Car Rental Market Size - By Booking Type (Online, Offline), By Rental Length (Short Term, Long Term), By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs), By Application (Leisure/Tourism, Business), End User & Global Forecast, 2023 - 2

Car Rental Market Size - By Booking Type (Online, Offline), By Rental Length (Short Term, Long Term), By Vehicle Type (Luxury Cars, Executive Cars, Economy Cars, SUVs, MUVs), By Application (Leisure/Tourism, Business), End User & Global Forecast, 2023 - 2032
Car Rental Market size is projected to expand at 7.4% CAGR from 2023 to 2032 driven by the continuous advancements in online booking platforms and mobile applications worldwide.

With the integration of intuitive interfaces, secure payment gateways, and real-time availability tracking, customers are effortlessly booking vehicles, modifying reservations, and accessing support services. Moreover, personalized recommendations and tailored promotional offers are rendering enhanced customer engagement and loyalty. For instance, in January 2023, National Car Rental introduced a novel revamped mobile app with better aesthetics and more user-friendly UI to make automobile renting easier. With such platforms continuing to evolve for providing enhanced functionalities and comprehensive solutions, the market is set to gain significant momentum.

The overall car rental industry is segmented into booking type, rental length, vehicle type, application, end-user, and region.

Based on vehicle type, the executive car rental market is expected to witness significant traction through 2032 attributed to the evolving consumer preferences and the burgeoning corporate sector. With executives increasingly prioritizing comfort and style, leading market players are coming up with an array of premium offerings for driving both customer satisfaction and loyalty. Rising preference for luxury vehicles coupled with the intensifying business travel will also significantly bolster the segment growth.

Car rental market from the leisure and tourism segment is anticipated to record robust growth between 2023 and 2032. With the upsurge in domestic and international travel, the need for flexible and convenient transportation options has significantly soared. Several industry players are focusing on providing diverse vehicle choices, including family-friendly and adventure-oriented models for resonating with the evolving preferences of leisure travelers. Moreover, the booming tourism sector is contributing to the rising demand for seamless mobility solutions, supporting the industry expansion.

Asia Pacific car rental industry is poised to exhibit notable CAGR from 2023-2032 attributed to rapid urbanization, burgeoning tourism, and the thriving business landscape. With increasing disposable incomes and the burgeoning middle class population, the demand for convenient and flexible transportation solutions has soared. Several regional market players are strategically expanding their footprints for capitalizing on diverse and dynamic economies, leading to augmented industry outlook. For instance, in November 2022, Enterprise Holdings signed an agreement with Korea First Rent-A-Car to introduce new Enterprise Rent-A-Car and Alamo franchise locations as part of its plan to expand into other major metropolitan regions.