World Market for Car Rental

July 2024

This report examines the global car rental industry, providing analysis on market sizes, brand and company shares and growth trends during the review and forecast periods. The report also considers the major trends shaping the global car rental industry and provides insights into the future of the car rental industry.

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Key findings

Leisure rentals driving industry recovery

The car rental market has recovered following the COVID-19 pandemic thanks to an improving travel market. In 2023, car rental sales reached USD87 billion, with leisure rentals accounting for 55% of revenues, up from 52% in 2016. It reflects less appetite for business rentals as companies have substituted business travel for online collaboration tools such as Zoom.

Higher rental prices push up operator revenues

Between 2016 and 2023, operator revenues surged by 18%. The price rise arose mainly during 2021-2022, pushed up by increasing demand for car rental, which was simultaneously met with an undersupply in rental vehicles, leading to higher prices. However, operator revenues are stabilising as rental fleets have gradually normalised.

Car rental revenues to reach of USD95 billion by 2030

By 2030, the car rental industry is poised to reach USD95 billion in real revenues (constant 2023 prices). Leisure is projected to continue accounting for a larger share of the industry, though business rentals are expected to bounce back as companies reprioritise business travel.

Enterprise leads the “big 5”, but Sixt and Localiza impress

In 2023, the “big 5” car rental players - Enterprise Holdings, Avis, Hertz, Sixtand Green Mobility Holdings - accounted for 65% of the global car rental industry, led by the former with 29%. Among the “big 5”, Sixtwas the best performing thanks to its increasing exposure in the US, while Brazil’s Localizawas among the fastest-growing car rental companies globally.

Strategic trends in car rental underpin new focus areas for operators

Several trends - flexible ownership models, shift to online bookings, adoption of low-emission car rental vehicles, use of AI and big data and increasing push from Chinese OEMs in car rental - are some of the major trends shaping the future of the industry. Being aware of the following trends can help operators embrace the car rental industry’s shifting business profile.

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Scope
Key findings
Snapshot of the car rental industry’s performance in 2023
Global car rental shows robust growth thanks to a recovering tourism industry
North America is the largest car rental market, but Latin America shows the strongest growth
Among the top 10 markets Brazil, South Korea and China have shown robust performance
Despite fleet sizes recovering strongly, mixed results are seen across key car rental markets
Operator revenues surge due to the higher cost of car rental, despite fewer transactions
Leisure car rental continues to drive the post-pandemic recovery
Utilisation rates have almost recovered, albeit with varying results in key markets
“Big 5” dominate the market, but exposure is limited to Western markets
Performance of the 20 major car rental brands
Among the “big 5”, Enterprise leads, Sixt grows strongly and Green Mobility and Hertz struggle
“Big 5” have more diversified revenues, but others depend on their domestic market
Sixt has generally had higher utilisation rates than its competitors over the review period
Case study: Sixt to continue US expansion with LA Lakers and Chicago Bulls partnerships
Outside of the “big 5”, Localiza is growing robustly thanks to rising domestic demand in Brazil
SK rent a car shows the strongest growth in Asia Pacific but sold to Affinity in June 2024
Market consolidation is highest in the US and Brazil, while China remains more competitive
The face of global car rental in 2030
Emerging markets are poised for growth, while Western Europe continues its recovery
Revenue per transaction set to decline as fleet sizes normalise, stabilising prices
Business car rental is expected to rebound slightly, but leisure rentals to still dominate
Top five car rental trends
Flexible ownership: New ownership models cater to market with more personalised needs
Case study: Avis introduces iLease in South Africa as an alternative to vehicle ownership
Online rentals : Web and app-based bookings gain ground amid digital transformation shift
Case study: Hertz partners with Stripe to power digital payments
Eco-friendly fleets : EV rentals are becoming more common, despite some pushback
Case study: Europcar expands EV offer, with more flexible return policies for users
Case study: Avis in partnership with EverCharge launches EV charging at Houston Airport
AI and Big Data: AI and big data is being used across the broader car rental value chain
Case study: Sixt’s partner DriveX uses a digital inspection tool to assess damage to rental cars
Chinese rental cars: Car rental companies are being drawn to Chinese automotive brands
Case study: Sixt to buy 100,000 cars from BYD - the world’s biggest manufacturer of EVs
Other important trends in the car rental industry
Case study: Fetch delivers rental cars remotely with a tele-driver
Case study: Klarna brings interest-free BNPL to CarTrawler’s 250 partner travel websites
Key takeaways from the global car rental market
Recommendations/Opportunities for growth
US
China
UK
Brazil
Japan
Germany
France
Spain
South Korea
Australia

Mobility

All vehicles captured by Euromonitor's vehicle volume sales data, i.e. light vehicles -passenger cars and light commercial vehicles combined. Medium and heavy-duty trucks and buses are not covered.

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