Car Rental Market Analysis

Vehicle Type Segment Analysis

The economy cars segment is estimated to hold around 35% car rental market share throughout the forecast period based on cost-sensitive buying behavior and wide acceptance of cheaper, fuel-efficient vehicles satisfying minimum transportation needs among varied customer bases. The economy cars segment leadership is also boosted by strategic collaborations and fleet contracts that help rental companies get low-cost vehicles with good pricing and provide customers with competitive rental prices. These alliances enable firms to offer competitive prices while fulfilling sufficient fleet supply in diversified markets and seasonal demand conditions.

In January 2024, SIXT SE disclosed a record multi-billion euro deal with Stellantis for the possible purchase of up to 250,000 cars over three years, including cars from leading brands such as Citroën, Fiat, Peugeot, and Opel in different classes ranging from city cars to SUVs. This extensive fleet growth features different propulsion forms such as battery electric vehicles, showcasing how cost-centric alliances promote affordability and sustainability goals.

Application Segment Analysis

The airport transport application segment is projected to garner 41% car rental market share by 2035 due to the inherent function of airports as central gateways for business and leisure travel that necessitate urgent ground transportation solutions. Airport locations offer car rental firms large-volume, steady customer traffic and serve passengers who require dependable transportation to foreign destinations. The segment enjoys existing infrastructure, efficient operational processes, and close relationships with airport authorities and travel service providers. Such market power is exhibited by extensive service expansion programs, which focus on airport coverage. In December 2023, Zipcar rolled out an electric vehicle program in ten large cities, including Boston, Chicago, New York City, San Francisco, and Los Angeles, drawing on nearly 25 years of fleet management experience to make professionally maintained EVs available at strategic transportation points.

Booking Segment Analysis

The online booking segment is predicted to dominate the car rental market with a 75% share by 2035, owing to passenger demand for hassle-free, self-service booking with immediate confirmation, price comparison, and full vehicle selection capabilities. The dominance of the online reservation segment is further supported by players' investment in full-fledged digital ecosystems that combine various services and deliver superior customer value propositions than mere vehicle reservations. These sites are transforming into end-to-end mobility solutions that meet multifaceted transportation requirements under one, combined interface.

Hertz Car Sales revealed the nationwide rollout of its Rent2Buy initiative to over 100 cities in August 2025, revolutionizing conventional test drive methods with extended rental periods, providing a thorough vehicle inspection before purchase. This new strategy leverages online reservation functions to generate new revenue streams while meeting the growing consumer demand for try-before-you-buy experiences across various product categories.

Our in-depth analysis of the market includes the following segments: