| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 682.27 Million |
| Market Size (2030) | USD 988.63 Million |
| CAGR (2025 - 2030) | 7.70 % |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Philippines Car Rental Market Analysis
The Philippines Car Rental Market size is estimated at USD 682.27 million in 2025, and is expected to reach USD 988.63 million by 2030, at a CAGR of 7.7% during the forecast period (2025-2030).
Over the medium term, the car rental market in the Philippines has grown steadily for several reasons. One of them is the increasing cost of owning a car. Buying and maintaining a vehicle can be expensive due to gasoline and other maintenance expenses. Consequently, renting cars has become a popular choice among many individuals since it is more affordable.
One noteworthy trend in the Philippines is the increase in visitors and ex-pats, leading to a growing demand for automobile rental services. This demand stems from the increasing number of individuals visiting the country for either business or pleasure, requiring a reliable and convenient mode of transportation. For example:
- BPITCR expanded its fleet by introducing the Atto 3, an electric vehicle, through a partnership with BYD Cars Philippines in April 2024. This collaboration enhances Diamond Rent-a-Car's offerings, a company acquired by BPITCR, making it one of the largest providers in the local car rental industry.
Due to the increasing number of individuals traveling for business and leisure, there has been a notable rise in the demand for car rental services. As a result, car rental companies are experiencing a surge in their customer base, indicating the demand for their services from travelers and local commuters.
Philippines Car Rental Market Trends
Online Booking is Expected to Witness Significant Growth During the Forecast Period
Increased concern and awareness about the COVID-19 pandemic and its containment led to a rise in the availability of rental cars, making it easier for people to travel without worrying about vehicle expenses. The rental car market also benefits from the tourism industry, which has increased mobility options for travelers. This expansion of rental car services is mainly due to the proliferation of websites and other online platforms.
As the usage of the internet and smartphones increases among customers, there is a predicted rise in their inclination toward online booking. This inclination is attributed to the customers' desire for detailed access to accommodations, services, and other benefits. The Philippines has seen significant growth in internet infrastructure, contributing to a rise in internet users. As of 2023, approximately 69 million Filipinos had internet access, up from around 48 million in 2018. This surge has driven increased online activity, with users spending an average of nine hours online daily. This trend underscores the country's digital economy growth, supported by efforts to improve internet reliability and accessibility nationwide.
In recent years, the use of technology has become increasingly popular among clients looking to rent cars. This technology provides additional tools for monitoring the performance and maintenance of rental cars in real time. As a result, fleet managers and drivers are better equipped to identify potential problems and quickly implement improvements to their rental services.
The increase in internet booking can be attributed to three main factors: the desire for authentic travel experiences, convenience, and value for money. Start-ups and third-party travel booking businesses are using applications and websites to provide their services. Thus, consumers favor online booking over traditional booking.
Owing to such factors, the online booking segment is expected to witness major growth in the coming years.
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The Tourism Segment Holds a Significant Market Share
The Philippines is a nation that thrives on tourism, owing to its pristine white-sand beaches and hospitable people. In the past, the tourism industry contributed over 10% to the country's GDP. However, the pandemic-related international border closures and nationwide lockdowns led to a significant drop of almost 50% in the tourism industry’s direct gross value added over the last two years.
With the slow easing of travel restrictions and the acceleration of vaccination rollout in the country, the Philippine tourism sector is poised to make a strong comeback. The relaxation of testing and quarantine mandates is expected to boost the industry's momentum further, leading to a new era of growth and prosperity for the Philippine tourism ecosystem.
In recent years, there has been a noticeable trend of legal entities opting for car leasing as their preferred mode of transportation. There are several advantages of leasing a car, such as the availability of low monthly payments, tax benefits, the status of owning a new car every few years, and the added benefit of not having to worry about maintenance costs. This trend has gained popularity among businesses of all sizes, allowing them access to a fleet of new cars without the burden of ownership.
According to the Department of Tourism (DOT), the Philippines witnessed a remarkable surge in foreign tourism, with over 1.2 million tourists visiting the country during the initial two months of 2024. This is a significant achievement for the country's tourism industry, striving to attract more visitors and promote its diverse culture, breathtaking landscapes, and exceptional hospitality services.
With such developments across the country, the car rental service is expected to witness significant growth in the coming years.
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Philippines Car Rental Industry Overview
Key players such as Thrifty Car Rental, Enterprise Rent A Car LLC, and Europcar dominate the Philippine car rental market. To maintain an edge over their competitors, these leading rental companies are seeking funding to meet the market's growing demands. For instance:
- In August 2023, LXV Cars partnered with Louis Vuitton for a three-year car lease contract for a Mercedes Benz GLB 200, representing the changing dynamics of corporate transportation. Through this partnership, LXV Cars expanded its luxury car fleet.
- In March 2023, BPI Century Tokyo Lease and Finance Corp. (BPICT), through its subsidiary BPI Century Tokyo Rental Corp. (BPICTR), acquired one of the largest car rental companies in the Philippines, Diamond Rent-a-Car. Through this acquisition, the company improved BPICTR's core business by adding car rental, maintenance and repair, fleet management BPO, and 24-hour service to meet diverse demand and enhance service quality.
Philippines Car Rental Market Leaders
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Enterprise Holdings, Inc.
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Avis Rent A Car LLC
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Thrifty Car Rental
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Europcar Mobility Group
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LXV Cars LLC
- *Disclaimer: Major Players sorted in no particular order
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Philippines Car Rental Market News
- May 2024: BPI Tokyo Century Rental Corp. (BPITCR), a collaboration between Tokyo Century Corp. and Bank of the Philippine Islands (BPI), finalized its acquisition of Diamond IGB Inc., a local car rental company. This move is part of BPITCR's strategy to broaden its car leasing services in the Philippines.
- July 2023: LXV Cars opened a new store at Greenbelt, a renowned luxury shopping destination in Manila. As the premier choice for luxury transportation, the company provides 12 units of the opulent Toyota Alphard to transport VIP guests.
Philippines Car Rental Industry Segmentation
Car rental or car lease companies rent vehicles for a specific time for a set price. This service is frequently organized with multiple local offices, typically located around extensive city areas and backed by a website that allows online bookings.
The Philippine car rental market is segmented by booking type, rental duration, vehicle type, and application. By booking type, the market is segmented into online and offline booking. The market is segmented by rental duration into short-term and long-term. By vehicle type, the market is segmented into hatchbacks, sedans, sport utility vehicles, and multi-purpose vehicles. By application, the market is segmented into tourism and commuting. The market sizing and prediction are made for each segment based on the value (USD).
| By Booking Type | Online |
| Offline | |
| By Rental Duration | Short Term |
| Long Term | |
| By Vehicle Type | Hatchbacks |
| Sedans | |
| Sport Utility Vehicles | |
| Multi-purpose Vehicles | |
| By Application Type | Tourism |
| Commuting |
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Philippines Car Rental Market Research FAQs
How big is the Philippines Car Rental Market?
The Philippines Car Rental Market size is expected to reach USD 682.27 million in 2025 and grow at a CAGR of 7.70% to reach USD 988.63 million by 2030.
What is the current Philippines Car Rental Market size?
In 2025, the Philippines Car Rental Market size is expected to reach USD 682.27 million.
Who are the key players in Philippines Car Rental Market?
Enterprise Holdings, Inc., Avis Rent A Car LLC, Thrifty Car Rental, Europcar Mobility Group and LXV Cars LLC are the major companies operating in the Philippines Car Rental Market.
What years does this Philippines Car Rental Market cover, and what was the market size in 2024?
In 2024, the Philippines Car Rental Market size was estimated at USD 629.74 million. The report covers the Philippines Car Rental Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Philippines Car Rental Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Philippines Car Rental Industry Report
Statistics for the 2025 Philippines Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Car Rental analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
