Car Rental Market Size, Share & Trends Report

Car Rental Market Size, Share & Trends Analysis Report By Vehicle Type (Economy, Executive, Luxury), By Application (Local Usage, Airport Transport, Outstation), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-568-7
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 120

Industry Insights

The global car rental market size was valued at USD 88.2 billion in 2018 and is expected to register a CAGR of 5.1% over the forecast period. The upsurge in travel and tourism activities across the globe is expected to drive the industry over the coming years. Improved road infrastructure, coupled with increased disposable incomes, especially in emerging economies, has resulted in a growing frequency of leisure and business trips, which is further driving the market.

Technology is a critical component expected to boost the market over the forecast period. Increased adoption of information technology is transforming the industry and enabling operators to deliver improved services to their customers. This includes the utilization of optimized corporate and customer information management and the development of convenient internet booking applications.

U.S. car rental market

The introduction of value-for-money car rental services is a trend that is gradually gaining momentum in the industry. Market players are focusing on the introduction of low-cost services, particularly for the leisure market. Smaller players majorly prefer online platforms for strengthening their geographical presence and gaining a wide customer base. Furthermore, various prominent car rental service providers are introducing attractive schemes at affordable prices, thereby strengthening their customer base.

Increasing sales of smartphones is another major factor propelling the market. Rising dependence of users on smartphones for carrying out a variety of activities traditionally done by personal computers has significantly helped transform the car rental experience for customers. This is further enhanced by the increased availability of comprehensive demand-oriented mobility solutions. Industry players such as Sixt SE, Uber, and Avis have launched their mobile apps through which customers can easily choose vehicles from a portfolio and carry out bookings.

Key market players such as Sixt SE are focusing on overcoming the challenge of fleet management by replacing their fleet after a specific interval to make sure their customers have access to the latest vehicles. Additionally, plug-in vehicles are emerging as another disruptive trend as they help address increasing environmental concerns associated with pollution caused by conventional vehicles. Stringent emission regulations are also encouraging the uptake of plug-in vehicles and market players such as Hertz and Enterprise Rent-A-Car are introducing electric vehicles in their fleet primarily to comply with emission norms.

Efforts made by industry participants to bring technological innovations in their existing services are exerting a significant impact on the mobility of these vehicles and are resulting in the rapid growth of the market. The incorporation of advanced technologies has made the industry lucrative among market participants. Furthermore, advances in telematics technology and IoT platforms are expected to improve industry potential over the coming years.

Vehicle Type Insights

The car rental market has been segmented into luxury, executive, and economy cars, along with SUVs and MUVs. The economy segment dominated the market in 2018 with over 30.0% revenue share and is expected to retain its dominance over the forecast timeframe. The compact nature and cost-effectiveness of economy cars are among the key advantages that result in them being preferred for airport and intra-city travels.

The executive segment is anticipated to exhibit the fastest growth over the forecast period. The rising number of business travelers across the globe, especially in developing countries, is a prominent factor in accelerating segment growth. Furthermore, the increased preference for executive cars can be attributed to the fact that they provide the optimum blend of sophisticated features and cost-effectiveness, thereby making them a preferred medium of transport among corporate consumers.

Rental services for SUVs and MUVs are anticipated to witness considerable growth in the next few years owing to an observed increase in people traveling for leisure and recreational purposes. Besides, SUVs are gaining prominence in outstation travel applications owing to their larger passenger and luggage carrying capacity, along with their robust nature. Luxury car rental services have picked up pace in the emerging markets of China and India, whereas they have already attained maturity in developed countries such as the U.S. and U.K.

Application Insights

Revenue generated through car rental services for airport transport surpassed USD 35.0 billion in 2018 and is projected to grow substantially over the coming years. A considerable rise in air travelers across the globe is expected to further propel the revenue stream generated from the segment in the next few years. Various operators across the world are increasingly seeking to benefit from this trend by expanding their brands and promoting their services across all major airports globally. Prominent car rental companies have their offices at airports, where customers can avail round-the-clock hiring services, thereby accelerating segment growth.

Global car rental market

Local travel and outstation applications are expected to witness substantial growth over the next few years. Lack of route flexibility and standard timings of public transport services have resulted in shifting preference of travelers toward car rental services for day-to-day travels, majorly propelling the market. Also, industry players are focusing on providing the option of choosing vehicles as per customer convenience. The outstation segment is poised to register high growth through 2025 owing to increasing demand for such services for weekend travels and inter-state business transport requirements.

Regional Insights

North America dominated the overall market with a revenue share of over 50.0% in 2018 and is expected to retain its dominance over the forecast period as well. The rising number of leisure and business trips across the region, both locally and internationally, is among the prominent factors influencing the growth of the regional market. Additionally, a continuous shift in consumer preference toward rental services, along with the presence of prominent service providers in the region, such as Avis Budget Group and Enterprise Rent-a-Car, is expected to accelerate the revenue generation prospects.

Asia Pacific is anticipated to emerge as the fastest-growing regional market, exhibiting a CAGR of more than 8.0% from 2019 to 2025. The region has witnessed considerable economic growth, along with enhanced road infrastructure, over the past few years. Furthermore, the rising availability of high-end luxury as well as economy vehicles, particularly in developing nations, is providing a major boost to the car rental industry in the region. A significant portion of the market revenue is generated from low-budget rentals, on account of the cost-sensitive nature of the economy. Moreover, the self-drive renting trend across the region is expected to witness high traction in the coming years.

Car Rental Market Share Insights

The market is moderately fragmented, with numerous international and domestic companies operating across the globe. However, the industry is on the verge of consolidation with few players capturing the majority of the market. Key participants include Enterprise Rent-A-Car, The Hertz Corporation, Sixt SE, Europcar, and Avis Budget Group. The primary focus of these players is on enhancing their services to gain customer base and maximize profitability.

In March 2019, Sixt SE launched a mobility app that facilitates customers with services such as vehicle renting or sharing and cab-hailing. Similarly, in December 2018, The Hertz Corporation, in partnership with CLEAR, launched an online platform called the Hertz Fast Lane. This platform uses biometrics to carry out and speeds up the entire vehicle rental process for the convenience of customers.

Collaboration is another key strategy implemented by industry players to strengthen their position in the market. For instance, in January 2019, Enterprise Rent-A-Car announced a collaboration with Premier Group for expanding its car rental service portfolio in Egypt. In December 2018, the company partnered with the University of Delaware for providing on-demand transportation services on campus.

Report Scope



The base year for estimation


Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million, and CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, South America, and Middle East & Africa (MEA)

Country scope

U.S., France, Germany, U.K., Japan, Korea, China, and India

Report coverage

Revenue forecasts, company market share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global car rental market report based on vehicle type, application, and region:

  • Vehicle Type Outlook (USD Million, 2014 - 2025)

    • Luxury

    • Executive

    • Economy

    • SUVs

    • MUVs

  • Application Outlook (USD Million, 2014 - 2025)

    • Local usage

    • Airport transport

    • Outstation

    • Others

  • Regional Outlook (USD Million, 2014 - 2025)

    • North America

      • The U.S.

    • Europe

      • France

      • Germany

      • U.K.

    • Asia Pacific

      • Japan

      • Korea

      • China

      • India

    • South America

    • Middle East & Africa

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