United Kingdom Car Rental Market Report and Forecast 2025-2034

United Kingdom Car Rental Market Size

The United Kingdom car rental market is projected to grow at a CAGR of 8.5% between 2024 and 2032.

United Kingdom Car Rental Market Outlook

• As per the Office for National Statistics, in 2022, overseas residents made 31.2 million visits to the UK.

• As per the Office for National Statistics, on their visits to the UK overseas residents spent £26.5 billion.

• In the year 2022 UK residents spent £58.5 billion on visits abroad, a rise of £43.0 billion compared to 2021.

United Kingdom Car Rental Market Growth

Short-term rental bookings fuelled the United Kingdom car rental market growth due to their higher cost structure compared to long-term options.

Short-term car rentals swiftly provide convenient mobility solutions for travellers or those in urgent need of transportation, typically lasting from hours to days. The shorter duration of time compared with long-term rental periods is reflected in the transient nature of the service, resulting in higher costs when compared to long-term arrangements. The concept of immediate access however has a compelling draw.

As of April 2024, Chery, a Chinese automobile manufacturer entered an alliance with UK vehicle rental organization Octopus Electric Vehicles. This move came after the decision the UK organisation entered an arrangement with BYD to purchase 5,000 electronic vehicles over 3 years from the world's largest electronic vehicle maker.

Long-term car rentals furnish economical and eco-friendly transport options for extended periods, spanning from weeks to months or even years. These agreements come with additional services such as maintenance support as well as roadside assistance thereby catering for continued use by individuals, businesses, and organizations where dependability is key.

United Kingdom Car Rental Market Outlook Segmentation

United Kingdom Car Rental Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Booking Type

• Offline

• Online

Market Breakup by Rental Length Type

• Short-Term

• Long-Term

Market Breakup by Application Type

• Leisure/Tourism

• Business

Market Breakup by Vehicle Type

• Luxury/Premium Cars

• Economy/Budget Cars

• SUVs

• MUVs

Market Breakup by Region

• England

• Wales

• Scotland

• Northern Ireland

United Kingdom Car Rental Market Share

Growth in the car rental market in the UK is led by the more niche segment of consumers willing to pay premium prices for better amenities and status symbols. Luxury and premium cars usually include high-end vehicles from renowned brands known for their comfort, performance, and superior quality.

Leading Companies in the United Kingdom Car Rental Market

The UK car rental market provides flexibility, affordability, and convenience for both consumers and businesses. It boosts tourism, creates employment opportunities, and encourages sustainability with hybrid and electric vehicles.

• Avis Budget Group Inc.

• Enterprise Holdings, Inc.

• Hertz Global Holdings, Inc.

• Sixt SE

• Europcar International S.A.S.U

• Economy Car Hire Ltd.

• ALD Automotive Limited

• Hiyacar Ltd.

• Practical Car and Van Rental Limited

• Others

Major players in the market are expanding their outreach through mergers, acquisitions, and rising investment in innovative technology like digital transformation and customer experience enhancement on online modes.

Key Highlights of the Report