Car Rental Market Size - Industry Trends & Outlook Report 2026
Car Rental Market is expected to be USD 189.30 billion by 2026 from USD 92.92
billion in 2019, at a CAGR of 10.7 % from 2020 to 2026. An increasing number of
car rental services, changing lifestyle, and increasing spending power of the
people, majorly drive the Global Car Rental Market. Increasing tourism
activities and continuously expanding tourism budget of travellers have
supported the growth of the car rental market. Besides, the 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. Growing sales of smartphones is another major factor
propelling the market. Many governments have been focusing on developing tourism
infrastructure to attract more tourists, fueling the market growth. But, high
car rentals for extended counters may restrict the growth opportunities.
Car Rental Market: Market Outlook and Trends
rental agencies rent automobiles for a short period at a specific cost. The
service is usually provided by car rental operators through many local
branches, which are generally situated near airports or busy areas in the city
and are accompanied by a website to allow online reservations. The rental
period may vary from a few hours to weeks as per the requirement of the
customer. During the last few years, the trend of leisure travel, smartphone
usage and increasing car rental services has changed the scenario. The
convenient accessibility combined with online bookings has increased car rental
adoption, thus driving the growth of the market.
Demand for Online Car Rental Services
tourist vehicle bookings are increasing over the world owing to the growing
usage of smartphones and the number of travellers aged between 25 and 34 who
prefer to book vehicle rentals by online channels. Besides, online booking also
facilitates verifications of the renter's documents, offering detail to the
renter regarding the car, services like drop and pickup of the rented vehicle
at a particular place, e-signing contracts, and cashless transactions.
the rising trend in technology, renting a vehicle through online booking has
become the most favored choice of customers over the past few years. Moreover,
it provides additional facilities to monitor a rental vehicle's operation,
performance, and maintenance. Such features are very useful for drivers and
fleet managers, allowing them to better and more competently recognize risks and
undertake timely improvements in their rental services.
of COVID-19 in industry
automotive & transportation industry is among the most open verticals to
the ongoing COVID-19 outbreak and is currently amidst exceptional uncertainty.
COVID-19 is expected to significantly impact the supply chain and product
demand in the automotive sector.
Rentals are essential to the travel industry and have played a vital role in
commercial progress across the globe. The companies are progressively asking their
employees to work from home while other people prefer to stay at home due to
coronavirus spread. So, the daily travels, shuttle and non-essential travel
have come down drastically. It, in turn, has caused a dip in the self-drive car
rental business across the world, with 10-15 per cent drop in the inter-city
request in March alone.
Car Rental Market: Segmentation
on the booking type, the car rental market is bifurcated into Online access and
Offline access. Online access holds the top share in the global market.
car rental market is divided into Economy/budget cars and Luxury/premium cars
based on vehicle type. Economy/budget cars secure a major share in the Global
Car Rental Market due to the high fuel efficiency of these cars, leading to
their more adoption. Moreover, increasing gasoline prices and growing
environmental concerns have driven the demand for these cars globally for
minimal environmental impact.
on the application, the car rental market is divided into Leisure/tourism and
Business. Leisure/tourism segment dominates the Global Car Rental Market and is
expected to grow substantially due to the growing global trend of leisure
the car rental market has been divided into North America, Europe, Asia
Pacific, South America, and the Middle East & Africa.
Car Rental Market: Regional Insights
America captured the substantial share in Global Car Rental Market and is
expected to register substantial CAGR due to the growing adoption of rental
vehicles and increased investment in rental vehicle sector in countries such as
the US and Mexico, over the projection period. In 2018, the usage of these
services increased in several cities of the US, fueled by increased initiatives
of the service operators. For instance, Uber Technologies Inc. adopted mobile
technologies and other devices to meet consumers' transportation requirements
more efficiently. Among countries, the US continues to remain the most
significant country for the car rental services market, whereas LAMEA is
anticipated to exhibit remarkable growth rate during the forecast period.
leading players in Global Car Rental Market are Avis Budget Group Inc., Eco
Rent a Car, Enterprise Holdings Inc., Europcar Group, Car2go, Hertz Corp.,
Sixt, Movida, Ace Rent-a-car, Global Cars, Localiza–Rent-a-car SA, Advantage
Rent-a-car, National Car Rental, Locamerica, and others.
Ø In August 2017, Migo, a
Seattle-based search engine for on-demand ride services launched a mobile
application that allows users to compare locations and prices of the nearby
taxi, car-sharing, and ride-hailing companies all in one app.
Ø 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 speed up the
entire vehicle rental process for the convenience of customers.
of the Report
Base Year –
Forecast – 2020
Revenue in USD
Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China,
India, UAE, South Africa, Saudi Arabia .
Type, By Application Type, By fare Price, By End User, By Rental Length, By
Group Inc., Eco Rent a Car, Enterprise Holdings Inc., Europcar Group, Car2go,
Hertz Corp., Sixt, Movida, Ace Rent-a-car, Global Cars, Localiza–Rent-a-car
SA, Advantage Rent-a-car, National Car Rental, Locamerica, and others.
objective of the Study:
Ø To analyze and estimate the
Global Car Rental Market size,
in terms of value.
Ø To examine the market
segmentation carefully and estimate the market size, in terms of value, based
on the region by segmenting the Global Car
Rental Market into five regions, namely, North America, Europe, Asia
Pacific, Rest of the World and their leading countries.
Ø To outline, categorize and
project the Global Car Rental Market
based on Booking Type, Application Type, Fare Price,
End User, Rental Length, and Region.
Ø To examine competitive
developments in applications and bookings, End-user, fare prices and rental
length within the Global Car Rental
Ø To highlight market dynamics
such as drivers, restraints, opportunities, and challenges and their impact.
Ø To provide a detailed
competitive landscape, including major players, their strategic profiles, and
Questions Answered by the Report
Ø How will the market drivers,
restraints, and opportunities affect the market dynamics?
Ø What will be the market size in
terms of value and volume and market statistics with a detailed classification?
Ø Which segment dominates the
market or region, and which one will be the fastest-growing, and why?
Ø Who are the key players in the
market, and what is their share?
Ø What is the strategy adopted by
key players, and how does it affect the existing and new players?
Scope for the Client
satisfaction is our first and last priority, and that is why BlueWeave
Consulting offers customization as per client’s specific needs. The following
customization options are available for the report:
Ø Additional Company Information
Analysis of five additional companies