The U.S. Car Rental Market was valued at USD 37.88 Billion in 2024, and is projected to reach USD 56.27 Billion by 2030, rising at a CAGR of 7.50%. The increasing demand for tourism-related travel has significantly boosted the market. Travelers, both domestic and international, are opting for rental vehicles to explore destinations with greater flexibility and comfort. This trend is further supported by the rise in leisure and business travel, which has created a consistent need for convenient transportation options. This growth is particularly pronounced in urban centers, tourism hubs, and business corridors.
Following the relaxation of pandemic-related restrictions, the United States has witnessed a resurgence in both domestic and international tourism. According to the U.S. Travel Association, domestic travel spending surpassed pre-pandemic levels in 2023, while inbound travel continued its recovery trajectory. This upswing has directly benefited airport-based and leisure-focused car rental providers, particularly in high-traffic destinations such as Orlando, Las Vegas, and Los Angeles.
Consumers are increasingly valuing flexibility over ownership, particularly in urban environments where the total cost of vehicle ownership-factoring in insurance, parking, and depreciation-has escalated significantly. This trend is further amplified among younger demographics and business travelers who seek convenience and reduced commitment. For instance, Hertz and Enterprise have reported growing interest in subscription-based rental models and short-duration rentals facilitated through mobile apps.
As business travel resumes, albeit selectively, car rental companies are witnessing an uptick in demand from corporate clients, particularly for regional travel and inter-city movement. Companies are also turning to rental fleets to supplement transportation needs for employees in hybrid work models. For example, Avis Budget Group highlighted in its quarterly filings that business travel volume was contributing to revenue stabilization and growth in key markets.
Technological advancements have revolutionized the U.S. car rental industry. Integrating online platforms and mobile applications has streamlined the booking process, making it more accessible and user-friendly. Features such as digital payments, vehicle selection, and app-based unlocking have enhanced customer satisfaction and expanded the market. For instance, Enterprise, National, and Alamo leverage digital platforms and IoT for streamlined booking, contactless operations, and enhanced fleet management.
The adoption of electric vehicles (EVs) in rental fleets is gaining traction. As consumers become more environmentally conscious, rental companies are incorporating EVs to meet the demand for sustainable transportation solutions. This shift aligns with global sustainability goals and attracts eco-minded travelers. For instance, in August 2022, European electric vehicle rental startup UFODrive launched in San Francisco, marking its entry into the U.S. market. The company offers contact-free EV rentals amid high gas prices, rental car shortages, and rising demand for electric vehicles. UFODrive was launched in New York and Austin in October, followed by rapid European growth.
The growing emphasis on hygiene and safety protocols, especially post-pandemic, has increased consumer confidence in car rental services. Companies are investing in sanitization measures and offering diverse vehicle options to cater to varying customer preferences, further driving market growth.
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Following the relaxation of pandemic-related restrictions, the United States has witnessed a resurgence in both domestic and international tourism. According to the U.S. Travel Association, domestic travel spending surpassed pre-pandemic levels in 2023, while inbound travel continued its recovery trajectory. This upswing has directly benefited airport-based and leisure-focused car rental providers, particularly in high-traffic destinations such as Orlando, Las Vegas, and Los Angeles.
Consumers are increasingly valuing flexibility over ownership, particularly in urban environments where the total cost of vehicle ownership-factoring in insurance, parking, and depreciation-has escalated significantly. This trend is further amplified among younger demographics and business travelers who seek convenience and reduced commitment. For instance, Hertz and Enterprise have reported growing interest in subscription-based rental models and short-duration rentals facilitated through mobile apps.
As business travel resumes, albeit selectively, car rental companies are witnessing an uptick in demand from corporate clients, particularly for regional travel and inter-city movement. Companies are also turning to rental fleets to supplement transportation needs for employees in hybrid work models. For example, Avis Budget Group highlighted in its quarterly filings that business travel volume was contributing to revenue stabilization and growth in key markets.
Technological advancements have revolutionized the U.S. car rental industry. Integrating online platforms and mobile applications has streamlined the booking process, making it more accessible and user-friendly. Features such as digital payments, vehicle selection, and app-based unlocking have enhanced customer satisfaction and expanded the market. For instance, Enterprise, National, and Alamo leverage digital platforms and IoT for streamlined booking, contactless operations, and enhanced fleet management.
The adoption of electric vehicles (EVs) in rental fleets is gaining traction. As consumers become more environmentally conscious, rental companies are incorporating EVs to meet the demand for sustainable transportation solutions. This shift aligns with global sustainability goals and attracts eco-minded travelers. For instance, in August 2022, European electric vehicle rental startup UFODrive launched in San Francisco, marking its entry into the U.S. market. The company offers contact-free EV rentals amid high gas prices, rental car shortages, and rising demand for electric vehicles. UFODrive was launched in New York and Austin in October, followed by rapid European growth.
The growing emphasis on hygiene and safety protocols, especially post-pandemic, has increased consumer confidence in car rental services. Companies are investing in sanitization measures and offering diverse vehicle options to cater to varying customer preferences, further driving market growth.
U.S. Car Rental Market Report: Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, the analyst has segmented the U.S. car rental market report based on vehicle type, application, and booking mode:Vehicle Outlook (Revenue, USD Million, 2018-2030)
- Luxury cars
- Executive cars
- Economy cars
- SUVs
- MUVs
Application Outlook (Revenue, USD Million, 2018-2030)
- Local usage
- Airport transport
- Outstation
- Others
Booking Mode Outlook (Revenue, USD Million, 2018-2030)
- Offline/Direct
- Online
Why Should You Buy This Report?
- Comprehensive Market Analysis: Gain detailed insights into the market across major regions and segments.
- Competitive Landscape: Explore the market presence of key players.
- Future Trends: Discover the pivotal trends and drivers shaping the future of the market.
- Actionable Recommendations: Utilize insights to uncover new revenue streams and guide strategic business decisions.
This report addresses:
- Market intelligence to enable effective decision-making
- Market estimates and forecasts from 2018 to 2030
- Growth opportunities and trend analyses
- Segment and regional revenue forecasts for market assessment
- Competition strategy and market share analysis
- Product innovation listings for you to stay ahead of the curve
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. U.S. Car Rental Market Variables, Trends & Scope
Chapter 4. Consumer Behavior Analysis
Chapter 5. U.S. Car Rental Market: Vehicle Type Estimates & Trend Analysis
Chapter 6. U.S. Car Rental Market: Application Estimates & Trend Analysis
Chapter 7. U.S. Car Rental Market: Booking Mode Estimates & Trend Analysis
Chapter 8. U.S. Car Rental Market: Competitive Analysis
List of Tables
List of Figures
Companies Mentioned
The companies profiled in this U.S. Car Rental market report include:- Enterprise Holdings, Inc.
- The Hertz Corporation
- Avis Budget Group
- Sixt
- Fox Rent A Car
- Turo
- Getaround
- Midway Car Rental
- Dollar
- Europcar
Methodology
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