Car Rental Market Outlook:
Car Rental Market size is valued at USD 166.3 billion in 2025 and is projected to reach a valuation of USD 472.2 billion by the end of 2035, rising at a CAGR of 11% during the forecast period, i.e., 2026-2035. In 2026, the industry size of car rental is assessed at USD 184.5 billion.
The global car rental industry is undergoing a significant expansion fueled by shifting consumer mobility trends, technology integration, and the growth of platform-based business models that blur the lines of conventional industry segments. The main opportunity for growth lies in establishing converged mobility ecosystems that integrate traditional car rentals with ride-sharing, peer-to-peer car sharing, and autonomous driving services, thereby catering to diverse customer transport needs. This alignment is reflected by strategic alliances such as Uber's partnership with Turo, allowing customers to access more than 1,600 vehicle makes and models directly on the Uber platform in the major markets from September 2024. The sector is experiencing historical innovation in service delivery models focused on customer convenience and seamless integration across various transportation modes.
Government programs and regulatory systems are increasingly promoting sustainable transportation solutions and keeping pace with developing mobility technologies and business models. These policy innovations provide opportunities for car rental companies to increase their position in integrated transportation systems and serve the changing regulatory demands. The federal government's support of alternative transportation is demonstrated through the allocation of considerable capital expenditures, with cities around the country receiving $43.7 million of federal funding from the U.S. Department of Transportation and the Department of Energy's Joint Office of Energy and Transportation, with almost $20 million going to car-sharing providers such as Zipcar in January 2025. This funding from the government highlights the strategic value of car sharing and rental services in the pursuit of larger-scale sustainability and transportation accessibility goals.
