The global Car Rental Market Growth Accelerated by Increasing Tourism and Business Travel

The car rental market offers temporary use of vehicles to customers for self-driving purposes. Car rentals provide an economical and convenient alternative to vehicle ownership. They are widely used for tourism and business travel purposes.

The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

 According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals grew by 4% in 2022 reaching pre-pandemic levels. This is boosting the demand for rented vehicles from tourists for local transportation. Additionally, the recovery of the corporate sector is propelling business travel, which in turn is fueling the demand for rented vehicles especially in developed economies. This trend is expected to continue over the forecast period and significantly contribute to the market growth.

Segment Analysis

The Global Car Rental Market Size is dominated by the economy/compact car segment. This segment accounts for over 40% of the total market share as many travelers prefer renting affordable and fuel-efficient vehicles for short-term use. The economy car segment is dominating due to benefits such as lower rental rates and maintenance costs compared to other vehicle categories in the market.

Key Takeaways

The global car rental market is expected to witness high growth over the forecast period. The growing tourism and business travel industries are major drivers of demand for car rental services globally. The global Car Rental Market is estimated to be valued at US$ 133.23 Bn in 2023 and is expected to exhibit a CAGR of 2.9% over the forecast period 2023-2030.

Regional analysis: North America currently dominates the global car rental market, accounting for over 35% share. The region is expected to remain the fastest growing market due to strong economic growth and a well-developed travel and tourism industry.

Key players: The major players operating in the car rental market include Avis Budget Group, Enterprise Holdings, Europcar Mobility Group, Hertz Global Holdings, and Sixt SE.

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