Car Rental Market Size to Reach USD 105.7 Billion by 2033, Driven by Rising Demand for Flexible Mobility Solutions

The global car rental market size reached USD 83.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 105.7 Billion by 2033, exhibiting a growth rate CAGR of 2.6% during 2025-2033. North America currently dominates the market, holding a car rental market share of over 37.8% in 2024.

The market in 2025 is adapting to flexible mobility solutions, environmental awareness, along with travel habits that are changing. Due to convenience, due to short-term needs, and due to access of specific models, travelers, business professionals, and urban dwellers continue to rent vehicles. Subscription-based access, environmentally friendly options, in addition to smooth digital experiences now cause rental companies to compete.

Digital-first services define a trend around the year 2025. Mobile apps let customers browse, book, and then manage rental vehicles in their entirety. Contactless pickup and drop-off, keyless entry, and instant invoicing improve on convenience and safety, which is especially true post-pandemic. Vehicles are available at real-time, and users can track their locations. In airports and city hubs, optional in-app support also helps users.

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Sustainability also drives greatly. Rental fleets are adding more hybrid and electric vehicles. This is how stricter emissions regulations are now met, and this is what eco-conscious renters are appealed to by. Rental locations have charging infrastructure so greener vehicle choices involve incentivized pricing. These endeavors strengthen sustainability pledges.

Growth exists in popularity for flexible access models. Short-term rentals do still continue to thrive. More and more often, customers subscribe as well as rent for the long term. Packages with insurance, maintenance, with switching are favored by customers. This is on account of the fact that life has a need for change and also vehicle types must make adaptation. Urban renters, remote workers, and families are attracted to this fluidity because they seek adaptability.

Market dynamics also stem from loyalty plus cost sensitivity. Consumer choice is influenced via competitive pricing as well as rewards programs together with partnerships involving airlines or hotels. As travel demand rebounds globally, rental companies that offer digital convenience, green vehicle options, and flexible plans stand out in the evolving mobility landscape of 2025.

Car Rental Market Report with Complete TOCs

Market Segmentation:

Segmentation by Booking Type:

• Offline Booking
• Online Booking

Segmentation by Rental Length:

• Short Term
• Long Term

Segmentation by Vehicle Type:

• Luxury
• Executive
• Economy
• SUVs
• Others

Segmentation by Application:

• Leisure/Tourism
• Business

Segmentation by End User:

• Self-Driven
• Chauffeur-Driven

Regional Analysis:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

Who are the key players operating in the industry?

The report covers the major market players including:

• Al-Futtaim Group
• Avis Budget Group, Inc.
• Bettercar Rental LLC
• Carzonrent India Pvt. Ltd.
• ECO Mobility
• Enterprise Holdings Inc. (The Crawford Group, Inc.)
• Europcar Mobility Group
• Fastrental India Private Limited
• Localiza
• Sixt SE
• The Hertz Corporation

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services.

IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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