Car Rental Market size was valued at USD 149 billion in 2024 and is set to exceed USD 434.02 billion by the end of 2037, expanding at over 9.6% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of car rental is evaluated at USD 160.56 billion.
The growth of the market can primarily be attributed to the growing demand for rented cars worldwide. For instance, in 2021 29 million cars were rented in United States which is projected to touch 46 million rentals by 2024.
Rental is also an excellent choice for freedom from driving, carelessness, security. It provides the opportunity to explore places, or to fulfill official trips and is a good option for commercial travelers. The increasing cost of fuels and high automobile maintenance cost will surge the demand for rented cars in the upcoming years. With the recent advancements automotive technologies as well as rising disposable income, the demand for rented cars is on the rise amongst the travelers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global car market during the forecast period. For instance, it was found that, the disposable personal income in the United States grew by 0.2 percent from the previous month in July 2022.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.6% |
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Base Year Market Size (2024) |
USD 149 billion |
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Forecast Year Market Size (2037) |
USD 434.02 billion |
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Regional Scope |
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Application (Commercial, Leisure)
The global car rental market is segmented and analyzed for demand and supply by application into commercial and leisure. Amongst these segments, the commercial segment is anticipated to garner the largest revenue by the end of 2037, backed by the growing number of tourists along with the surge in the tourism industry worldwide. For instance, travel and tourism industry contributed about USD 5.8 trillion to the global GDP in 2021, which marked an increase of USD 1 trillion as compared to 2020.
Our in-depth analysis of the global car market includes the following segments:
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By Vehicle Type |
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By Rental Type |
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By Application |
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By Booking Type |
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Regionally, the global market is studied into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Amongst these markets, the market in North America is projected to hold the largest market share by the end of 2037, backed by the presence of a strong mobility network in the region, surge in the number of people opting for rental cars well as the growing car rental industry. For instance, the rental car industry’s revenue in United States accounted around USD 28 billion in 2021.
Hertz Global Holdings, Inc. - and General Motors Co. announced an agreement according to which Hertz to order 175,000 Chevrolet, Buick, GMC, Cadillac and BrightDrop electric vehicles in the upcoming 5 years.
Fox Rent A Car – announced the opening of its first US dual-branded location at Houston Hobby Airport in Texas. The dual-branded location will be the twenty-second corporate location in the US for Fox Rent A Car and the first official Europcar corporate location in the US.
Author Credits: Saima Khursheed
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