How is the car rental market doing today as new trends emerge in the mobility sector? What is the state of the car rental sector?
It’s no secret that technological developments and recent crises have had a major impact on our travel habits — and, by extension, on the car rental market. Car rental companies and fleet managers have had to adapt to these new issues and challenges. Where is the car rental market at today? What are its economic prospects? Why are car rental companies taking their business online with myrentcar car rental management software? The answers are provided in this car rental market research.
What is the rental car market?
The rental car market can be divided into two main categories: short-term car rental and long-term rental, also known as leasing. The car rental market ranges from city cars to vans and heavy goods vehicles and brings together many players. Large groups and small and medium-sized companies share a market in total evolution where supply and demand have greatly evolved in recent years.
What are car rental market trends?
Current car rental market trends point to a rebound and gradual recovery. Indeed, the turnover of car rental companies is once again growing as usual after the various crises. This growth of the car rental market is supported by the increase in the number of tourists as well as business trips, in particular in the local rental segment. However, the rebound in the car rental market remains limited because, on the one hand, tourist activities continue to be strongly impacted and, on the other hand, business travel remains far from its pre-crisis level. The reason? Companies have reduced their travel budgets and have implemented alternative solutions such as telecommuting or videoconferencing.
Financially, the balance sheet of the global car rental market is more complex. Some leasing companies have been burdened by the loan repayments associated with financing their fleets and by lease payments. However, the situation of car rental market players has improved in recent months. Many companies have raised funds and contributed or sold capital in order to restructure their business financially and revive the car rental sector. However, leasing companies will still have secured loans on their balance sheet, a stigma of the crisis.
What is the car rental market size?
As of 2026, the car rental market size is estimated to be worth over $120 billion, driven by growing demand for mobility and digital rental solutions. The global car rental market size is expected to jump 20% after an unprecedented 25% drop following the Covid-19 health crisis. Indeed, the rental car market size is being driven by the recovery in tourism and travel, which have also increased by 20%. The short-term rental segment is therefore particularly dynamic, and the various players in the car rental services market are benefiting from their diversification strategies — notably the rise of no-commitment rentals — as well as from emerging trends.
What is the state of the European car rental market?
In the European car rental market, Germany played a key role in the vehicle rental sector, with major companies like Europcar, Avis Budget, Hertz and Enterprise holding a significant share of the market. The introduction of rental electric vans, notably by German startups, has marked a notable shift towards more sustainable mobility solutions. The European market as a whole has been dominated by major players such as Avis Budget Group, Europcar, Hertz and Sixt. Key trends included the growing adoption of electric vehicles and the integration of innovative technologies such as self-service rental and electric mobility services.
What does the car rental market analysis show?
The latest car rental market analysis highlights a strong rebound driven by digital transformation. The outlook and trends for the vehicle rental market are particularly encouraging in an industry that is completing its transition to new forms of mobility. Indeed, the health crisis has pushed car rental companies to diversify in order to be less dependent on the activity of train stations and airports and to mitigate the seasonal nature of the activity. This has resulted in the emergence of subscription offers and therefore a growth in medium and long term rental to be more flexible according to customer demand. The diversification of the car rental sector is thus a sustainable trend with a bright future ahead of it.
To better understand current trends, it’s useful to compare the car rental market with other segments of the mobility industry. For example, the car rental sector has undergone significant digital transformation in recent years to respond to the rise of car sharing. This car sharing segment is boosted by the issue of vehicle ownership in the age of telecommuting and awareness of the environmental impact of our consumption. Bookings are now primarily made online, through websites or mobile apps, and companies must adapt accordingly.
What is the state of the car rental software market?
The car rental software market is experiencing strong growth in 2026, driven by increasing demand for automation, digital reservations, and connected fleet management. With the acceleration of the digitalization of the sector, it is important to surround yourself with the best partners. Thanks to its 35 years of experience, hitechsoftware has developed the myrentcar management software that optimizes car rental. Accessible online from a smartphone or a computer, the myrentcar web solution allows you to plan and manage all the specificities and stages of the rental process (planning, contract, invoicing, maintenance management, ticket management or even inventory on a tablet). It’s an intuitive tool used by many major groups and SMEs, which allows hitech to monitor a large volume of data and deliver the most comprehensive car rental market report.
In order to ensure a complete digitalization of your activity, myrentcar software is compatible with your website to manage your online reservations and your customer areas. In addition, myrentcar is compatible with the clickygo car-sharing app to help you keep up with the growing popularity of car sharing. This Android and iOS app allow you to rent out all your connected vehicles 24 hours a day without going through a counter or agency and in complete independence. The myrentcar and clickygo management systems have thus become the ideal partners in the car rental software market for many companies and fleet managers. If you’d like to try out myrentcar and clickygo yourself and stay ahead of future trends, check out all our recommendations on the hitechsoftware blog.
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