Driving into the future: Key mobility and car rental trends shaping 2025

The global mobility industry is on the cusp of transformative change. As technology accelerates, consumer behaviour evolves, and sustainability becomes a cornerstone of modern business, the car rental sector is emerging as a key player in redefining the future of transportation. What was once a simple convenience for travelers is now an ecosystem of innovation, offering smart, flexible, and environmentally responsible solutions. As we look ahead to 2025, here are five pivotal trends shaping the car rental industry’s future.

The rise of subscription-based car rentals

The next generation of consumers, particularly Gen Z, values flexibility above all else. They are less inclined to own vehicles or commit to long-term rentals, paving the way for subscription-based car rental models to dominate the market. Under these subscription services, customers can pay a fixed monthly fee for access to a range of vehicles tailored to their needs. What makes these models even more attractive is their bundled approach—insurance, maintenance, and roadside assistance are included in the package, making it a hassle-free alternative to car ownership. By 2025, seamless integrations between car rentals, airlines, hotels, and travel agencies will deliver personalized, sustainable travel experiences with enhanced convenience and affordability.

Smart mobility powered by AI and IoT

The integration of Artificial Intelligence (AI) and the Internet of Things (IoT) is revolutionizing the car rental industry, enabling smarter and more efficient operations. AI-powered systems will analyse demand patterns in real time, allowing rental companies to optimize fleet management and reduce operational costs. Predictive analytics will ensure that the right vehicles are available at the right locations, improving convenience for customers while maximizing utilization rates for businesses.

The writer is CEO of SelfDrive Mobility