South Korea Car Rental Market Report and Forecast 2025-2034

South Korea Car Rental Market Outlook

The South Korea car rental market size was nearly 1.51 billion in 2023. The market is estimated to grow at a CAGR of 1.2% during 2024-2032, to reach 1.68 billion by 2032.

Key Trends in the South Korea Car Rental Market

Car rental is the process of provisionally renting a vehicle from a car rental agency or company. It gives individuals access to a car for a specified period of time, ranging from a few hours to several days, weeks or months. Rapid urbanisation, technological advancements, and expansion of the travel and tourism sector are some of the factors driving the market growth.

• The expansion of the tourism sector in the country is aiding the South Korea car rental market growth. Nowadays, tourists and travellers prefer renting cars for short trips. The strategic location of car rental agencies, including busy urban areas and near airports, coupled with the availability of online booking are supporting the market expansion.

• With the progress of technology, the penetration of mobile phones and internet is on the rise. It has now become easier for companies to captivate prospective customers through their websites and mobile applications. Additionally, customers can choose from a wide range of rental car service providers, allowing them to select the service most suitable to their requirements and avail lucrative discounts and offers.

• The availability of a wide range of cars by rental car services providers is further supporting the market expansion. It allows customers to choose from a variety of vehicles, ranging from economical cars to luxury cars. Buyers can rent vehicles as per their preferences and requirements, which helps enhance their overall experience.

South Korea Car Rental Market Segmentation

On the basis of booking type, the market is bifurcated into online access and offline access. Based on vehicle type, the market is divided into economy/budget cars, luxury/premium cars, MUVs, and SUVs. On the basis of application, the market is bifurcated into business and leisure/tourism.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in South Korea car rental market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

• The Hertz Corporation 

• Avis Budget Group, Inc.

• Enterprise Holdings, Inc.

• Lotte Corporation 

• Uber Technologies Inc. 

• Booking Holdings Inc.,

• SK Networks Co. Ltd.  

• AJ Networks Co., Ltd 

• Vacaciones eDreams S.L.U. 

• Others

South Korea Car Rental Market Share by Booking Type

As per the South Korea car rental market analysis, online access accounts for a significant share of the market. Online booking of rental cars eliminates the hassle associated with offline bookings and allows customers to browse and book cars through websites or mobile applications. The convenience offered by these services coupled with the availability of pre-booking options is supporting the segment growth. The availability of various discounts and offers across online channels is further boosting their popularity in South Korea.

South Korea Car Rental Market Share by Vehicle Type

Economy cars account for a significant South Korea car rental market share. Economy/budget cars are smaller and cost efficient in nature. They are generally compact, lightweight, and inexpensive to both producers and consumers. Due to the low maintenance and procurement costs associated with economy cars, their popularity is increasing in the car rental sector in South Korea. The increased footfall of domestic and international tourists in South Korea is further supporting the segment growth and boosting the South Korea car rental market demand.

Competitive Landscape

The Hertz Corporation is a car rental agency located in Seoul, South Korea. The company is known to offer 24x7 services and provides a wide variety of economy, luxury, and SUV rental cars which are suitable for any budget and occasion. The car range includes Nissan Versa, Toyota Corolla, and Chevrolet Impala, among others.

Enterprise Holdings, Inc. is an American private holding company headquartered in Missouri, United States. It is the parent company of various car rental agencies, including National Car Rental, Enterprise Rent-A-Car, and Alamo Rent a Car. It also provides commercial fleet management services and sells used cars.

Avis Budget Group, Inc. is an American car rental agency headquartered in New Jersey, United Staes.  The company offers a wide range of rental cars including electric cars, luxury cars, SUV rentals, and van rentals, among others.

Other key players in the South Korea car rental market are Lotte Corporation, Uber Technologies Inc., Booking Holdings Inc., SK Networks Co. Ltd., AJ Networks Co., Ltd, and Vacaciones eDreams S.L.U., among others.

Key Highlights of the Report