PUBLISHER: The Business Research Company | PRODUCT CODE: 1664588
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664588
Car rental services for passengers involve the provision of vehicles for a predetermined, usually short duration. These rental cars typically boast lower mileage and undergo regular maintenance to guarantee a safe and pleasant driving experience.
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 from The Business Research Company 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 passenger car rental market size has grown steadily in recent years. It will grow from $161.69 billion in 2024 to $167.3 billion in 2025 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to travel and tourism trends, business travel needs, urbanization and mobility, economic conditions, changing consumer preferences.
The passenger car rental market size is expected to see steady growth in the next few years. It will grow to $188.51 billion in 2029 at a compound annual growth rate (CAGR) of 3.0%. The growth in the forecast period can be attributed to growth in international travel, rise in business and corporate travel, sustainability and environmental concerns, urban mobility solutions, consumer behavior post-pandemic. Major trends in the forecast period include collaborations with ride-hailing services, expansion of short-term rentals, corporate car rental programs, integration of autonomous vehicles, and customization of rental experiences.
The low rate of car ownership among millennials is expected to drive the growth of the passenger car rental market in the coming years. Vehicle ownership is defined as either the legal possession of a vehicle or having one's name registered with the Department of Motor Vehicles. Due to the high costs associated with vehicle maintenance, many millennials are opting to rent cars rather than purchase them, contributing to the rise in car rentals. For example, in November 2023, Statistics Canada reported a slight increase in registered road motor vehicles in Canada, with the total reaching 26.3 million in 2022, a 0.3% rise from the previous year, equivalent to an additional 78,655 units. As a result, the lower rate of car ownership among millennials is fueling the expansion of the passenger car rental market.
The increasing demand for road transportation is anticipated to drive the growth of the passenger car rental market in the coming years. Road transportation involves the movement of goods and passengers on roads using vehicles. Passenger car rentals provide individuals with the flexibility to use vehicles temporarily without the long-term commitment associated with ownership, catering to their specific needs. For example, in 2024, the Organisation for Economic Co-operation and Development, a US-based international organization, reported a 6.6% increase in road freight transport in the United States in 2023 compared to 2022. Thus, the growth in road transportation is propelling the expansion of the passenger car rental market.
Leading companies in the passenger car rental market are focusing on developing technologies that streamline financial transactions to enhance customer convenience, lower operational costs, and improve overall service efficiency. This technology involves the use of automated systems and digital tools to simplify and expedite payment processes, thereby reducing manual effort and increasing accuracy. For example, in March 2024, Amadeus, a Spain-based company that develops technology solutions for the travel and tourism industry, introduced Amadeus Value Cars. This platform enables travel sellers to provide mobility content without the need to manage multiple agreements or navigate complex payment processes. This streamlining is expected to alleviate operational burdens and enhance service quality for both sellers and travelers.
Major companies in the passenger car rental market are focusing on developing VinFast charging station technology to enhance customer convenience, meet the increasing demand for electric vehicles, and improve the overall sustainability of their rental fleets. VinFast charging stations are facilities designed to provide fast and efficient charging for electric vehicles manufactured by VinFast. For example, in January 2024, Taxi Xanh SM, a Vietnamese electric vehicle manufacturer, launched a self-driving electric car rental service featuring a diverse fleet of 100% new VinFast electric cars. This fleet includes models such as the VinFast VF 8, VF e34, VF 5 Plus, and VF 9, catering to various customer needs, from compact city cars to spacious family vehicles.
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 include 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.
North America was the largest region in the passenger car rental market in 2024. 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 passenger car rental market includes revenues earned by entities by self-drive rental car services, intercity car rental services, and outstation car rental services. 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.
Passenger Car Rental Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on passenger car rental market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for passenger car rental ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The passenger car rental market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.