According to a new report published by Introspective Market Research, titled, “Tourism Vehicle Rental Market by Vehicle Type, Booking Mode, and Rental Category,” The Global Tourism Vehicle Rental Market Size Was Valued at USD 71.2 Billion in 2024 and is Projected to Reach USD 100.0 Billion by 2035, Growing at a CAGR of 3.14% From 2025–2035.
The Tourism Vehicle Rental market provides short-term access to a diverse fleet of vehicles specifically for leisure and travel purposes. This service spans from traditional economy and luxury cars to specialized vehicles like motorhomes (RVs), campervans, SUVs for adventure travel, and even high-end sports cars for experiential tourism. It offers travelers a significant advantage over reliance on public transport or ride-hailing by providing unparalleled freedom, flexibility, and personalization for exploring destinations at their own pace. This autonomy is fundamental to the modern travel experience, enabling access to remote locations, spontaneous itinerary changes, and the convenience of carrying luggage and equipment without constraint. The primary drivers of this market are the robust recovery and evolution of global tourism post-pandemic, coupled with the powerful consumer trend towards experiential and independent travel. Major users include international tourists, domestic vacationers, and adventure seekers. The industry serves a wide range of travel segments, from family road trips and romantic getaways to solo backpacking adventures and outdoor expeditions. Key enabling factors include the proliferation of digital booking platforms, strategic rental locations at airports and tourist hubs, and partnerships with airlines and hotels, creating integrated travel packages that center on the rental vehicle as the key to a personalized journey.
The paramount growth driver for the tourism vehicle rental market is the powerful global resurgence of experiential and unstructured travel, particularly the rise of the "road trip" and outdoor adventure segments. Travelers are increasingly prioritizing unique, immersive experiences over packaged tours, seeking freedom and authenticity. This shift directly fuels demand for rental vehicles as the essential tool for exploration. Concurrently, the booming popularity of outdoor activities like camping, hiking, and visiting national parks has led to a surge in demand for specialized vehicles like SUVs and motorhomes (RVs). These trends, combined with strong pent-up travel demand and recovering international flight capacity, create a sustained growth cycle where the rental car is no longer just a utility but a central component of the vacation itself.
A pivotal market opportunity lies in the strategic expansion into the Electric Vehicle (EV) rental segment and the development of integrated, technology-driven travel ecosystems. As sustainability becomes a key decision factor for travelers, offering a fleet of EVs at tourist hotspots and airports caters to a growing, eco-conscious demographic and helps rental companies meet corporate ESG goals. Furthermore, there is significant potential in developing proprietary apps that go beyond booking to offer integrated services like curated local route guides, partnerships with charging networks, pre-booked camping spots, and discounts at local attractions. This transforms the rental company from a mere vehicle provider into a comprehensive travel partner, enhancing customer loyalty and capturing a greater share of the travel spend.
Tourism Vehicle Rental Market, Segmentation
The Tourism Vehicle Rental Market is segmented on the basis of Vehicle Type, Booking Mode, and Rental Category.
Vehicle Type
The Vehicle Type segment is further classified into Economy Cars, SUVs & Crossovers, Luxury Cars, Motorhomes & Campervans, and Others. Among these, the SUVs & Crossovers sub-segment accounted for the highest market share in 2024. This dominance is driven by the vehicle's ideal blend of passenger comfort, luggage space, fuel efficiency, and capability for varied road conditions, making it the perfect fit for the modern tourist's needs. Whether for a family vacation requiring extra space or an adventure trip requiring mild off-road capability, SUVs and crossovers offer versatility, safety, and a sense of adventure that aligns perfectly with prevailing travel trends, solidifying their status as the rental category of choice.
Booking Mode
The Booking Mode segment is further classified into Online and Offline. Among these, the Online sub-segment accounted for the highest market share in 2024. The dominance of online booking is absolute, driven by traveler demand for convenience, transparency, and competitive pricing. Customers can compare fleets, prices, and policies across multiple global and local providers from anywhere, often securing significant discounts and securing specific vehicle models in advance. Mobile apps further enhance this by enabling seamless booking modifications, digital check-in/out, and customer support, making online channels the primary and most efficient point of sale for the industry.
Some of The Leading/Active Market Players Are-
• Enterprise Holdings Inc. (US) [Enterprise, National, Alamo]
• The Hertz Corporation (US)
• Avis Budget Group, Inc. (US) [Avis, Budget]
• Europcar Mobility Group (France)
• Sixt SE (Germany)
• Localiza Rent a Car S.A. (Brazil)
• Carzonrent India Pvt Ltd. (India)
• U-Save Car & Truck Rental (US)
• Budget Truck Rental (US)
• Zoomcar India Pvt. Ltd. (India)
• and other active players.
Key Industry Developments
In March 2024, Hertz Global Holdings announced a major expansion of its electric vehicle (EV) rental fleet across key European tourist destinations. Partnering with several European charging networks, the initiative includes dedicated "Hertz Electrified" zones at major airports and curated digital guidebooks suggesting scenic EV-friendly routes, directly targeting the growing market of sustainability-focused travelers.
In January 2024, Avis Budget Group launched a new integrated travel platform within its app, featuring partnerships with activity booking sites and hotel chains. This "Avis Travel Guide" platform offers customers one-stop booking for their rental car, recommended accommodations, and local experiences, aiming to increase customer retention and position Avis as a holistic travel service provider rather than just a car rental company.
Key Findings of the Study
• SUVs & Crossovers and Online Booking channels are the dominant market segments.
• North America holds the largest market share, driven by a strong road trip culture.
• The key growth driver is the global rise in experiential and unstructured leisure travel.
• Major trends include the integration of EVs into fleets and the development of app-based travel ecosystems.
