehicles): Standard MUVs, Compact MUVs

View the full car rental market report:
https://www.thebusinessresearchcompany.com/report/car-rental-global-market-report

Which Regions Are Dominating The Car Rental Market Landscape?
In 2024, North America led the car rental market in size. However, the global car rental market report predicts that Asia-Pacific will experience the most rapid growth during the forecast period. The report includes data from a number of regions, namely Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

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