Car Rental Market Report 2026

The car rental market size has grown steadily in recent years. It will grow from $214.85 billion in 2025 to $225.2 billion in 2026 at a compound annual growth rate (CAGR) of 4.8%. The growth in the historic period can be attributed to rising tourism growth, increasing business travel activity, expansion of airport rental services, growth in urban mobility needs, early development of car rental infrastructure.

The car rental market size is expected to see steady growth in the next few years. It will grow to $265.3 billion in 2030 at a compound annual growth rate (CAGR) of 4.2%. The growth in the forecast period can be attributed to increasing travel and tourism recovery, rising demand for flexible transportation, growing adoption in corporate and leisure segments, strengthening focus on mobility convenience, expanding digital booking usage. Major trends in the forecast period include rising demand for short term vehicle access, growing preference for convenient travel mobility options, increasing adoption of rental services among travelers, rising dependence on temporary transportation solutions, growing expansion of organized rental service networks.

The rapid expansion of the tourism industry is expected to support the growth of the car rental market going forward. The tourism industry involves the movement of people from one destination to another for purposes such as business travel, vacations, and leisure. Within the tourism sector, renting vehicles enables travelers to move conveniently and affordably while enjoying flexibility, comfort, and security through simple and accessible booking processes. For instance, in September 2023, according to the World Tourism Organization (UNWTO), a Spain-based international organization, approximately 700 million tourists traveled internationally between January and July 2023, representing a 43% increase compared to the same period in 2022. Therefore, the strong growth in the tourism industry is driving the expansion of the car rental market.

Companies operating in the car rental market are increasingly focusing on developing innovative service platforms to enhance revenue generation and customer experience. The entry of platforms such as Drivepadi highlights a shift toward technology-enabled, customer-centric car rental solutions that address evolving consumer needs. For example, in June 2023, Drivepadi, a Nigeria-based car rental services provider, launched an innovative car rental platform in Lagos. The platform aims to transform how car rental services are accessed and utilized by offering advanced features and a peer-to-peer sharing model. This approach is designed to deliver greater convenience, flexibility, and choice for customers seeking rental vehicles in Lagos and surrounding regions.

In January 2024, MakeMyTrip Limited, an India-based online travel and mobility company, acquired a majority stake in Savaari Car Rentals for an undisclosed amount. This acquisition was intended to support MakeMyTrip’s entry into the intercity car rental segment, expand its mobility service portfolio, and introduce technology-driven standardization in a traditionally fragmented market. Savaari Car Rentals Private Limited is an India-based provider of intercity and local car rental services, including outstation one-way trips, round trips, hourly rentals, and airport transfer services.

Major companies operating in the car rental market report are Enterprise Rent-A-Car LLC, The Hertz Corporation,SIXT SE, Europcar Rental Company, Avis Budget Group Inc., Localiza Rent -a-Car SA, National Car Rentals Pte. Ltd., Ace Rent-A-Car Pvt. Ltd., Eco Rent A Car LLC, Carzonrent India Pvt. Ltd., Renault Eurodrive Inc., Alamo Rent A Car Inc., Budget Rent a Car System Inc., Thrifty Car Rental, Dollar Rent A Car, Turo Inc., Getaround Inc., Zipcar Inc., Car2Go GmbH, Maven Mobility LLC, GIG Mobility LLC, RelayGo Inc., Communauto Inc., AUTOshare Inc., Modo Co-operative, Silvercar Inc., Fox Rent a Car, Green Motion, Discovery Rentals.

North America was the largest region in the car rental market in 2025.Asia-Pacific is expected to be the fastest-growing region in the global car rental market report during the forecast period. The regions covered in the car rental market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the car rental market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The car rental market includes revenues earned by entities by providing services, such as automated check-in and checkout, online cancellation, vehicle information and listing, and more. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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