Global Car Rental and Leasing Services Market Size By Type (Offline Access, Online Access), By Application (Local Usage, Airport Transport), By Region, And Segment Forecasts, 2023 to 2032

The Global Car Rental and Leasing Services Market was valued at USD 98.4 billion in 2023 and is projected to reach USD 185.7 billion by 2031, growing at a CAGR of 8.1% from 2023 to 2031. This growth is driven by the increasing need for mobility solutions, the rising popularity of vehicle leasing for corporate and personal use, and advancements in digital booking platforms. Car rental and leasing services are becoming essential in urban areas as consumers seek cost-effective alternatives to vehicle ownership, contributing to the market’s expansion.

Drivers

Growing Demand for Flexible Transportation Solutions: Urbanization and changing consumer preferences toward flexible vehicle access are driving demand for car rentals and leasing services.

Corporate Leasing Growth: Corporates are increasingly turning to vehicle leasing to manage fleets cost-effectively, leading to significant market growth.

Digital Transformation in Car Rentals: The integration of digital platforms, apps, and AI-enhanced booking systems is enhancing user experience and operational efficiency.

Restraints

High Initial Setup Costs for Companies: The capital required for fleet acquisition and technology setup can be substantial, limiting new entrants.

Stringent Regulatory Compliance: Regulations concerning vehicle safety and emissions add costs and complexity, especially in regions with strict environmental standards.

Opportunity

Expansion in Emerging Markets: Rising incomes and urbanization in developing regions, particularly in Asia-Pacific and Latin America, present growth opportunities as consumers increasingly opt for car rentals and leases.

Electric Vehicle (EV) Fleet Integration: As environmental awareness grows, rental companies are expanding EV offerings, attracting eco-conscious consumers and reducing emissions.

Market by System Type Insights

The On-Demand Rental segment leads the market, driven by the popularity of short-term rentals among urban dwellers and tourists. This segment is expected to grow as digital platforms enhance booking convenience and flexible pricing. The Leasing segment, especially operational leasing, is projected to witness high growth rates, supported by rising corporate demand for fleet solutions.

Market by End-Use Insights

In 2023, the Corporate End-Use segment accounted for the largest market share, as companies increasingly choose leasing for managing fleet costs. Personal End-Use is also significant, especially for long-term rentals by individuals seeking to avoid the responsibilities of car ownership. Both segments are likely to continue growing as vehicle ownership models evolve.

Market by Regional Insights

North America holds the largest market share, owing to high car rental adoption rates among tourists and businesses. Asia-Pacific is forecasted to experience the highest growth, driven by rapid urbanization, rising incomes, and the expanding tourism industry in countries like China and India. Europe also holds a significant share, bolstered by demand for eco-friendly rental options and well-established leasing companies.

Competitive Scenario

Leading players in the Global Car Rental and Leasing Services Market include Enterprise Holdings, Hertz Global Holdings, Avis Budget Group, Sixt SE, Europcar Mobility Group, and ALD Automotive. Companies focus on expanding digital service offerings, introducing EVs into their fleets, and forming partnerships to enhance global reach. Recent market activities include Sixt’s partnership with a major EV manufacturer to expand its green vehicle offerings and Hertz's acquisition of a digital car-sharing platform to cater to changing consumer needs.

Scope of Work – Global Car Rental and Leasing Services Market

Key Market Developments

Sixt SE partnered with a leading EV manufacturer in 2023 to introduce a new electric vehicle rental service.

Hertz Global Holdings acquired a car-sharing platform in 2024, broadening its services to cater to urban mobility demands.

Avis Budget Group launched an AI-powered digital platform in 2025 for streamlined booking and fleet management.

FAQs

What is the current market size of the Global Car Rental and Leasing Services Market?

The market size was USD 98.4 billion in 2023.

What is the major growth driver of the Global Car Rental and Leasing Services Market?

Major growth drivers include the demand for flexible transportation solutions and the corporate adoption of vehicle leasing.

Which is the largest region during the forecast period in the Global Car Rental and Leasing Services Market?

North America is the largest market, with significant growth expected in the Asia-Pacific region.

Which segment accounted for the largest market share in the Global Car Rental and Leasing Services Market?

The Corporate End-Use segment held the largest market share in 2023.

Who are the key market players in the Global Car Rental and Leasing Services Market?

Key players include Enterprise Holdings, Hertz Global Holdings, Avis Budget Group, Sixt SE, Europcar Mobility Group, and ALD Automotive.