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Car Rental & Leasing Market Size, Share & COVID-19 Impact Analysis, By Type (Rental and Leasing), By Use (Personal and Commercial), By Propulsion (ICE and Electric) and Regional Forecast, 2023– 2030

Last Updated: April 01, 2024 | Format: PDF | Report ID: FBI107517



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The global car rental & leasing market size was valued at USD 641.54 billion in 2022. The market is projected to grow from USD 728.13 billion in 2023 to USD 1,139.21 billion by 2030, exhibiting a CAGR of 7.6% during the forecast period.

Car rental & leasing refers to the industry that provides vehicles to customers for short-term rentals or long-term leases. A lease is typically tenured for two to four years, while rentals volatiles anywhere from a day up to several months. Car rental is commonly used by people who need a vehicle for a temporary period, such as when travelling for business or vacation. On the other hand, car leasing is commonly used by people who want to drive a new car but don’t want to pay a high up-front cost for purchasing a vehicle.

The major factor that drives the growth of the car rental & leasing market is the increasing popularity of car-sharing services and ride-hailing applications, which have made it easy for people to access transportation without owning a vehicle. Additionally, the rise of sharing economy has led to an increased demand for car rental & leasing options as more people seek flexible and cost-effective ways to access vehicles.

Another significant trend in the market is the growing adoption of electric and hybrid vehicles as the companies and government authorities of several nations are inclining toward a sustainable future. Many car rental companies and leasing providers are investing in eco-friendly vehicles to support the increasing demand for sustainable transportation options and to comply with environmental regulations.


Enhancement in Safety and Cleaning Protocols Fueled Market Growth During and Post pandemic

With the widespread travel restrictions and lockdown measures in many countries, demand for rental cars and leasing series declined sharply. Rental companies sold a significant share of their fleets, negatively impacting the market.

The pandemic severely impacted the leisure travel segment of the market, as many people postponed or cancelled their travel plans. As a result, many car rental companies have experienced a significant decline in demand for long-term leasing services, as well as a shift towards short-term rental options.

However, regardless of the challenges posed by the pandemic, companies implemented new safety and cleaning protocols to sustain themselves in the market with the aim of protecting employees and customers. For instance, in May 2020, Hertz announced a 15-step "Gold Standard Clean" procedure marking its rental cars with a "gold standard" seal across their doors, which give users the confidence to go on a thoroughly clean ride.

Furthermore, companies focused on adopting digital technologies, investing in online booking and contactless payment. This helped in sustaining the market growth during and post-COVID-19 pandemic period.


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Trend toward Vehicle Subscription Services Propels the Market Growth

 One of the latest trends in the market is the increasing demand for subscription-based services. This model allows customers to pay a monthly charge for access to a fleet of vehicles, which they can swap out regularly, depending on their needs.

Subscription-based services offer several benefits for customers, including greater flexibility and convenience, as well as the ability to try out different vehicle models without committing to a long–term lease. Additionally, subscription services often include maintenance and insurance, which can help to simplify the overall cost of vehicle ownership.

In March 2023, Kinto, a subsidiary of Toyota, launched long-term rental options. The company is offering Kinto Flex, to compete the vehicle subscriptions businesses offered by energy companies such as AGL and Origin and short-term car rentals providers such as Uber and Turo. This fuels the car rental & leasing market growth during the forecast period.


Increasing Demand for Flexible and Cost-Effective Transportation Options Augments the Market Growth

The key driving factor for the market is the increasing demand for flexible and cost-effective transportation options. As urbanization continues accelerating, car ownership is getting expensive and impractical for many users. Due to this, many consumers and businesses choose to delay or forego car ownership altogether, preferring ride-hailing services, public transportation, or rental and leasing options.

Car rental & leasing companies are uniquely positioned to serve this growing market, offering a range of vehicles and rental options to suit various needs and budgets. In April 2022, Careem partnered with Swapp introducing flexible car rental services on the Careem App. Swapp offers a range of cars for rent, from low to high-budget options such as the Kia Picanto to Mitsubishi Attrage, SUVs such as Nissan Kicks, and large vehicles such as Chevrolet Tahoe and BMW.


Increasing Popularity of Ride-Sharing Services Hinders the Market Progression

The rise of ride-sharing services has led to a decline in the number of people owning cars. It led to changing consumer preferences, with more people opting for on-demand transportation rather than owning or renting a car. As Uber reported in its second quarter of 2022, its gross bookings increased 33% year-on-year.

Ride-sharing services are often backed by advanced technology, making it easy for consumers to book and pay for rides. This has forced car rental & leasing companies to adopt similar technologies to remain competitive, hindering the market growth.


By Type Analysis

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Ease of Accessibility and Flexible Solutions Contributes to the Demand for Leasing 

Based on the type, the market is segmented into rental and leasing.

The leasing segment held a significant car rental & leasing market share in 2022. The leasing allows for greater flexibility in terms of the duration of the lease, the type of vehicle, and the mileage limit, which can be particularly attractive to businesses and individuals who require cars for a short duration. This contribute to the segment's market growth over the forecast period.

The convenience of renting a car drives the rental segment in the market. Renting a car is a hassle-free solution for people who need a car for a short period. The rental process is usually quick and straightforward, and the rental companies offer a variety of vehicles to choose from their fleet, providing options to the consumers for renting cars suitable for their budget and requirements. This fuels the market growth of the segment during the forecast period.

By Use Analysis 

Reduction in Operation Costs is Propelling the Demand for Commercial Segment

Based on use, the market is categorized into personal and commercial.

The commercial segment dominated the market in the market in 2022. Leasing can provide tax benefits to the businesses, such as tax deductions for lease payments or write off the cost of the vehicle as a business expense. This helps the firms to reduce their operating cost and, thus, propelling the segmental market growth during the forecast period.

Personal car leasing can be more cost-effective than buying a car for individuals who don't want to make a large upfront payment or cannot afford to pay the total cost of a vehicle. Moreover, personal car leasing allows for more frequent upgrades to new car models, which can be appealing to individuals who want to stay up-to-date with the latest technology and safety features. All these factors drive the segmental market growth over the forecast period.

By Propulsion Analysis 

Wide Usage of ICEs to Propel Segment Growth

Based on the market by propulsion type, the market is categorized into ICE and electric.

The ICE segment held a significant market share in 2022. ICEs are widely available in various vehicle types, from economy cars to luxury vehicles and commercial vehicles. Besides this, ICEs are supported by an established infrastructure of fuel stations, repair shops, and other services, making them a convenient choice for consumers. This fuels the market growth of the ICE segment in the market.

Many companies are adopting electric vehicles as part of their corporate social responsibility (CSR) initiatives to reduce their carbon footprint and promote sustainability. Moreover, lower operating costs and government incentives drive the electric segment's market growth.


Europe Car Rental & Leasing Market Size, 2022 (USD Billion)

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The market is analyzed across North America, Europe, Asia Pacific, and the Rest of the world.

Europe dominated the market with the largest market share in 2022. Europe is one of the most popular tourist destinations in the world, with millions of people travelling to the continent every year. Car rental and leasing services are in high demand among tourists who want to explore the region's diverse cities and landscapes. This boosts the market growth across the region.

North America held significant market shares in 2022. North America is a popular destination for both business and leisure travel, and car rental & leasing services are in high demand to meet the transportation needs of travelers. Moreover, a strong economy with low unemployment rates drives the demand for the market as consumers have more disposable income to spend on travel and transportation.

Asia Pacific witnessed significant growth in the market over the forecast period. As with other regions, urbanization is driving demand for car rental & leasing services in the Asia Pacific, as more people live in cities where car ownership can be impractical or expensive. Moreover, the growth of international business and trade in the region has increased demand for personal transportation options such as car rentals and leases.

Many countries in the Rest of the world, comprising the Middle East & Africa and Latin America sub-regions, are experiencing economic growth, leading to increased consumer spending and demand for personal transportation options such as rentals and leases. Moreover, Cities such as Dubai witnessing increased tourism also drive the market growth demand in the region.


Companies Focus on Mergers, Partnerships to Advance Competitive Landscape

The market is highly competitive, with several major key players dominating the industry, including National Car Rental, Avis Budget Group, Enterprise Holdings, Europcar Group, and Hertz Global Holdings. However, smaller regional and local companies also play a significant role in the market, particularly in emerging economies.

In November 2022, National Car Rental extended its loyalty schemes with Enterprise Rent-A-Car. National Car Rental's Emerald Club program free rental days, previously set to expire on December 31, 2022, will now roll over through to September 4, 2023. This enables the company to acquire more consumers availing of the offer provided by the company, which helps in the company's growth and the market.

List of Key Companies Profiled:


  • March 2023 – Enterprise Holdings signed a partnership with Woodford Group. Under the partnership, the company announced establishing its service in South Africa. The company offers short-term car rental and long–term subscriptions with chauffeured drivers and point-to-point services.

  • January 2023 – Hertz signed a public-private partnership with the regulatory body of Denver, Colorado, to accelerate the transition of Evs in the rental industry. The company will switch towards providing rental electric cars contributing towards sustainability. 

  • February 2023 – Udrive, a pay-per-minute car rental platform, launched an exclusive fleet to provide efficient and smoother mobility to and from Hatta for citizens and tourists for exploring cultural, recreational, and natural attractions in the Highlands of Dubai. The company provides these services in partnership with Dubai's RTA and Dubai Holding.

  • October 2022 – ERGO signed a partnership with SIXT with a collaboration agreement covering 10,000 vehicles in Germany. The partnership aims to provide an innovative insurance solution for rental cars and run a pilot project on a pay-as-you-drive pricing model.

  • October 2022 - The United Nations World Food Programme collaborated with UN High Commissioner for Refugees and launched a vehicle leasing service – UN FLEET – for UN organizations worldwide to provide transportation services for the agencies conducting operations worldwide.

  • April 2021 –  GoAir, in partnership with Eco Europcar, launched car rental services across 100 cities in India. This partnership also includes the 25 airports within GoAir's domestic network.


An Infographic Representation of Car Rental & Leasing Market

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The report provides detailed market analysis and focuses on key aspects such as leading companies, product/service types, and leading product applications. Besides, the report offers significant insights into market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

Report Scope& Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 7.6% from 2023 to 2030


Value (USD Billion)


By Type

  • Rental

  • Leasing

By Use

  • Personal

  • Commercial

By Propulsion

  • ICE

  • Electric

By Region

  • North America (By Type, By Use, and By Propulsion)

    • U.S. (By Propulsion)

    • Canada (By Propulsion)

    • Mexico (By Propulsion)

  • Europe (By Type, By Use, and By Propulsion)

    • U.K. (By Propulsion)

    • Germany (By Propulsion)

    • France (By Propulsion)

    • Rest of Europe (By Propulsion)

  • Asia Pacific (By Type, By Use, and By Propulsion)

    • China (By Propulsion)

    • Japan (By Propulsion)

    • India (By Propulsion)

    • South Korea (By Propulsion)

    • Rest of Asia Pacific (By Propulsion)

  • Rest of the World (By Type, By Use, and By Propulsion)

Frequently Asked Questions

As per the Fortune Business Insights study, the market size was USD 641.54 billion in 2022.

The market is to be expected to grow at a CAGR of 7.6% over the forecast period (2023-2030).

The leasing segment leads in the global car rental & leasing market by type.

The market size in North America stood at USD 219.69 billion in 2022.

Increasing demand for flexible and cost-effective transportation options augments the market.

The increasing popularity of ride-sharing services hinders the market progression.

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