The global Tourism Vehicle Rental Market was valued at USD 59.7 Billion in 2024 and is projected to reach USD 98.0 Billion by 2033, growing at a CAGR of 5.66% during the forecast period 2025-2033. This growth is driven by rising global travel trends, increasing demand for flexible transportation, and the growing popularity of eco-friendly and electric vehicles for sustainable tourism experiences.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Tourism Vehicle Rental Market Key Takeaways
- The global tourism vehicle rental market size reached USD 59.7 Billion in 2024.
- The market is expected to grow at a CAGR of 5.66% during 2025-2033.
- The online booking mode holds the largest market share.
- Economy vehicles dominate the market, catering to budget-conscious travelers.
- Rental agencies are the largest end-user segment, providing comprehensive travel packages.
- North America is the leading regional market due to its infrastructure and tourism attractions.
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Market Growth Factors
The global tourism vehicle rental market has been growing steadily due to the increasing number of tourists worldwide. This segment significantly contributes to the global economy by catering to an expanding traveler base, including tourists, business travelers, and locals needing temporary transportation. The growth is supported by the proliferation of technologies such as telematics and GPS systems that facilitate easy booking, payment, and vehicle tracking, enhancing vehicle management and security.
The expansion of tourism infrastructure worldwide is a major driver. Improvements in road networks and the implementation of tourist-friendly government policies make destinations more accessible, encouraging self-driving tours. Strategic partnerships between vehicle rental companies and tourism boards or travel agencies further promote rental services as integral to travel experiences, boosting demand.
Another critical factor is evolving consumer preferences toward eco-tourism and sustainable travel. Environmentally conscious travelers increasingly seek rental vehicles like hybrids and electric vehicles (EVs). Rental companies are thus adding more sustainable options to their fleets, tapping into a rapidly growing market segment, aligned with global carbon emission reduction initiatives. This shift not only meets customer demand but also propels market expansion.
Market Segmentation
Breakup by Vehicle Type:
- Economy: Represents the largest segment, serving budget-conscious travelers with smaller, fuel-efficient vehicles at affordable rates.
- Luxury/Premium: Targets customers seeking high-end cars and SUVs with advanced technology and luxury amenities, offering a premium travel experience.
Breakup by Booking Mode:
- Online: Dominates the market with the convenience of browsing, comparing prices, and making reservations through platforms and mobile apps.
- Offline: Involves physical rental offices, catering to travelers preferring face-to-face interactions or last-minute rentals.
Breakup by End User:
- Rental Agencies: The leading segment providing a broad range of vehicles and often including additional services like guided tours.
- Self-Driven: Appeals to tourists who prefer autonomy and flexibility to explore destinations at their own pace.
Breakup by Region:
- North America: Holds the largest market share, driven by a mature market, strong road travel culture, extensive tourism attractions, and advanced infrastructure.
- Europe: Offers diverse rental options catering to tourists exploring historic cities and scenic landscapes, with a growing demand for electric vehicles.
- Asia Pacific: Rapidly growing market fueled by the rising middle class and demand for chauffeur-driven services in luxury segments.
- Latin America: Provides various vehicles for adventure and eco-tourism, addressing infrastructure and safety challenges through investments.
- Middle East and Africa: Steady growth supported by investments in tourism infrastructure, with a focus on desert safaris and off-road vehicle rentals.
Regional Insights
North America leads the tourism vehicle rental market with the largest market share due to its well-developed infrastructure, strong culture of road travel, and extensive tourism attractions. This region offers diverse rental options, including cars, RVs, and specialty vehicles. Advanced services, such as mobile booking apps and loyalty programs, further enhance the competitive market.
Recent Developments & News
In November 2021, Hertz partnered with Tesla Motors to supply 100,000 Tesla Model 3s by 2022, aiming to rent half out to Uber drivers, marking a significant electric vehicle adoption in the rental market. In June 2023, Avis India announced a 15% discount offer for Vistara customers, reinforcing customer loyalty. Carzonrent expanded its fleet with luxury and premium cars, targeting upscale travelers and enhancing customer support services.
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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