The global Tourism Vehicle Rental Market was valued at USD 59.7 Billion in 2024 and is projected to grow to USD 98.0 Billion by 2033, reflecting a CAGR of 5.66% during the forecast period 2025-2033. Growth is primarily driven by increasing global travel trends, demand for flexible transportation options, and a rising preference for eco-friendly and electric vehicles to support sustainable tourism experiences. Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Tourism Vehicle Rental Market Key Takeaways
- Current Market Size: USD 59.7 Billion in 2024
- CAGR: 5.66%
- Forecast Period: 2025-2033
- The market growth is influenced by increasing numbers of tourists globally, contributing significantly to the tourism industry’s economic segment.
- Technology advancements such as telematics and GPS have enhanced vehicle management and security.
- The industry caters to diverse travelers including tourists, business travelers, and locals needing short or long-term rentals.
- North America holds the largest market share, followed by Europe and the rapidly growing Asia-Pacific region.
- Challenges include regulatory hurdles and competition from ride-sharing services, while opportunities exist in emerging markets and eco-friendly vehicle offerings.
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Market Growth Factors
The tourism vehicle rental market is witnessing steady growth driven by increasing global travel trends and rising demand for flexible transportation. The market size was valued at USD 59.7 Billion in 2024 and is expected to reach USD 98.0 Billion by 2033, registering a CAGR of 5.66% between 2025 and 2033. The rising popularity of eco-friendly and electric vehicles is also a major growth driver, reflecting travelers’ preferences for sustainable and efficient tourism experiences. This trend is supported by rental companies expanding fleets to include hybrids and electric vehicles.
Technology plays a critical role in enhancing customer experience and operational efficiency. Platforms and mobile applications facilitate seamless booking, payment, and vehicle tracking. Additionally, telematics and GPS integration improve vehicle management and security, contributing to market competitiveness. These technological advancements also help in fleet maintenance and predictive repairs, enhancing service reliability and customer satisfaction.
Expansion of tourism infrastructure globally further supports market growth. Investments in road networks and tourist-friendly policies make destinations more accessible and encourage self-driving tours. Collaborations between vehicle rental companies and tourism boards or agencies promote rentals as part of travel packages, boosting demand. As a result, rental services are becoming preferred choices for diverse travelers including those seeking adventure, business, or leisure tourism.
Market Segmentation
Breakup by Vehicle Type:
Economy: Represents the majority of market share, catering to budget-conscious travelers who prefer smaller, fuel-efficient vehicles at affordable rates, focused on practicality and essential amenities.
- Luxury/Premium: Targets travelers seeking premium comfort, style, and advanced features. Includes high-end cars, SUVs, and premium sedans offering luxury amenities and technology, appealing to high-end leisure and business travelers.
Breakup by Booking Mode:
- Online: Dominates the market, enabled by platforms and mobile apps that facilitate easy browsing, price comparison, and advance reservation, favored by tech-savvy travelers.
- Offline: Involves physical rental offices or counters, preferred for face-to-face interactions or last-minute rentals, remains relevant in some regions with limited online infrastructure.
Breakup by End User:
- Self-Driven: Caters to travelers valuing independence and flexibility, ideal for those customizing itineraries and exploring at their own pace, including rentals of cars, motorcycles, or other vehicles.
- Rental Agencies: The leading segment, providing a wide range of vehicles often paired with packaged tours, preferred by tourists seeking hassle-free, reliable transportation with additional services like guided tours.
Breakup by Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Regional Insights
North America currently leads the tourism vehicle rental market with the largest market share. This mature market benefits from well-developed infrastructure, a strong culture of road travel, and extensive tourist attractions. The region offers diverse rental options from cars to specialty vehicles, supported by innovations such as mobile booking apps and loyalty programs, maintaining its competitive edge in the global market.
Recent Developments & News
In November 2021, Hertz rental partnered with Tesla Motors to supply 100,000 Model 3 vehicles by 2022, half of which were intended for Uber drivers, marking a strategic shift toward large-scale electric vehicle adoption. In June 2023, Avis India announced a 15% additional discount for Vistara customers in a summer offer to boost loyalty. Carzonrent expanded its fleet to include luxury and premium cars, enhancing customer support for upscale and corporate clientele.
Key Players
- Alamo (Enterprise Holdings Inc)
- Auto Europe
- Avis Budget Group Inc.
- Carzonrent India Pvt Ltd.
- EasyCar.com
- Europcar Mobility Group
- Europe Luxury Cars
- Kemwel
- Sixt SE
- The Hertz Corporation
- Zoomcar India Private Ltd.
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