Market Overview

According to the All Japan Rent-a-Car Association (ARA), the number of rental vehicles as of the end of March 2025 (FY2024) hit a record high of 1,168,522 units, up 6.6% from the previous fiscal year. Passenger car rental has grown steadily since 2022, driven by a resurgence of overall tourism including the return of inbound tourists, and fleet right-sizing at enterprises. Demand for trucks and special purpose vehicle rentals, which are largely used by construction industry engaged in public and private works, grew against the backdrop of reconstructions following the Noto Peninsula Earthquake and other natural disasters, as well as construction for the Osaka-Kansai Expo and semiconductor foundries and large-scale manufacturing facilities particularly in Kyushu region.

Meanwhile, the number of car sharing fleets reached 74,887 units* as of the end of March 2025 (FY2024), representing 12.0% increase from the previous fiscal year. Alongside the consumer shift to “access over ownership”, demand growth has been witnessed since the data aggregation started in 2022.
(*The number of vehicles used for car sharing is the estimate by Yano Research Institute, based on the data of the Foundation for Promoting Personal Mobility and Ecological Transportation.)

Noteworthy Topics

Average Rental Costs: Car Rental 11,304 Yen / Car Sharing Service 6,652 Yen

In March 2026, Yano Research Institute conducted a consumer survey on car rentals and car sharing. Target audience was domestic consumers, male and female, in their age between 20 and 69. According to 11,352 respondents who have used car rental, that average cost of car rental was \11,304. Meanwhile, according to 1,860 respondents who have used car sharing services, the average cost of car sharing was \6,652.

Furthermore, according to 500 respondents (multiple answers) randomly picked from users of each service, primary purpose for car rental was occasional events like trips and leisure, while for car sharing service also included much shorter trips such as grocery shopping. The gap between the average cost for car rental and car sharing stems most likely from this difference in purpose of use.
Amidst the resurgence of tourism demand, optimal fleet allocation that aligns with customer segment and usage is essential for market expansion.

Future Outlook

Demand for car rentals grew in tandem with the surge in the number of foreign tourists to Japan, fleet right-sizing at enterprises, and “access over ownership” among consumers. Coupled with the price rise due to price hike for raw materials and labor costs, the market size for car rentals is sized at approximately 1 trillion yen in 2025 and is expected to reach 1.2 trillion yen by 2030. 
The car-sharing services segment is further supported by the growing “access over ownership” trend and rising demand among corporate customers. The market size is valued at approximately 0.12 trillion yen in 2025 and is projected to reach 0.18 trillion yen by 2030.

Research Outline