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Car Rental Market to Make $176.2b by 2025

By Dipo Olowookere
Future Market Insights (FMI) has announced the release of its report titled ‘Car Rental Market: Global Industry Analysis and Opportunity Assessment 2015-2025.’
According to the report, the global car rental market, valued at $87.8 billion in 2014, is anticipated to reach $176.2 billion by 2025, expanding at a CAGR of 6.6 percent between 2015 and 2025.
The global car rental market is driven by rising global tourism industry, surge in public awareness about car rental services, easy booking via online services, introduction of new business concepts, increasing number of Internet users and rise in international tourist arrivals. Apart from this, growing GDP rates and increasing income levels in the developing regions are also positively influencing growth of the car rental market globally.
Increasing infrastructural developments, growing air travel, rise in demand for recreational activities and increasing urban population have widened the scope for car rental service providers. Conversely, stringent emission standards, low cost public transportation, and volatility in crude oil prices are some of the minor restraints in the global car rental market. Additionally, increasing mobile and Internet usage is also expected to drive growth of the global car rental market in the coming years. Growing investments by the industry players and increasing online presence of the car rental service providers is expected to further drive growth of global car rental market.
Rising technological developments are expected to offer favourable growth opportunities in the near future. Rapid urbanisation is leading to a rise in the mobility on-demand services, which include car sharing, short-term car rental services, etc., which are providing favourable prospects for growth of the car rental market.
North America dominated the global car rental market in 2014, in terms of revenue, accounting for 48.4 percent share of the overall market. However, APEJ (Asia Pacific Excluding Japan) is foreseen to expand at a relatively high CAGR of 10.2 percent during the forecast period. North America is expected to remain the most dominant global car rental market throughout the forecast period.
The major players in the market are focusing on expanding their global footprints through various mergers and acquisitions.
Rising consolidation in the car rental industry has facilitated market leaders, such as Enterprise Holdings Inc., to expand their respective businesses in various geographies, thereby increasing their market share. The U.S. is witnessing major investments by market players, along with increasing popularity of car sharing services.
By end use, the on-airport segment dominated the global car rental market in 2014 in terms of revenue, and is foreseen to expand at a CAGR of 8.2 percent during the forecast period. The on-airport car rental segment is expected to remain the most dominant segment in the global car rental market throughout the forecast period
By customer type, the leisure segment is foreseen to expand at a high CAGR of 8.6 percent during the forecast period. The segment is expected to dominate the global car rental market throughout the forecast period.
On the basis of booking type, the offline access dominated the global car rental market in 2014 in terms of revenue, accounting for 48.4 pecent share of the overall market in 2014. The market is expected to lose its market share to the mobile application segment, which is projected to expand at a CAGR 9.9 percent during the forecast period.
On the basis of sector, the unorganised segment dominated the global car rental market in 2014 in terms of revenue, accounting for 56.9 percent share of the overall market. However, the organised sector segment is foreseen to expand at a relatively high CAGR of 7.3 percent.
Competitive Landscape
Key market players covered in the reportinclude Enterprise Holdings Inc., The Hertz Corporation, Avis Budget Group, Inc., Europcar Group S.A., Carzonrent India Pvt Ltd., Sixt SE, Al Futtaim Group, Localiza- Rent a Car SA, Eco Rent a Car and GlobalCARS. The car rental market is consolidated in some regions such as the U.S. and Europe, with the top two players bagging over 50 percent shares of the total market. Most players in the market are engaged in various activities, such as mergers and acquisitions, increasing investments in technological developments, geographical expansion and brand building via strong marketing strategies, in order to sustain their position in the competitive market.
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Lagride Gets $100m UBA Loan for EV Charging Infrastructure, Others
By Modupe Gbadeyanka
The United Bank for Africa (UBA) Plc has provided a financing facility worth about $100 million to assist Lagride expand its electric vehicle charging infrastructure in Lagos State.
The loan would also be used by the company to scale its Drive-to-Own programme and enable 3,500 Lagos drivers to transition from daily earners into long-term asset owners, business operators and mobility investors.
The partnership strengthens Lagos State’s transportation ecosystem and accelerates the shift toward a structured, technology-enabled and financially bankable mobility sector.
Over the past 10 months, Lagride has rebuilt its entire onboarding and operational system for drivers, known as Lagride Captains.
The platform introduced a performance-led Drive-to-Earn structure supported by weekly and monthly rental models. This system has generated consistent 90-day usage and repayment data across the fleet, allowing UBA and other financial institutions to assess driver performance with accuracy, confidence and transparency.
Eligibility for the programme is based on clearly defined performance thresholds, repayment discipline, safety compliance and service consistency.
Through this approach, Lagride has emerged as the most structured, data-driven and credit-ready mobility platform in Nigeria, setting a new benchmark for bankable driver financing and asset ownership.
EV Infrastructure Expansion
As part of the milestone, Lagride also unveiled an expanded electric vehicle charging facility in Alausa, Lagos, reinforcing its long-term commitment to clean, future-ready mobility.
The expanded infrastructure is designed to support the growing electric vehicle segment within Lagride’s fleet, reduce operational downtime and enable more efficient, sustainable transportation at scale. By pairing driver financing with practical EV infrastructure, Lagride is positioning itself as a mobility platform built not just for today’s Lagos, but for the next generation of urban transport.
“Lagride was created to give Lagos a modern, disciplined and technology-driven mobility system while ensuring that drivers are not left behind.
“The goal is for drivers who we call Captains to become business owners, fleet partners and mobility investors, not just drivers.
“This $100 million partnership with UBA moves thousands of captains closer to owning productive assets, managing multiple cars and building stronger financial futures. It is a major step forward in our commitment to driver prosperity and the future of smart mobility in Lagos,” the chairman of Lagride, Ms Diana Chen, said.
On his part, the chief executive of UBA, Mr Oliver Alawuba, said Lagride represents the kind of transformational, well-governed and data-backed initiative that UBA exists to support across Africa.
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Police to Resume Tinted Glass Permit Enforcement January 2
By Aduragbemi Omiyale
The Nigeria Police Force has said it would begin the enforcement of the controversial tinted glass permit despite an ongoing case in the court.
In a statement on Monday night signed by its spokesman, Mr Benjhami Hundeyin, the police said the reason for the resumption of the enforcement was due to insecurity in the country.
The enforcement, the statement noted, will resume on Friday, January 2, 2026, and motorists who require the tinted glass permit have been encouraged to apply through the approved channels and ensure that their vehicles comply with legal procedures.
The police noted that there was not a time the court prevented it from going ahead with the implementation of the tinted glass permit, noting that this was for the “safety of all citizens.”
“It is important to clarify that at no point did the court restrain the Nigeria Police Force from enforcing the provisions of the law regarding the use of tinted glass on vehicles.
“Nonetheless, in the spirit of responsibility, transparency, and public convenience, the Force suspended enforcement to allow motorists ample opportunity to regularise their documentation and complete the registration process without pressure,” parts of the statement today stated.
“Recent trends, however, reveal a disturbing rise in criminal activities perpetrated with the aid of vehicles fitted with unauthorised tinted glass. Some individuals and organised criminal groups have exploited this gap to conceal their identities and facilitate crimes ranging from armed robbery to kidnapping and other violent crimes.
“In view of this, the Nigeria Police Force has found it both necessary and urgent to resume full enforcement as a proactive measure to safeguard our communities.
“Consequently, enforcement of tinted glass permit will resume on January 2, 2026,” it declared.
“The Inspector-General of Police (IGP) Kayode Adeolu Egbetokun, assures the public that the renewed enforcement will be carried out with utmost professionalism, respect for the rights of citizens, and in accordance with extant laws.
“He adds that the Force remains committed to promoting public safety and upholding the rule of law while working collaboratively with all stakeholders to keep Nigeria secure,” the statement added.
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Beer Sectoral Group, FRSC Promote Safer Roads With 2025 DDD Campaign
By Aduragbemi Omiyale
The 6th edition of the annual Don’t Drink & Drive (DDD) campaign of the Beer Sectoral Group (BSG) of the Manufacturers Association of Nigeria (MAN), organised in partnership with the Federal Road Safety Corps (FRSC), has officially flagged off.
The safer roads initiative commenced in Lagos with a press interaction and stakeholder briefing attended by FRSC officials, the BSG executive team, transport unions, and media organisations.
The DDD campaign reinforces BSG’s ongoing commitment to promoting responsible drinking and safer roads across Nigeria.
Chairman of the group, Mr Carlos Coutino, stressed the industry’s unwavering commitment to road safety and responsible drinking.
“The beer industry remains steadfast in its commitment to responsible drinking advocacy. The Don’t Drink & Drive campaign has been one of the Beer Sectoral Group’s flagship corporate social responsibility programmes since inception, aimed at saving lives and fostering safer transportation habits,” Mr Coutino stated.
In his welcome address, the Corps Commander, Mr Kehinde G. Hamzat, emphasised the heightened dangers on the roads during the festive season and the need for stronger public awareness:
“The risk of road crashes increases significantly during the festive season, which is why we must intensify public sensitization efforts. Collective awareness and responsible choices are critical to saving lives on our roads,” he said.
He lauded the BSG member companies for their consistent support of the FRSC in this initiative over the years, noting that their commitment has made a real impact in reducing avoidable accidents.
“I wish to express my profound appreciation to our esteemed stakeholders, Beer Sectoral Group for partnering with the Federal Road Safety Commission in the campaign for continued corporate social responsibility efforts towards ensuring safety on our roads,” he said.
In her closing remarks, the Executive Secretary of BSG, Mrs Abiola Laseinde, thanked the FRSC and transport stakeholders for their continued collaboration, underscoring the vital role of collective action in reducing avoidable accidents caused by drunk driving.
After the event, the team proceeded to major motor parks in Lagos, Berger and Ojota — for the park rallies.
At each location, commercial drivers and road users received safety sensitization, breathalyzer demonstrations, and branded educational materials. The rally also featured direct engagements with transport unions and drivers to reinforce the message of safety and responsible alcohol consumption.
The BSG comprises notable brewers like International Breweries Plc, Nigerian Breweries Plc, and Guinness Nigeria Plc.
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