Research Expert: Sarah Overall
  • Published: Jun 2025
  • Pages: 150
  • SKU: IRTNTR40065

  • Latest News- Car Rental Market: Offline is expected to lead the Mode Of Booking segment during 2025-2029

    The Car Rental Market is being driven by Rise in vehicle ownership cost

    The Car Rental Market is expected to grow at a CAGR of 20.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 188.3 billion. In the past, customers relied on making phone calls to car rental operators to secure reservations and negotiate prices. However, the emergence of online car rental brokers, such as carrentals.com, expedia.com, cartrawler.com, and priceline.com, has revolutionized the industry. These intermediaries act as demand aggregators, allowing customers to compare prices and make informed decisions. From a business perspective, while this model offers customers cost savings, it presents unfavorable sales for operators due to commission payments to brokers. 

    Get more information on Car Rental Market by requesting a sample report

    Which Factors Are Causing a Surge in Market Growth?

    The market is segmented based on

    • Mode Of Booking
      • Offline
      • Online
    • Rental Category
      • Airport transport
      • Local transport
      • Outstation transport
      • Other transport
    • Type
      • Economy cars
      • Executive cars
      • Luxury cars
      • SUVs
      • MUVs
    • Application
      • Leisure/Tourism
      • Business Travel
      • Local Usage
      • Airport Transport
      • Outstation/Long Distance
    • End-use
      • Self-Drive
      • Chauffeur-Driven
    • Rental Length
      • Short-Term Rental
      • Long-Term Rental/Leasing
    • Fare Price
      • Economy/Budget Cars
      • Luxury/Premium Cars
    • Geography
      • North America
        • Canada
        • US
      • Europe
        • Germany
        • UK
        • France
        • Italy
      • APAC
        • China
        • India
        • Japan
      • Middle East and Africa
        • Egypt
      • South America
        • Brazil
        • Argentina

    According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

    • Rise in vehicle ownership cost
    • Incorporation of advanced digital technologies in car rental services
    • Increasing demand for car rentals due to stringent regulations for controlling emissions

    However, the market also witnesses some limitations, which are as follows:

    • Rising number of car-sharing services
    • Growing adoption of car-hailing services
    • High cost of self-drive car rental

    Benefits of Buying Global Car Rental Market Research Report by Technavio

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    Market Scope in Car Rental Market Research Report

    Market Scope

    Report Coverage

    Details

    Page number

    224

    Base year

    2024

    Historic period

    2019-2023

    Forecast period

    2025-2029

    Growth momentum & CAGR

    Accelerate at a CAGR of 20.5%

    Market growth 2025-2029

    USD 188.3 billion

    Market structure

    fragmentation

    YoY growth 2024-2025(%)

    19.9

    Key countries

    US, Canada, Germany, UK, Italy, France, China, India, Japan, Brazil, Egypt, UAE, Oman, Argentina, KSA, UAE, Brazil, Rest of World (ROW), US, China, India, Germany, UK, Canada, France, Italy, Mexico, and Spain

    Competitive landscape

    Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

    Find out which segment is leading the market by accessing the free PDF report

    Research Analysis Overview

    Car rental services have seen significant growth with the increase in internet penetration and the popularity of mobile apps. Global travelers and commuters now prefer using internet booking applications for a seamless car rental experience. Car rental operators are leveraging information technology, including telematics, to enhance services and ensure employee retention. International trips and tourist agencies also benefit from online booking, verification of documents, e-signing contracts, cashless transactions, and the sales of smartphones. The integration of electric vehicles (EVs) in car rental fleets and navigating travel restrictions are ongoing challenges.

    Market Research Overview

    The global passenger ground transportation market encompasses businesses providing passenger ground transportation services and related offerings, such as bus, taxi, car rental, ridesharing, and on-demand platforms, as well as passenger logistics. According to Technavio's market analysis, the market size is determined by the consolidated revenue of enterprises operating within the passenger land transportation sector, which includes car rental, leasing, ridesharing, on-demand ride-sharing platforms, and other passenger logistics. Factors driving the expansion of the global passenger ground transportation market include the surge in disposable income and the proliferation of self-driving car rental services. These trends have significantly altered travel patterns and preferences.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


    Contacts

    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: media@technavio.com
    Website: www.technavio.com/

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