Car Rental & Leasing Market - Global Forecast 2025-2032

The car rental and leasing market is rapidly evolving as digital transformation, sustainability demands, and shifting consumer preferences reshape how organizations manage mobility solutions. Senior leaders need a comprehensive understanding of the forces at play to make informed, future-ready decisions in this dynamic industry.

Market Snapshot: Car Rental & Leasing Market Growth

The car rental and leasing market grew from USD 280.10 billion in 2024 to USD 301.81 billion in 2025, and is expected to maintain an impressive CAGR of 8.25%, reaching USD 528.27 billion by 2032. This robust expansion underscores substantial investment momentum and signals ongoing shifts in both business models and technology integration across global geographies.

Scope & Segmentation

This analysis delivers a holistic overview of how the main segments and global regions are shaping the future of the car rental and leasing market. The report explores industry transformation resulting from new vehicle technologies, digital platforms, and policy frameworks.

• Vehicle Type: Hatchback, Sedan, SUV/Crossovers, Van & Minivan
• Type: Chauffeur-Driven, Self-Driven
• Duration: Long-Term, Short-Term
• Propulsion: Electric, Hybrid, Internal Combustion Engine
• Application: Airport Transport, Local Usage, Outstation
• End-User: Business Travellers, Local Travelers, Tourists
• Mode Of Booking: Offline, Online

• Region: Americas (United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Peru)
• Region: Europe, Middle East & Africa (United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland, United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel, South Africa, Nigeria, Egypt, Kenya)
• Region: Asia-Pacific (China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan)

• Key Companies: Alamo Rent A Car, Avis Rent A Car System LLC, Bidvest Group, Bluu Car Rental, CABS Car Hire, Europcar, First Car Rental, Kenings Car Van and Truck Hire, Pace Car Rental Pty, RentMyRide, SAVRALA, Select Car & Van Rental, Sixt Group, Tempest Car Hire, The Hertz Corporation, The Kemston Group, Thrifty Car Rental, Woodford Car Hire

Key Takeaways for Decision-Makers

• Sustainability priorities are accelerating the transition to electric and hybrid fleets, particularly in urban and regulated environments.
• Digitalization—including mobile booking, telematics, and predictive analytics—is transforming both customer journeys and operational efficiency for leading providers.
• The proliferation of subscription and flexible mobility services is capturing demand from Millennials and Gen Z, reflecting new mobility expectations and reducing reliance on traditional ownership.
• Established operators are enhancing resilience through strategic partnerships, technology alliances, and by broadening service offerings to include micro-mobility and integrated transport solutions.
• Companies with advanced data governance and scenario planning capabilities are better equipped to navigate geopolitical events, supply chain risks, and evolving regulatory environments.

Impact of 2025 United States Tariffs on Vehicle Imports

• Tariffs on imported vehicles and components are creating significant procurement cost pressures for U.S.-based fleets, prompting a reconsideration of sourcing strategies and a stronger focus on domestic electric vehicle options.
• Complexity in the supply chain, including potential inventory delays, is driving companies to develop diversified supplier portfolios and to leverage advanced demand forecasting to maintain service continuity.
• Tariff-driven cost changes are influencing vehicle residual value calculations, urging operators to review resale and buyback strategies for improved long-term stability.

Methodology & Data Sources

The report leverages primary interviews with senior industry stakeholders, including fleet operators, manufacturers, regulators, and technology leaders. In addition, extensive secondary research, quantitative analysis, and triangulation with proprietary databases ensure robust and reliable insights.

Why This Report Matters

• Enables senior executives to benchmark company performance, anticipate strategic threats, and identify regional opportunities in an evolving global marketplace.
• Delivers data-driven recommendations for portfolio expansion, digital transformation, and risk management, facilitating actionable planning and competitive advantage.
• Supports informed investment decisions through nuanced segmentation insights, market sizing, and analysis of key technological trends.

Conclusion

Decision-makers equipped with this car rental and leasing market intelligence will be positioned to drive organizational growth and resilience. Harness advanced analytics and strategic foresight to adapt, compete, and capture emerging mobility opportunities.

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