Top Car Rental Statistics in the UK for 2023
Car rental businesses in the UK are growing exponentially as a significant sector in the transportation industry. It mainly benefits customers, rental companies, and automobile manufacturers. Such automakers were seen developing appealing programmes like vehicle leasing, enabling small businesses to expand without paying large sums.
The car rental market is poised for exceptional growth, attracting worldwide investors and top players. Read through as this article presents the crucial stats with UK car rentals: market size, share, development, and status on a global scale.
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- The car rental industry in the United Kingdom was worth 1.9 billion USD in 2022.
- As of 2023, 6.3 million Britons use car rental services.
- 84% of customers are more likely to use Enterprise as their car rental service provider in the UK.
- Surcharges for car rental users under the age of 25 start at £32.50 per day, as they have to pay for the "young driver fee."
- Men in the UK are 4 times more likely than women to rent a car.
How Big is the Car Rental Market in the UK?
The UK's car rental market was at a vast 1993.91 million USD in 2022. The revenue is anticipated to increase by more than 14.9% Compound Annual Growth Rate (CAGR) and reach 2480.3 million USD by 2027. Also, by 2027, the average revenue generated per user in the UK's car rental market will be 382.58 USD from 341.92 USD in 2023.
Future Market Insights says the market's expansion can be ascribed to people's growing desire for secure, convenient, lavish, and inexpensive travel in the various vehicle rental options available.
Learn more about the UK's growing car rental businesses in the following sections.
Statistics on the Economic Impact of the UK Car Rental Market
The car rental industry contributes significantly to the economy, generating £49 billion yearly, per the British Vehicle Rental and Leasing Association. It includes industry operations, the UK-made vehicles and engines it purchases, UK dealership activities, and its impact on the used car market.
It contributed £23.9 billion from rental and leasing activities alone and is responsible for £7.6 billion in annual taxes. The industry has produced and assisted jobs as well. In 2018, vehicle rental and leasing employed 52,700 employees and supported over 465,000 jobs. Below are more stats and figures on the UK car rental market that explain the booming industry.
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The global car rental market will be worth 244.59 billion by 2032.
(Precedence Research)
If you haven't considered owning a car rental business, maybe now is the time. In 2023, the global car rental market was at 119.34 billion USD. It is expected to grow to 244.59 billion USD by 2032 at a CAGR of 8.3% from 2023-2032, double its current value.
The global economic upswing, a rise in the usage of luxury automobiles for business trips, and the expanding tourism industry mainly drive car rental industry growth. Experts from Statista also expect an increase in the car rental market volume as there is worldwide growth in the travel and tourism sector, plus the increasing global number of flights taken.
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The UK is one of the leading car rental markets in Europe.
(Precision Reports)
Along with Germany, France, Italy, Russia, and Turkey, the UK is among those whose car rental market performs well. Regarding end-use, the UK has the leading segment in the on-airport type of car rental due to the numerous tourist arrivals. There is also an uptick in the usage of aeroplanes as locals' preferred form of transportation.
On a global scale, Precedence Research found that North America holds the highest revenue at 53.3%, Europe holds 28%, the Asia Pacific has 12%, Latin America is at 4%, and the Middle East with Africa was only 2% in 2022.
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UK Car rental users are expected to amount to 6.48 million by 2028.
(Statista)
Millions of people travel yearly, and many prefer renting cars as it can be affordable and convenient. There are already 6.3 million car rental users in the UK, and it's expected to be 3.36 million in 2024, 6.41 million in 2025, 6.45 million in 2026, and 6.48 million in 2027.
UK car rental industry statistics say the new peak for 2027 is an addition of 0.2 million from 2023 or a growth of more than 3.17%. As the number of car rental users is constantly increasing, so is the revenue of the car rental market in the UK.
UK Car Rental Trends and Patterns
Instead of spending much money to buy a car, why not rent one? It can be a cheaper, more convenient, and environment-friendly way of car ownership. You can choose between luxury cars, executive cars, economy cars, SUVs, and MUVs. Here are UK rent-a-car industry trends that make it easy for people to get around.
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Growth in overall online rental platforms.
(Mordor Intelligence)
As global smartphone users multiply, so does internet penetration. The availability of online booking systems and mobile applications makes car rentals more prominent in the UK. It also provides users with a straightforward, hassle-free mode of payment and improved security.
Added services like telematics are also included for faster deliveries and improved fleet management. Technology is now a critical tool for delivering consistently high-quality user experiences to travellers.
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Increased preference for shared cabs/ride-hailing.
(Statista)
In the UK's shared mobility market, ride-hailing has continuously increased over the past years; it is expected to increase by 3.31% from 2023 to 2027. Ride-hailing is the practise of summoning a car from a specific location and the driver to come immediately and take you somewhere. This means multiple passengers are sharing one ride.
Other than ride-hailing, daily commuters prefer booking shared cabs for work or city rides. Uber and Bolt are popular ride-hailing services in the UK, and Enterprise and The Hertz Corporation are some companies that offer ride-sharing services.
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Europcar gets the top car rental bookings in the UK.
(Statista)
Europcar, a global company that rents cars and vans, got the most reservations for hire cars in the UK, with 26% of all cases. Despite being the second-highest average price in the UK, this car rental service only gets midpoint reviews. Europcar also has negative reviews online, but Trustpilot claims the company has responded to almost all of them.
Pro Tip!
Browsing online reviews helps you avoid being ripped off of your car rental. For large brands, reviews may vary significantly based on location. Europcar at London Heathrow Airport has 1.8 out of 5 stars on Facebook, but other branches may have higher/lower ratings.
There are many solid options for rental in the UK. Avis seconds Europcar at 24%, Enterprise Rent-A-Car at 22%, Hertz at 19%, and so on. Here are their standings when compared by rental bookings:
Notably, only 15% of customers think they are well-informed about car rental choices. 22% tend to choose brands they know and trust when selecting car rental companies, and 17% value low prices over high quality.
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84% of customers are more likely to use Enterprise Rent-A-Car again.
(Statista)
Enterprise Holdings is the biggest car rental company in the UK, with more than 400 locations. Customers are most likely to rent it from ACE (74%), then Hertz (77%), and then Europcar Rental Company (76%). After National, Budget came in at 66%, AVIS at 64%, and SIXT at 57%. Only 50% said they would use National again.
Enterprise is an American private company, which explains its high brand awareness (84%) in the state, and 63% of people say they like the brand. It also got 22% of all UK car rental bookings and the highest brand awareness (81%) in the UK.
Pro Tip!
If you're wondering how much it is to rent a car in the UK, it varies by brand and company. According to KAYAK, Enterprise Rent-A-Car car hire starts at £17/day in London, while other companies like Hertz start at £12. You can save a fortune on your car rental by pre-booking online.
Statistics on Market Segmentation of the UK Car Rental Market
The number of car rental users in the UK is high, but data on its social demographics is lacking. Nevertheless, here's more crucial data from the car rental market.
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The minimum driving age to rent a car or van in the UK is 21-23.
(SIXT)
In most countries, drivers as young as 18 can book a car rental, but the UK requires you to be at least 21. You also have to face further restrictions for the vehicle type and model.
According to international vehicle rental company SIXT, if you are aged 21 and have held your driving licence for a minimum of 1 year, you are allowed to rent the following car types:
- Economy (e.g. Peugeot 208)
- Compact 4-5 Door (e.g. Citroen C3 Aircross, Skoda Fabia Estate)
- Compact Limousine/Sedan (e.g. Volkswagen Golf, Skoda Scala)
- Compact Waggon/Estate (e.g. Volkswagen Golf Estate, Peugeot 308 Estate)
- Compact SUV (e.g. Peugeot 2008 and Renault Captur)
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Car rental users under 25 get surcharges starting at £32.50 per day (including VAT).
(Compare the Market)
Statistics on car use in the UK show that driving is more expensive for young people. You must pay extra if you are younger than 25 and want to rent a car. This is called the "young driver fee."
Insurance companies and car rental companies charge "young driver fees" because they know that drivers under 25 are generally more likely to cause an accident. Teenage drivers don't have as much knowledge, so their claims cost more.
Younger drivers are also being priced out of car insurance. In September 2023, car insurance for young drivers soared to £1,792, an increase of 50% since 2022. This number means car insurance makes 63% of all vehicle expenses for the average young driver, as the total annual cost of running a car is around £2,863.
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Men are 4 times more likely to rent a car than women in the UK.
(Rhino Car Hire)
In the UK, 33.94 million females and 33.15 million males are among the 67 million+ total population (as of 2020). While females slightly outnumber males, there are more males renting cars. Rhino Car Hire discovered that men (82%) are more than four times as likely to rent a car than women (18%) in the UK.
Compared to other parts of the world, Australia has the highest proportion of women booking cars, at 30.7% female, and Saudi Arabia is the lowest, at 0%. Not to add fuel to the neverending debate of who is the better driver, but the same study suggests that while men are involved in more fatal road traffic accidents than women, they could be more confident and willing to drive a rental car abroad.
Conclusion
The UK has emerged as one of Europe's leading car rental markets. It contributes billions annually to the economy and, on the global scene, is set to double by 2032.
The latest industry trends indicate a rising number of car rental users, the growth of online rental platforms, and increased interest in ride-hailing and sharing services. The convenience and flexibility offered by these services, along with technological advancements, contribute to their popularity.
Overall, the current and future outlook of the UK car rental market is highly positive.
Frequently Asked Questions
What cars are rented the most in the UK?
According to Auto Europe, the UK's popular rental cars are Opel Corsa and Hyundai i30 for economy; Vauxhall Astra and Ford Focus for compact cars; Skoda Octavia and Citroen Picasso for midsize; Vauxhall Insignia and Ford Mondeo for full-size; Mercedes CLA and Porsche Boxster for luxury cars; and BMW X5 and Range Rover Sport for SUV/VAN.
What is the target audience of car rental?
Each company and car rental type has varying target markets. For instance, the primary target market for luxury car rentals is rich people and business travellers, but it also caters to events like weddings.
Why is renting a car necessary?
Renting a car lets you control your travel, gives you privacy, and avoids certain costs, as the company pays for its maintenance. It's also a considerable alternative for when your car is under repair.
What is the future of car rental?
The global car rental industry is doing well, and the future is promising. It adapts to emerging technologies, shifting customer preferences, and industry disruptions.
What is the difference between car hire and car rental?
"Car hire" is a term used by the British, while Americans say "car rental." Both terms mean the same thing.
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