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Car Rental Market Size

Report ID: GMI6508
Published Date: Aug 2023
Report Format: PDF

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Car Rental Market Size

Car Rental Market size was valued at USD 122.3 billion in 2022 and is estimated to register a CAGR of 7.4% between 2023 and 2032. The proliferation of online booking platforms and user-friendly mobile applications has enhanced convenience in the car rental sector. These digital tools help customers to effortlessly compare pricing, select preferred vehicles, and swiftly make reservations. Companies operating in the market are launching innovative applications to enhance the customer experience.

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For instance, in May 2023, IndusGo, a self-drive car rental company, IndusGo launched its upgraded mobile app version ‘IndusGo 2.0’. The new app offers convenience, efficiency, and a user-friendly interface to help and empower users in easily renting a car.

Car Rental Market Report Attributes
Report Attribute	Details
Base Year:	2022
Car Rental Market Size in 2022:	USD 122.3 Billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	7.4%
2032 Value Projection:	USD 245.1 Billion
Historical Data for:	2018 - 2022
No. of Pages:	300
Tables, Charts & Figures:	360
Segments covered:	Booking Type, Rental Length, Vehicle Type, Application, End User
Growth Drivers:	Growing flexibility of mobility solutions Increasing demand for rental services at airports Convenience and flexibility offered by car rental companies Rising middle class population and urbanization in Asia Pacific Rising travel & tourism industry across the globe
Pitfalls & Challenges:	Competition from ride-sharing services Increasing government initiatives to promote public transportation

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The emergence of innovative mobility solutions including ride-sharing platforms and car sharing services has transformed the conventional car rental sector. To cater to the changing customer preferences, rental companies have upgraded their offerings, catering to those looking for short-term rentals or lacking personal vehicles. This adaptability widens their customer base while accommodating the growing trend of urban dwellers opting for alternative transportation options.

The availability of innovative transportation options, such as bike-sharing, scooter-sharing, and enhanced public transportation systems, is a challenge to the car rental market. These alternatives provide cost-effective & environmentally friendly choices for short-distance travel, particularly within urban environments. The convenience and accessibility of these solutions in combination with their suitability to reduce congestion & emissions, have increased the attention of modern commuters. As a result, traditional car rental companies must comply with the changing landscape of urban mobility and find ways to differentiate their offerings to remain relevant in an increasingly diversified transportation ecosystem.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of car rental reached USD 122.3 billion in 2022 and is set to grow at 7.4% CAGR through 2023-2032, due to the proliferation of online booking platforms and user-friendly mobile applications worldwide.

Short-term car rental segment registered 72% of the market share in 2022, impelled by advantages, such as flexibility and convenience.

North America held 49% of the market share in 2022, owing to the increase in tourism and business trips in the region.

Some of the influential car rental companies are Rent-a-car, Avis Budget Group, Sixt, Alamo Rent-a-Car LLC, Hertz, Enterprise Holdings Inc., Europcar, Uber Technologies Inc., Localiza, and Ola Cabs.