Base Year: 2025

Historical Year/Period: 2020-2025

Forecast Year/Period: 2026-2034

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Market Growth Factors

It is good for the car rental business when there is a global boom in tourism, as tourists preparing for their trips will see that car rentals are a reliable mode of transportation. In 2023, the number of international arrivals was approximately 89% of the level that was recorded before the COVID, 19 pandemic. It was a huge recovery since by September 2024, the figures had reached 98%. The international travel market was worth around USD 1.8 trillion in 2023, which is very close to the pre, pandemic levels. Besides providing more freedom to tourists, traveling in a rental car also allows them to visit places where public transport does not go.

Worldwide urbanization is an ongoing process, and it is one of the reasons why the demand for more flexible car transportation methods, such as car rental services, is maintained at a high level. Currently, over half of the world's population lives in urban areas. The figure is expected to rise to nearly 70% by 2050. In large cities, short, term on, demand transportation eliminates all the logistics and expenses associated with car ownership. Especially in already heavily trafficked and parking supply and demand imbalanced areas, Urbanization, especially in places where there is already a lot of traffic and an imbalance between parking supply and demand, has led to an increased demand for short period transportation rental.

The process of renting a car has become more efficient through digital technologies which include GPS systems and online reservation systems and mobile apps and website platforms. The number of internet users worldwide in 2023 was 5.52 billion. The digitalization process throughout the world is advancing rapidly as shown by 151 million new users who joined in 2024. Businesses use data analytics to improve fleet management and establish pricing strategies and enhance their customer support operations. Technological changes which drive consumer demand modifications create steady industry growth according to the current market trends.

Market Segmentation

Booking Type:

Offline Booking: Traditional booking channels, serving customers without digital access.

Online Booking: Dominates market with around 74.5% share in 2025, offering instant reservations via websites and apps, providin