Market Overview
The Spain car rental market was valued at USD 1.39 Billion in 2025 and is expected to reach USD 1.76 Billion by 2034, growing at a CAGR of 2.69% during the forecast period 2026-2034. The market growth is primarily driven by the robust tourism sector attracting international visitors and the digital transformation of booking platforms enhancing accessibility and convenience. The increasing adoption of electric vehicles and flexible rental terms contribute to significant market opportunities.
Study Assumption Years
- Base Year of Analysis: 2025
- Historical Period: 2020-2025
- Forecast Period: 2026-2034
Spain Car Rental Market Key Takeaways
- Current Market Size: USD 1.39 Billion in 2025
- CAGR: 2.69% from 2026 to 2034
- Forecast Period: 2026-2034
- Online booking dominates the market with a 70% share in 2025, supported by mobile applications and transparent pricing.
- Short-term rentals hold 85% market share due to the tourism-driven demand for flexible rental durations.
- Economy vehicles represent 45% of the market, favored for cost-effectiveness and fuel efficiency.
- Leisure/Tourism application leads with 70% share, driven by international visitors seeking convenient transportation.
- Self-driven rentals command a 90% market share, reflecting traveler preference for independence.
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Market Growth Factors
Spain car rental sector is also supported by the growth of the tourism industry in Spain. In 2024, 87.2 million visitors came toward Spain compared to 83.7 million in 2019. Spain has a high demand for passenger transport that is flexible and convenient and the road network is well organized and maintained. Finally, experiential travel increases the number of nontraditional destinations visited and rental cars are increasingly being added to the transportation mix.
Digital transformation keys the industry’s future to grow, and mobile applications grow while online booking eases to help improve visibility and comparison between providers. Internet was available to 97.4% of Spanish households in 2025. Online bookings, at 70% of total bookings, continue to rise. Technologies such as BBVA Pay (enabling NFC contactless payments) make rental transactions even easier.
Aiming at sustainability, there are electric and hydrogen-powered cars. In 2024, Spain’s first hydrogen rent-a-car opened, a partnership between Hyundai and IR Maxoinversiones at the Repsol Morro Jable H2GO Station. At the station, cars such as the hydrogen Hyundai NEXO fuel-cell car and the IONIQ 5 electric vehicle are available for rent. To cater to environmentally-conscious travelers and keep up with other mobility services, rental companies also invest through supporting infrastructure, such as charging and maintaining electric vehicles.
Market Segmentation
Booking Type:
- Online Booking: Holds a 70% market share in 2025, driven by convenience, mobile app usage, transparent pricing, and enhanced booking efficiency.
Rental Length:
- Short Term: Dominates with 85% share in 2025, favored by tourists and business travelers seeking flexible, cost-effective rentals lasting from a day to a week.
Vehicle Type:
- Economy: Commands 45% of the market in 2025 due to affordability, fuel efficiency, and suitability for navigating urban and coastal areas with narrow streets.
Application:
- Leisure/Tourism: Leads with 70% market share in 2025, fueled by the influx of international visitors desiring flexible, convenient travel options to explore diverse destinations.
End User:
- Self-Driven: Accounts for 90% of the market in 2025, reflecting traveler preferences for autonomy, flexible routes, cost control, and privacy during travel.
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Regional Insights
Northern Spain leads with popular tourist destinations like the Basque Country, Galicia, and Asturias, offering scenic coastal and mountainous landscapes attracting travelers seeking independent exploration. Eastern Spain, including Valencia and Catalonia, experiences high demand, especially in summer, driven by Mediterranean beach vacations and city tourism. Southern Spain, rich in cultural heritage with cities like Seville and Málaga, maintains year-round tourist activity, making car rentals essential. Central Spain, centered on Madrid, is a key hub for exploring the capital and surrounding historical cities. These regions collectively underscore Spain’s diverse car rental market demand driven by tourism and cultural appeal.
Recent Developments & News
In September 2025, Final Rentals expanded operations into Spain and Italy, opening new locations in Málaga, Mallorca, and Sicily, facilitating seamless car rentals for international travelers via their website and mobile app. In December 2024, Amazon partnered with Drivalia to launch CarCloud, a car subscription service in Spain offering flexible annual rentals with swap options and no penalty cancellations after the first month. These developments highlight ongoing innovation and service diversification in the Spain car rental market.
Key Players
- Sicily by Car
- Hyundai
- IR Maxoinversiones
- Final Rentals
- Amazon
- Drivalia
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