Car Rental Market Innovation Led by Turo and Peer-to-Peer Platforms

Market Forecast: A Rapidly Growing Sector

The global car rental market is on an upward trajectory, driven by a variety of macroeconomic and demographic trends. According to projections, the market is set to grow from US$ 140.4 billion in 2025 to US$ 277.2 billion by 2032, registering a robust CAGR of 11.2% during the forecast period. This substantial growth reflects increasing consumer reliance on temporary and subscription-based vehicle access, rather than traditional ownership models, alongside a sharp rebound in global tourism and business travel.

Regional Outlook: Market Dynamics by Geography

North America remains a dominant force in the global car rental market, projected to capture 37.4% market share in 2025. The U.S. leads this region, with innovations like peer-to-peer (P2P) car-sharing disrupting traditional business models. Platforms like Turo are enabling individuals to rent out their own vehicles, offering customers a broader range of options including luxury and electric vehicles. Turo alone operates in over 5,500 U.S. cities and has more than 3 million active users.

Asia Pacific is set to emerge as the fastest-growing region, driven by mobile-based rental apps in countries like India, China, and Indonesia. Startups such as Zoomcar and Revv cater to the middle-income demographic with low-cost, on-demand rental options. Luxury rentals are also gaining ground in Asia, particularly in tourist-heavy cities and business hubs.

Europe is seeing steady growth, bolstered by tourism, digital transformation, and EV adoption. In France, initiatives like the government’s €100/month EV leasing program generated 90,000 applications within six months, far exceeding supply. Although temporarily halted, the program is set to return in 2025, fueling further demand. Germany is also witnessing increased tourist-driven car rentals for exploring iconic landscapes like the Bavarian Alps.