The car rental market is currently undergoing significant growth, propelled by a combination of rising travel demand, increasing costs of vehicle ownership, and transformative technological shifts. As travel activities rebound and expand globally, more consumers are turning to car rentals as a convenient and flexible mobility solution. Simultaneously, the escalating expenses associated with owning a personal vehicle—including purchase prices, maintenance, and insurance—are encouraging many to opt for rentals instead of long-term ownership.
Chicago, Jan. 13, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the car rental market was valued at US$ 141.8 billion in 2024 and is projected to reach a market valuation of US$ 337.1 billion by 2033, growing at a CAGR of 10.1% during the forecast period of 2025–2033.
The car rental industry is experiencing strong growth, fueled by the ongoing recovery in travel and the accelerating adoption of digital technologies. This growth is shaped by a combination of factors, including expanding user bases, evolving pricing dynamics, and rising service expectations. Together, these elements are transforming the global car rental market into a dynamic and rapidly expanding sector.
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One of the most notable drivers of this growth is the significant expansion in the number of global car rental users. Projections indicate that the user base will increase from 567.2 million in 2024 to 585.5 million in 2025, reflecting a steady upward trajectory. However, this growth is not evenly distributed across regions. The Americas are expected to reach 108.5 million users by 2027, while Asia is projected to experience even more dramatic growth, expanding its user base to 348.9 million during the same period. This regional disparity highlights the varying pace of market development and the differing levels of opportunity available across the globe.
Rise of “Rental-as-a-Feature” Integration: Driving Adoption of Car Rental
A major growth opportunity in the car rental industry is emerging through the integration of rental services directly into existing travel and hospitality platforms. Rather than requiring customers to make separate reservations, car rental can become a seamless, built-in feature within airline and hotel apps. This approach simplifies the booking process and enhances the overall travel experience by providing convenient access to ground transportation options at the exact moment travelers need them.
By 2025, it is anticipated that over 300 million travel bookings will be influenced by integrated ground transport options presented at the point of sale. This shift reflects a growing trend where consumers prefer streamlined and cohesive travel arrangements, reducing friction and saving time. The integration of car rental services within broader travel ecosystems not only benefits customers but also creates valuable new revenue streams for rental companies and their partners.
API-driven partnerships are key to enabling this integration, allowing companies to automatically offer rental options tailored to flight destinations and trip durations. With approximately 1.5 billion global flight bookings made annually, tapping into this vast market through embedded rental features presents a lucrative opportunity.
Economy Cars: A Cost-Effective Choice Driving Market Dominance
The economy car segment continues to be a dominant force within the car rental market, capturing a significant market share of approximately 41% in 2024. This strong position is largely driven by budget-conscious travelers who prioritize affordability without compromising on reliability or efficiency. The average daily rental rates for economy vehicles in 2025 are projected to range between $60 and $90, making them an attractive option for a wide variety of customers looking to manage their travel expenses effectively.
Popular models such as the Toyota Corolla and Honda Civic frequently top the list of preferred vehicles within this segment due to their well-known fuel efficiency and dependable performance. These qualities align perfectly with consumer priorities, especially considering that nearly half of all renters—48%—actively seek out fuel-efficient cars to keep their costs down during trips. This trend reflects a growing awareness of both economic and environmental factors influencing rental choices.
The average rental car budget for travelers in the United States hovers around $86 per day, which fits comfortably within the pricing range of economy-class vehicles. This affordability, combined with the practical benefits of economy cars, sustains their high demand. The scale of this demand is evident in fleet numbers, with the economy segment alone accounting for over 2 million vehicles in the U.S.
North America’s Mature Market Commands an Unrivaled Global Position
North America holds a dominant position in the global car rental market, commanding an impressive 52% share. This leadership is the result of both the sheer scale of the market and its deep penetration across various consumer segments. The United States plays a pivotal role in this dominance, boasting a vast network of 7,851 car rental locations as of 2024. Supporting this extensive infrastructure is a large workforce of around 165,000 employees, underscoring the industry’s significant economic footprint and operational complexity.
The intensity of operations within North America’s car rental industry is remarkable. Projections for 2025 estimate that the U.S. alone will handle approximately 45 million leisure car rental bookings, reflecting the strong and sustained demand from travelers and vacationers. This volume of transactions necessitates a continual renewal of rental fleets to maintain high standards of quality and reliability. Notably, the average age of a rental car in the region is just 1.8 years, demonstrating the industry’s commitment to providing modern, well-maintained vehicles that meet evolving consumer expectations.
A considerable portion of the market’s infrastructure—4,210 locations—operates off-airport, serving local customers and those seeking replacement vehicles rather than just travelers passing through airports. This extensive off-airport presence highlights the market’s versatility and its ability to address diverse rental needs beyond traditional travel-related demand.
Advancing New Models of Flexible Ownership to Evolve Consumer Preferences
Car rental companies are increasingly adapting to evolving consumer preferences by offering more flexible ownership models such as subscriptions, flexible leases, and car-sharing options. These innovations have largely been driven by the rising overall cost of vehicle ownership, which combines not only the stagnant wage growth affecting consumers but also the escalating expenses related to vehicle servicing and maintenance. As a result, traditional car ownership is becoming less attractive, prompting consumers to seek alternative ways to access vehicles without the long-term financial commitment.
Data from the American Automobile Association (AAA) underscores this trend, revealing that in 2023, US drivers spent an average of US$ 12,182 on their new cars, excluding the purchase price. This figure represents an increase of USD 1,454 compared to the previous year, highlighting how the ongoing rise in ownership costs is pushing consumers toward more flexible options.
With the car rental industry expected to experience only modest growth through to 2030, companies are actively searching for new, faster-growing revenue streams to diversify beyond their traditional reliance on travelers renting vehicles for short-term use. This strategic shift is exemplified by the performance of Localiza in Brazil, which has successfully launched its subscription service, Meoo. This initiative targets a growing market composed of automotive consumers who seek flexible mobility solutions that cater to both short- and long-term needs in their everyday lives.
Top Companies in the Car Rental Market
- Al-Futtaim Group
- Avis Budget Group, Inc.
- ALD Automotive
- Bettercar Rental LLC
- Beijing CAR Inc. (CAR Inc.)
- Carzonrent India Pvt. Ltd.
- ECO Mobility
- Enterprise Holdings Inc. (The Crawford Group, Inc.)
- Europcar Mobility Group
- GIG Car Share
- Lyft Rental
- Fastrental India Private Limited
- Localiza
- Sixt SE
- Ola Drive
- The Hertz Corporation
- Zoomcar
- TT Car Transit
- Uber Rentals
- Silvercar
- Renault Eurodrive
- Other Prominent Players
Market Segmentation Overview
By Vehicle Type
- Economy Cars
- SUVs
- Luxury Cars
- Executive Cars
- MUVs
By Application Type
- Local Usage
- Outstation
- Airport Transport
- Others
By Rental Duration
- Long-term
- Short-term
By End User
- Chauffeur-Drive
- Peer-to-Peer Rental
- Self-Drive Individual
- Corporate Fleet Subscription
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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About Astute Analytica
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CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/