Future of Mobile Apps in the Car Rental Industry – 2025 and Beyond

Mobile apps gained popularity around 2011-12, and today, every business, including car rental companies, has a mobile app. After enduring a lean phase during the pandemic, the car rental sector’s value rose to USD 140.74 billion in 2024 and is projected to reach USD 324.14 billion by 2034.

However, car rental companies cannot afford to be complacent. Customers expect more proactive service, transparency, and personalization. A Statista report states that users spend almost 4 hours and 39 minutes daily on mobile apps. Potential customers must see the value of a mobile app. Only then will they spend time on it. The solution lies in custom car rental mobile app development.

How should companies embrace new technologies to design cutting-edge mobile apps? What benefits will custom rental mobile app development bring? We know you have many questions. This blog will discuss the 10 most happening mobile app trends for car rental companies in 2024. Let’s get started.

10 Most Happening Mobile App Trends for Car Rental Companies

Below are the 10 most happening mobile app trends for car rental companies.

1. AI-Powered Personalization

Personalization is the new normal in the car rental sector. Customers want personalization experiences, and AI helps in the following ways –

• AI analyzes customers’ past behavior, preferences, and booking patterns.
• Provides tailored car options, pricing, and promotions.
• Suggests ideal vehicles based on past trips.
• Offers real-time discounts during peak travel periods.
• Ensures a customer-centric mobile app experience.
• Boosts customer satisfaction and loyalty.
• Creates a seamless and personalized booking process.

2. Seamless Integration With IoT

IoT connectivity has completely transformed the car rental sector. Integrating mobile apps with IoT offers the following benefits.

• IoT-connected vehicles enable mobile apps to provide real-time diagnostics and location tracking.
• Apps can alert users about low tire pressure or upcoming maintenance/vehicle breakdowns.
• Remote features include locking/unlocking vehicles and monitoring fuel levels.
• Users can pre-set climate controls for a seamless rental experience.

3. Blockchain Technology

Blockchain technology will transform how companies handle payments, contracts, and insurance claims.

• Leveraging blockchain allows Mobile apps to facilitate secure, transparent transactions.
• Blockchain reduces intermediaries and minimizes fraud risks.
• Decentralized storage enables secure rental agreements and identity verification.
• In this way, mobile apps streamline rentals, boosting trust and transparency.

4. Contactless Rentals

After the pandemic, contactless payments increased by 30%. The global contactless payment market’s value stood at USD 48.37 billion in 2024 and is projected to reach USD 213.39 billion by 2034. The car rental industry will benefit from mobile apps in the following ways.

• Customers can pick up and drop off vehicles without staff interaction.
• Keyless access via smartphones will become the new industry standard.
• Advanced features include unlocking, starting, and locking vehicles remotely.
• These features enhance convenience and support health and safety measures.
• Ideal for high-traffic areas like airports and city centers.

5. Smart City Integration

With the surge in the number of smart cities, integrating mobile apps with smart city infrastructure brings unimaginable benefits like the following –

• Real-time traffic, road conditions, and parking data will enhance journey planning.
• Apps will sync with city networks to offer tailored vehicle suggestions.
• This integration will improve user experience and journey efficiency.

6. Subscription-Based Models

Subscription-based models are becoming increasingly popular with customers due to their flexibility and simplicity. Depending on the requirements, customers can choose from long-term and short-term plans. The benefits of car rental mobile apps with subscription-based services include the following –

• Car rental apps will adapt by offering subscription-based vehicle access.
• Users can select from various cars for a fixed monthly fee.
• Subscription-based models emphasize access over ownership while meeting modern consumer demands.
• It provides flexibility and convenience without long-term leases or ownership costs.

7. Sustainability Features

Sustainability is not a mere buzzword anymore. Customers expect companies, including car rentals, to provide ethically sourced and environment-friendly offerings. The global EV market is worth 500 billion in 2024 and is projected to surpass $1.5 trillion in 2030 (CAGR of 17.8%). Car rental mobile apps will transform things in the following ways –

• Mobile apps will drive eco-friendly choices by enabling EV and hybrid vehicle rentals.
• Users can access fleet availability, charging stations, and energy consumption data.
• Apps empower eco-conscious customers to make informed decisions quickly.
• Car rental mobile apps are vital in the global shift toward sustainable transportation.
• These apps support the transition to greener, more innovative mobility solutions.

8. Enhanced UX with AR

In the coming years, augmented reality (AR) will dominate in enhancing user experiences while interacting with car rental mobile apps. Below are some ways these changes will play out.

• AR enables users to explore car models and features before booking virtually.
• Interactive AR maps guide users through rental locations and facilities.
• AR simplifies navigation in parking lots while enhancing convenience.
• Enhanced AR-driven interactions drive higher booking conversions.

9. Data Analytics

Car rental companies can leverage mobile apps to streamline and expand their operations while ensuring customer satisfaction. They can accomplish this in the following ways-

• Mobile apps collect and analyze user data for accurate demand predictions.
• These apps will optimize fleet utilization and improve maintenance scheduling.
• Predictive maintenance alerts operators about potential vehicle issues.
• This proactive approach reduces downtime and ensures vehicles remain in peak condition for customers.

10. Voice-Activated Commands

Voice-activated commands and chatbots have entered many sectors. Within a few years, these chatbots and voice assistants will transform car rental companies in the following ways –

• Car rental mobile apps will simplify bookings, modifications, and customer support via voice commands.
• AI chatbots will offer 24/7 assistance with reservations, payments, and vehicle-related issues.
• Real-time query responses with chatbots will enhance customer service.

Voice-activated features will provide a hands-free, convenient option for users traveling constantly or on a busy schedule.

Top 6 Challenges – Custom Car Rental Mobile App Development

The top 6 challenges that car rental companies face during custom app development include the following –

1. Data Security
   Challenge:Protecting customer data while managing evolving cybersecurity threats.
   Solution: Implement robust encryption and multi-factor authentication for secure transactions.
2. User Experience (UX) Design
   Challenge: Creating an intuitive, seamless interface for a diverse user base.
   Solution: Prioritize user-centric design with clear navigation and responsive features.
3. Fleet Management Systems Integration
   Challenge: Ensuring smooth integration with existing fleet management tools.
   Solution: Use API-based solutions for smooth connectivity with third-party systems.
4. Real-time Availability Tracking
   Challenge: Managing real-time car availability and booking updates.
   Solution: Incorporate real-time tracking systems with cloud-based data synchronization.
5. Payment Gateway Issues
   Challenge: Handling diverse payment methods securely and efficiently.
   Solution: Integrate multiple secure payment gateways with fraud detection features.
6. Regulatory Compliance
   Challenge: Ensuring robust compliance with changing local and international regulations.
   Solution: Update the app regularly to ensure adequate compliance with the local laws and data protection standards.

Final Thoughts

As market trends, customer preferences, and technologies evolve, car rental companies must pull up their socks. Custom car rental mobile app development is the key to exceeding client expectations while embracing new trends and technologies to stay competitive in 2025 and beyond. While AI-powered personalization, chatbots, and sustainability will remain at the forefront of this revolution, the latest trends and technologies will further enhance mobile app development.

However, developing a new car rental mobile app or altering an existing one to align with future goals and business objectives can be challenging. With over 6+ years of industry experience, a fleet of mobile app development experts, and proven experience, Tridhya Tech can help you achieve the aforementioned goals. No more New Year resolutions. Let’s make it happen.