Personalized Car Rental Business Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Personalized Car Rental Business is estimated to be valued at USD 12.8 billion in 2025 and is expected to reach USD 24.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 9.5% from 2025 to 2032. This growth reflects increasing consumer demand for tailored rental experiences that offer enhanced convenience, flexibility, and vehicle options, driven by advancements in technology and changing mobility preferences across urban and suburban markets.

The market trend in personalized car rentals is shaped by the integration of artificial intelligence and data analytics to provide customized vehicle recommendations and dynamic pricing models. Additionally, the rise of subscription-based rental services and eco-friendly electric vehicle options are gaining traction. Enhanced mobile app interfaces and seamless digital transactions further attract tech-savvy consumers, positioning personalized rentals as a preferred choice over traditional car rental services and encouraging greater adoption globally.

Segmental Analysis:

By Vehicle Type: Dominance of Sedans Driven by Versatility and Affordability

In terms of By Vehicle Type, Sedan contributes the highest share of the personalized car rental market owing to its balanced combination of cost efficiency, comfort, and applicability to a wide range of customer needs. Sedans are widely popular because they cater to everyday transportation demands, making them ideal for both short city commutes and longer trips. Their relatively lower maintenance and fuel costs compared to larger vehicles such as SUVs or luxury cars also make them an attractive option for rental companies aiming to optimize operational expenses while offering competitive pricing to customers. Additionally, sedans appeal to a broad demographic, including business travelers, families, and individual consumers seeking a practical and economical choice. The ability of sedan vehicles to deliver reliable performance, modern amenities, and good fuel efficiency further bolsters their market preference. As many personalized rental businesses emphasize tailoring vehicle options to specific customer preferences, sedans offer a flexible platform that can be customized with features such as GPS, entertainment systems, and enhanced comfort packages, supporting the demand for personalization. Furthermore, urban mobility trends and regulatory norms favor smaller, fuel-efficient, and lower-emission vehicles, reinforcing sedans' appeal in metropolitan and suburban areas. Collectively, these factors drive sediment dominance by vehicle type in the personalized car rental sector.

By Rental Model: Prevalence of Short-Term Rentals Fueled by Flexibility and Convenience

In the personalized car rental business, the Short-Term Rental model holds the highest market share, mainly due to growing consumer preference for flexibility, immediate accessibility, and convenience. This rental model suits spontaneous trips, business travel, and short-duration needs with minimal commitment, making it especially popular among urban populations and millennials who prioritize experience over ownership. Short-term rentals facilitate the opportunity to select vehicle types based on the specific occasion or personal preference without the burden of long-term contracts or leasing commitments. The rise of app-based and digital platforms has dramatically simplified the booking process for short-term rentals, enabling real-time vehicle availability and contactless transactions that meet the evolving expectations for seamless user experiences. Moreover, the growing emphasis on reducing fixed transportation costs encourages both individual consumers and corporate clients to opt for short-term rentals rather than buying or leasing vehicles. Car rental companies leverage this model by offering a diverse fleet and competitive pricing, encouraging frequent turnover of vehicles which is economically efficient for maintaining a fresh inventory. Environmental considerations also play a role: customers can opt for eco-friendly options such as electric or hybrid vehicles for short durations, thus aligning with their sustainability goals without long-term investments. Ultimately, the short-term rental segment thrives due to its adaptability, accessibility, and alignment with contemporary consumer lifestyles.

By End User: Corporate Clients Lead Owing to Operational Efficiency and Cost Management Needs

Within the personalized car rental market, Corporate Clients contribute the highest share, largely driven by their strategic focus on operational efficiency, cost containment, and employee mobility management. Businesses increasingly turn to personalized car rental services to meet the diverse transportation requirements of their workforce, from daily commuting to client meetings and business travel. Personalized rental services offer corporations tailored vehicle options and flexible rental terms that can adapt to varying operational demands, which is critical for companies aiming to optimize fleet utilization without incurring the capital expenditure and depreciation risks associated with outright vehicle ownership. Customized service packages, including vehicle selection based on employee roles or travel distances, integrated billing systems, and dedicated account management, enhance the attractiveness of personalized rentals for corporate users. Additionally, corporate clients benefit from improved cash flow management by converting fixed fleet costs into variable rental expenses, allowing better budgetary control in uncertain business environments. The rise of remote working and hybrid office models further emphasizes flexible fleet access rather than permanent vehicle allocation. Environmental sustainability policies adopted by corporations have also increased demand for electric and hybrid vehicles within rental offerings, reinforcing personalized rentals as an efficient way to pilot green transportation initiatives. Overall, the corporate segment's demand is underpinned by the necessity for agile, cost-effective, and scalable mobility solutions aligned closely with business objectives.

Regional Insights:

Dominating Region: North America

In North America, the personalized car rental business holds a dominant position driven by a mature and highly developed market ecosystem. The region benefits from a strong presence of established car rental companies like Enterprise Holdings, Hertz, and Avis Budget Group, which have heavily invested in digital platforms enabling customized rental experiences, such as vehicle preferences, usage flexibility, and loyalty programs. Government policies promoting smart cities and the expansion of connected infrastructure foster innovation in vehicle telematics and IoT integration, enhancing personalized service offerings. Additionally, North America's extensive road networks and diverse urban-rural travel demand stimulate sustained car rental usage. Trade dynamics in this region support seamless vehicle procurement and fleet upgrades, further augmenting the business. The regional economy's high per capita income enables consumers to opt for tailored rental options, including electric and luxury vehicles, positioning North America as both a leader and innovator in personalized car rental services.

Fastest-Growing Region: Asia Pacific

Meanwhile, Asia Pacific exhibits the fastest growth in the personalized car rental market due to rapid urbanization, expanding middle-class populations, and increasing digital penetration. Countries such as China, India, Japan, and South Korea are witnessing a surge in demand for convenient, flexible mobility solutions befitting the evolving needs of young, tech-savvy consumers. Governments across Asia Pacific are supportive through policies encouraging ride-sharing, smart mobility initiatives, and the adoption of electric vehicles, which encourages car rental operators to diversify and personalize their fleets. Local and regional players like Didi Chuxing, Car Inc., and Zoomcar are innovating by integrating AI-driven customer insights and app-based rental models to deliver personalized vehicle options and seamless user experiences. Trade and investment flows from global automotive manufacturers also facilitate access to newer vehicle models adapted to regional preferences. Additionally, the fast expansion of digital payment systems and telecommunication infrastructure further boosts personalized car rental adoption in this region.

Personalized Car Rental Market Outlook for Key Countries

United States

The United States' personalized car rental market is characterized by dominance of legacy companies such as Enterprise Holdings and Hertz, which have extensively integrated personalized features into their offerings. The maturity of the automotive and rental ecosystems, combined with government initiatives supporting infrastructure and autonomous vehicle trials, enable continuous innovation in the personalized rental models. Urban centers witness high demand for luxury and electric vehicles as personalization becomes a differentiator.

China

China's market is rapidly evolving with key players like Didi Chuxing and CAR Inc. leading the charge by leveraging advanced AI, mobile applications, and big data analytics to tailor rental services. Government support for electrification and emission reductions make the inclusion of electric vehicles in personalized rental fleets a priority. High smartphone penetration and urbanization further stimulate demand for convenient and customized mobility solutions.

Germany

Germany continues to lead the European personalized car rental market with major companies such as Sixt and Europcar focusing on premium personalized options including luxury vehicles and short-term leases. The strong automotive manufacturing presence and consumer preference for technological innovation drive these companies to enhance personalization through connected car services and loyalty programs aligned with government policies promoting digitization within the mobility sector.

India

India's personalized car rental market is expanding rapidly, propelled by startups like Zoomcar and Revv that offer app-based, on-demand personalized rental experiences. The country's young demographic and increasing urbanization challenge traditional ownership patterns, with government initiatives aimed at sustainable urban transport supporting electric and hybrid vehicle rentals. Digital payment adoption and telematics integration support the scaling of personalized services in tier-1 and tier-2 cities.

Japan

Japan's personalized car rental market leverages its advanced technological ecosystem and consumer affinity for innovation. Companies such as Times Car Rental and Nippon Rent-A-Car have incorporated sophisticated vehicle customization options, including smart car technology and usage-based insurance products. Supportive government policies related to environmentally friendly vehicles and smart city projects encourage continuous enhancement of personalized rental offerings.

Market Report Scope

Market Segmentation

Vehicle Type Insights (Revenue, USD, 2020 - 2032)

• Sedan
• SUV
• Luxury
• Electric
• Others

Rental Model Insights (Revenue, USD, 2020 - 2032)

• Short-Term Rental
• Long-Term Lease
• Subscription Services
• Pay-Per-Use
• Others

End User Insights (Revenue, USD, 2020 - 2032)

• Corporate Clients
• Individual Consumers
• Travel & Tourism
• Event-Based Rentals
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Avis Budget Group
• Enterprise Holdings
• Sixt SE
• Hertz Global Holdings Inc.
• Zipcar (subsidiary of Avis Budget Group)
• Getaround
• Turo
• Europcar Mobility Group
• DriveNow (by BMW Group)
• Rent-a-Car services by Toyota Mobility Service
• Localiza Rent a Car
• Fox Rent A Car
• Car2Go (merged with DriveNow)
• Maven (by General Motors)
• BlaBlaCar (car rental segment)
• Zoomcar
• Ola Rentals