Car rental market to top $265B by 2030

By AI, Created 2:36 PM UTC, May 21, 2026, /AGP/ – The Business Research Company projects the global car rental market will exceed $265 billion in 2030, driven by travel demand, digital booking, and shifting consumer preferences away from ownership. North America and the U.S. are expected to lead the market, while economy cars remain the biggest segment.

Why it matters: - The global car rental market is projected to surpass $265 billion by 2030. - The market is expected to account for nearly 1% of the broader services industry, which is forecast at $25,315 billion by 2030. - The outlook points to growing demand for flexible transportation as travel, urbanization, and app-based booking reshape mobility.

What happened: - The Business Research Company published its Car Rental Global Market Report 2026, covering market size, trends, and forecasts for 2026-2035. - North America is projected to be the largest regional market in 2030, at $97 billion. - The U.S. is expected to be the largest country market in 2030, at $88 billion. - Economy cars are forecast to be the largest vehicle segment in 2030, with 31% of the market, or $83 billion. - The report segments the market by vehicle type, booking type, application, and end user.

The details: - North America’s market is projected to rise from $79 billion in 2025 to $97 billion in 2030, a 4% CAGR. - The U.S. market is projected to grow from $72 billion in 2025 to $88 billion in 2030, also at a 4% CAGR. - Economy cars are supported by demand for affordable transportation, fuel efficiency, and short-term urban mobility. - Booking types include online and offline channels. - Applications include local usage, airport transport, outstation travel, and other uses. - End users include self-driven and chauffeur-driven rentals. - The report identifies the strongest growth opportunities in economy cars, SUVs, executive cars, luxury cars, and MUVs. - Those five segments are projected to add more than $51 billion in market value by 2030. - Over the next five years, economy cars are projected to grow by $16 billion, executive cars by $15 billion, luxury cars by $12 billion, MUVs by $5 billion, and SUVs by $3 billion.

Between the lines: - Travel and tourism remain the main demand engine, especially for short-term rentals tied to domestic and international trips. - Digital booking platforms are becoming central to customer access, with features such as pricing transparency, automated check-in and check-out, and real-time availability. - Urban congestion, parking pressure, and high ownership costs are pushing more consumers toward rental-based mobility. - The report estimates travel and tourism demand will contribute 2.0% annual growth, digital booking and mobility platforms 1.7%, and urbanization plus lower ownership preference 1.4%. - The mix of growth drivers suggests car rental demand is shifting from a travel-only use case to a broader mobility service.

What’s next: - The market is expected to keep expanding through 2030 as airlines, airports, hotels, and digital platforms make rentals easier to access. - Premium and electric fleets are expected to keep gaining share, especially in the U.S. and Canada. - The company’s detailed market report is available for further purchase or review. - A free sample request is also available.

The bottom line: - Car rental is projected to stay a steady-growth mobility market through 2030, led by North America, the U.S., and economy vehicles.