Passenger Car Rental Global Market Report 2024

The passenger car rental market size has grown steadily in recent years. It will grow from $171.99 billion in 2023 to $179.97 billion in 2024 at a compound annual growth rate (CAGR) of 4.6%. The growth observed in the historical period can be attributed to various factors, including trends in travel and tourism, the requirements of business travel, urbanization and mobility patterns, economic conditions, and shifts in consumer preferences.

The passenger car rental market size is expected to see steady growth in the next few years. It will grow to $211.78 billion in 2028 at a compound annual growth rate (CAGR) of 4.2%. The anticipated growth in the forecast period can be ascribed to the expansion of international travel, an increase in business and corporate travel, growing concerns about sustainability and the environment, the evolution of urban mobility solutions, and shifts in consumer behavior following the pandemic. Prominent trends expected in the forecast period encompass collaborations with ride-hailing services, the extension of short-term rentals, the implementation of corporate car rental programs, the integration of autonomous vehicles, and the customization of rental experiences.

The expected surge in the passenger car rental market is attributed to the low rate of car ownership among millennials. Car ownership is defined by legal possession or the registration of a vehicle under an individual's name with the Department of Motor Vehicles. The elevated costs associated with maintaining vehicles have led millennials to opt for car rentals rather than ownership. For instance, in July 2021, Experian PLC reported a decrease in new car registrations among millennials, with a 27.3% decline in 2021. The demand for cars in younger generations also dropped by approximately 12%. Consequently, the diminished rate of car ownership among millennials is a significant driver of growth in the passenger car rental market.

The anticipated growth of the passenger car rental market is further fueled by the increasing prominence of road transportation. Road transportation involves the movement of goods and passengers on roadways using vehicles. Passenger car rentals provide individuals with the flexibility to use vehicles temporarily, catering to specific needs without the long-term commitment of ownership. For example, in March 2021, the U.S. Department of Transportation reported a 2.9% increase in travel on highways and streets in March 2022 compared to the same period in 2021. A total of 277.4 billion vehicle miles were projected for the month, with 2.80% growth from March 2021. Thus, the rising trend in road transportation contributes to the growth of the passenger car rental market.

Technological advancement is a prominent trend gaining traction in the passenger car rental market, with major companies focused on innovative solutions. In June 2021, Brazilian car rental company Localiza introduced Zarp Localiza, a business platform incorporating telemetry and data sciences for driver tracking and behavior monitoring. The platform serves drivers who rent vehicles for work, centralizing all car rental services in an app. It offers exclusive benefits such as fuel discounts and alerts for risky driving profiles, reducing the risk of accidents.

Major players in the passenger car rental market are leveraging technological innovation to gain a competitive edge, exemplified by Uber Rent. Launched in May 2021 by Uber Technologies, Inc., Uber Rent allows users to rent entire cars through the app. The service offers in-app bookings from brands such as Avis and Hertz, with prices set by the rental companies. Uber Rent is part of Uber's comprehensive transportation app, providing various mobility solutions and allowing car owners to list their vehicles for borrowing at hourly and daily rates through Uber's peer-to-peer carshare option.

In October 2023, Toyota Motor Corporation, a Japanese automotive manufacturer, acquired Ezi Car Rental for an undisclosed amount. This strategic move aims to expand Toyota's mobility ecosystem in New Zealand and tap into opportunities in car usage for both existing and new customers. Ezi Car Rental, a New Zealand-based company, specializes in passenger car rentals.

Major companies operating in the passenger car rental market report are Avis Budget Group Inc., Sixt SE, Hertz Global Holdings Inc., Enterprise Holdings Inc., Europcar Mobility Group SA, Localiza Rent a Car SA, Carzonrent India Pvt Ltd., Eco Rent a Car, ANI Technologies Pvt Ltd., Tourism Holdings Ltd., SK Rent A Car Co. Ltd., ALD Automotive SA, Autohellas SA, Alamo Rent-a-Car LLC, National Car Rental, Dollar Rent A Car, Thrifty Car Rental, Advantage Rent A Car, Payless Car Rental Inc., Budget Rent a Car, Firefly Car Rental, E-Z Rent-A-Car, Fox Rent A Car, Green Motion, InterRent International Rent a Car, Rent-A-Wreck, Silvercar Inc., Turo Inc., Zipcar Inc., car2go North America LLC.

North America was the largest region in the passenger car rental market in 2023. Asia-Pacific is expected to be the passenger car rental market report fastest-growing region in the forecast period. The regions covered in the passenger car rental market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the passenger car rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of passenger car rental vehicles encompass luxury cars, executive cars, economy cars, sports utility vehicles (SUVs), and multi-utility vehicles (MUVs). Luxury cars are those that provide above-average to high-end comfort, features, equipment, and/or performance. Rental durations vary, including long-term and short-term options, catering to local usage, airport transport, outstation trips, and other purposes.

The passenger car rental market research report is one of a series of new reports that provides passenger car rental market statistics, including passenger car rental industry global market size, regional shares, competitors with a passenger car rental market share, detailed passenger car rental market segments, market trends and opportunities, and any further data you may need to thrive in the passenger car rental industry. This passenger car rental market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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