Contactless Rentals: Industry Growth Trends 2025
Explore how contactless rentals are reshaping the rental industry with digital solutions, enhancing efficiency, security, and customer satisfaction.
Contactless rentals are transforming how people rent vehicles, trailers, and equipment. Driven by labor shortages, consumer demand for convenience, and advancements in digital tools, these systems automate the entire rental process - no staff required. By 2025, they’ve become the standard across the rental industry.
Key Takeaways:
- What it is: Contactless rentals use digital platforms, smart locks, and identity verification to let customers book, pick up, and return items without in-person interaction.
- Why it matters: Labor shortages and growing demand for fast, secure, and flexible rentals have made automation essential.
- Market growth: The U.S. car rental market is projected to reach $35.4 billion in 2025, while the global equipment rental market expects a 26% annual growth rate through 2032.
- Technology driving change: Tools like smart locks, GPS tracking, and platforms like Lockii simplify operations, reduce costs, and improve customer experiences.
Businesses embracing these systems are cutting costs, improving efficiency, and meeting modern expectations for speed, security, and convenience. Contactless rentals are no longer a trend - they’re the future of the rental industry.
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Growth Trends Across Key Rental Segments
The shift to contactless rental solutions is reshaping the landscape across trailers, vehicles, and equipment rentals. Each segment is adopting these technologies in its own way, driven by specific operational needs and customer preferences. Let’s take a closer look at how these industries are benefiting from this transformation.
Trailer Rentals: Taking the Lead
Trailer rentals are at the forefront of contactless adoption, thanks to the simplicity and scalability of the model. Traditionally, renting a trailer required on-site staff for tasks like handing over keys and managing paperwork. Now, digital platforms are eliminating these steps by enabling customers to handle pickups and returns independently, anytime they need - day or night. Features like automated bookings, digital locks, and self-service options streamline operations, making it easier to manage multiple locations. For example, platforms like Lockii integrate with tools like IglooHome, Stripe, and Zapier, offering seamless workflows and supporting rapid growth for trailer rental businesses.
Vehicle Rentals: Adapting to Modern Expectations
The vehicle rental industry is undergoing a digital transformation to meet the growing demand for fast, hassle-free experiences. Customers now expect to book vehicles without standing in long lines, verify their identities quickly, and complete vehicle inspections digitally. Mobile apps are stepping up to handle these tasks, offering features like digital agreements and self-service pickup and drop-off options. These advancements not only reduce wait times but also enhance customer satisfaction. The global car rental market is projected to grow at a compound annual growth rate (CAGR) of 9.77% between 2024 and 2033, with contactless solutions playing a pivotal role in driving this expansion.
Equipment Rentals: Boosting Efficiency
For equipment rental companies, contactless systems are proving to be game-changers. These businesses often deal with unpredictable rental durations and customers needing equipment outside of standard hours. Automating bookings and returns allows staff to focus on essential tasks like maintenance and customer support. Customers also benefit from more flexibility, as they can adjust or extend rentals in real time. Multi-location support makes it easy for equipment to be picked up at one site and returned at another, while automated workflows ensure maintenance schedules are handled seamlessly. With the equipment rental market expected to grow at a CAGR of 26% from 2023 to 2032, reaching $304.6 billion globally, these improvements are setting the stage for even more advancements in contactless rental technologies.
Technology Driving Contactless Rentals
The rise of contactless rentals has been fueled by key technologies that streamline operations and improve customer experiences. By addressing challenges such as labor shortages and the demand for faster, more secure services, these technologies eliminate traditional pain points and redefine rental processes.
Digital Platforms and Automation
At the core of contactless rentals are advanced software platforms that manage every stage of the rental process, from booking to return. Tools like Lockii bring automation to the forefront, offering a centralized system that simplifies the customer journey.
Lockii integrates seamlessly with payment solutions like Stripe, workflow tools like Zapier, and GPS tracking systems - all accessible through a single dashboard. This interconnected setup allows operators to oversee operations more efficiently, from inventory management to customer communications.
For businesses managing multiple locations, these platforms provide a game-changer. Centralized management across various sites enables companies to scale without needing a corresponding increase in staff. This is especially impactful in the trailer rental industry, where smart lock technology complements digital platforms to enable 24/7 access.
Smart Locks and 24/7 Access
Smart lock technology has completely transformed how rentals are picked up and returned. With unique access codes generated for each transaction, the need for physical keys is eliminated. These systems also assign inventory automatically based on usage patterns, boosting operational efficiency.
Businesses using smart locks report reduced downtime and staffing needs, all while offering customers the convenience of round-the-clock service. Customers can now pick up and drop off rentals at any time, without requiring staff assistance. After identity verification, the checkout process is nearly instant, taking just minutes instead of hours.
These locks integrate directly with rental platforms to ensure secure and timely access. Codes are sent to verified customers alongside clear instructions and location details, creating a seamless experience from start to finish.
Identity Verification and Fraud Prevention
To ensure security and prevent fraud, robust identity verification measures work hand-in-hand with automation and access control. Real-time systems confirm customer identities and contact details before granting access, significantly reducing risks while maintaining a smooth transaction process.
Security features go further by combining identity verification with GPS tracking and detailed audit logs. These logs document every interaction, creating a transparent record of who accessed what, when, and where. Additional trust-building tools - such as user ratings, biometric verification, and in-app dispute resolution - have further boosted confidence in contactless rental systems.
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Market Drivers and Consumer Preferences
The surge in contactless rentals heading into 2025 is a direct response to changing consumer expectations for rental experiences that are efficient, secure, and adaptable. Companies that align with these evolving preferences are well-positioned to thrive in this growing market. These shifts are also influencing how businesses prioritize operations within the contactless rental sector.
Convenience and Safety Lead the Way
Consumer habits have undergone a massive transformation since the pandemic, with convenience and safety emerging as critical factors in rental decisions. The global contactless stays market is forecasted to grow from $40.3 billion in 2023 to an impressive $304.6 billion by 2032, with North America leading the charge in adoption.
Today’s customers expect round-the-clock access without the need for staff involvement. For instance, in 2024, 75.7% of car rental customers expressed a preference for contactless options that reduce human interaction. But it’s not just about minimizing contact - customers also want the freedom to pick up and return rentals on their own schedules.
Safety expectations have evolved as well. Beyond basic health measures, renters now look for robust security features like advanced identity verification and transparent processes to safeguard personal data and transactions. Real-time verification systems and GPS tracking, once considered premium add-ons, are now standard offerings.
These consumer demands are perfectly aligned with advancements in technology, further cementing contactless solutions as the industry standard. This push for efficiency is also driving a broader shift in consumer behavior - away from ownership and toward more flexible rental models.
Moving from Ownership to Access
More and more consumers are choosing access over ownership, opting to rent vehicles, trailers, or equipment only when needed. This shift helps them sidestep the costs of maintenance, insurance, and depreciation. Urban areas, in particular, are seeing this trend take hold, as limited storage and infrequent use make on-demand rentals far more practical. For example, the U.S. car rental market is projected to hit $35.4 billion by 2025, reflecting this growing preference.
Subscription-based rental programs and peer-to-peer platforms are accelerating this transition by offering flexible, commitment-free options. The contactless model complements this trend perfectly, catering to consumers’ desire for convenience and adaptability.
Digital platforms make it easy for customers to modify, extend, or cancel rentals without needing to call or visit in person. Whether it’s upgrading equipment or extending a rental period, self-service portals provide the responsiveness modern users expect.
The financial benefits are equally compelling. Consumers avoid the steep upfront and ongoing costs of ownership, while businesses tap into a larger customer base. Environmental concerns are also driving this shift, as many renters prefer newer, more efficient - and often electric - options that align with their financial and sustainability goals.
Ben Keep, Operator of Hatoza, highlights how technology has simplified his operations:
"Lockii has significantly reducing complexity and allows me to focus more on running my business. The platform offers an intuitive interface, and the onboarding and ongoing support has been exceptional."
The combination of convenience, enhanced safety, and flexibility is propelling the rapid growth of contactless rental solutions. Businesses that adapt to these shifting consumer preferences are tapping into a growing market of customers who prioritize access over ownership.
Challenges and Future Opportunities
The contactless rental industry holds a lot of potential, but it’s not without its challenges. Businesses aiming to excel in this space need to navigate these hurdles while staying alert to the opportunities that come with them.
Tackling Operational and Regulatory Hurdles
Achieving success in contactless rentals involves overcoming several obstacles. One of the biggest issues is scaling operations, especially when faced with rising fleet maintenance costs and supply chain disruptions that impact vehicle and equipment availability. Implementing advanced technologies like AI-driven fleet management and predictive analytics demands specialized expertise, which can be expensive.
Then there’s the maze of state regulations. Stricter emission standards, varying insurance requirements, and zoning laws make transitioning to electric vehicles a costly necessity. Companies also need to ensure their platforms are accessible to all customers, including compliance with ADA standards, while maintaining ease of use.
Data security presents another significant challenge. With digital platforms at the core of contactless rentals, protecting sensitive customer information - like payment details and rental history - is non-negotiable. Businesses must adopt strong encryption, secure identity verification, and comply with regulations like the California Consumer Privacy Act (CCPA). Regular audits and employee training are critical for maintaining trust and preventing breaches.
Competition adds to the pressure. Ride-hailing services, subscription models, and peer-to-peer rental platforms are all vying for market share. Economic shifts, such as inflation or recessions, can also dampen travel demand, leaving fleets underutilized.
Despite these challenges, contactless technology opens up exciting opportunities for growth and innovation.
Opportunities for Growth Through Contactless Solutions
The future of the contactless rental market looks bright. The U.S. car rental market alone is expected to grow from $35.4 billion in 2025 to $56.9 billion by 2035, with a compound annual growth rate of 4.85%. Much of this growth will stem from digital transformation and the adoption of contactless technologies.
Technology is reshaping the way businesses operate. Platforms like Lockii are helping companies overcome traditional barriers by offering fully contactless self-hire solutions. These tools make it possible to expand into new locations without the need for additional staff or expensive physical locations, significantly altering the economics of the rental industry.
The benefits extend to day-to-day operations as well. Matt Cole, owner of Empire Trailer Hire, shared how consolidating multiple systems into one platform through Lockii transformed his business:
"Since switching to Lockii, things have gotten so much easier. I was juggling three different systems before, and now it's all in one place. It's saved me a heap of time and stress, and I can actually focus on running the business again."
One of the standout advantages of contactless technology is 24/7 automated access. With digital locks and automated systems, customers can pick up and return rentals on their own schedules, bypassing the constraints of traditional business hours. This not only enhances customer convenience but also reduces labor costs - a win-win for both sides.
Managing multiple locations has also become more efficient. Features like GPS tracking, centralized dashboards, and automated communication tools make it possible to oversee operations across cities or even states from a single platform. Mario Clewlow, operator of Hitch Haul, highlighted the impact of these advancements:
"Lockii has been a game changer for our trailer rental business. We now offer fully automated, contactless rentals. It's streamlined, secure, and exactly what our business needed to jump in front of our competitors!"
Fraud prevention and improved security are other key benefits. Advanced identity verification, automated communication, and detailed audit trails provide stronger safeguards than traditional manual processes. These features not only protect business assets but also help build customer confidence.
The cost savings from reduced labor, smaller real estate requirements, and automated processes can be reinvested into fleet expansion, technology upgrades, or market entry strategies. This creates a positive cycle of growth and reinvestment.
Sustainability is another area ripe for opportunity. As regulations tighten and customers increasingly prefer eco-friendly options, companies that adopt electric or hybrid fleets gain a competitive edge. Contactless systems make it easier to manage these advanced vehicle types, further streamlining operations.
Finally, the integration capabilities of modern platforms add even more value. Connections with tools like Stripe for payments, IglooHome for smart locks, and Zapier for automation enable businesses to deliver seamless experiences while cutting operational costs. These integrations also provide valuable data insights, helping refine pricing strategies and improve efficiency.
For companies ready to embrace contactless solutions, the timing couldn’t be better. The intersection of consumer demand, cutting-edge technology, and market growth presents a unique chance to lead the industry’s digital transformation. Investing in comprehensive contactless platforms today could set businesses up for long-term success.
Conclusion: The Future of Contactless Rentals
Contactless rentals have quickly become a cornerstone of modern consumer expectations, blending convenience with cutting-edge technology to streamline operations. As platforms evolve, they’re breaking down traditional barriers, offering scalable and integrated solutions that meet the growing demand for hassle-free experiences. This momentum is driving the rental industry into a new era of possibilities.
The numbers tell a compelling story. The global market for contactless stays is forecasted to skyrocket from $40.3 billion in 2023 to $304.6 billion by 2032, with an annual growth rate of 26%. Meanwhile, the U.S. car rental market is on track to hit $35.4 billion by 2025. Businesses that hesitate to adopt contactless solutions risk falling behind as competitors capitalize on these trends, delivering better customer experiences and more efficient operations.
What’s changed? The barriers to implementing contactless systems have significantly diminished. Thanks to advancements like payment processors (e.g., Stripe), smart lock providers (e.g., IglooHome), and automation tools (e.g., Zapier), businesses can now deploy comprehensive systems without needing deep technical expertise or massive upfront costs. These tools make it easier than ever to adopt a contactless approach.
The rental industry is on the brink of a transformation as profound as the retail shift from brick-and-mortar to e-commerce. Emerging technologies like AI for fleet management, blockchain-based contracts, and autonomous vehicles promise to reshape the landscape even further. However, the groundwork being laid today - through digital locks, automated workflows, and frictionless customer interactions - will define which companies thrive in this rapidly evolving market.
The future of contactless rentals revolves around creating a seamless blend of convenience, efficiency, and customer satisfaction. Businesses that act now to embrace these changes won’t just keep pace - they’ll lead the way into a new era of rental innovation.
FAQs
How do contactless rental systems ensure security and prevent fraud?
Contactless rental systems boost security and help prevent fraud by incorporating strong identity verification measures. Before gaining access to a rental, customers typically must confirm their identity and provide accurate contact information. This ensures that only the right individuals are granted access.
These systems also often feature tools like digital locks, GPS tracking, and automated notifications to keep assets secure and under supervision. By cutting down on manual checks, they simplify operations without compromising on safety.
What technologies are driving the rise of contactless rentals?
The growing popularity of contactless rentals is driven by key technologies that make the process smoother and more secure. Digital locks allow for 24/7 access, ensuring flexibility for customers. Identity verification adds a layer of security to transactions, while automation tools like SMS and email notifications keep users informed every step of the way.
On top of that, features such as GPS tracking and integrated booking systems streamline operations and make managing rentals much easier. Together, these tools not only boost efficiency but also deliver a hassle-free, self-service experience that aligns perfectly with the expectations of today’s customers. Plus, businesses can run effectively with fewer staff, making this model both practical and customer-friendly.
How is the shift from owning to accessing transforming the rental industry and customer preferences?
The shift from owning to accessing is redefining the rental industry, putting convenience and flexibility front and center for customers. With tools like digital locks, online booking platforms, and automated identity checks, renters can now pick up items whenever they want - no need for on-site staff.
This change doesn’t just improve the customer experience. It also helps businesses run more efficiently, cutting down on labor costs and making it easier to expand into new areas. The result? A smoother, more modern rental process that works for both businesses and their customers.