Japan Online Car Rental Market Size, Share, Trends and Forecast by Booking Type, Rental Length, Vehicle Type, Application, Payment Mode, Service Type, and Region, 2026-2034

Description

The Japan online car rental market size reached USD 2,837.3 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 5,356.1 Million by 2034, exhibiting a growth rate (CAGR) of 7.32% during 2026-2034. At present, domestic tourists are proactively looking for hassle-free and customized travel. Moreover, car rental firms across Japan are aggressively shifting towards digital platforms to serve their increasingly technology-savvy customer base. Apart from this, the increasing number of individuals preferring short-term, flexible transportation means over car ownership is expanding the Japan online car rental market share.

JAPAN ONLINE CAR RENTAL MARKET TRENDS:

Growing Demand for Convenient Travel Solutions Among Domestic Travelers

The Japanese online automobile rental market is experiencing strong growth as domestic tourists are proactively looking for hassle-free and customized travel. With Japan's long network of railways becoming crowded in peak travel periods, tourists are opting for rented cars to visit off-the-beaten-path locations with more flexibility. Couples, families, and individual tourists are using online renting websites to reserve cars that meet their traveling schedules. These websites are providing real-time car availability, route proposals, and electronic payment processing, making traveling hassle-free. Since individuals living in urban areas are moving towards digital-first solutions, inclusion of easy-to-use mobile applications is also increasing accessibility. Online car rentals are also facilitating rural tourism by promoting easier travel to rural areas with few public means of transport. This rising trend is complementing the government's attempts to increase regional tourism, hence driving the use of app-based car rentals by local tourists in Japan. In 2024, Rakuten Group Inc. announced that its travel booking service Rakuten Travel, a premier online travel agency in Japan, launched its car rental reservation service for visitors to Japan in several languages. The service accommodated customers speaking English, Korean, and Traditional Chinese (Taiwan), along with Japanese.

Increasing Use of Online Platforms by Car Rental Operators

Car rental firms across Japan are aggressively shifting towards digital platforms to serve their increasingly technology-savvy customer base. The firms are now investing in the development of apps, artificial intelligence (AI)-based fleet management, and contactless customer support systems to simplify processes and enhance the efficiency of services. With the push towards online reservations, businesses are risingly updating their reservation systems and visibility to vehicle inventories. This digital revolution is enabling customers to choose cars based on their actual availability, prices, and location choice. Companies are also integrating dynamic pricing mechanisms and customer feedback interfaces to drive personalization. Through collaborations with travel aggregators and digital wallets, car hire companies are making it larger and more secure. With the need for convenience increasing, companies are adopting omnichannel approaches that combine web-based interfaces and mobile apps. This digital strategic shift is taking center stage in making car rentals online more accessible, scalable, and attractive to a wider group of people. In 2024, PARK24 CO., LTD. declared its decision to launch a pilot ride-hailing service in collaboration with Uber Japan Co., Ltd. The rise-haling service is made by employing vehicles of the Times CAR car sharing service managed by the PARK24 GROUP. The pilot program began functioning with the assistance of Royal Limousine Co., Ltd., a corporate taxi service operator that is a partner of Uber.

Rising Shifts in Mobility Habits

Urban developments in Japan are bringing a significant change in mobility needs, as an increasing number of individuals prefer short-term, flexible transportation means over car ownership. In highly developed cities such as Tokyo, Osaka, and Yokohama, city dwellers are using online car rental services to use cars only when necessary. The trend is picking up pace due to the high cost of maintaining vehicles, lack of parking areas, and heightened environmental consciousness. The younger generation, in turn, is indicating a strong preference for shared mobility rather than ownership, driving the demand for online car rentals. The industry is reacting by providing small, fuel-sipping, and hybrid cars to fit the needs of urban driving. Mobile-based reservation platforms are allowing users to rent and return cars from multiple sites, providing more flexibility and minimizing the need for permanent car ownership. With individuals giving more importance to sustainability, cost-effectiveness, and convenience, web-based car renting platforms are becoming a key part of contemporary urban transportation systems.

JAPAN ONLINE CAR RENTAL MARKET SEGMENTATION:

Booking Type Insights:

Mobile Application-Based
Website-Based

Rental Length Insights:

Short Term
Long Term

Vehicle Type Insights:

Luxury
Executive
Economy
SUVs
Others

Application Insights:

Leisure/Tourism
Business

Payment Mode Insights:

Online Payment
Cash on Delivery

Service Type Insights:

Self-Driven
Chauffeur-Driven

Regional Insights:

Kanto Region
Kansai/Kinki Region
Central/ Chubu Region
Kyushu-Okinawa Region
Tohoku Region
Chugoku Region
Hokkaido Region
Shikoku Region
The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

COMPETITIVE LANDSCAPE:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

KEY QUESTIONS ANSWERED IN THIS REPORT
How has the Japan online car rental market performed so far and how will it perform in the coming years?
What is the breakup of the Japan online car rental market on the basis of booking type?
What is the breakup of the Japan online car rental market on the basis of rental length?
What is the breakup of the Japan online car rental market on the basis of vehicle type?
What is the breakup of the Japan online car rental market on the basis of application?
What is the breakup of the Japan online car rental market on the basis of payment mode?
What is the breakup of the Japan online car rental market on the basis of service type?
What is the breakup of the Japan online car rental market on the basis of region?
What are the various stages in the value chain of the Japan online car rental market?
What are the key driving factors and challenges in the Japan online car rental market?
What is the structure of the Japan online car rental market and who are the key players?
What is the degree of competition in the Japan online car rental market?

Product Code: SR112026A36646

1 Preface

2 Scope and Methodology

2.1 Objectives of the Study
2.2 Stakeholders
2.3 Data Sources
- 2.3.1 Primary Sources
- 2.3.2 Secondary Sources
2.4 Market Estimation
- 2.4.1 Bottom-Up Approach
- 2.4.2 Top-Down Approach
2.5 Forecasting Methodology

3 Executive Summary

4 Japan Online Car Rental Market - Introduction

4.1 Overview
4.2 Market Dynamics
4.3 Industry Trends
4.4 Competitive Intelligence

5 Japan Online Car Rental Market Landscape

5.1 Historical and Current Market Trends (2020-2025)
5.2 Market Forecast (2026-2034)

6 Japan Online Car Rental Market - Breakup by Booking Type

6.1 Mobile Application-Based
- 6.1.1 Overview
- 6.1.2 Historical and Current Market Trends (2020-2025)
- 6.1.3 Market Forecast (2026-2034)
6.2 Website-Based
- 6.2.1 Overview
- 6.2.2 Historical and Current Market Trends (2020-2025)
- 6.2.3 Market Forecast (2026-2034)

7 Japan Online Car Rental Market - Breakup by Rental Length

7.1 Short Term
- 7.1.1 Overview
- 7.1.2 Historical and Current Market Trends (2020-2025)
- 7.1.3 Market Forecast (2026-2034)
7.2 Long Term
- 7.2.1 Overview
- 7.2.2 Historical and Current Market Trends (2020-2025)
- 7.2.3 Market Forecast (2026-2034)

8 Japan Online Car Rental Market - Breakup by Vehicle Type

8.1 Luxury
- 8.1.1 Overview
- 8.1.2 Historical and Current Market Trends (2020-2025)
- 8.1.3 Market Forecast (2026-2034)
8.2 Executive
- 8.2.1 Overview
- 8.2.2 Historical and Current Market Trends (2020-2025)
- 8.2.3 Market Forecast (2026-2034)
8.3 Economy
- 8.3.1 Overview
- 8.3.2 Historical and Current Market Trends (2020-2025)
- 8.3.3 Market Forecast (2026-2034)
8.4 SUVs
- 8.4.1 Overview
- 8.4.2 Historical and Current Market Trends (2020-2025)
- 8.4.3 Market Forecast (2026-2034)
8.5 Others
- 8.5.1 Historical and Current Market Trends (2020-2025)
- 8.5.2 Market Forecast (2026-2034)

9 Japan Online Car Rental Market - Breakup by Application

9.1 Leisure/Tourism
- 9.1.1 Overview
- 9.1.2 Historical and Current Market Trends (2020-2025)
- 9.1.3 Market Forecast (2026-2034)
9.2 Business
- 9.2.1 Overview
- 9.2.2 Historical and Current Market Trends (2020-2025)
- 9.2.3 Market Forecast (2026-2034)

10 Japan Online Car Rental Market - Breakup by Payment Mode

10.1 Online Payment
- 10.1.1 Overview
- 10.1.2 Historical and Current Market Trends (2020-2025)
- 10.1.3 Market Forecast (2026-2034)
10.2 Cash on Delivery
- 10.2.1 Overview
- 10.2.2 Historical and Current Market Trends (2020-2025)
- 10.2.3 Market Forecast (2026-2034)

11 Japan Online Car Rental Market - Breakup by Service Type

11.1 Self-Driven
- 11.1.1 Overview
- 11.1.2 Historical and Current Market Trends (2020-2025)
- 11.1.3 Market Forecast (2026-2034)
11.2 Chauffeur-Driven
- 11.2.1 Overview
- 11.2.2 Historical and Current Market Trends (2020-2025)
- 11.2.3 Market Forecast (2026-2034)

12 Japan Online Car Rental Market - Breakup by Region

12.1 Kanto Region
- 12.1.1 Overview
- 12.1.2 Historical and Current Market Trends (2020-2025)
- 12.1.3 Market Breakup by Booking Type
- 12.1.4 Market Breakup by Rental Length
- 12.1.5 Market Breakup by Vehicle Type
- 12.1.6 Market Breakup by Application
- 12.1.7 Market Breakup by Payment Mode
- 12.1.8 Market Breakup by Service Type
- 12.1.9 Key Players
- 12.1.10 Market Forecast (2026-2034)
12.2 Kansai/Kinki Region
- 12.2.1 Overview
- 12.2.2 Historical and Current Market Trends (2020-2025)
- 12.2.3 Market Breakup by Booking Type
- 12.2.4 Market Breakup by Rental Length
- 12.2.5 Market Breakup by Vehicle Type
- 12.2.6 Market Breakup by Application
- 12.2.7 Market Breakup by Payment Mode
- 12.2.8 Market Breakup by Service Type
- 12.2.9 Key Players
- 12.2.10 Market Forecast (2026-2034)
12.3 Central/ Chubu Region
- 12.3.1 Overview
- 12.3.2 Historical and Current Market Trends (2020-2025)
- 12.3.3 Market Breakup by Booking Type
- 12.3.4 Market Breakup by Rental Length
- 12.3.5 Market Breakup by Vehicle Type
- 12.3.6 Market Breakup by Application
- 12.3.7 Market Breakup by Payment Mode
- 12.3.8 Market Breakup by Service Type
- 12.3.9 Key Players
- 12.3.10 Market Forecast (2026-2034)
12.4 Kyushu-Okinawa Region
- 12.4.1 Overview
- 12.4.2 Historical and Current Market Trends (2020-2025)
- 12.4.3 Market Breakup by Booking Type
- 12.4.4 Market Breakup by Rental Length
- 12.4.5 Market Breakup by Vehicle Type
- 12.4.6 Market Breakup by Application
- 12.4.7 Market Breakup by Payment Mode
- 12.4.8 Market Breakup by Service Type
- 12.4.9 Key Players
- 12.4.10 Market Forecast (2026-2034)
12.5 Tohoku Region
- 12.5.1 Overview
- 12.5.2 Historical and Current Market Trends (2020-2025)
- 12.5.3 Market Breakup by Booking Type
- 12.5.4 Market Breakup by Rental Length
- 12.5.5 Market Breakup by Vehicle Type
- 12.5.6 Market Breakup by Application
- 12.5.7 Market Breakup by Payment Mode
- 12.5.8 Market Breakup by Service Type
- 12.5.9 Key Players
- 12.5.10 Market Forecast (2026-2034)
12.6 Chugoku Region
- 12.6.1 Overview
- 12.6.2 Historical and Current Market Trends (2020-2025)
- 12.6.3 Market Breakup by Booking Type
- 12.6.4 Market Breakup by Rental Length
- 12.6.5 Market Breakup by Vehicle Type
- 12.6.6 Market Breakup by Application
- 12.6.7 Market Breakup by Payment Mode
- 12.6.8 Market Breakup by Service Type
- 12.6.9 Key Players
- 12.6.10 Market Forecast (2026-2034)
12.7 Hokkaido Region
- 12.7.1 Overview
- 12.7.2 Historical and Current Market Trends (2020-2025)
- 12.7.3 Market Breakup by Booking Type
- 12.7.4 Market Breakup by Rental Length
- 12.7.5 Market Breakup by Vehicle Type
- 12.7.6 Market Breakup by Application
- 12.7.7 Market Breakup by Payment Mode
- 12.7.8 Market Breakup by Service Type
- 12.7.9 Key Players
- 12.7.10 Market Forecast (2026-2034)
12.8 Shikoku Region
- 12.8.1 Overview
- 12.8.2 Historical and Current Market Trends (2020-2025)
- 12.8.3 Market Breakup by Booking Type
- 12.8.4 Market Breakup by Rental Length
- 12.8.5 Market Breakup by Vehicle Type
- 12.8.6 Market Breakup by Application
- 12.8.7 Market Breakup by Payment Mode
- 12.8.8 Market Breakup by Service Type
- 12.8.9 Key Players
- 12.8.10 Market Forecast (2026-2034)

13 Japan Online Car Rental Market - Competitive Landscape

13.1 Overview
13.2 Market Structure
13.3 Market Player Positioning
13.4 Top Winning Strategies
13.5 Competitive Dashboard
13.6 Company Evaluation Quadrant

14 Profiles of Key Players

14.1 Company A
- 14.1.1 Business Overview
- 14.1.2 Services Offered
- 14.1.3 Business Strategies
- 14.1.4 SWOT Analysis
- 14.1.5 Major News and Events
14.2 Company B
- 14.2.1 Business Overview
- 14.2.2 Services Offered
- 14.2.3 Business Strategies
- 14.2.4 SWOT Analysis
- 14.2.5 Major News and Events
14.3 Company C
- 14.3.1 Business Overview
- 14.3.2 Services Offered
- 14.3.3 Business Strategies
- 14.3.4 SWOT Analysis
- 14.3.5 Major News and Events
14.4 Company D
- 14.4.1 Business Overview
- 14.4.2 Services Offered
- 14.4.3 Business Strategies
- 14.4.4 SWOT Analysis
- 14.4.5 Major News and Events
14.5 Company E
- 14.5.1 Business Overview
- 14.5.2 Services Offered
- 14.5.3 Business Strategies
- 14.5.4 SWOT Analysis
- 14.5.5 Major News and Events

15 Japan Online Car Rental Market - Industry Analysis

15.1 Drivers, Restraints, and Opportunities
- 15.1.1 Overview
- 15.1.2 Drivers
- 15.1.3 Restraints
- 15.1.4 Opportunities
15.2 Porters Five Forces Analysis
- 15.2.1 Overview
- 15.2.2 Bargaining Power of Buyers
- 15.2.3 Bargaining Power of Suppliers
- 15.2.4 Degree of Competition
- 15.2.5 Threat of New Entrants
- 15.2.6 Threat of Substitutes
15.3 Value Chain Analysis