Global Car Rental Market to Reach Nearly $93 Billion by 2033

The global car rental market is projected to reach $92.69 billion by 2033, driven by a compound annual growth rate (CAGR) of 7.5% between 2026 and 2033, according to a report by Verified Market Reports. 

In 2024, the sector was valued at $50.57 billion. This growth is being fueled by urbanization, the rise in tourism, an increase in business travel, and the demand for flexible, digital mobility solutions.

A key driver of this expansion is the shift toward Mobility-as-a-Service (MaaS) models, which prioritize efficiency and accessibility over car ownership. App-based bookings, subscription models, and carsharing services are gaining popularity, especially in densely populated urban areas. The surge in leisure and business travel, along with the recovery of international tourism, is also boosting demand for short- and medium-term rentals.

Sustainability has become a priority, and the electric vehicle (EV) rental market is growing rapidly, with a projected CAGR of 15.8% through 2030. Companies like Hertz and Sixt are expanding their electric fleets to align with zero-emission goals. Government incentives, strict environmental policies, and improved charging infrastructure are facilitating this transition.

Despite the opportunities, the sector faces challenges such as high operating costs, fleet maintenance, and the need to comply with environmental regulations and data protection laws. Competition is also intense, with new market entrants, the rise of alternative mobility models, and pressure to offer competitive pricing. This pushes companies to continually invest in technology and service improvements.

Geographically, North America and Europe lead the market, supported by advanced infrastructure, high purchasing power, and well-established tourism ecosystems. The United States stands out for strong corporate and leisure demand, while Europe is moving rapidly toward EV adoption. The Asia-Pacific region is emerging as a high-growth area, with countries like China and India quickly embracing shared mobility services.

Key industry players shaping the market’s future include Avis Budget, Enterprise Holdings, Europcar, Hertz, Sixt, and Carzonrent. Growth opportunities lie in emerging markets, corporate mobility solutions, and new digital channels. A combination of technological innovation, international expansion, and sustainability will define the trajectory of the global car rental market over the next decade.