Essential market data revealing why corporate travel programs need centralized rental car management now more than ever
The global car rental market is projected to grow from USD 164.20 billion in 2025 to USD 180 billion in 2026, with long-term forecasts pointing toward a $411 billion industry by 2035. Yet this growth creates a management challenge for businesses: rental car spending is increasingly fragmented across booking channels, vehicle types, and regional markets. For companies managing corporate travel, the question is no longer whether to include rental cars in their travel program, but how to gain visibility and control over this expanding expense category.
Key Takeaways
- Market expansion is accelerating: The car rental industry is growing at a 9.6% CAGR through 2035, creating both opportunity and complexity for corporate travel budgets
- Business travel represents nearly half the market: Corporate rentals account for $47.5 billion, or 45.9% of total market revenue in 2025, making this a significant line item for finance teams
- Digital booking dominates: Over 75% of reservations now occur online, with mobile devices driving 72% of digital transactions
- North America leads spending: The region commands 35 to 45% of global rental revenue, making U.S. travel programs critical testing grounds for rental car policy
- Fleet electrification is reshaping options: Rental companies are targeting 25 to 40% electric vehicle fleets by 2026, with business travelers accounting for 86% of EV bookings
- Technology investments are rising: Rental operators now allocate approximately 41% of capital spending to technology, signaling the shift toward digital-first operations
Market Size and Growth Projections
The car rental industry's growth trajectory reveals both opportunity and urgency for corporate travel programs. As the market expands, so does the potential for unmanaged spending to erode travel budgets.
1. Global market reaches $180 billion in 2026
The worldwide car rental market is valued at USD 164.20 billion in 2025 and projected to reach USD 180.00 billion in 2026. This $15.8 billion single-year expansion means more rental transactions flowing through corporate accounts, requiring stronger oversight through travel dashboards and reporting.
2. Industry projected to reach $411 billion by 2035
Long-term forecasts show the market reaching USD 411.00 billion by 2035, representing a compound annual growth rate of 9.6% across the decade. For finance managers building multi-year travel budgets, this growth rate suggests rental car expenses will more than double without active cost management.
3. Market expected to grow by $83.85 billion from 2025 to 2030
Over the next five years, the car rental market will increase by USD 83.85 billion at a 10.2% CAGR. This expansion creates pricing pressure in high-demand markets, making pre-negotiated corporate rates increasingly valuable.
4. User base to reach 602 million worldwide by 2026
The total number of car rental users globally will reach 602.2 million by 2026. This growing user base intensifies competition for available inventory, particularly during peak business travel periods and major industry events.
5. Car rental users across the Americas forecast to hit 108.5 million by 2027
The car rental user base across the Americas is projected to reach 108.5 million by 2027. With rental usage continuing to expand across the region, companies with frequent ground transportation needs can benefit from incorporating rental-car guidelines into their broader corporate travel policies.
Regional Performance and Expansion
Geographic distribution of rental car spending reveals where corporate travel programs face the greatest management challenges and opportunities.
6. North America commands 35 to 45% of global revenue
North America retained a 35.02% share of the car rental market in 2025, with some analyses placing the region's share as high as 45% of global revenue. This concentration means U.S.-based companies bear a disproportionate share of global rental car spending.
7. Asia-Pacific grows fastest at 10.62% CAGR
The Asia-Pacific region is projected to grow at 10.62% CAGR during 2026 to 2031, outpacing all other regions. Companies with international operations need rental car policies that flex across markets with different pricing structures and vehicle availability.
8. North America drives 42% of market growth
North America is expected to account for 42% of car rental market growth during the forecast period. As one of the largest contributors to industry expansion, the region remains particularly important for companies managing rental-car bookings and travel spending across North American operations.
9. Europe is forecast to grow at 6.1% CAGR
Europe represented $26.48 billion, or 25.6% of global car rental revenue, in 2025 and is forecast to grow at a 6.1% CAGR. For companies managing multi-region travel, the region's scale adds complexity to rental-car spending across currencies and regulatory environments.
Booking Behavior and Digital Transformation
How travelers book rental cars has shifted dramatically, creating both convenience and visibility challenges for travel managers.
10. Online platforms capture 75% of reservations
Over 75% of reservations are now made online. This digital shift means rental car bookings increasingly bypass travel managers entirely unless companies implement booking platforms that consolidate all travel types, including hotels, flights, and cars, in one place.
11. Mobile devices drive 72% of digital bookings
Car rental bookings originating on mobile devices have grown to 72%, up from 58% in 2023. Mobile booking makes on-the-go reservations easier for travelers but harder for finance teams to track without centralized reporting tools.
12. Same-day rentals dominated by smartphone bookings
53% of same-day rentals are booked entirely via smartphone. These last-minute reservations often occur outside policy guidelines, making real-time spend visibility essential for maintaining budget control.
13. Online booking platforms growing at 11.2% CAGR
Online platforms are forecast to expand at 11.2% CAGR through 2035, outpacing the overall market. This faster digital growth means offline booking channels will continue losing share, making integrated digital platforms the default for corporate travel.
14. By 2030, 75% of revenue will flow through online sales
Online sales will account for 75% of revenue by 2030. Companies still relying on phone-based corporate accounts or fragmented booking systems will miss opportunities to capture data and enforce policy.
15. Mobile conversion rates show 4.2% vs 1.8% gap
Optimized mobile booking sites achieve 4.2% conversion rates compared to 1.8% for non-optimized platforms. This performance gap influences which booking channels travelers prefer, often pulling them away from corporate-approved systems.
Business Travel and Corporate Rental Trends
Corporate rental car spending represents a substantial and growing portion of the overall market, yet many companies lack visibility into this expense category.
16. Business rentals account for $47.5 billion annually
Business travel rentals represented $47.5 billion, or 45.9% of the total market in 2025. This nearly $50 billion expense category deserves the same policy attention and spend controls that companies apply to hotels and flights.
17. Corporate travel budget recovery supports 10.1% growth
Business rental segment growth at 10.1% CAGR is supported by corporate travel budgets recovering to pre-2019 levels across most G7 economies. As business travel rebounds, rental car expenses are rebounding with it.
18. U.S. business travel rates forecast to rise up to 2%
American business travel car rental rates are expected to increase up to 2% in 2026 and 2027. While modest, this increase compounds across hundreds or thousands of annual rentals, making rate negotiation and policy enforcement increasingly valuable.
19. Business travelers dominate EV bookings at 86%
Business travelers account for 86% of electric vehicle rentals according to Europcar data. This preference suggests corporate travelers are driving fleet electrification, creating opportunities for companies to align rental car policy with sustainability goals.
20. Technology investments reach 41% of capital spending
Rental operators now allocate approximately 41% of capital spending to technology investments in 2026. This shift toward digital operations means corporate travelers will encounter more app-based check-ins, keyless access, and automated returns.
Fleet Composition and Vehicle Preferences
Understanding what vehicles travelers rent helps companies set appropriate policy limits and budget expectations.
21. Economy cars hold 35 to 36% market share
Mini and economy vehicles captured a 36.30% share of the rental market in 2025, with economy cars specifically holding around 35%. Setting economy-class as the default in travel policies aligns with market norms while controlling costs.
22. SUVs and MPVs growing at 10.49% CAGR
Larger vehicles including SUVs and MPVs are expanding at 10.49% CAGR through 2031. This growth in premium vehicle rentals suggests travelers are upgrading when policies allow, creating potential budget variance.
23. Fleet electrification targeting 25 to 40% by 2026
Several major rental companies plan to convert 25 to 40% of fleets to electric vehicles by 2026. Companies with sustainability reporting requirements can incorporate EV preferences into rental car policy to track progress toward emissions goals.
24. Europcar reports 93% increase in EV rentals
Europcar reported a 93% increase in battery-electric vehicle rentals during 2025, with electric vehicles now accounting for 15% of its fleet. This dramatic growth signals changing traveler preferences that corporate policies should accommodate.
Rental Duration and Booking Patterns
How long travelers rent vehicles and how they structure bookings affects both cost and policy design.
25. Short-term bookings dominate at 64.88% share
Short-term rentals represented a 64.88% share of the car rental market in 2025. This preference for brief rentals aligns with typical business trips, but also means more individual transactions to track and reconcile.
26. Short-term rentals account for $77.76 billion
Short-term rentals generated $77.76 billion, or 75.2% of 2025 revenue. The scale of short-term spending makes per-day rate caps an effective policy lever for controlling costs.
27. Long-term subscriptions growing at 10.55% CAGR
Long-term rental subscriptions are growing at 10.55% CAGR through 2031. For companies with employees on extended assignments, subscription models may offer cost advantages over repeated short-term bookings.
28. Self-drive rentals hold 66% market share
Self-drive individuals accounted for 66.02% of the market in 2025. This overwhelming preference for self-drive over chauffeur services means rental car policies should focus on vehicle class limits rather than service type restrictions.
Competitive Market
Understanding market concentration helps companies evaluate supplier relationships and negotiate corporate rates.
29. Enterprise Holdings leads with 24.56% market share
Enterprise Holdings led the market with an estimated 24.56% share in 2025. Separately, Enterprise Mobility reported $39 billion in FY2025 revenue across its broader mobility business, which includes Enterprise Rent-A-Car, National Car Rental, Alamo and other mobility services. Its scale makes Enterprise a significant supplier for companies evaluating corporate rental programs.
30. Top three providers control 44% of market
Combined, Enterprise, Avis Budget, and Hertz control approximately 44% of the global market. This concentration suggests negotiating with just two or three providers can cover most corporate rental car needs.
What This Data Means for Corporate Travel Programs
The statistics paint a clear picture: car rental spending is growing, fragmenting across digital channels, and increasingly difficult to manage without centralized tools. Companies that treat rental cars as an afterthought in their travel program face several risks:
- Budget leakage: Mobile-first booking habits pull travelers toward consumer channels outside corporate oversight
- Policy gaps: Without rental car guidelines integrated into travel policy, employees default to personal preferences over cost efficiency
- Reconciliation burden: Fragmented booking creates receipt chaos that finance teams must untangle manually
- Missed savings: Pre-negotiated corporate rates go unused when travelers book through retail channels
For businesses already using Engine to manage hotel bookings, flights, and travel policies, extending that same visibility to rental cars creates a complete picture of travel spend. Engine's dashboards and reporting provide real-time visibility by department, project, and cost code, including car rental transactions booked through the platform.
Building Rental Car Policy That Works
The data suggests several policy principles that align with market realities:
- Set vehicle class defaults: With economy cars representing 35 to 36% of the market, making economy the default class matches common practice while controlling costs
- Accommodate EV preferences: Business travelers drive 86% of electric vehicle rentals. Allowing EV selection where available supports both traveler preference and sustainability goals
- Enforce through booking, not audits: When travel policies enforce themselves at booking time, only compliant options appear. This eliminates post-trip disputes over unauthorized upgrades or premium vehicles
- Consolidate billing: DirectBill helps simplify reconciliation by consolidating billing after stays. Engine extends a line of credit, Engine pays the hotels, and the customer receives one consolidated invoice after stays
- Support last-minute changes: With 53% of same-day rentals booked via mobile, travelers need flexibility when plans change. Flex lets travelers cancel flights up to two hours before the first departure. FlexPro is a subscription covering all company hotel bookings, with cancellation until noon on check-in day, including non-refundable rates. Refunds default to a one-year travel credit. FlexPro costs $299 per month or $2,999 per year.
For companies managing group travel for conferences, offsites, or team events, Engine Groups provides dedicated trip managers who handle logistics for nine or more rooms, with no fees for the service.
Frequently Asked Questions
What percentage of car rental bookings are made online?
Over 75% of reservations now occur online, with mobile devices driving 72% of digital transactions. This shift toward digital booking means companies need integrated platforms that capture rental car data alongside hotels and flights to maintain visibility into travel spend.
How large is the business travel segment of the car rental market?
Business travel rentals account for $47.5 billion annually, representing 45.9% of total market revenue. This substantial expense category warrants dedicated policy attention and spend controls, particularly as corporate travel budgets recover to pre-pandemic levels.
Which regions have the highest car rental spending?
North America commands 35 to 45% of global rental revenue, making it the dominant market for car rental spending. Asia-Pacific is growing fastest at 10.62% CAGR, while Europe expands at approximately 8% annually driven by tourism and urbanization trends.
How are electric vehicles changing the rental car market?
Rental companies are targeting 25 to 40% electric vehicle fleets by 2026, with business travelers accounting for 86% of EV bookings. Europcar reported a 93% increase in battery-electric rentals during 2025, signaling rapid adoption that corporate travel policies should accommodate.
What vehicle classes are most commonly rented?
Economy cars hold 35 to 36% of the rental market, making them the most popular vehicle class. SUVs and larger vehicles are growing faster at 10.49% CAGR, suggesting travelers upgrade when policy allows. Setting economy as the default class aligns with market norms while controlling costs.
