United Kingdom Car Rental Market

How big is the United Kingdom car rental market in 2026?

The market was valued at USD 3.8 billion in 2025 and is estimated to reach USD 4.0 billion in 2026. It is projected to grow at a CAGR of 5.4% from 2026 to 2036 and reach USD 6.8 billion by 2036.

Demand for car rental in the United Kingdom is shifting from counter-based hire to app-led booking, airport collection and short-notice business and replacement use, with inbound visitors and corporate accounts setting the pace. Digital booking and a growing share of hybrid and electric cars are reinforcing that shift, and the market is expected to keep expanding steadily through 2036. The visitor base is large but uneven: VisitBritain’s August 2026 forecast puts inbound visits at 44.2 million, up 2%, with spending of GBP 33.9 billion (USD 45.8 billion). Official data show the same unevenness, with overseas visits up 5.5% in the third quarter of 2025 and down 2.7% in the fourth. Operators are meeting this demand with tighter fleets. Hertz’s second-quarter revenue rose 10% to USD 2,396 million on an average fleet 1% smaller, and Avis’s International rental days fell 3% to 11.31 million in the same quarter. Against that background, the market is estimated to grow by 5.3% in 2026, from USD 3.8 billion to USD 4.0 billion, on pricing and fleet utilisation more than on the number of rental days.

Market Size & Forecast

Table 1: United Kingdom Car Rental Market Size and Forecast (USD billion and CAGR percentage), 2025 to 2036

Market size and forecast	Value
2025 Value	USD 3.8 billion
Estimated market size in 2026	USD 4.0 billion
Projected market size by 2036	USD 6.8 billion
CAGR (2026-2036)	5.4%
Added revenue, 2026 to 2036	USD 2.8 billion

Fleet availability will influence where the USD 2.8 billion added between 2026 and 2036 is earned. Sixt’s revenue in the rest of Europe rose 14.7% in the first half of 2026, helped by Mediterranean holiday destinations, while its average fleet grew 9% to about 199,900 vehicles.

Market Value and Growth

Table 2: Market Value and Growth for the United Kingdom Car Rental Market (USD billion and CAGR percentage), 2025 to 2036

Market size and forecast	Value
2025 Value	USD 3.8 billion
2026 Value	USD 4.0 billion
2036 Value	USD 6.8 billion
2026 to 2036 CAGR	5.4%

The economy-car segment is projected to grow at a 4.7% CAGR and the on-airport segment at a 5.2% CAGR from 2026 to 2036. These segment forecasts are FMI estimates and differ from the overall market CAGR of 5.4%.

Key Market Trends & Insights

• By car type: Economy cars are estimated to account for 32.4% of revenue in 2026, as an individual vehicle class within the wider rental fleet.
• Overseas visits to Great Britain in 2025 came mainly from the United States at 5.5 million, France at 3.1 million and Germany at 2.8 million.
• Hertz’s transaction days were flat in the second quarter of 2026, while its adjusted corporate EBITDA rose to USD 81 million from USD 18 million.
• Avis reported total company fleet utilization of 72.6% in the second quarter of 2026, up 1.9 points.

Geographic Highlights

• London is the main demand centre for car rental in the United Kingdom, with Edinburgh and Manchester supporting growth.
• Plug-in vehicles make up about 10% of rental fleets against 5% of the UK car fleet.

Analyst Perspective

“The UK rental customer is booking on an app, collecting at an airport or a local branch and expecting the price on the screen to be the price at the counter. Operators that keep fleets full without adding hidden charges, and that offer electric and hybrid cars with clear charging guidance, will keep the customers who compare several providers.”

- Rahul Pandita, Principal Consultant, Future Market Insights.

How is the United Kingdom car rental market segmented?

The United Kingdom car rental market is segmented by car type and end use. By car type, the market is sub segmented into economy cars and other cars. By end use, it is sub segmented into on-airport and other rental uses.

Why are economy cars a key segment by car type?

Economy cars are estimated to account for 32.4% of revenue by car type in 2026. This share is an FMI estimate.

Table 3: Car Type Share for the United Kingdom Car Rental Market (percentage share of revenue), 2026 - FMI estimate

Segment	Share (2026)
Economy cars	32.4%
Other segments combined	67.6%

Source: Future Market Insights estimate.

An economy vehicle can suit a short business visit or a local journey with modest passenger and luggage needs. For a customer travelling light, paying for extra capacity adds little value, whereas a family carrying several bags may reach a different decision, even for a journey of the same length. Rental cost therefore has to be weighed against the space and configuration the trip requires, and clear descriptions of each class let customers make that comparison before booking. For operators, matching reservations to the available fleet helps them deliver the capacity promised at collection, which gives economy cars a practical role within a wider offer and leaves room for other classes where the journey needs more space.

Why are on-airport rentals important by end use?

On-airport rentals serve passengers collecting a vehicle around a flight. Their revenue growth outlook is distinct from their market share.

Collection near arriving passengers connects the rental with the next stage of a journey. A traveller booking around a flight needs to know where to collect the car and how its return fits the departure schedule, so the handover location and the return conditions carry real weight in the choice of offer. Neighbourhood branches serve a different need, with local households, businesses and replacement vehicles that involve no airport journey, and their usefulness depends on how easily the customer can reach the branch. Operators make each service easier to use by explaining the handover and return terms clearly and by preparing the booked vehicle for the agreed collection time.

What are the drivers, restraints and opportunities in the United Kingdom car rental market?

In the United Kingdom car rental market, travel recovery and flexible, app-led booking support a 5.4% CAGR through 2036. At the same time, weaker long-haul travel and higher air fares restrain faster expansion.

Driver: Inbound travel supports airport collections. Inbound visitors from nearby markets are the steadiest source of airport rentals, because they travel often and book late. VisitBritain forecast in August 2026 that European markets would grow 4% in visits and 7% in spending.

Restraint: Higher travel costs constrain long-haul demand. Long-haul visitors rent more cars per trip, and they are the group now travelling less. VisitBritain expects long-haul visits to fall 3% and long-haul spending 2% in 2026, with a high oil price pushing up air fares through jet fuel costs.

Opportunity: Clear pricing supports better rental yields. Operators that price well can lift revenue without adding rental days. Avis’s International revenue per day rose 3% to USD 62.78 in the second quarter of 2026 on 3% fewer rental days.

How do country forecasts compare?

Table 4: Country Growth Outlook for the United Kingdom Car Rental Market (CAGR percentage), 2026 to 2036 — FMI estimates

Country	CAGR (2026-2036)
England	5.4%
Scotland	5.4%
Wales	5.4%
Northern Ireland	5.4%

Source: Future Market Insights estimates.

The country profiles below are each projected to record an estimated 5.4% revenue CAGR from 2026 to 2036. These forecasts are FMI estimates.

What is the outlook for England?

The England profile is projected to record an estimated 5.4% revenue CAGR from 2026 to 2036.

What is the outlook for Scotland?

The Scotland profile is projected to record an estimated 5.4% revenue CAGR from 2026 to 2036.

What is the outlook for Wales?

The Wales profile is projected to record an estimated 5.4% revenue CAGR from 2026 to 2036.

What is the outlook for Northern Ireland?

The Northern Ireland profile is projected to record an estimated 5.4% revenue CAGR from 2026 to 2036.

Who are the notable companies in the United Kingdom car rental market?

Hertz, Avis Budget Group and Sixt are the companies covered in this report. Their offers differ by branch access, vehicle class and commercial terms, and providers can set themselves apart by making the booking and return arrangements clear and practical. Branch choice, car class and rental period shape how a customer organises a journey.

Key Developments in the United Kingdom Car Rental Market

• Hertz reported average rentable vehicles of 517,835 in the second quarter of 2026, up 1%, in its results of 6 August 2026.
• Avis reported a total company average rental fleet of 664,638 vehicles in the second quarter of 2026, down 5%, in its results of 28 July 2026.
• Sixt reported more than 2,300 branches at 30 June 2026, up 176, with new locations in Italy and Spain.
• VisitBritain lowered its 2026 inbound forecast on 27 August 2026 by 1.2 million visits and GBP 1.8 billion (USD 2.4 billion).

Key Players in the United Kingdom Car Rental Market

• Hertz
• Avis Budget Group
• Sixt

This Report Answers

• How large is the United Kingdom car rental market in 2026?
• What is the outlook for 2036?
• What is the added revenue between 2026 and 2036?
• How fast are on-airport rentals expected to grow?
• What share do economy cars hold?

United Kingdom Car Rental Market - Report Scope

Table 5: Report Scope for the United Kingdom Car Rental Market (coverage fields and definitions), 2026 to 2036

Coverage field	Report scope
Market breakdown	Car Type (Economy Cars, Other Cars); End Use (On-Airport, Other Uses)
Quantitative Units	Revenue in USD billion and CAGR from 2026 to 2036
Market Definition	Car rental services in the United Kingdom, including airport and neighbourhood rentals for leisure, business and replacement use
Regions Covered	United Kingdom (England, Scotland, Wales and Northern Ireland)
Key Companies Covered	Hertz, Avis Budget Group and Sixt
Forecast Period	2026 to 2036 (with 2025 historical baseline)
Approach	Combined primary interviews, secondary literature analysis, and top-down data triangulation
Countries Covered	United Kingdom
Nations Profiled	England, Scotland, Wales, Northern Ireland
Geography Scope	The United Kingdom is the national market. England, Scotland, Wales and Northern Ireland are its constituent nation profiles.

United Kingdom Car Rental Market - Research Methodology

The market assessment combines primary interviews with industry participants and secondary research drawn from company disclosures, trade data and industry publications. Market size is built from supply-side and demand-side estimates and validated top-down, and segment shares and competitive positioning are checked through data triangulation before publication.

United Kingdom Car Rental Market by Segments

By Car Type

• Economy cars
• Other cars

By End Use

• On-airport
• Other uses

Research Sources and Bibliography

• [1] VisitBritain. 2026 inbound tourism forecast, August update. 27 August 2026.
• [2] Hertz Global Holdings. Second quarter 2026 earnings release (SEC Form 8-K). 6 August 2026.
• [3] Avis Budget Group. Reports second quarter 2026 results (SEC Form 8-K). 28 July 2026.
• [4] Office for National Statistics. Travel Trends: 2025. 16 October 2026.
• [5] Auto Rental News. Sixt revenue tops $2.4 billion in first half of 2026. 14 August 2026.